NISM Series V A Mutual Fund Distributors Paper 13

Q1.What action has to be taken before deleting a default bank account from the registered bank account in a mutual fund folio?
 A new folio will have to be opened with the same joint holding as the new default account
 Another account has to be designated as the default bank account
 All the nominees of the mutual fund scheme have to sign on the change form irrespective of the mode of holding


Q2.Business model, experience, and proficiency in the business are compulsory criteria for empanelment and review of which of the following category of mutual fund distributors?
 Institutional distributors who have points of presence in more than 10 locations
 Individual distributors who have points of presence in more than 10 locations
Distributors who have received a commission of over Rs. 1 Crore p.a. across industry
 All of the above


Q 3.There are no SEBI regulations regarding the minimum or maximum commission that distributors can earn – State True or False?


Q 4. The unaudited accounts of the Mutual Fund schemes must be published once in every six months ____.
 on the AMC website
 on the AMFI website
 in a minimum of 2 newspapers
 All of the above


Q 5.Which of the below documents can be inspected by the unitholder?
 Trust Deed
 Custodial Services Agreement
 Investment Management Agreement
 All of the above


Q6.An International Fund is investing in US stocks. What would be the impact on it if US Dollar depreciates against the Indian Rupee?
 The NAV of the scheme in Indian Rupees will depreciate
 The NAV of the scheme in Indian Rupees will appreciate
 No impact on the fund as its investing in stocks and not currency


Q7.Investors who have not transacted during the previous ___ are known as dormant investors.
 15 months
 12 months
 9 months
 6 months


Q 8. Identify the TRUE statements – A) Unsystematic risk is measured by its Beta B) The diversified stock index has a Beta of 1 C) An investment with a beta of 0.7 will move 7 percent when markets move by 10 percent
 A and B are True
 B and C are True
 A and C are true
All A, B, and C are true


Q 9.AMCs has to put in place a due diligence process to regulate distributors who ___.
 has received commission received of over Rs. 25 Lakhs from a single mutual fund
has raised an AUM of over Rs. 25 crores from non-institutional investors
has a presence in more than 20 locations
 All of the above


Q 10.Which of these statement(s) is/are FALSE with respect to Benchmarks? A) Portfolio concentration is an important factor while selecting a benchmark for an equity mutual fund B) Choice of investment universe is not an important factor while selecting an appropriate benchmark for debt mutual funds
 Only A is False
 Only B is False
 Both A and B are false

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