NISM Series V A Mutual Fund Distributors Paper 06

Q 1.A mutual fund has the policy of imposing an exit load of 2% for redemption up to one year and 1% for redemptions beyond one year. If an investor redeems 2000 units at a NAV of Rs 40 at the end of six months from the date of investment, what will be the redemption amount receivable by the investor
 Rs. 76500
 Rs. 79200
 Rs. 80000
 Rs. 78400

 

Q2.The dividends is declared on units that are under a lien will be paid to ____.
the unitholder only
 the lien holder only
the unitholder or lienholder as per the agreement
the unitholder or lienholder as per the terms of issue of mutual fund units

 

Q3.If an investor in a Multicap Fund wants to know the industry-wise allocation of the funds then which document should he refer to?
 Fund Factsheet
 SID and SAI
 Investment management agreement
 Annual accounts of the AMC

 

Q 4. The credit rating of a bond migrates from AAA to AA+. Determine what will the impact of this migration on the market price of the bond?
The bond price will rise
The bond price will fall
 No change in the bond price
 The price can rise or fall depending on the market conditions

 

Q5.Dividend warrants have to be sent to investors within 30 days of dividend declaration – True or False?
 True
 False

 

Q6.Registrar and Transfer Agency function must be independent of the Asset Management Company, and it cannot be retained in-house. State whether this statement is True or False.
 True
 False

 

Q7.How often should the Key Information Memorandum (KIM) be updated?
 At least once a month
 At least once every six months
 At least once a year
 It need not be updated after it is issued once

 

Q8.The AMFI Code of Ethics (ACE) sets out __.
The standards of good practices to be followed by the AMCs in their operations and in their dealings with investors, intermediaries, and the public.
 The standards of good practices to be followed by the AMCs in their operations and in their dealings with mass media
The standards of good practices to be followed by mutual fund distributors in their dealings with AMFI, AMCs, and investors
 The standards of good practices to be followed by fund managers in their dealings with AMFI and investors

 

Q 9.Ultra-short-term debt scheme invests in debt and money market instruments with Macaulay duration between ____.
 1 to 3 months
 3 to 6 months
 6 to 12 months
 1 year to 3 years

 

Q10.Stamp duty is required to be paid for which of these mutual fund transactions? A. New purchases B. Systematic Investment Plan (SIP) C. Dividend reinvestment D. Systematic Transfer Plan (STP)
A, B, and D
 Only A
 B and D
A, B,C, and D

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