NISM Series V A Mutual Fund Distributors Paper 22

Q1.All advertisements and Sales Literature containing an AMC(s)/Mutual Fund ranking must prominently disclose, with respect to the ranking _____.
 The name of the Ranking Entity and the criteria on which the ranking is based
 The name of the category (e.g. income/growth)
 The number of AMC(s)/Mutual Funds in the category.
 All of the above


Q2.From which of these can the mutual fund NOT distribute dividends?
 Income accruals
Dividends that are received from equity investments
Realized gain from the sale of investments
Unrealized appreciation in the value of investments


Q 3.If a person wants to appeal against the ruling of SEBI, he can do so with ____.
 Commerce Ministry
 Company Law Board
 Securities Appellate Tribunal


Q4.Identify the difference between Sharpe Ratio and Treynor Ratio.
 Both are same
 Sharpe Ratio uses Standard Deviation for its calculations whereas Treynor Ratio uses Beta
 Sharpe Ratio is used for underperforming schemes whereas Treynor Ratio is used for outperforming schemes


Q5.Can recurring expenses be charged to a mutual fund scheme?
 Yes, they can be charged.
 No, they cannot be charged.


Q6.Which of these documents is not required to be submitted for investing in mutual funds by a charitable organization?
 List of authorized signatories
 Trust deed
 Board resolution
 Memorandum and Articles of Association


Q7.Once the New Fund Offer (NFO) of a Close Ended Fund has closed, a person can buy the listed units of such close-ended fund ___.
 At prices usually higher than NAV
 At prices usually lower than NAV
At prices that can be higher or lower than NAV
 Units of a Close Ended Fund cannot be bought after NFO


Q8.Gold ETFs are meant only for FI’s and FII’s – True or False?


Q9.The Absolute Return is calculated using the formula ___.
 (Sale Price – Cost Price) / Cost Price
 (Cost Price – Sale Price ) / Sale Price
 (Sale Price / Cost Price) – 1
 1 – (Cost Price / Sale Price)


Q10.In case the units are pledged, the unitholder ___.
 can sell the units after the lockin period
 cannot sell the units
 cannot sell but can switch the units to another scheme
cannot do an additional purchase

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