Q 1. In analyzing the default rate distribution of a loan pool, which category indicates a higher risk?

a) 0-30 days past due (DPD)

b) 30-60 days past due (DPD)

c) 60-90 days past due (DPD)

d) 90+ days past due (DPD)

Report

Q 2. What is the purpose of security selection in equity portfolio management?

a) To predict market conditions

b) To avoid market timing

c) To construct a portfolio different from the benchmark

d) To minimize market risks

Report

Q 3. What is the purpose of assessing an investor's risk profile?

A) To determine the investor's age and income level.

B) To evaluate the investor's willingness and ability to take risks.

C) To predict the investor's future investment returns.

D) To establish investor tax obligations.

Report

Q 4. What characteristic of equity funds drives the choice between narrow and broad benchmark indices?

a) Fund's NAV (Net Asset Value)

b) Fund's geographical diversification

c) Fund's investment objective

d) Fund's fund manager's experience

Report

Q 5. What aspects of the fund's portfolio should be evaluated for equity funds?

a) Average maturity and duration

b) Credit risk profile

c) Level of diversification across sectors and stocks

d) Liquidity

Report

Q 6. Why are sector funds considered risky investments?

a) Due to lower volatility

b) Lack of diversification

c) Lower expense ratios

d) Higher liquidity

Report

Q 7. How do investors purchase units of a closed-ended mutual fund scheme?

A) By directly contacting the mutual fund company.

B) Through the stock exchange where the units are listed.

C) By submitting an application form to the Registrar and Transfer Agent (RTA)

D) Through online investment platforms only.

Report

Q 8. What authority does AMFI have regarding the conduct of distributors in the mutual fund industry?

a) Auditing distributors' transactions

b) Providing investment advice to distributors

c) AMFI can impose penalties on distributors for misconduct.

d) Calculating Net Asset Value (NAV) of distributors' portfolios

e) Licensing distributors

Report

Q 9. What happens to an investor's unit-holding upon dematerialization?

a) The investor receives cash equivalent to the units.

b) The units are held in physical form with the depository.

c) They are held electronically in a demat account.

d) The units are canceled, and the investor must repurchase them electronically.

Report

Q 10. Why might the Income Distribution cum Capital Withdrawal (Dividend) payout option not always assure dividends?

A) Dividends depend on fund profits, which may vary.

B) Dividends are guaranteed by fund managers.

C) Dividends are paid regardless of market conditions.

D) Dividends depend on the investor's request.

Report

Q 11. What is the primary purpose of rebalancing an investment portfolio?

a) To maximize returns

b) To minimize investment costs

c) To restore the target asset allocation

d) To eliminate all investment risks

Report

Q 12. Through which platforms can investors transact in mutual fund units?

a) Banks

b) Stock exchanges

c) AMCs

d) Custodians

Report

Q 13. Which team calculates the Net Asset Value (NAV) of mutual fund schemes on a daily basis?

a) Cash management team

b) Sales and marketing team

c) Fund accounting team

d) Registrar and Transfer Agency (RTA)

Report

Q 14. What is the purpose of permitting celebrity endorsements at the industry level for Mutual Funds?

A) To promote specific schemes of Mutual Funds

B) To increase awareness of Mutual Funds as a financial product category

C) To conduct branding exercises for Mutual Fund houses/AMCs

d) None of the above

Report

Q 15. what is the primary objective of investing money?

a) Safety of money

b) Reduction in consumption

c) Preservation of wealth

d) None of the above

Report

Q 16. What type of mutual fund classification is based on the investment universe or asset classes in which the scheme may invest money?

A. Market Capitalization-based classification

B. Asset Class-based classification

C. Fund Management Style-based classification

d) None of the above

Report

Q 17. What is the purpose of AMFI's Code of Conduct for Intermediaries of Mutual Funds?

a) To promote unethical practices among intermediaries

b) To discourage intermediaries from selling mutual fund products

c) To maintain high ethical standards among intermediaries

d) To restrict access to mutual fund products for investors

Report

Q 18. Who is eligible to make investments in mutual funds using cash?&

A) Any Indian citizen with a PAN card

B) Any NRI with an Indian bank account

C) Any investor for amounts up to Ã¢â€šÂ¹100,000 per financial year

d) Only senior citizens above 60 years of age

Report

Q 19. How are the terms "fund" and "scheme" used in the mutual fund industry?

a) They are used interchangeably

b) "Fund" refers to equity investments and "scheme" refers to debt investments

c) "Scheme" refers to equity investments and "fund" refers to debt investments

d) None of the above

Report

Q 20. What is an interval fund?

a) A type of mutual fund that combines features of both open-ended and close-ended schemes

b) A mutual fund that operates exclusively through a stock exchange

c) A mutual fund that only allows transactions at pre-specified intervals

d) None of the above

Report

NISM Series V A Mutual Fund Distributors Exam Series

NISM Series V A Mutual Fund Distributors Exam Series

Q 1. In analyzing the default rate distribution of a loan pool, which category indicates a higher risk?

Q 2. What is the purpose of security selection in equity portfolio management?

Q 3. What is the purpose of assessing an investor's risk profile?

Q 4. What characteristic of equity funds drives the choice between narrow and broad benchmark indices?

Q 5. What aspects of the fund's portfolio should be evaluated for equity funds?

Q 6. Why are sector funds considered risky investments?

Q 7. How do investors purchase units of a closed-ended mutual fund scheme?

Q 8. What authority does AMFI have regarding the conduct of distributors in the mutual fund industry?

Q 9. What happens to an investor's unit-holding upon dematerialization?

Q 10. Why might the Income Distribution cum Capital Withdrawal (Dividend) payout option not always assure dividends?

Q 11. What is the primary purpose of rebalancing an investment portfolio?

Q 12. Through which platforms can investors transact in mutual fund units?

Q 13. Which team calculates the Net Asset Value (NAV) of mutual fund schemes on a daily basis?

Q 14. What is the purpose of permitting celebrity endorsements at the industry level for Mutual Funds?

Q 15. what is the primary objective of investing money?

Q 16. What type of mutual fund classification is based on the investment universe or asset classes in which the scheme may invest money?

Q 17. What is the purpose of AMFI's Code of Conduct for Intermediaries of Mutual Funds?

Q 18. Who is eligible to make investments in mutual funds using cash?&

Q 19. How are the terms "fund" and "scheme" used in the mutual fund industry?

Q 20. What is an interval fund?

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