NISM Series V A Mutual Fund Distributors Paper 24

Q1.Identify the TRUE statements with respect to Transmission of mutual fund units – A) Before the transfer is effected, the mutual fund will insist on an indemnity against future problems for the mutual fund arising out of the transfer B) Before the transfer is effected, the mutual fund will not insist on the death certificate of the deceased unit-holder C) Before the transfer is effected, the mutual fund will insist on the KYC documentation from the nominee
 A and B are True
 B and C are True
 A and C are true
All A, B, and C are true

 

Q2.The indices based on Government securities will be an appropriate benchmark for which type of funds?
 Credit Risk Funds
 Gilt Funds
 Money Market Funds
 Liquid Funds

 

Q 3.What is Indexation?
 Reduction of short and long term capital gains tax by using an index based calculation
 Benchmarking the index fund against a suitable index like Sensex / Nifty
 Adjusting the cost of acquisition upwards to reflect the impact of inflation
 Adjusting the cost of acquisition downward to reflect the impact of inflation

 

Q4.That mutual fund that has an investment charter that provides for a reasonable level of investment in both equity and debt is known as ___.
 Fixed maturity plan
 Hybrid fund
 ELSS Fund
 Liquid Fund

 

Q5.Of the below options, what is FALSE with respect to Arbitrage Funds?
 Arbitrage Funds have Basis Risks
 Arbitrage Funds invest in Equity Markets
 Arbitrage Funds invest in both Spot and Futures Market
 Arbitrage Funds are more riskier than Sectoral Funds

 

Q6.Does Exchange Traded Funds-ETF Gold regularly invest in good gold mining companies – True or False?
 True
 False

 

Q7.Identify the true statement(s) – A) Individuals can register up to five bank accounts with a mutual fund B) A Non-Individual can register up to ten bank accounts with a mutual fund
 Only A is correct
 Only B is correct
 Both A and B are correct
 Both A and B are incorrect

 

Q8.Investments in Mutual Funds can be done only through AMFI authorized MF distributors – True or False?
 True
 False

 

Q9.The amount which is paid to the distributor at the time the money is invested in a scheme is called ____.
 Trail Commission
 Upfront Commission
 Rebate
 Fund Incentive

 

Q10.Mr. Shah gives a local cheque at 4.30 pm of Rs 10 lacs at a Mutual Fund office for investing in a Gilt Fund. Of which day will the NAV be applicable to him?
 NAV of the same day
 NAV of the next business day
 NAV of the day on which the funds will be available
 None of the above

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