NISM Series V A Mutual Fund Distributors Paper 09

Q 1.An investor gives a local cheque of Rs 3 crore for investment in the Gilt scheme at 11.30 is. What would be the applicable NAV for this investment?
 The closing NAV of the day preceding the date of application
 The closing NAV of the next working day
 The closing NAV of the application day
The NAV of the business day on which the funds are available for utilization


Q2.In which of these funds is Securities Transaction Tax (STT) not charged?
 Fixed Maturity Plans (FMPs)
 Equity index ETFs
 ELSS – Equity Linked Savings Scheme
Blue-chip equity funds


Q3.Smita is a young investor and her parent’s advice her to invest in fixed deposits of banks so that these funds can be used for her retirement. If Smita follows her parent’s advice, what risk does she face?
 She has to select the correct bank which is financially strong
 There is a high risk of default in her portfolio
 There is a risk of low returns
There is no risk as fixed deposits are quite safe


Q4.Identify the true statement as per AMFI’s Code of Conduct for Intermediaries of Mutual Funds.
 Intermediaries should rebate some of the commission received by them to the investors
 Intermediaries should abstain from making negative statements about any Asset Management Company or scheme
 Intermediaries should split applications so that they can earn higher transaction charges


Q 5.Identify the true statement with respect to Total Expense Ratio?
The AMC is not allowed to change the Total Expense Ratio of a scheme during its entire lifetime
The AMC can change the Total Expense Ratio and it need not be communicated to the unitholders as its an internal matter
The AMC can change the Total Expense Ratio and it has to be communicated to all the unitholders
 There is no term as – Total Expense Ratio for a mutual fund scheme


Q6.The New Fund Offer dates are published in the ____.
 Both Key Information Memorandum and Scheme Information Document
 Statement of Additional Information (SAI)
 Key Information Memorandum (KIM)
 Scheme Information Document (SID)


Q7.Which of these is an important criterion for choosing either the Growth option or the Dividend option in the same mutual fund scheme?
 Returns on the scheme
 Fund Manager
 Tax status of the investor
 Assets Managed by the scheme


Q8.Calculate the NAV for the following information: Value of stock 200 cr, Value of money market instruments – Rs 25 cr, Dividend accrued but not received – Rs 10 cr, Amount receivable on sale of shares – Rs 5 cr, Amount payable on the purchase of shares: Rs. 10.5 cr, Fees payable – Rs 1 cr. No. of outstanding units:3 cr


Q 9.Advertisements regarding Mutual Fund schemes shall not contain statements which directly or by implication or by omission may mislead the investor-State True or False?


Q 10. Which of the following cannot be considered for the purpose of selecting a scheme’s benchmark?
 Scheme’s asset allocation pattern
 Mutual fund scheme’s investment objective
 Scheme’s past returns
The investment strategy of the MF scheme

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