NISM Series V A Mutual Fund Distributors Paper 02

Q1.A bond issued by a company has a coupon of 7%. The interest rate in the market for bonds of similar tenor and credit quality is now 8%. An investor holding the bond will see __.
The market price of the bond goes up
The market price of the bond goes down
The coupon of the bond goes up
 No change in the market price

 

Q 2.Which tax is payable on the redemption of units of Equity Oriented fund?
 Dividend distribution tax
 Securities transaction tax
 Wealth tax
 Alternate dividend tax

 

Q3.What would be the most appropriate benchmark for a short term debt scheme?
 10 year dated GoI security
 3 year dated GoI security
1-year T-Bill
 No such benchmark exists

 

Q 4.Can Indian mutual funds invest in Real Estate?
 Yes
 No

 

Q 5. The interim changes in a mutual fund scheme are updated to the investors through _____.
 Key Information Memorandum (KIM)
 Statement of Additional Information (SAI)
 Addendum
 Scheme Information Document (SID)

 

Q6.Identify the TRUE statement –
 The mutual fund investor has the complete freedom to change the distributor any time he wants
 Once an investor had invested through a distributor, he cannot change the distributor
 Once an investor had invested by online method, he cannot change the distributor
 Once an investor had invested through a distributor, he cannot invest directly with the mutual fund house

 

Q7.Legally SAI is part of the SID – True or False?
  True
  False

 

Q8.In which of the following cases is the transaction charge to be paid to the mutual fund distributor, deducted from the gross investment of the investor?
 When the investor purchases mutual fund units worth Rs 5000 through a mutual fund distributor
 When the investor purchases mutual fund units worth Rs 10000 through a mutual fund distributor
When the investor purchases mutual fund units worth Rs 5000 through the websites of the mutual fund
When the investor purchases mutual fund units worth Rs 10000 through the websites of the mutual fund

 

Q 9.A segregated portfolio means ___.
 a portfolio which is kept aside for a ‘rainy day’ or contingency fund
a portfolio that is created out of debt or money market securities affected by a credit event
 a portfolio which is left after removing poor credit quality papers
 All of the above

 

Q10.Return from a fund is 9% and the risk-free rate is 5%, the Standard deviation is 3 & the Beta is 1.6. What will be the numerator for calculating the Sharpe ratio?
 3
 6
 1.6
 4

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