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NISM Mock Test 1

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.~-, PRACTICE KIT - PAPER 1
I No. i QUESTION OPTION A OPTION C OPTION 0 Answer
-
First 5 years of Investment done First 10 years of investment done by As long as investor held the
A mutual fun~istributor is paid commission for .. D
by investor investor investment
.' -
2 I The guideline issued by AMFI for intermediaries are known as ... AGNI ACE AMFI none of above A
~~.~
-
3 The investment in MF portfolio are valued at Face value of portfolio cost of investment Market value of portfolio Book value of portfolio C
-
4 i Exit loads are generally lower for large investors. TRUE FALSE B

5 Time stamping arrangement is must at.. Offices of distributors AMC offices Offices declared as point of
Bank distributors branch D
acceptance_
-
6 SEBI has put a stop on charging to the scheme. Ex~load Entry Load Recurring Expenses CDSC B
-
7 Unaudited accounts of the scheme must be published through monthly fact sheet Once every six month in one
Only at AMFI website Only on AMC's website C
national & Regional news paper
-
Capital gain or loss from mutual fund investment are classified as a short
8 9 months 6 months 12 months 13 months C
term investment are if sold within
-
An investor invested RS.1000001in a 370 day FMP and got Rs. 1077501-, 10% Plus surcharge or 20% after
7750 750 Insufficient details A
what is capital gain in this case? index benefit
-
Which of the following is true sn is payable when investor sn is payable when investor sn is payable when investor sn is payable when investor sale
purchase equity MF does redemption. from equity MF purchase debt MF debtMF B
-
Liquid funds can not charge management fees of funds parked in a short
11 TRUE FALSE A
term bank deposits.
-
12 STT is charged on Equity share trading Derivatives trading Equity MF All of the above D
--------+--
13 Which of the following is not required for KYC norms. Proof of investment Proof of Identity Proof of add ress All of the above A
-
The information on minimum investment amount, investor's service
Application form Nomination Form KIM None of the above
centers, and how to make purchase is provided in.
~
! I -
~ 1
Which of the following document is not require to be submitted by Board resolution and Memorandum I
15 Trust deed List of authorized signatories certificate of registration C
charitable trust to invest in MF? and article of association
~-+ -
Investor gets units at a discount to It offers benefits of rupee cost
16 1 SIP is a good investment strategy because .. It helps regular income for investor No load investment done B
NAV averaging
--+- --- .~._-- ~-----
Relaxation from documentation requirements for micro SIP is available
17 i HUF _~ Non Individual NRI PIO C
for ..
-

"----
18 NRI can not make repartition investment in MF using demand draft. TRUE
___
J FALSE B

Page 1

.1
;
NISM Mock Test 1
19 An investor plans to invest RS.12000 in a scheme whose NAV is 12 and
FV is 10, how many units is he likely to be obtained. <1000 1000 1200 cant say B

20 An investor is doing a liquid investment, fund is available and time is


12.30. NAV would be applicable for the Next working day Same day Closing NAV of Day immediately Closing NAVof Day immediately
preceding the date of application preceding next business day C

21 Investor invest 50 lakh in GILT at 3.30 pm with a local cheque. he gets Closing NAV of day fund are
NAVof available Same day Next business day Next preceding day. C

22 Time stamping needs to start with serial no 1 on every business day. TRUE FALSE
B

23 Funds pay dividend in Dividend Option D:vidend Re-Investment option Both of the above Growth option C
Offering for repurchase, constant amounts worth of units at regular interval -~
24 SIP
basis is called STP SWP Value investment C

25 A company's PE ratio may be low because it is unlikely to replicate it's


past performance TRUE FALSE
1 A

26 Fundamental analysts are called "Chartists" TRUE FALSE


B

27 If absolute return was 2.4% over 50 days, annualized return would


be 0.05 I
0.024 1.2 0.175 0
28 In case of liquid fund, investment less than 3 months old. which return
would be calculated? Total retum CAGR Absolute retum Simple annualized B

29 In case of equity fund, if fund has higher allocation to cash in bullish Be comparable to that of
market the performance is likely to .. benchmark ir.dex Be worse than benchmark return Better than benchmark return cant say
f-- B

30 CRISIL's indicator for highest safety in a debenture is AM


I High Good P1+ A

31 During the period of turmoil, gold prices Godown Go up Remain steady Mirror equities B

32 Performance of fund must always be measured relative to the. Index Benchmark Asset Class Investment objective B
I

13~
I 34
1---
Difference between scheme's actual return and optimal return for it's risk is
- ___

While evaluating return for an index fund across a peer group, which of
Sharpe Treynor Alpha Spread C

the following is more important? BETA Coefficient Past performance Tracking error
i R-squared C

I 35 Balance funds are for Aggressive investors highly aggressive investor Moderate conservative Highly conservative C
I
i 36 The lower risk among equity fund is Index Fund
i
Value Fund Dividend yield fund Growth fund C
37 i Probabilities of losing money in equity is negligible if investment horizon is
I for at least 6 months 5 years I
:.)
38 I
- - - - - -

Returns in international fund is dependent on


--------~-_._. -
-----
.-- -------- - ---
1 years
f----~---~---- ______ ~
3 years
______ _. __ ~ ~I-----
i
B

I
'----l __ ~ ___
.~ __~_____
Exchange rates Asset class performance Both of the above None of the above C J
.. Page 2
NISM Mock Test 1

39! Mutual funds in India are not permitted to invest in Gold Real estate Art Secularized debt C
~
r-"- ~~~~--
40 A Value fund is expected to have exposure to front line stocks Entire High Half of ifs Low D

.'
41 Index funds are safer because their NAV does not go down TRUE FALSE B

42 Which of the followings are least comparable Liquid and Savings account Liquid and Current account ETF and Index fund GILT and Sector fund D

An investor seeking capital appreciation, having high risk tolerance and


43 Bonds Bank FD Real-Estate PPF C
long term horizon must invest in
-~
Extent of securities against the
44 Credit rating enables an investors to judge the Duration of loan
borrowing
Risk of default by borrower Interest rate risk C

45 Which ofthe following is not government saving scheme? Infrastructure Bonds RBI Bonds POST KVP A

An investor looking for capital appreciation, having a high risk tolerance


46 Bank FD Equity Bonds Gold B
and long tem horizon must invest in

47 Which of the followings is physical asset? Securised debt Real estate Real estate fund Geld future B

In new pension scheme(NPS) Tier I account new pension scheme is


48 TRUE FALSE A
called pension account

49 Investor in MF can choose asset class but not investment manager TRUE FALSE A

Helping client to select the out Assessing the clients financial Advising client to invest only in
50 Financial Planning Involves None of the above B
performing stock information secured investments

51 Value stocks Have high current dividend Yield high growth in eaming Are currently under valued None of the above C

52 A better performance than the return on index is given by Passive fund manager An active fund manager All fund managers Non fund manager B

Emerging or new channel for distributors/marketing of mutual funds in


53 Internet Stock Exchange All of the above None of the above C
India is
---- - --- - - _."- ~~- -- - ----------- ---I
54 I
Part of commission up front and The entire commission after five
Trail commission means paying No commission at all The entire commission upfront C
balance in phases years

55 I
i
Agents are compensated by mutual funds Through salaries Through commission Through an annual fees Not in cash but in kind B

!
56 I The fund sponsors should have a sound financial track record of 7 years 5 years 12 months 3 years B

57 I Which of the following are self regulatory organization(SRO) BSE SEBI AMFI RBI A
-..1 ,
-- ---~ - --- - ._-- --- -~~- ----~ - --- --~~--~~- ---- -------_._-~ ~- -- .------- ----- -- ------------ ~-~--

58 Bank owned mutual fund are supervised by SEBI Jointly by SEBI & RBI RBI AMFI A
--~----

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NISM Mock Test 1

59 A passive fund manager Researchesstocks extensively Doesnot buy and sell stocksoften ~~:~~~~:~:c~o s~~e~t~~9hthe Doesnot haveto track stocks C

60 Debt securities bought at a discount to their face value are generally Interestbearing Zero coupon bonds Payinginterestat a floating rate Noneof the above B

61 When interest rates rise, bond prices Also rise Are not affected Falls Fluctuateeither up or down C

62 The maturity period of RBI relief bonds is 5 years 7 years 6 years 8 years A

63 A trail commission is justified when An investorcancels his investment ~~~~7~~~~rn


r:d:ee;=h~~ time ~~t~,e~I:~~~estshis own money, not An Agent retainthe Investment D
~-c---- -----------~-~--~-- -- - ----.---- -.
64 A debt fund distri~ut~s.10% dividend. how much tax does the investor 10.00% 20.00% 12.00% None D
have to pay on this diVidend

65 What is the current PPF rate 8.00 Percentage i 8.50 Percentage 7.75 Percentage 7.50 Percentage A
,
66 What is the recurring expense on first 100 cr for equity schemes 2.00 Percentage 1.75 Percentage 2.25 Percentage 2.50 Percentage D

I
67 Risk adjusted return is measured by Sharpe ratio Standarddeviation Treynorratio A& C D

68 Intra day trading can be done on the basis of- Fundamentalanalysis Technicalan&iysis Economicanalysis Politicalanalysis B

69 Mid cap stocks are risky in the time of 800m RecessionlEClJnomic


turmoil Politicalinstability All of the above B

70 Who Appoints the AMC Custodian R&T Trustee Distributors C

71 Which of the following has lowest risk Liquidfund (mmmf) Giltfunds Diversifieddebt fund Diversifiedequityfund A

72 Long term capital gains in a debt fund without indexation for an investor is 10.00% 15.00% 20.00% No tax A

73 isgnot a reason for investor to prefer mutual fund


WhatBof tkheFfDolloWin Tax benefits Possibilityof capital gain Depositinsurance Investmentconvenience C
over an
f---~I--. --- - ----.----- _. ~.--~~-.------ I - - - .-.-- _ .._- --------. -------~
I
. ,

74 In the NPS each investment manager appoints own distributor TRUE FALSE A

75
i
I Need of Life insurance in life is Must I! Not required can be donewithout Noneof above A

76! All investor have similar requirements at similar stage in the lifelwealth TRUE ! FALSE B
I cycle
---~ ----

77 I Name of asset allocation strategy if it is fixed @ 50 % TacticalAllocation StrategicAllocation A&8 Noneof above B
~-+. - _. - --.- - -- - - -- - ~ - -_ .. -. -- ---'-- - - _._- ------~. -_.------ - ._-- - --_ .
. 78 MO_d~I.POrtfOIiOShOUld be determined based on commission income TRUE I FALSE B
I p~sslblhty for dlstnbutor .
L.-.~___ _ _ _. _._ _ _. I ,

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NISM Mock Test 1

I 79 ,I Which of the following is true for model portfolio Stipulated by SEBI Guaranteed by AMC Decided by financial planner Common across industry C

80 As the no of earning member in a family increases risk appetite Increases Decreases Stays constant None of above A

.
81 Equity investment through sip can be suggested for investor looking for Long term growth Short term target Portfclio churning Tax benefit A

82 How to compare index fund performance expenses Tracking error None of above C

83 What type of bond fund carries least interest rate risk Short term bonds Long term Bonds Mid term Bonds All of above A

84 Arbitrage fund are not equity fund TRUE FALSE B

85 Which of the following is true for FMP NAV do not fluctuate Capital Guaranteed Fixed income None of above D

86 Index funds are fund Passive fund Active fund Both None of above A

The role of insurance is more critical for physical assets than financial
87 TRUE FALSE A
assets

88 When price of gold goes up a buyer of gold future contract see it's value Go up Godown Retain the same value None of above A

89 The investment portfoiio is created based on Market views of fund manager Investment objective of fund risk appetite of investor profile of unit holder B

90 Commodities as an asset class does not include Food crops Industrial meta!s Real Estate Gold C

open for purchase by existing open for purchase only for existing
91 Subsequent to NFO, open ended funds are available on stock market None of above A
investor & new investor investor

If a fund seeks to grow in value overtime it can be said that it's investment
92 capital appreciation safety of capital Capital adequacy Regular income A
objective is

93 Hybrid funds are invested in across equity market capitalization International markets both equity and debt None of above C

~-- -- .- _._---~~ - ---- ----- --- - --- -- ~~- -

94 ' Mutual fund are constituted in India as Companies Trusts Partnerships NGO B

95 Mutual Fund sponsor can be compared to Depositor of a company Company director Promoter of Company CEO of a company C

I
~Creating maintaining and updating Processing dividends & redemption Settling investment transaction of
96 , Which of the following is not a function of R&T agent Updating unit capital of fund D
the investor record payouts to investors the fund

Prior approval of SEBI needs to be taken before a person is appointed as

~7 J trustee
- --_.- - --~- - -------_._- ---
TRUE
--.-----..,...-----------.- ..----
FALSE
r---------~----- ----_. --- --- - '-'~- -~_.- --- -
A
-
Person, other than Indian residents, should also comply with RBI
98 TRUE FALSE A
guidelines for investment in Indian mutual funds

Page 5
NISM MockTest 1

establishing the client planner


The first step of financial planning is Evaluating the various alternatives data gathering and goal setting Plan Review
relationship

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Page 6

._--~-~ ~
NISM Mock Test 2

In case of market correction ___ , takes more hit than ___ Fund. I Growth, Value I Momentum, Value I Value, Growth I Growth, momentum I C

2 I Sponsor's net worth should be positive for Last 5 years last 2 yearS last 3 years last year I A

Memorandum and Articles of


3 At time of NFO, which document compulsorily filed with SEBI SID SAl Annual Report
Association I A
-
4 t Collection and payment offund is a responsibility of I Custodian I R&T Banker I AMC I B

5 I Other than Indian residents, rest have to also comply RBI regulations TRUE FALSE I I A

Expense and Load structure of


6 Which of the following not included in KIM Details of Key personal ofAMC Tax benefit of MF
scheme I Due diligence certificate of AMC I D

Give detailed information about


7 I Function of 00 is
scheme to investors
Give current NAV Gives Fund suggestion I None of the above A

What should be the Sector Fund Allocation for a single income family having
8 I small investable surplus
0.00% 70.00% 50.00% 30.00% I A

Expenses on investor
Service tax Fees of custodian
General administration expense I
~ Which expense can be not charged to scheme?
communication ofAMC
D
--
10 tow PE indicates that stock is cheap and you should buy it TRUE FALSE I B

Minimum investment amount and Opening and c1csing dates of


11 Which of the following need not be included in KIM? Detail of sponsor
cut off time
Risk profile of the scheme A
NFO

12 As per income tax act, Arbitrage Funds are taxed as per debt scheme TRUE FALSE I B

13 Which is purely treated as an international asset Equity I Gold I Real Estate I Debt I B
~---_._-

14 Transfer of security from one scheme to another scheme is allowed in MF I TRUE I FALSE I I I A

15 Calculate the sales price of a unit when NAV is 15 and exit load 1% I 15 I 14.85 I 15.15 I 15.5 I A

16 If you get a cheque of 1 cr in a Gill Fund at 2.30 pm, NAV date will be NAV at 2.30pm NAVat3pm I Same day NAV I NAV of fund realization date I 0

17 Who allots Amfi Registration Number? AMFI SEBI I AMC none of the above I A

18 Which distribution channel don't have a huge branch network? ~nstitution _~orate distributor Bank I IFA I 0
.------------- - ------~-~----_ .._--_._--------- -- ,,-- ----------_.

19 Dividends in the hands of investors are taxable at the rate of 10.00% 15.00% 33.00% I Tax Free 0

20 Last step in the process of designing model portfolio Sector selection I Asset allocation Scheme selection I Client selection I C
I

Page 7
NISM Mock Test 2
Achievement of the goal of
21 Goal based approach of financial planning focuses on Risk profiling Tax liability of investors Investible surplus of the investor B
investors

22 What is the rate of return of PPF 20 Percentage 8 Percentage 8.50 Percentage 9.25 Percentage B
~~~-

23 What is the indicator of the risk adjusted performance ratio? Beta Standard Deviation Sharpe's Ratio Variance C

I 24 Interest Rate sensitivity in Bond fund depends on Credit Profile Avg Maturity YTM Current Yield B

j
25 SEBI doesn't allow passing of commission to Distributor 1 Investor Bank IFA B

26 If you get a SOL in equity fund at 3:30 pm today,investor will get the NAVof Yesterday Today Tomorrow NAV of fund realization date C
------

27 Index against which performance of a fund is measured, is called Tracking Error Benchmark Investment objective Ex-mark B

28 FMP are essentially a closed ended Scheme TRUE FALSE A

The information regarding Which category of investors can invest in MF, is


29 Offer document SAl MIN SIN A
given in

30 Who can not be the distributor of the AMC IFA Bank Employees of AMC All of tt>e above C

I 31 Asset allocation means Putting all eggs in Same basket Investing according to Market Investing in different assets
investing only in Equity Gold and
Silver C
~-~--~~~--------
r 3;~
MIP is a Debt Scheme TRUE FALSE A

33 Asset allocation should be in line with Financial Goal Age of Client Risk Appetite All of the above D

34 A young investor /laving objective of capital appreciation should invest if'! GILT Liquid Equity debt C

35 In NPS class-C predominantly invests in Equity Debt Gold Real Estate B


----

36 Fund's risk relative to market is measured by tracking error Sharps' Ratio Treynor Beta D

37 I Which one is false about debenture Issued by PSU High credit risk It has maturity Duration is greater than 1 yr A
I
r Investor has read the OD and then the invested in the fund and fund goes
I 38 down, then he
Gets remedy from SEBI Cant sue the AMC Getsremedy from AMC Gets remedyfrorn NSE B

I
39 I STT charge on equity Derivatives Equity MF Equity Schemes All of Above D

.---
40
-
t -
Which function
------ -
AMC can't do in house
---- ----- --- ------
Custodian
----
Accounting
-- I-----~----- ---,---
Distribution
...---. - e---
Fund management A
,

41 Value of Bond goes down when Interest rate goes down Interest rate goes up IRR goes down YTM goes down B

Page 8
NISM Mock Test 2
42 Which one is not exempted in Wealth tax Gold sector fund Gold deposit Gold ETF Gold 0

43 Institutional distributors needs to be Registered with SEBI Registered with AMFI Listed on stock exchange All of Above B

44 Standard risk are Uncommon to all Common to all Specific to a scheme Systematic B
-
45 Request for purchase can be made In units and amount In units only In units or amounts In amount only 0
,
46 In NPS investors get choice ofthe asset class but don't get choice of
investment manager TRUE FALSE
B

47 In case of online transaction, transaction time is applicable Time shown in the computer of
investor Time as web per web server Mid night Next day morning B

48 If investors invest through demat can AMC asks for KYC requirement TRUE FALSE
B

49 According to the asset allocation rule, equity exposure should be equal to Age 100-age Age-100 100.00% B

50 Mutual fund is made up of Pool of trustees fund Pool of institutional investors Pool of investment managers Pool of investment money 0

51 I Who can not invest in mutual funds? Foreign companies Banks insurance companies NBFC A

52 Which is same as of aD? SID SID+SAI SAl KIM sumarry of SAl + SID. B

53 Mutual fund distributor in India are member of AMFI. TRUE FAlSe:


A

54 Mutual fund in India is regulated by SEBI(Mutual Fund) act 1996. TRUE FALSE
A

55 Which of the following is appointed by trustee? Custodian Distributor AMC R&T C

56 KIM has to be updated Twice in a year Quarter1y Once in a y~ar Once in two year C

57 Which of the following is more risky? Liquid fund Index fund growth fund gilt fund C

58 Material changes in KIM need to be updated once in a year Whenever material changes take
Halfyear1y Once in two year
place C

59 If an investor wants full exposure of gold his investment should be into Gold ETFs Physical gold Shares of gold mining company All of the above 0

60 If an investor invest 1 lakh rupees in a debt fund after 365 days it's value is
107756/- what is CAGR? 7.75% 7.47% 10% or 20% with indexation insufficient data A

61 If an investor invest RS.1 00,00,000 in Equity MF Scheme at 3.30 pm through


outstation cheque he will get NAVof Same day closing value When fund gets credited Previous day closing value Next day closing value B
1---- +-- -- -- --~--- -- ~_._._-.---_. --."".........--.,..".,....... .._-"".- ....---.".".
.. _--~- --_.
. 62 Retaining the investor for long
-_.~,.- ~--~
Trail commission to advisor helps in - Portfolio Churning
I term. New client acquisition None of the above A

Page 9
NISM Mock Test 2

63 Exit load Is ame for all schemes Is same for all amc's Varies from investor to investor Varies from scheme to scheme. D

64 Which fund is an actively managed fund? Index fund Diversified equity fund Growth fund B&C D
---------_._- --._-- -_.- _._- -- --
Risk profile, fund allocation, Risk profile, portfolio construction, Portfolio construction,risk profile, Fund allocation. risk profile,
65 Arrange in correct sequence B
portfolio construction. fund allocation. fund allocation. portfolio construction

Which of the following is against the ethics & Code of conduct guide line of Chuming investor's money to get All the associates of a distributor Keeping the interest of all unit
66 All of the above A
AMFI better retums should be amfi approved. holders

67 Minimum contribution of a sponsor in an AMC should be- 50.00% 60.00% 40.00% 25.00% C

68 PAN card is not required in case of- NRI Minor & Senior Citizen Corporate instiMion & trust. None of the above D
--~ ~--_._- .-
69 FMP can give better interest than a Bank Deposit. TRUE FALSE A

70 The insurance associated with new pension schemes are regulated by- PFRDA+ IRDA IRDA PFRDA None of the above. C

71 In India mutual funds are- Gov!. institutions Company Trust NBFC C

t 72 Initial issue expenses in a liquid fund has to be- 0 0.000125 0.25 percentage none of the above A
-- ----.-- -- ----- ._-------- -

73 A schemes NAV value increases for the period of 2 yrs . it will show- Absolute retum Simple return compounded annualized retum all of the above C
-~ 1------ -----~ ---------- -_._--~-.-~--~-~-..,..-~. ------ ---_ ..~ ---- -----
In KIM it has been mentioned that the 65% investment will be in equity and
74 Policy of scheme Objective of scheme portfolio of scheme None of the above. A
equity related instrument. this is called-

75 KIM is attached with? Transaction slip Application Form Both A and B Neither a nor b B

76 Which is technical analysis- Volume & price behavior Mark to market book value analysis all of the above. A

77 Who keeps detail report of transaction- Custodian AMC R&T Distributor C


._-- 1--------- --- ---- -------
78 Formula to find out the Standard Deviation in excel is stdev sd stddev stddv A

79 Time stamp machine contains- Time stamping serial no Machine identification location code all of the above D
I
I 80 The expected return & yield of the scheme is mentioned in KIM TRUE FALSE B
._--
81 How frequently NAV of an equity scheme are calculated Daily Weekly Quarterly once in financial year. A

beta doesn't make any impact


Less risky compare to market neither risky nor profitable.

-- -t--- ----------
I 82 If beta of a scheme is less than one the the fund is- More risky compare to market B
on scheme performance
,- _. -- ---- - --- --- (------- - ----"- ---- ----- ---- ----"---- - -_ _- - - ---
.. ~---
83 What is not true objective of life insurance. Risk coverage I Investment Both None of the above B
._-----_._---------

Page 10
NISM Mock Test 2
841 Unitcapital isissuElcl at-

"",.
85 Fund management cost is more in- Gilt fund

'"
86 Indepehdenttrustee are appointed by- SEBI AMFI

87 Distributors are paid- Fees


'\ Salary

Gllaii:lian in ~se of minor

KYC is compulsory - For every investment 50000 50000 and above

90 Formula for CAGRcalculi:l!ion is Interese No 6fye~rs '(P.1-PO)jpO*100 E~d Value/StartVelue)"(11


(Pe~od)) -1

91 The NAV of a fund is 15 applicable exit load is 1%. purchase NAV would be- 14.85 15 15.25 15.65

92 In case of breach of CodElofconductliCElnse is canCEl.I~ b~~


" AMC "

93 Which is true in case of PPF?


None of the above

94 . Mixed term plan series is;- A~o~iin endedfllnd A clpsEld.ended fund A'fixed term bank deposit Af!i<ed ter;n corporate bond

The PIE ratio is an important measure of a company's anticipated performance.


95
it is calculated using. Market price and dividend Market price and eaming per share
~~ I Market capitalization and dividend Market price and face value B
I ~1;~
.

,I

Page 11
NISM Mock Test 3

PRACTICE KIT - PAPER 3


No. QUESTION OPTION A OPTIONB OPTIONC OPTION 0 Answer

1 Which one of the following is not an eligible investor? Insurance Companies Govt Institutions Foreign Citizens Provident Fund C

For a customer holding units in demat , the AMC also requires to


2 TRUE FALSE B
do his KYC?

3 Which investment below gives international exposure International Funds Gold Fund None Both D
-
4 On doing risk profiling which asset allocation does it give? Strategic Asset Allocation Fixed Asset Allocation Flexible Asset Allocation Tactical Asset Allocation A

In a balance fund with net assets of 750 crores what is the


5 10.13 15.38 17.86 16.125 D
expenses that can be charged?

I invest Rs 50 lacs at 2.30 pm with a local cheque for funds other Closing NAV of the day preceding
6 Next day NAV Same days closing NAV Previous day NAV B
than liquid scheme, which NAV will you get? next business day

7 What is the DDT for an individual in liquid fund? 0.25 0.2 0.13 0.1 A
-- f-------- - ------~------ _____ ~~
If client invest in liquid fund at 11.30 am and the fund gets cleared Closing NAV of the day preceding next
8 Next day NAV Same days closing NAV Previous days closing NAV D
on the same day which NAV the client gets? b~siness day

9 What is true about premium paid in a life insurance company? Premium can be availed under Sec 80 Premium can be shown as exp Premium is volatile B
Customer can decide premium
c

10 The person with whom the units are pledged is known as Pledger Pledgee B

11 What is the highest expense ratio in a Fund of Fund scheme? 2.25% 1.75% 0.75% 1.50% C
f--- -~.__ ~---_.~._-
.~.
~--~ ._---_.- -~~-------- -- ---
12 SEBI is sale regulatory authority for MF are answerable TRUE FALSE A

13 How is company fixed deposit compare to bank fixed deposit? Low Risk Highly Volatile Less Safe Lower Return C

Within how many days the dividend warrants to be dispatched on


14 15 7 10 30 D
declaration?

15 A distributor needs different ARN for each AMC ? TRUE FALSE B

16 A conservative investor need not be advised to invest in ? Gilt Fund Liquid Fund High Yield Bond Fund Short Term Plan C

17 The New Pension scheme is both regulated IRDA and PFRDA as it


TRUE FALSE B
has an insurance component?

18 Which is the fastest way of remitting funds on real time basis? NEFT DID SWIFT RTGS D

19 Which of the following is a financial asset? Govt Security Gold Real Estate None of the above A
--
21) Which of the following is an SRO ? AMFI SEBI BSE RBI C
-- - - - - ------ .. -- ----- --- -- - --_.- - -_ .. _- --- - _~
.. .. - ---- - ----- - - - ----" _.- ----~--_. - - -- -- - ---

Page 12
NlSM Mock Test 3

21 NFO other than ELSS can remain open for maximum 7 days 15 days 21 days 30 days B
In NFO the account statement is to be dispatched within aDD days
22 5 days 15 days 20 days 30 days
on closure of NFO? A

~3 Companies issuing short term debt is called CD Tbills Debentures CP D


Within a category one can decide on investments based on Sharpe
24 TRUE FALSE
Ratio A

25 Which of the following exempt from DDT? Equity Oriented Fund Liquid Fund Income Fund Gilt fund A

26 The arbitrage funds are taxed like debt funds TRUE FALSE B

27 Which of the below is not in a Transition phase? Buying of house Providing for daughter marriage Shifting of job for higher income Providing for foreign study for son C

28 The NAV of scheme is impacted by ? No of Investors Unit Capital Market Value of Portfolio Size of Fund C

29 Technical analysis is projecting trend based on human behavior? TRUE FALSE A

30 Sub distributors work with Online platform Banks IFA Distribution companies D

31 Initial issue expense that can be charged to fund NIL 1.00% 2.00% 1.75%
~
A :#,:

~:
According to Performance Advertisements the refurn shown for
32 AnnualisedYield Simple Return Absolute return CAGR
equity funds over 1 years are D
In New Pension Scheme portfolio of Assets class E predominantly
33 Equity debt Govt Sec.
investment in A '..,;!.

34 Expense ratio is most important in case of Index Fund Offshore Fund Active Fund Fund of Fund A

35 Code of ethics for employees of AMC is described by SEBI AMFI Internal Audit Team Trustee. B

36 Recurring expenses in Equity scheme has a limit up to 1.50% 0.50% 1.25% 2.50% D

In Transition phase of Wealth Cycle investor tends to increase the


37 Equity Liquid Gold None of above.
proportion of___ assets in his portfolio. B

38 Which of the following is a Financial Asset? Gold Real State Bank deposit None of above. C

39 Index fund can give better returns from its Benchmark. TRUE FALSE
B
The young BPO executives should not be advised to invest in long
40 TRUE FALSE
term schemes because of their lavish life style? B

41 Term aO=,Stock pickinga: ~ is used in which of the following? Bottom up approach Top down approach Both None of above. A
What is the applicable rate of STT in case of repurchase of Equity
42 0.13% 0.33% 0.02% 0.25%
scheme?
L ________ .~ ______
._________ --_________ ._______
...____
D
'-----

Page 13
NISM Mock Test 3
Market value is 152 crore, Dividend accrued but not received= 8
43 crore, liabilities = 2 crore Total no of outstanding units is 75 lakhs. 200 210.67 213.33 None of above. B
What will be the NAV of the scheme?

44 Investor selects an MF based on Investment Philosophy Investment Strategy Investment Policy Investment Objective 0

45 ___ has been appointed by Trustee Custodian R&T AMC Distributor C

46 Risk May be defined as Asset Allocation High Transaction Cost Financial Loss Portfolio Rebalancing C

------ ----- -- --
Financial Planner defines that client does not have resources to Increase risk to generate higher
47 Inform the Client Avoid teiling as client will be dishearled Avoid telling as he may lose the client A
return
meet goals. He should

48 Which of the following account in NPS is a Saving Account Tier I Tier II Tier III Tier IV B

49 Mutual Fund is exempted from Wealth Tax TRUE FALSE A

-Needed for a single rupee


50 KYC is required for investment more than 20000 10000 Not required D
investment

If investor is a minor, KYC should be


KYC for Minor is needed only if KYC for Minor is needed only if KYC is not at all required for
51 If a minor Invests Rs 10,000 in MF, KYC is needed or not of his guardian even for a single C
investment exceeds Rs 20000 investment exceeds Rs 50000 minors
rupee investment

52 Since Preparation of WILL is a long process, it has to be avoided TRUE FALSE B

By allowing fixed number of Units to By selling number of units in a fixed C


53 Close ended fund allows investors to sale their units by listing MF in stock exchange
sale interval
-~~. "'--- -- ------,-" --
54 Allots the ARN Number AMC SEBI NISM AMFI D
---

55 Application for MF would be rejected if paid in Cheque DD Cash Bankers cheque C

56 Mutual Fund Investor can't pledge units TRUE FALSE B

57 Change in the value of NAV is Standard Risk Systematic Risk Unsystematic Risk A
----. ---
f--- --- --------- - "- ---- -
NAV on the date when trustee NAV of the date when notice is issued None of the above A
58 Which one is called cum-dividend NAV? NAV after the date of dividend
approves dividend to meet trusteed to finalize dividend

When scheme is first launched and investor invests in MF ... it is Purchase Re-Purchase A
59 NFO IPO
called
- --- -- - - - - - -- ._-----~--- .- --- --- ---------------- f---------- --- ---- -- ------ --
60 KIM Document is a summary of SID SAl OD SID+SAI D

If investor invests in a Guilt fund at 3:30 p.m., he would get the NAV of Next Business Day Same day NAV C
61 Current NAV Previous Days NAV
units at which NAV?

If investor invests in a Equity fund at 3:30 p.m., he would get the Previous Days NAV Current NAV B
62 Same day NAV NAif of Next Business Day ,
units at which NAV ?
--- ,-, --- -----"'
63
. The guideline issued by AMFI for intermediaries
--
are known as AGNI ACE i
I
j
AMFI None of the above A

Offices declared as point of


I 64 TiLJle stamping arrangements is must for Offices of Distributors AMC Offices
I
Bank Distributors Branch
acceptance
0
I t ------ ~- -- __ 0"

Page 14
NISM Mock Test 3
Unaudited accounts of the scheme must be published in the news Every 3 months Every 12 months None of the above B
65 Every 6 months
paper

An Investor Invests Rs 100000 in a 365 days FMP and got Rs 7750 Insufficient Data 1000
66 750 A
1G7750, what would be capital gain in this case ?

~7 sn is charged on Equity Share Trading Derivative Trading Equity MF All of the Above D

An investor plans to invest Rs 12000 in a scheme whose NAV is


68 <1000 1000 1200 Cant Say B
Rs 12, how many units he will likely to be obtained

69 Company's Earning per share would be indicated by following PIE Ratio Current Ratio EPS Leverage Ration C

70 Beta of Index would be Less than 1 Equals to 1 more than 1 None of the above B

While evaluating return for an index fund across a peer group,


71 Beta Coefficient ?astperformance Tracking error R-Squared C
which of the following is more important

72 The fund sponsors should have a soulJd financial track record of 12 months 3 Years 5 Years 7 Years C

73 What is the current PPF Rate? 7.50% 7.75% 8.00% 8.50% C

father wants his son to be a doctor and study will start after 5
74 years. The current expense is 2500000. How to calculate the A =P+ (1+r) A n-1 A=Px(1+r)An A = PI (1+r) A (1/n)-1 A=P/(1+r)An B
expense after 5 years

75 Appropriate benchmark for G-sec fund I-sec+ I -bex CRISIL liquid fund index MIBOR CRISIL - MIP bladed index A
l.:.
' .. ,
76 Which of the following has lowest risk? Liquid Fund GILT Fund Diversified debt fund Diversified Equity fund A
?1
.>.

Compounding method with interest Compounding method with


77 If I require 500000 after 2 years, which method willi follow? Discounting method with interest rate Discounting method with inflation rate
rate inflation rate C "

78 Mutual Fund Sponsors can be compared to Depositor of a company Company director Promoter of a company CEO of a company C

79 Which of the following can be charged to the scheme Salary of Fund Administratives Office rent General Administration Expenses Fees of Custodian D
..
LowPE compared with peer group or industry standard indicates FALSE
80 TRUE A
that stock is cheap.

What would be the redemption value of a Unit if NAv is 15 and Exit 14.85 15.5 15.15
81 15 B
load is 1%

82 Last step in the process of designing model portfolio Sector Selection Asset Allocation Scheme selection Client Selection C

For a distribution channel, 60% of the employees should have


83 TRUE FALSE B
AMFI Registration Number

84 Equity Fund's Risk relative to market is measured by Tracking error Sharpe's Ratio Treynor Beta 0

85 Standard Risk is Common to all Uncommon to all Systematic Specific to all A


~- -_._--- -- -"----_.- .. _- ----- _ .. -------

86 Request of Purchase can be made Along with requisite form and Cheque Only With Cheque Only Purchase requisite form A

Page 15
NISM Mock Test 3
If an investor invests 1,000,000 at 3:30 p.rn through outstation
87 Same day closing NAV When fund gets credited Previous day closing NAV Next Day NAV B
cheque, he will get NAV of

,,
~~--
I~-
.~.
I
\ - 96.. KIM nee,ds lobe updated eVer'{

L~
.~~, -
~
97

1-","- "'. -.j,..... .

L~ 98 Riskcal'l be measured by . Vanance.

According to the Certified Financial Planner - Board of Standards Establish and Define the client Analyse and Evaluate Client's
~f 99 (USA), the third stage in Financial Planning is planner relationship
Gather client data Define client goals
Financial Status
D
\.I1f

.. ..,
I
\
,\, ......
\
,j
'\
.~

\'
j
Page 16
>
..~
~',
NISM Mock Test 4

PRACTICE KIT ..PAPER 4


No. QUESTION OPTION A PPTIONB OPTION C OPTION D Answer
\

1 Commodity as an asset class does not include Fiber Spices Energy Art D
il,.
Financial Planning is just a process and so Financial Planner can use TRUE
2 FALSE B
any profile found in the web

5 star fund indicates Lowest Expense ratio Lowest Load Highest Performance Best Portfolio C
3

Investor should invest in MF with few offices as office expense is TRUE


4 FALSE B
charged to the fund
Number of Units remaining
NAV changes with Number of investor Size of Portfolio Market value of the portfolio D
5 invested

6 Investor select an MF based on matching Investment Philosophy Investment Policy Investment Objective Investment Strategy C

7 Indian investor in a US $ based fund benefit when $ becomes Weak Strong Euro Becomes Weak Steady B

8 Understanding the psychology helps in risk profiling TRUE FALSE A

9 Securities of a fund are held by Custodian AMC R&T Broker A

10 Risk may be defined as Asset Allocation High Transaction Cost Portfolio re balancing Probability financial Loss D

Financial Planner finds that client does not have resources to meet Avoid telling as client will be Increase risk to generate higher
11 Inform the Client Avoid telling as he may lose the client A
goals. He Should disheart;lneci return and meet the goal
-
12 Which of the following is with drawable in NPS Tier I Tier II Tier III Tier IV B

13 Mutual fund is exempted from Wealth Tax TRUE FALSE A

14 KYC is required for investment more than 50 K 5K Any Amount 100K C

15 Which of the distribution channel does not have wide branch network Bank Distribution House Broking company IFA D
-
Process Dividend and
16 Which of the following is not a function of R& T Maintain the records Seltiing investors transaction of fund Calculation of NAV D
redemption

17 AMFI interacts with ___ on all issues related to MF industry RBI SEBI Govt All of the above B

18 CVL system generates Acknowledge along with PAN MIN KYC Folio B

High portfolio turnover ratio implies High Cost Low Expense High return Non Performance A
19

20 Since preparation of WILL is a long process, it has to be avoided TRUE FALSE B

Single contact point for change of


21 Benefit of Demat alc is that Direct credit of bonus units Single point for portfolio valuation All of the above D
address
-
Among equity fund, growth fund has highest risk TRUE FALSE B
22

Page 17
NISM Mock Test 4
---
Avg Maturity D
Credibility Quality YTM
23 What determines the interest rate sensitivity

B
24 Fundamental Analyst are also called" Chartist" TRUE FALSE

Historic EPS Projected EPS D


25 Fundamental Analyst's decision are base on EPS in dollar Trialling EPS

B
26 Debenture is physical asset because the paper has some value TRUE FALSE
-
Provide risk cover Reduce storage cost and risk D
Investing in Gold ETF helps Guarantees high retum Not permitted in India
27

Updating the SID with NFO Approval of the features by trustee Dispatch product literature Printing KIM and application form B
28 Which of these activity are carried out before getting SEBI approval dates and AMC board

Childhood and transition are similar stage of LIFE cycle and WEALTH B
29 TRUE FALSE
cycle stage

Investor with a long term investment horizon for growth are likely to Income fund liquid Fund A
30 Equity Fund ST Debt Fund
invest in
A
31 Some allocation to GOLD is likely in most model portfolio TRUE FALSE

A
32 Approval of SEB! is needed to appoint a person as Trustee TRUE FALSE

One withdrawal at the end of Interest and Withdrawals are not Half yearly Compounded interest Not Guaranteed by Govt A
33 What is the drawback of PPF Seventh Year taxable
--- -------~---- -- -
Trail AUM Retention Fee A
34 Commission paid at the time of investment are called Upfront Commission Rebate
-- --
B
35 Investors in NPS can choose asset class but not fund managers TRUE FALSE
-
! f-- -------------
--'11

Stock Exchange Member A


Settlement responsibility in BSE I NSE Platform are with AMC Clearing House Concemed
36
-._ ..
All of the above D
Machine Identifier location code Serial No
37 Which of the following information does time stamp include

B
38 Comprehensive FP should be restricted to five years TRUE FALSE

Assured Dividend B
FixedAUM Fixed Unit Capital Fixed NAV
39 Closed ended fund has

Minor & Senior Citizen None of above D


40 To which of the following PAN does not apply Pia NRI

Financial Planning B
Asset Allocation Financial Goal Appreciation
41 Father wants to start his business, this is --
1- - ----- ------- -- - --~--~-------- B
r 42 In India one can invest in MF only through distributor TRUE FALSE
I --------
-------
-------~----
---
---
l43 t SIP-"~"'d IlCA (""OOC"_" AW"9;og)_ _ . _ _ __ . TRUE

Closed ended fund


FALSE

Open ended fund Gold Debt


~---

A
A
.-

I 44 ~qUidjty risk~i~S in _ --_.


f ~~------- - -- -- - ----- -----
A pool of investment fund D
i 45 I A mutual fund is A pool of trustee money A pool of investment institutions A pool of investment managers
--~----- --
t -.----
I

---- - _ _- .... ----- -- ----- -- ----~--------- - ------- ---


Are not relevant so not disclosed C
Declared on MF website Are included in SAl
J 46 ! Ttle name and background of key personnel in AMC Are not included in SID
----------- --- -- --------------- ---
__ - ---- -_ --_._------- ---. --.-~- ------_._-- ------_._-----
I -- -_ _--- ---
.. - - ------_ ..- .. ---- --- .. .._-.- -- _--..

Page 18
NISM Mock Test 4
~r- Annual report should announce the unclaimed amount and no. of
Investor
TRUE FALSE A

48 S"(CG in GOLD is. applicable if the holding period is less than 12 months 36 months 6 months 9 months 8

AMC
1.9 --- allots the ARN number AMFI SEBI NISM 8

50 Application for MF would be rejected if paid in Cheque DD C:!sh Bankers cheque C

51 Role of Credit rating agencies is highest in Debt Fund Gold Fund Real Estate Fund Equity A

52 Investors in PPF gets deduction up to 100000 10000 70000 75000 C

Agreed between AMC &


53 Cut-off time are Distributor Different for every RTA Prescribed by SEBI Different from AMC to AMC C

54 Money market in which MF invests are regulated by AMFI SEBI RBI Stock exchange C

For with-holding tax on income earned by NRI depends on nature of


55 TRUE FALSE A
income, nature investment and investor's country of domicile

56 Gilt fund is.a good alternative to Capital Appreciation TRUE FALSE 8

57 Which of the following is growth asset Savings alc CurrentNc Real Estate Govt Security C

Which is prohibited in.AMC's Code of ethics Inter Scheme transfer Front Running Security transaction through associated
58 Distributor of MF through AMC 8
broker
-
Transfer of Closed ended
59 Loads are applicable to Redemption Purchase and redemption Purchase 8
Scheme

60 Bank on receipt of money from abroad issue IEC FIRC MIN + Folio 8

61 Mutual Fund investor can't pledge units TRUE FALSE 8

62 Standard risk factors are Not market risk Specific to scheme not relevant to investor common to all scheme D

Receive information that can protection of capital even if market Assured return even if there is no
63 Unit holders are entitled to effect their investment goes down Sue the MF or Trust A
guarantee

64 Appropriate benchmark to large cap BSE small cap index Sensex BSE 500 BSE Mid cap Index 8
--
65 If market crashes after bull run which fund is more safer Growth Value Sector Theme 8
-- 1- ------~---. ------
66 Insurance in case of MF is Up to 1 Lac per scheme 1Lac per fund More than 1 lac None of the above D
-~ ----- ---------
Net Avg asset of the scheme is 300cr and Investment transaction
67 value for the same is 1000 cr in a year. What is the avg holding 0.3 0.36 Insufficient Data 3.6 D
period (months)?
Mutual Fund transaction on stock exchange are governed by stock
68 TRUE FALSE 8
exchange redressal system
NAV of the date when notice is
NAV on the date when trustee
Which one is called. Cum-Dividend-NAV? issued to meet the trustees to NAV after the date of dividend None of the above A
69 \ approves dividend
._. _____ ' __ ~ _ . -- .... 0- ... ------ ____ ----- -_ .. ___ ___ . ____
---- __ _-
----_ .. ..
finalize the dividend
----.~- - -------

Page 19
1'- ". ~
NISM Mock Test 4
._--
Gold sector fund Gold ETF Index Fund Gilt edge Security B
IF Gold price appreciates investors should invest in
~ -
FALSE A
71 When scheme is first launched, AUM of the scheme would be nil TRUE
-
An investor looking to select a hybrid fund with tax benefits must Conservative MIP Balance fund Equity oriented Balance fund Debt oriented Aggressive MIP B
72
choose. -
Land Building Gold Art A
73 Encroachment risk is higher for
-

I. 7~'- ~naudited ~po~~~~o~e P~~~~d in newspaper every


---
3 months 6 months 12 months 3 financial year B
-
g Tax differal is advantage Growth Dividend payout Dividend reinvest Capital gain A

761 The expense ratio is affected by Fund size Average account size Portfolio composition Stock market conditions A
.--'-

~ I .~~~ mutual~u-;d i~~estors sUbs~riPtion are accounted for as Liabilities Unit capital Deposits None of the above B
-
A disclosure should be made in the offer document if an AMC has
0.5 0.25 0.4 0.1 B
78 invested more than the following percentage of its net assets in group
companies. -
0.05 0.0475 0.06 0.0525 A
79 Open ended fund can invest in unlisted securities up to-
-
Mutual Fund scheme Intemational fund Index fund Gilt fund. A
80 Fund of Fund scheme invest in-
-
none of the above A
81 I A scheme can distribute dividend on its- Realized profit. Profit after tax realized & non realized profit
-
f-+--.
Debt fund Balance fund Equity fund Liquid Funds C
82! A newly married couple should invest into -
-
If an investor wants to invest in Mutual fund through exchange Existing investor Broker AMC Distributor B
83
platform he can buy from -
Changes from scheme to Both None of above B
84 Standard risk factors are Common for all scheme
scheme.
-
TRUE FALSE A
85 The presence of market makers provide liquidity in case of ETF
-
Net asset RS.500cr.l total transaction value is Rs. 1000 cr what is 0.5 2 data insufficient B
86 I
portfolio turnover ratio -
-+ C
Avg net asset of scheme is 3000,total transaction of a scheme 10,000 0.3 4 3.33 5
87 !
I
what is portfolio turnover ratio -
<5 >5 Not more than 2 >10 C
88 What is an ideal sector allocation in a sectoral fund
-

89 I Which of the following is true with respect to the automatic It allows the investor to reinvest I It ensures that the investor reaps
Some funds allow the investor the
invest the dividend in the other All of the above. D
r-L r:'"..vestment plan?
the amount of dividend the benefit of compounding schemes also
-
It offers the investors the benefit of
ETF combines the best flexibility of holding a single shale as ETFs recover heavy load from the
features of open end and Its pricing is linked to the index D
90 Which of the following is not true for Exchange Traded Funds (ETF)? well as the diversification and cost investors.
closed end. efficiency of index
L+ -+-
91 In which of the following the investor generally bears the highest Exchange traded funds Balanced funds Commodity funds Fund of funds. D
L _~ . ':1..enses? __ __

Page 20
NISM Mock Test 4

92 I Which of the following is Iiot the adillilitageofmutualfunds?' C6nvenience anMlexibilitY iailo,rmade pcirt@io

93 Gold Sector Fund Gold Future

'!J11 Which is the short term GovlSecurity Commercial Paper" Certifikte of Deposif' "
{ .

95 I Which is the most Illiquid Asset? Gold Equity Debt Real state o

,",j

;; ,
~

.I
\
"

.I
'\
I(

II
, ~,

,~,

Page 21 -ie.-
NISM Mock Test 5

PRACTICE KIT - PAPER 5


OPTION A QPTION B OPTIONC OPTION D Answer
No. QUESTION
.._-,"-' --------~

Pledged units Dividend Nomination Redemption A


1 Bank lends against
----"
Investor Sponsor AMC and Trustee Custodian C
2 SID is approved by

decided by AMC same for all scheme by trustee Prescribed by SEBI D


3 Cut-off time for NAV
-- --' --_._~--
preparation of WILL is pessimistic exercise, so it is better to avoid TRUE FALSE B
4

Memorandum of the articles of PAN card Authorized signatory list A


5 Which document is not required for institutional investor P & L account association

3yrs 5yrs 10 yrs investors stay invested D


6 Distributors are provided commission for up to

8EBI is responsible to develop a cadre of well trained agents and FALSE B


7 TRUE
distributors

TRUE FALSE B
8 High regular income yield is indicator of scheme weakness

Sponsor custodian AMC trustee A


9 Who promotes MF
I '0

Mid cap stocks Front line stocks Index stock Gilt security A
10 Liquidity risk is highest in

selecting stocks in a portfolio of regular monitoring investment awareness of risk factors B


11 A unit holder is not responsible for reading 00 the mutual fund scheme

absretum CAGR total return simple annualized retum B


12 Accepted standard for return calculation in financial market is

Purchase of debt fund Redemption of debt fund Redemption of equity fund All of above C
13 8TT is applicable on

Mr A holds 1200 units, scheme declares 1:3 bonus. How many units will 3600 depends on NAV C
14 300 400
MrAgets

liability of borrower asset of borrower credit rating profit of borrower C


15 Corporate deposit interest rate depends on

I-
Energy product spices Fibres A
16 Commodity does not include Art
1
ChallQe with the value of the Decrease gradually every day Be volatile in long-temn B
The value of investment in mutual funds .. Increase gradually every day. investment portfolio
:17
-
i 1970 1994 A
I 18 The first ever mutual fund scheme in India was launched in 1964 1951

h--r- - ----_ ..- -----

Both
F
none of the above B
19 ' Investors buy units of open-ended funds during the continuous offer at the NFO price Market Price
i
I
.. --- -------.- ---
!
L-

Page 22
NISM Mock Test 5
.
. 20
The investment objective of which of these funds would be to seek capital
appreciation?
Dividend yield fund Growth Fund Liquid Fund Income Fund B

If we have a view that gold price will appreciate, which mutual fund
21 Gold sector Gilt edged securities Index fund Gold ETF D
scfleme should we invest in?

22
. One of the advantage if ETF is ..
Investor can see where his
money is invested
These schemes can generate
Investors can buy of sell units on
stock exchanges at price that
ETF offer tax benefits. C
higher returns than mutual fund. closely track valuation at that
time.

23 Mutual funds are constituted in India as a .. Companies Trust Partnership firms. NGO B

24 Mutual fund sponsor can be compared to .. A depositor in company A company director Promoter of a company CEO C

25 Which of these entities enables collection and payment of fund. Broker Banker R&T Agents, Custodian C

26 The constituents of mutual fund are appointed with the approval of .. Sponsor Trustees SEBI AMC B

The applicable guidelines for mutual funds are set out in SEBI (Mutual
27 TRUE FALSE A
Fund) regulation, 1996 ..

28 Bank sponsored mutual funds are also regulated by AMFI Stock Exchanges, RBI SEBI C

AMFI code of ethics prescribes that mutual fund scheme portfolios should
29 Identified class of unit holder All classes of unit holders Retail individual Institutional unit holders B
be managed in interest of

Although AGNI is mandated. there are no penalties for breach of code of


30 TRUE FALSE A
conduct.

To achieve growth by investing in equity and equity related investments,


31 balanced with income generation by investing in debt and money market Equity fund Money market fund Balance fund Debt Fund C
instruments is likely to be the investment objective of

Annualreporl of AMC should necessarily mention the unclaimed amount


32 TRUE FALSE A
and the number of such investors for each scheme.

According to the plan chooses by


33 Unit holders enjoy rights to the asset of the funds ... As per decided by trustees equally for all holders In proportion of holding D
them.

For fund of fund NAV is to be updated on-line in the website of AMFI and
34 Before 9 pm same day Before 10 am following day after 10 pm same day Before 9 pm following day B
the mutual fund website ..

Periodic disclosure of the fund's Periodic disclosure of AMC'c On-line purchase and sells of Dispatch of dividend within 30
35 Which of the following is not a mandatory services standard as per SEBI. C
holding accounts units days

36 Investors can sue trustees for breach of trust. TRUE FALSE A

I 37 Which of the following is the function of an offer document To give the FM's commentary on To report the performance of To give investors information
To enable comparison of MFs market D
scheme about scheme

38 NFO other than ELSS can remain open for 15 days 30 days 45 days Forever A

I
Which of the following contain detail information on the portfolio Statement of additional
' 39 Key Information of Memorandum Scheme information document Addendum C
characteristics and operational features of a scheme? information.
I

Page 23
NISM Mock Test 5

40 Which of the following is not fundamental attribute of scheme? Investment objective Name If Fund Manager Investment Pattem Type of risk profile B

Statement of additional Key information of memorandum D


41 Which of the following is a synopsis of the offer document? Trust deed Memorandum of Association
information

42 The format of KIM Given by SEBI Given by AMFI Varies to fund to fund By Stock Exchange A

43 Some MF companies allow investors to transact through their website. TRUE FALSE A

44 There is no need for educational qualification to be MF advisor. TRUE FALSE B

Distributors are compensated by mutual fund companies primarily Annual fees Share in AMC's profit Commission D
45 Salaries
through ..

Distributors do not get upfront Distributors do not get trail Distributors get upfront and trail Distributors do not get upfront
46 Which of the following statement is true? commission on self business but commission on self business but D
on self business and trail on self business.
they get trail commission get upfront commission.

47 AMFI is SRO for mutual fund and regulates all mutual Fund TRUE FALSE B

-- ----- ----- ------- ---- - - ------ --


AMFI code of ethics prescribes that mutual fund schemes portfolios identified special classes of unit retail individual class None of above B
48 all classes of unit holders
should be managed in the interest of holders
- ~-------- - ---
49 Transfer of investment from one scheme to another is allowed TRUE FALSE A

- .. _-~-- - -~ ----~ -_._-~-~ .,- --- --


-"--
---_._--
50
--_.

51
If the investor
---- -------
Investor
wishes
-- -
to change the distributor
-- ----

can sue the trust for breach of trust


--_."~--- - -- ------------
He will need to give written
request to the fund house

TRUE
he needs to give the NOC from
previous distributor

FALSE
-------
AMC may allow or disallow
--~-----
All of above

-------r~- I
A

Since NFO is a marketing decision ,CIO has limited role in deciding it's B
52 TRUE FALSE
structure
--- ~ .. _-~ -- ----
53 Info provided in the SAl addendum made in tihe scheme Updation in 00 Updation in KIM None of above A

54 Which of the following form a part of fundamental attributes of a fund Fund manager Investment objective of fund Load None of above B
._-_. -
-- -- --- - -- - --- - ---~ ------------- f------- ------ -----_.--

55 What remains constant in closed ended fund? Unit capital NAV both None of the above A

Gilt fund Equity growth Fund Treasury bills A


56 Where dQ high-yield funds invest? Junk Bonds
- .._-- ---"-----_._- ------
57 High yield bond schemes invest in junk bonds? TRUE FALSE A

- --- ----- ------- -----


Both
, None of the above C
58 Which ratio measures risk-adjusted return? Sharp Ratio Treynor ratio
---_.- _.-
Thematic Fund A
"t~h;'h 'md, h'~ ''''ore, of bothoP'" ondod & ,I~ ,nd,d? Interval Fund Balance Fund Sector Fund

~o Whi; appro~~~is u~ed- ~y-Fun~ ma~agers fo~ pi~~ing up the Value


Bottom up approach Top down Beth None of the above A
stocks.
-_ .. - -_.-._. -_
.."- ---- .._._-- - -_ ..... - ------~ -- ._- I I

Page 24
NISM Mock Test 5

[61 t Can liquid funds invest in short term bank fixed deposit? Yes No A

Less then direct Investment in More than direct investment in Equal to direct investment in
62 E~enses in fund of funds? scheme scheme scheme None B

00 Which fund has highest risk? Liquid Income G-securities Liquid Plus B

64 Childhood & transition phase is common in life cycle & wealth cycle? TRUE FALSE B

65 What is not mandatory in application form? Occupation Status of Individual Mode of holding PAN A

66 Is KIM. a synopsis of offer document? TRUE FALSE A

67 Absolute return is best judged if the investment horizon is <1yrs >1 yr Anytime <2Yrs A

68 Dividend distribution tax in liquid fund payable by investor? Nil 12.50% 10.38% 30.00% A

69 What is the rate of TDS in liquid mutual Fund? Nil 12.50% 10.38% 30.00% A

Equity Brokerwith out NISM certified & AMFI registered


70 Who can distribute mutual fund through stock exchange? certification member Both None of the above B
-
71 What is the beta of index fund? 1 More than 1 Less than 1 !Ilone of the above A
-~
When a time stamping machine is installed should it be informed to TRUE FALSE
72 A
trustees

The difference between the yield on gilt and the yield on a non
73 TRUE FALSE A
government debt security is called its yield spread.

74 liquid schemes invest in securities Less then 91 days maturity More then 91 days maturity Less then 1 year maturity More then 1 year maturity A

75 Mutual fund is Trust Company Society None of the above A

76 Who is keeps the custody of security of Mutual Fund? AMC ,I':&T Custodian Sponsor C

77 AMFI is a SRO ? TRUE FALSE


B
-
78 AGNlis
Code of Conduct For
Intemnediaries
Rules & Regulations ". Temns & Conditions N,m of the above A

79 NFO opening and closing detail mention in KIM sin on All o~above D

80 KIM is to updated Once in quarter Once in month Once in year weekly C

Recurring expenses includes Investment advisory fee Charged by the AMC. R&T fee Marketing and selling fee All of above D
8_~J

Page 25
~----------........----
.---:-r----

NISM Mock Test 5

82 .qffer I)oc;ument of Mutual Fund IS approved by SEBI

Stock exchange brokers are permitted to distribute MF after passing the


83 certifying exam
Iftheposttaxrate Of return on an investment is a;'Yoal1~th~-i6flati()l1J~ie,
84 is 6% the real rate of return is .... . . .. '

85

86.1 Hovv many minimum client is required for a scheme to ru~'. \ -


87 There is no TOS on dividend distribution and redemption

881>WbiCI1,doeumentsareneededf()fK);C?

FOr additional purchase


Only lransaction$liptobilnll~d
'Transaction
cheque

,
sliP' witll pyrchas",.
."

'1
.'

, i
t
.~;
~i::: '\

,
\ ;

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*'

;/

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"'. Page 26
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__' - -<-~----.----------_.,~----
_i
NISM Mock Test 6

.[ PRACTICE KIT- PAPER 6

r.: QUESTION OPTION A OPTION.B OPTION C OPTIOND Answer

\."!!'iicn or the following entities reaches MF product beyond geographical locations The Brokers The Custodian The Distributer R & T Agents. C

2 SEBI is sole regulatory authority for MF are answerable TRUE FALSE A

Where the investor desires to hold MF unit in DMAT form the AMC will still be required to FALSE B
3 TRUE
Perform KYC to such investors

4 Ofter document enable investor to compare the of MF scheme with another MF scheme TRUE FALSE B

5 which of the following investors belong to institutional group? HUF NRI Proprietary firm FII o
shall mention the dividend
shall only advertise declared or paid in Rs per unit
compounded annualise yield along with face value of each
6 Performance advertisement Shall identify Nature of scheme
Calculated using the prescribe unit oflhat scheme and the
All of the above o
procedure prevailing NAV at the time
ofDeclaration of Dividend

7 Benefits of STP is Idle funds situation reduced Both None C

Company has issued 10 core equity shares. It earns profit of Rs. 105 core on which it has 10.5 12 11.5 A
8
Paid tax of Rs. 5 core and distributed dividend of Rs 20 core. What is EPS ?

9 Floating Rate Interest is ? yield spread base + spread pyabie only on maturity C

10 Market price of which of the following investment instruments will fluctuates more? Short tenor Debt I Floating Rate Securities Debentures A

11 Asset considered for Asset Allocation ideally be only Physical Only Financial Asset Mix of different kind of Asset 0
-
Which of the following is most unlikely to have a model portfolio with 20% alloacation to Well Placed Mid Level Senior Executive with Well
12 Executive
Inw~tor in Distribution Phase
Settled Children
I C
sector fund?

Such distributor is approved by ~ S""h Distributor is registered


13 A distributor can be empaneled by AMC only if AMFI with Stock Exchange I Approved by SEBI I A

I
14 AGNI is mandated by? AMFI and SEBI
I RBI SEBI I

15 Junk Bond Scheme is also be known as High Yeild Scheme? FALSE

16
According to Some studies Asset Allocations and Investment Policy can better explain
portfolio performance as compared to Stock selection and Investment Timimg?
the
FALSE I I ~

Protection against Insurance

17 Which Of the following benefits of starting Health Inurance Policy early?


Comeany rejecting clai,m on i Both of the above I None Of the above
B I
the ground of pre-existing I ~
Illness I _~. _ I

18 Which of the gollowing is Government Savings Scheme? RBI releif Bond


i
I Post Office recurring Deposit I All of the above C lI
NISM Mock Test 6

6 years 7 years I 3 years


15 years
Duration of PPF deposit is
19
---+-- Only Individuals other than Individual Including NRI and Individuals Induding NRI but not I Individuals induding PIOs
PIOs PIOs but not NRls
Relaxation from Documetation required for MICRO SIP is available for 'NRls and PI Os
20

TRUE FALSE
21 Intial Phase of Life Cycle is Accumulation?

Investment Savings
Tax planing Risk protection
22

23
Life insurance

Real Estate
is meant for

mutual fund is
Beyond means of rell1ii
investo~s
--- ---- ------ _.-
1 Provided benefits of real eslate
& MF investing
--_. --- - ._-_.
Are popular investment options

---r---
Are not easy to liquidate

Kind of offer documents Incentive to distributer


Probabilities of large losses MF ratings
24 Black swan refer to
Demonstrate superior Best portfolio
Lowest expense !"'ltion Lowest load performance
25 A five star rating in MF schemes indicates that

Income fund Money market fund


Dynamic bond G-sec fund
Which of the bond fund carries least amount of interest risk
26
Tax:::tion needs I Financial goals
27 Asset allocation must primarily based on
Investment needs Insurance needs

'
_.-.--+----
_\ Husband takes additional
~- Faced with the financial difficulties a family is likely to do all this except following
Move to a larger house in a Economise Expenses Wif,es slart s wo rk 109 part time job
beller locality
28
Annual irvestment amount Parents reach towaros peak S~ving for retirement gets I Saving for investment is not
of their earning capacity minimized required
Pre-retirement stage gets red uced
29

30 Teir I account

Which is false?
of new pension scheme is called pension account?
TRUE

Government is trying to convert


financial Asset to physical
FALSE

Investment in bank FD can be


transfered to loan
Investment share can be
translated into projects
I Invest'Tlent in MF helps the
real economic
31 I asset

Rs 4 core Rs 2 crore
Rs 5 crore
Minimum Networth requirement of the AMC is I Rs 10 crore
32
Within 6 months of the end
update of the I With 3 months from the Within 3 months from the end of
If a scheme is launched in the second six months of financial year the the 1st Within 3 months of the end of of the financial Year
begining of Next financial year the next financial year
33 SID is due within the financial Year
_--
..

TRUE FALSE
34 Legally SAl is the part of SID
Short term copitallosses can be Long term capilallosses in
Long term capilallosses from
offset against dividend income equity MF is not available
Capilallosses can be offset equity MF can Be offset D
Income tax allows setting of certain types of capital gain losses against certain type of for the year In which the loss has for selling of against
again salary agair.stlong term gain from
35 Income which of the following is true in case of such provision, occurred business or Salary income
property

~;}T~- .~the main driver of returns in a mutual fund scheme,


Return Profit of invested company Portfolio I None of the above c

B- Fundamental Analysis entails review of the company's

ratio indicates how much investors in the share market are


---J.-
..
Financial Statements
--_.- - -"- ..
Quality of Management
---+--- _..- _.- _..
Competitive Position All of the above

Price to Book Value


D

[.-
~(,epared to pay (to become owners of the company) , in ~elation to the com~any~s earnings _ ~a~ingS :e~ Share
Price to Earnings ratio Book Value Per Share

jll
1 _ _ .L.. .. _
_ __ __ _
__ -L- _

Page 28
NISM Mock Test 6

.f39 1 A fund maintains a portfolio that is in line with the passive fund . Active fund Index Fund Equity fund Debt fund B
i-
Value investment style is an approach of picking up stocks which are valued Lower High
40 Medium A&B A
b~sed on fundamental analysis.

41 Which is approcach is also called stock picking . Top - down Approach Bottom - up Approach Either A & B None Of the above B

If the proceeds on redemption are higher than the amount invested then it is called Capital Gain Capital Loss
42 No Profit No Loss None Of the above A

Treasury Bills are short term debt instruments issued by the on behalf of
43 SEBI Reserve Bank of India Central Government State Government B
the Goverment of India .
--- -
44 Commercial papers are short term Debt Securities issued by corporates. TRUE FALSE A

45 Credit rating companies are like CRISIL ICRA CARE & FITCH All of the Above D

46 Higher the credit risk, lower is likely to be the yield on the debt security TRUE FALSE B

47 Which of the following are derivative Forwards Futures Cations and swaps All of The above D
------------------ ---- '.-

48 Every scheme should have at least investors. 15 20 25 30 B

49 funds take Positions that are countrary to the market. 'rhematic F'Jnds Mid cap funds Contra funds Dividend yield funds C

Liquid schemes, which invest in $ecurities of up 91 days maturity, have the risk Higher
50 Lowest Zero None of the above B
among est all kinds of schemes.
Mumbai I~ter - Bank Money Inter - Bank offered Multiple :~ter- bank
51 What is MIBOR ? Offered Rate Offered Rate Mu\uallnte, - Bank offered rate A
Offred rate
- I- -----_. ------_.-
52 To convert the demat units into phY5icai from. This process is called re-materialisaticii . TRUE FALSE A
- i
Real Technique Gross I
53 RTGS refers to Real time Growth Settlement Real Time Gross Settlement I Real Technique Growth
Settlement Settlement B
..

Application Supported by Application Supported by Application Supported by


54 What is ASBA Blocked Account None of the Above C
Blocked Acknowledgement Blocked AmolJnt

55 NSE's Mutua; Fund platform is called NEAT MFSS . TRUE FALSE A


- - ---.-- -- - - -- --_ .. - - --- ---_.-- - _. - - -~--- .- . -_._._. ---- -- ---- ----------._--- --'- ------ --
-'-A--
56 When a dividend is paid, the NAV of the units falls to that extent. I TRUE FALSE
-

57 Risk can be measured by variance Standard Deviation Beta Any of the above D I
I
,
58 SEBI has Facilitated buying and selling of mutual fund units through the stock exchanges. TRUE FALSE I
; I A I
I I

59 ARN REFERS TO
--- - -- - - ---- - ._.-
I
I
L
Agent regi:;tration Number
_______
-_._-.-
AMFI Registration Number
__ _
.1 Application Registration Number'
___ _______ ._
I
-J..
Account Registration
_____
Number
. __ ._____
J __
I
B
I
I
I
- - .- -- _J

Page 29
NISM Mock Test 6

T
+ D

e
In hoardings I posters, the statement . Mutual fund investments are subject to market 5 8
9
roisks, read the offer document carefully before investing" is to be displayed at least 6
____ inches height.
D

-+--
;a--:;h~~-i::-u;ched i~ the first 6 mon;~-:-f the financial year then the first update of the' -- ------- 5 3
6
61 SID is due with in months of the end of the financial year. I 2
.... - -- ~ --~-- ---_._--_. __ ._~._._--,-
B
TRUE FALSE
No single investor shall account for more than 20% of the corpus of the scheme/plans.
62
Managing Director Any of the above A
The asset management company shall confirm that a due diligence certificate is signed by Compliance officer Chif executive officer
63 the _

In case of specifice request recived from investors, mutual funds shall provide the account 15 A
10 7
statement (SIP/STP) to the investor's within ' __ working days from the receipt of 5
64
such request without any charges.
2 10 c
The mutual fund would update the current expense ratios on the website within 5 7
65 working days mentioning the effective date of the change.
B
TRUE FALSE
66 Offer documents of mutual fund schemes are approved by SEBI .

All of the above B


regulates mutual funds, depositories, custodians and registrars & SEBI AMFI
RBI
i S-t transfer agents in the country .
To recommend and To interact with the To represent to the Govemment All of the above D
Promote best business securities and Exchange Reserve bank of india
68 The objectives of AMFI islare Board of India (SEBI)
practices
b31ancedscheme None B
.To generate income by investing predominantly in wide range of debt and money market Diversify equity Scheme Diversify Debt Scheme
69 securiti'Js .is an objective of
Sub Brokers Any of the Above D
Institutional Distributors Build Reach through I Emp;oyees Agents
70
A
TRUE FALSE
71 The distributor can charge fees from the Investor

Expense Dividend Stripping B


Entry Load Exit Load
72 The difference between NAV and repurchase price is
A
3 2
NAV of Income Funds is to be calculated upto decimals 4
73
Any of the Above D
Remittance ASBA
74 t-Investments in Mutual Fund can be made using I Cheque/DO
A
f-- -- I FALSE
75 STP is the combination of SIP and SWP TRUE
A
76 I In a Top Down approach, ~ector allocation precedes stock selection I TRUE
FALSE

I A
TRUE FALSE
Loads and taxes may account for the difference between scheme return and investor return
77
_._~
78 I
.--- -.-.- -

Mutual Fund Ranking and rating amount to same TRUE FALSE I, +


I
B

~-~---
;
" -,---
Which of the following aspects of portfolio would an investor in a debt scheme give more Sector Selection Stock Selection
\ Weighted Average Maturity r No of Securities in portfolio c
I i
, 79 ~, importance

Page 30
NISM Mock Test 6

. 80
-
The comparable for a Liquid Scheme is
Equity Scheme Balanced Scheme Gilt Fund Savings Bank Account D

Providing Funds for daughter's Marraige is an example of Goal Oriented Financial Plan Comprehensive Financial Plan Financial Goal
81 None of the above C

Distribution phase of Wealth Cycle is a parallel of retirement phase of life cycle TRUE FALSE
87 A
.-
Incase of NPS investor can choose which of the asset class of the following Equity Corporate Debt govemment Securities
83 All of the above D

PFRDA IRDA PFRDA+IRDA


84 New Pension Scheme is regulated by None of this A
----
What % of the total wealth of Indian People is in physical asset More than 10% More than 25% More than 50%
85 All of the above C

Private Fund Regulatory and Provident Fund Regulatory and Pension Fund Regulatory and
86 PFRDA refers to Development Authority Development Authority Development Authority All of the above C

87 Investment in a Financial Assets can be productive for the economy TRUE FALSE
A

National Contract Exchange National Currency Exchange National Commodity Exchange National Conversion
88 NCDEX refers to
Exchange C
-- -----
89 In case of the buying of the Gold Future Contract, entire value of the Gold has to be paid TRUE FALSE
B
-
j
Gold Deposit Scheme MF Both A and B
90 --exempted from the Wealth Tax None of this C

Many investors invest money in Bank FD and not in Debt market because Lack of Interest Lack of awareness Lack of Money
91 Lack of confidence B

Interest eamed in Bank FD is Taxable each year TRUE FALSE


92

93
The primary
~---

objective of the Financial Planner is to make available the right amount of I TRUE FALSE
-.1----- A

money at the right time. I


I
A

Accumulation Transition Reaping


94 The third stage of the wealth cycle is Intergenerational Transfer D

In many health insurance policies, the customer has to bear the expenses and that can get TRUE FALSE
95 reimbursed from the Insurance company A
--
Risk appetitte ---- as no of dependant menber increases Decreases Increases No change
96 Any of the above A
f--- _ _._-
.. _.-~. -"--- -~----,----- .. - - _.'- - ---- -- --------- ------ --------- -- ---- '----
Many---have made available the risk profiling tool on their web sites AMCs Research Houses Both
97 None of this C

--is the decision outcome based on the market behaviour Tactical Asset Allocation Strategic Asset Allocation Flexible Asset Allocation
98 Fixed Asset Allocation A

Many Financial advisor work on the Model Portfolio TRUE FALSE


99 A

Family Information Financial Information Personal Information


I
100 Which are the aspects that affect the Risk profiling of the investors? All of the above
-~- - - ~ .._.~,-_. __ . - - .~---~ -- -- --- ---- - ---- -_.- -- - -. -_. - ---'- ._- --- -- - --- --- --- - -- - --. J ---- - - -- J D
- -

Page 31
NISM Mock Test 7

PRACTICE KIT - PAPER 7

OPTION D Answer
No. QUESTION OPTION A OPTIONS OPTIONC

We have to do the registration of the mutual fund with the SEB!. AMC C
1 Trust R&T Sponsor
Who gets registration done

Publish NAV, AUM of the fund A


2 AMFI do the following activity Manages money under None of the above
house and maintain and publish Compute NAV

-- ~_._- ._--- --_._--- -------- _._- - --~-f__--


I
industry data
II ----- '--~ ~
Closing NAV of the day
------
Closing NAV of the day
In a liquid fund a application for repurchase comes at 3.30. Whats Closing NAV of the date of Closing NAV of the next business preceesing the date of B
3 preceeding the next business
is the NAV which would be available to it application day application
day

Selection of the scheme A


4 In creating of model portfolio which is the first step Deciding the Asset Allocation Identify financial Goal Selection of Sector
~
Once the asset allocation is decided, sharpe ratio can help us to A
5 TRUE FALSE
select the good debt and equity Schemes
- -------- --_._~--~.<_. _. --
Once the asset allocation is decide, treynor ratio can help us to B
6 TRUE FALSE
select the good debt and equity schemes

With the increase in the regular income from the job risk taking Insufficient data C
7 Remains the same Decreases Increases i
ability of the investor
--
Closing NAV of the day Clo;;ino NAV of the day
A repurchase comes in a GILT fund at 2.30 pm. Whats would be Closing NAV of Next Business Closing NAV of \:le Application B
8 preceeding the next business preceeding the Application date
the NAV available to the redemption Day Day
day
- --- .__ ._------
Yound couple with 2 school A
Aged couple with no immediate 40 year old man with a family with
9 75% investment in debt is suggested to Young call centre executive going kinds
family support grown up children

An investor with interest to earn high return and willing to take high Aggressive Investor D
10 Cautious Investor Conservative Investor Adventurous Investor
risk are refferred to as

A person requires 1,00,000 rs for the specific goal after 3 years. If


we want to known what amount he needs to invest no to get the said 100000/(1+0.05)*3 C
11 100000*(1 +0.05jA3 100000*(1 +0.05)*3 100000/(1+0.05jA3
amount at rate of 5%. which of the following formula needs to be

J- _.used
--,--~-
~-~.~ -~ - "-.-'._' . __ . _. -~~~- ---
--
For an Micro SIP which one of the following is not a valid photo ID Voter ID proof C
112 PAN proof Debit card with photo 10 Credit card with Photo ID
I proof
r---- '---
The responsiblity to manage funds in the new pension scheme is D
13 AMCs PFMs
PFRDA Insurance Companies
with
1
r -_.~---
Where you get the information in regards to the key personals They are published on the website Available in SAl ( Statement of C
i 14
involved in an AMC
They are not published as it is not
very important for the investor of the mutual Fund Additonal Information)
~--- -------
/15
! -
Which of the following
- - ~
.~.-_.. -
is not available in SID
- ~---- --_. - ---- - -
Type of Fund
--- ~ ---- -
--+~---
Risk Factor
-------- --- -------
Due Diligence certificate
- ~-- - - -- ---- -- .-
None of the above
-- - - ---
~- -- _.----
D
-_.- ---
A
! 16 Legally SAl is the part of SID TRUE FALSE
i
f -~ .--------- ----- - - - f

The day on which the The amount which is getting C


Time at which the application is b) Scheme in which the money is
.1 17 i The date of the applicablity of the NAV is not dependent on invested
application is submiited
L
_J _'__________ --_. -'- ~
submiited
I invested
----

Page 32
NISM Mock Test 7
The AMFI allots unique the ARN no which is valid for the period of
118 :1 three years
TRUE FALSE

i.. --+ I The following would not affect the trail commission to the advisor in
Portfolio value going up with the Investor making fresh purchase Change in the unit capital of the
increase in the market during the period the scheme Investor redeeming the money
19 mutual Fund during the period
The sn paid on the equity mutual fund sold on the stock exchange 0.00125 Nil 0.0025
20 is
0.00017
The sn paid on th equity mutual fund purchased on the stock 0.00125 Nil 0.0025
21 exchange is
0.00017

sn paid on the re purchase of units by the AMC


0.00125 Nil 0.0025
22 0.00017

Which of the following when transacted on the stock exchange STT ELSS GOLD ETF Index ETF
23 is not applicable Diversified Equity Fund

Its is advisable for an average investor to do Tactical Asset TRUE FALSE


24 allocation for planning his retirement
Park the money in the liquid fund Invest a!1 money into equity at one
In case of sudden wealth which among the following is least Start STP from liquid fund into
25 for a short time go Equity Funds
advisable Review the finanCial plan

Tactical asset allocation is suitable for seasoned investor with large TRUE FALSE
26 investible surpluses

Closing NAV of Next Business Closing NAV of the Application Closing NAV of the day
An application for re purchase in equity comes at 3.30. What would
Day Day preceeding the next business Closing NAV of the day
27 be the applicable NAV day preceeding the Application date

In case there is a redemption from a NRI who have invested the


money on a non repatriable basis. The mutual would pay in dollors TRUE FALSE
28
as redemption B

The investment grow faster in dividend re investment options as


29 compared to the growth option because more units are added on TRUE I FALSE
dividend reinvest B

Maximum expense that can we charged in a debt fund is 0.0175 b) 0.75% 0.025
30 0.0225
D
The NAV capture the full value of
There is no dividend declared The number of units increases
In case of the growth option which of the following is not true the porfollo gain
31 over period There is a Tax Deffereal
C I
We require the board resolution from companies to invest is mutual
32 fund as it may not be specified in the Memorundum and Articale of TRUE 1 FALSE

)
Assoiation to invest in such schemes B

If the company have 10 cores if Issued shares. The profit it makes


is 105 coree. IT pays 5 crore as tax. Also pays 20 crore as dividend 10 8 Not sufficient Data
33 5
what is the EPS A

i
An investor in the debt scheme who completely want to eliminate TRUE FALSE
34 investment in equity should invest in MIP
B
The fund have an average asset of 300 crore. The portfolio turnover

35 for the portfolio is Rs 1000 crore. For how many months the 0.36 3.6 3
I
-----+ -
r----
0.25
investment are held for B
---- - -- ------1-------_
The-f1oatin~ rate f~nd -h;;)d on to there v~l~e ev~n-if~h--;~te;str~t;;-I-T;~E FALSE
I
i
----+--
I --_.
36
- -37 1
.
are fluctuating
perfor~ance of the fu~d
which of the following
is mo~t sensitive
Fund
to the ;xpe~s~ ~atio in- -IL.- ~d-F--
I LiqUi und
--- - - -- 4- -Di~e~~-i~:-~u~-Fun;- --- - -t ~TF --- -f---
I Sector Fund
--_ __ _ _
A

r, 1_ --- -- I A
~
Page 33
r

138
I
-j-

39 I
t
I Who among the following are not distributor for Mutual Funds

Importance of credit rating agency is nlost important in


National Distributors

Equity Funds
NISM Mock Test 7

I Branches of public Sector Bank

Secuiised Debt
!
,
Branches of reserve bank of
India

ETF
Branches of Forein Banks 1

t
C

B
I
A
40 Full form of AGNI AMFI gudieline and Norms for AMFI guideline and norms for AMFI guideline for Asset \ AMFI Guideline for Non Indians \
Intermidiary Investment Management Company

Which of the following scheme is exempted from the divident D


41 Equity Funds
distribution Tax Debt Oriented Funds Balance Funds Liquid Funds

B
Price decided by the offmarket None of the above
Trade --
B

\
\

1
C

Gold Reserve
I

1-- Q~~lity .Jf the-o~eraii~~of


company
tht! -- \ GO'; ;,,:' ~ ~ -~-
!---------------r--------------
-': Allo! ;h~ ;..;,~ - r~. --
Equity Fund +- D_e_b_t
_Fu_n_d ------:- ,_s~ec_t_or
Fund -t _c_ --1
-.------
[
- -----
Asset Alilocaton
I
Model Portfolio Tracking error _ L_~ _. i

- - -, ---- ~-- -------'


.. ---- ---

Page 34
." .. '~
NISM Mock Test 7
I 0 It. T;-,I)"balan~;fl1ridS !:rasedon flexible Asset Allication is lower riskier I FALSE
TRUE
}~.6j than hig~yjeld debt fund A

61 Bet,v~"r; whom the Trustdeed is executed between I Trustee and Sponsor Sponsor and Custodian Trustee and AMC AMC and Sponsor A

, 5-=-L..;ep~~ChaSing the predecided no unit at the regular interval is called I STP SWP Sip All of the above B

~3 I' ~nclairned investment amount and dividend can be demand by the I TRUE
! Investor FALSE A

64 Applicable NAV for the different scheme is as per the following time Office time of AMC Office time of R&T Cut-Off time decided bySEBI
As per the time of stock market D
for various MF scheme

While empannel with the AMC, every distributor have to provide the Commitment to abide by Provide all information and
65 Correct and complete information instruction given as also statutory
following document that the AMC may All of the above D
codes and guideline ask for from time to time

Transaction done of MF on the NSE NEAT and BSE Start the


66 TRUE FALSE
exchange gurantee the settlement of Funds B

Low PIE ratio indicate that it is unlikely to replicate its past


67 TRUE FALSE
performance A

68 Churning of the portfolio by the Fund Manager is called Portfolio Turnover Ratio Liquidity Ratio Annual Turnover Ration All of the above A

69 lnvesment in a Real Estate Mutual Fund is Beyond the means of the retail Extremally Liquid and cost Offer the benefit of both real
investor effedctive Highly illiquid D
estate and Mutual Fund

;~~vantage of investing in PPF is Loariis available any time Premature withdrwalis allowable Any amountof investment in
after one year the scheme Tax free return every year D

71 Self RElgulatoryOrganisation controls All his member to the limited


extent All his member completely All mutual fund company All share brokers B
72 In case of Joint holder the pan card requriment for 1" and 2nd Holder All joint holders Only 1" Holder AnyOne B
73 Maximum number of nominee which can be added 5 3 2 c
In case New Pension scheme how many PFM( Pesion Fund

~~tl
74 5
1 .1 Managers) are managing the money 3 3 6 D

W:hich is the right Sequence Liquid Fund, MIP,Gilt Fund Gilt Fund.Liquid Fund,MIP Diversify Debt,Gilt Fund, Liquid I MIP ,Liquid Fund, Diversify
c
Fund. Debt.

I.
~76 I;Lower Interest Rate Senario Debt Product of MF will Generate
higher return compared to Fixed Deposit. TRUE FALSE
--t- A

77 An employee of the mutual Fund can be an Agent TRUE FALSE B

Payable to Distributor whose


Pay~b!e to Sponsor

~ __ ;_:_:_~_:_'' b.
~ ;i~;::";:::::~::_~~_P:_:_:_;_~_'~_~_:A_:_S:_O~_U~_:.t_:_~_:_no_~'_i:_i~_S_O_f_th_e
-t'--_.~-
FALSE
ARN is mentioned in the
Application Form
None of the above A

A
----, !
/t~OJ_COd=~~duct for AM~pers~n~~~_~ru~e=s~r= ~~t~ned ~aPter II __J. Chapter IV Schedule II Schedule V (5"; Schedule) D

Page 35
I
I
I 81

82
I
~-~
If comp!aint of an investor is not solved by AMC, investor has to

Feeder Fund can invest in Intemational Market as


S-BI
~
NISM Mock Test 7

Aonb~h.ereafsthPerFlnvdestment
jectlve 0 e un
I
Trustees

Only International Equity


Sponsor

Only International Debt


R&T

All of the above


A

83 I Tax Deferral is available in Growth j' Dividen~' Dividend Reinvest A

84 Bflnchmark of Sectoral Fund investing in Banking Sector would be BSE Bankex -GiffY Junior S&P Nifty S&P 500 A

85 Before going to SEBI for approval of a Fund Launch AMC needs to Take approval from Trustees .] Print the application Form Finalise the Launch Date All of the above A

86 j Which of the Following Fund is most Sensitive to Expense Ratio Liquid Fund Index Fund Equity Fund Off shore Fund B

87 ASBA is an Excellent Facility for Additional Purchase in a Fund TRUE FALSE B

I '38 C.onverting ~nits o~a Mutual Fund from Demat Form to Physical & TRUE FALSE A
L I/:ce Versa IS Possible

89 I d r Finalising the benchmark for the Adjusting the Purchase Price of Considering the growth of All f th b
n exa Ion means fund the Fund considering the Inflation partcular asset class 0 e a ove B

90 Investor in Reaping Phase would primarily invest in Equity Securities yielding Regular Return Both None of the above B

91 Most of the AMC publish Portfolio of their scheme on their Website Daily Monthly Six Monthly Yearly A
--- -"-.""- -_._-~. ---"-_ ... _--'-'----, ,-

Unit certificate shows only the Unit certificate is issued at the ~cc,)lm~ s~atementdshO~ts
. . . c10sin balance while account " time of NFO and account c os!ng a ance an U~I
92 Difference between Umt Certificate & Account statementt t gt h ' 'n. '. 'b I There IS no difference statement are send certificate sho'Ns opening A
s a eme~ s ows ope~', g a ance, . balance transactions d
transactions and closJr.fj balance consecutively closing balanco an
.- -_.~-- I
93 Wh'ch fth f II .. tth h 'fi . kf t? Risk arising from the schemes Risk arising from the non- No previous experience in Movement in NAV because of 0
I 0 e 0 oWing IS no e sc eme speci IC rlS ac or. objective diversification managing a fund the market movements.

94 Expense Ratio of an Index Fund is 0.01 0.0125 0.025 0.015 0

95 A Financial Planner can use any of the Model Portfolio available on TRUE FALSE B
the Web

96 In NPS Tier -I account is compulsory for opening Tier - II account TRUE FALSE A

97 A.R~tired couple with Zero income should invest all the mnney in TRUE FALSE B
LiqUid Fund

i 98 SIP can be done by Standing Instruction ECS PDCs All of the above 0

199: Concentration risk is highest in Equity Share Bank deposit Real Estate Commodity B

: 100! A hign ilmou~t of equity investment is suggested to the investor if Accumulation phase Transition phase Distribution ,phase No.such relation with any phase A 'J
'_...
L""'.~. '3 :n which stage? of life. i

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