NISM Series V A Mutual Fund Distributors Paper 19

Q1.A regular dividend-paying mutual fund scheme can be used for capital appreciation – True or False?


Q2.Identify the true statement(s) – A) Beta is a measure of risk only for equity schemes B) Variance is a measure of risk for both debt and equity schemes C) A fall in prices of the debt securities due to default etc is known as a ‘credit event’
 Only A and B are True
 Only A and C are True
 Only B and C are true
All A, B, and C are true


Q3.Is Real Estate Fund a physical asset or a financial asset?
 Physical Asset
 Financial Asset


Q4.SEBI approval is required for an AMC to appoint a distributor – True or False?


Q 5.Which of these statement(s) is/are TRUE with respect to Benchmarks? A) The process of choosing a benchmark for an Index Fund is very complex B) An independent agency should calculate the benchmark in a transparent manner
 Only A is True
 Only B is True
 Both A and B are true


Q6.Identify the true statement(s) with respect to benchmark for mutual fund schemes. A) For the International Equity fund, the ideal benchmark will be BSE 500 index as it is a very broad-based index covering 500 companies B) For Gold ETF, gold prices will be the ideal benchmark
 Only A is correct
 Only B is correct
 Both A and B are correct
 Neither A nor B are correct


Q7.If an Institutional Investor is making an application for investing in a Mutual Fund, which additional documentation is required?
 Audited Accounts for the last 3 years
 Bank Statements
 Board Resolution
 Approval letter from SEBI


Q8.The Price Earning (PE) Ratio of a company is 7 and its Earning Per Share is Rs 10. What is the Market Price of this company?
 Rs 49
 Rs 70
 Rs 700
 Rs 10


Q 9. Mutual fund distributors earn no commission when the investor chooses to invest in “direct” plans. State whether True or False.


Q10.Which information has to be provided by the investor to be identified as an existing investor in the mutual fund?
 Folio Number
KYC acknowledgment

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