NISM Series V A Mutual Fund Distributors Paper 01

Q1.Dividends that are paid by mutual funds can be paid out of __.
 Profits of the Asset Management Company
 Mark to Market profits
All realized and unrealised gains
 Distributable surplus only


Q2.When the distributors are impaneled, the mutual funds should categorize the customer relationship and transactions in which of the following ways?
Advisory, Sale
Advisory, Execution
 Financial Planning, Distribution
 Priority Sale, Retail Sale


Q3.In which of the following transactions a ‘Transaction charge’ can be deducted?
 Online purchases
 Systematic transfer plan (STP) transaction
 Purchases of Rs 10000 or more
 Purchase made on stock exchanges


Q4.The full form of AGNI is __.
 AMFI Guidelines for New Investors
 AMFI Guidelines for New issues and Investments
 AMFI Guidelines for Nominations and Investments
 AMFI Guidelines and Norms for Intermediaries


Q5.Mutual funds today are benchmarked to the Total Return variant of an Index (TRI) and not to the Price Return variant of an Index (PRI). What is the advantage of TRI over PRI? A) It ensures that the performance comparison is fair B) Increases transparency
 Only A
 Only B
 Both A and B


Q6.An investor purchases through a distributor 5000 units of a mutual fund scheme at a NAV of Rs 25. The current NAV of the scheme is Rs 43. What will be the trial commission for today if the trial commission rate is 1% per annum.
 Rs. 2150
 Rs. 33.1854
 Rs. 3.4246
 Rs. 5.8904


Q7.The form for registering a change in the default bank account has to be signed __.
 by the first holder only
 by all the holders of the folio
 according to the mode of holding of the folio
 by all the holders of the bank account


Q 8. Which of these statement(s) is/are true? A. Inequity investments, the probability of losing money over the long term is lesser than losing money in the short term B. Fundamental Analysis consists of studying the financial statements of a company and the candlestick charts
 Only A is correct
 Only B is correct
 Both A and B are correct
 None of the above


Q 9.Long Duration debt scheme invests in debt instruments with Macaulay duration __.
 between 1 year and 3 years
 below 1 year
 greater than 7 years
 6 months and 12 months.


Q 10.Which of the following information about mutual fund distributors who have multiple points of presence (more than 20 locations) must be disclosed by the AMCs? A) Distributor-wise gross inflows and net inflows B) Average assets under management C) Total commission and expenses paid to distributors
 B and C
 A and C
 A and B
All A, B, and C

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