NISM Mock Test 1 PRACTICE KIT – PAPER 1 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
A mutual fund distributor is paid commission for..
First 5 years of Investment done by investor
First 3 years of Investment done by investor
First 10 years of investment done by investor
As long as investor held the investment
D
2
The guid guideli eline ne issue issued d by AMFI AMFI for inte interme rmedia diarie ries s are know known n as... as...
AGNI
ACE
AMFI
none of above
A
3
The The inve invest stme ment nt in in MF por portf tfol olio io are are val value ued d at
Face value of portfolio
cost of investment
Market value of portfolio
Book value of portfolio
C
4
Exit Exit loads loads are genera generally lly lower lower for for larg large e inves investor tors. s.
TRUE
FALSE
5
Time Time stam stampi ping ng arra arrang ngem emen entt is is mus mustt at. at...
Offices of distributors
AMC offices
Bank distributor's branch
Offices declared as point of acceptance.
D
6
SEBI SEBI has put a stop stop on char chargin ging g _____ ________ ______ ____ _ to the the schem scheme. e.
Exit load
Entry Load
Recurring Expenses
CDSC
B
7
Unaudi Unaudited ted accoun accounts ts of of the the sche scheme me must must be publis published hed
through monthly fact sheet
Only at AMFI website
Once every six month in one national & Regional news paper
Only on AMC's website
C
8
Capital gain or loss from mutual fund investment are classified as a short term investment are if sold within
9 months
6 months
12 months
13 months
C
9
An investor invested invested Rs.100000/in a 370 day FMP and and got Rs. 107750/-, what is capital gain in this case?
7750
750
Insufficient details
10% Plus surcharge or 20% after index benefit
A
10
Which of the following is true
STT is payable when investor purchase equity MF
STT is payable when investor does redemption from equity MF
STT is payable when investor purchase debt MF
STT is payable when investor sale debt MF
B
11
Liquid funds can not charge management fees of funds parked in a short term bank deposits.
TRUE
FALSE
12
ST T is charged on on
Equity share trading
Derivatives trading
Equity MF
All of the above
D
13
Which Which of the the follo followin wing g is not not requi required r ed for for KYC KYC norms. norms.
Proof of investment
Proof of Identity
Proof of address
All of the above
A
14
The information on minimum investment amount, investor's service centers, and how to make purchase is provided in.
Application form
Nomination Form
KIM
None of the above above
C
15
Which of the following document is not require to be submitted by charitable trust to invest in MF?
Trust deed
List of authorized signatories
Board resolution and Memorandum and article of association
certificate of registration
C
16
SIP is a good good inves investme tment nt stra strateg tegy y beca because use.. ..
Investor gets units at a discount to NAV
It offers benefits of rupee cost averaging
It help helps s regul regular ar incom income e for invest investor or
No load load inves investme tment nt done done
B
17
Relaxation from documentation requirements for micro SIP is available for..
HUF
Non Individual
NRI
PIO
C
18
NRI can can not not make make reparti repartition tion investment investment in MF using using demand demand draft.
TRUE
FALSE
B
A
B
NISM Mock Test 1 19
An investor plans to invest Rs.12000 Rs.12000 in a scheme whose whose NAV is 12 and and FV is 10, how many units is he likely to be obtained.
<1000
1000
1200
cant say
B
20
An investor is doing doing a liquid investment, investment, fund is available available and time is 12.30. NAV would be applicable for the ________
Next working day
Same day
Closing NAV of Day immediately preceding the date of application
Closing NAV of Day immediately preceding next business day
C
21
Investor invest 50 lakh in GILT at 3.30 pm with a local cheque. he gets NAV of
Closing NAV of day fund are available
Same day
Next business day
Next preceding day.
C
22
Time stamping stamping needs needs to start with serial serial no 1 on every business business day.
TRUE
FALSE
23
Fund Funds s pay pay divi divide dend nd in
Dividend Option
Dividend Re-Investment option
Both of the above
Growth option
C
24
Offering for repurchase, constant amounts worth of units at regular interval basis is called
SIP
STP
SW P
Value investment
C
25
A company's PE PE ratio may be low ow because it is unlikely to replicate replicate it's past performance
TRUE
FALSE
A
26
Fundam Fundament ental al anal analysts y sts are called called "Chart "Chartist ists" s"
TRUE
FALSE
B
27
If absolute return was 2.4% over 50 days, annualized return would be____________
0.05
0.024
1.2
0.175
D
28
In case of liquid fund, investment less than 3 months old. which return would be calculated?
Total return
CAGR
Absolute return
Simple annualized
B
29
In case of equity fund, if fund has higher allocation to cash in bullish market the performance is likely to..
Be comparable to that of benchmark index
Be wo wo rs rse th tha n b en en ch chm ar ark re re tu tu rn rn
Be tttt er er th th an an be ben ch ch ma ma rk rk re re tu tu rn rn
c an an t s ay ay
B
30
CRISIL CRISIL's 's indic indicato atorr for highe highest st safet safety y in a deben debentur ture e is
AAA
High
Good
P1+
31
During During the period period of turm turmoil oil, gold gold prices prices
Go down
Go up
Remain steady
Mirror equities
B
32
Perform Performanc ance e of fund fund must alwa always ys be measu measured red relat relative ive to to the.
Index
Benchmark
Asset Class
Investment objective
B
33
Difference Difference between between scheme scheme's 's actual actual return return and and optima optimall return return for it's it's risk risk is
Sharpe
Treynor
Alpha
Spread
C
34
While evaluating return for an index fund across a peer group, which of the following is more important?
BETA Coefficient
Past performance
Tracking error
R-squared
C
35
Ba la nc nce fu fun ds ds ar ar e f o orr
highly aggressive investor
Moderate conservative conservative
Highly conservative
C
36
The The lowe lowerr risk risk amo among ng equ equit ity y fund fund is is
Index Fund
Value Fund
Dividend yield fund
Growth fund
C
37
Probabilities of losing money in equity is negligible if investment horizon is for at least
6 months
5 years
1 years
3 years
B
38
Return Returns s in intern internati ationa onall fund fund is is depen dependen dentt on
Exchange rates
Asset class performance
Both of the above
None of the above
C
Aggressive investors
B
A
NISM Mock Test 1 19
An investor plans to invest Rs.12000 Rs.12000 in a scheme whose whose NAV is 12 and and FV is 10, how many units is he likely to be obtained.
<1000
1000
1200
cant say
B
20
An investor is doing doing a liquid investment, investment, fund is available available and time is 12.30. NAV would be applicable for the ________
Next working day
Same day
Closing NAV of Day immediately preceding the date of application
Closing NAV of Day immediately preceding next business day
C
21
Investor invest 50 lakh in GILT at 3.30 pm with a local cheque. he gets NAV of
Closing NAV of day fund are available
Same day
Next business day
Next preceding day.
C
22
Time stamping stamping needs needs to start with serial serial no 1 on every business business day.
TRUE
FALSE
23
Fund Funds s pay pay divi divide dend nd in
Dividend Option
Dividend Re-Investment option
Both of the above
Growth option
C
24
Offering for repurchase, constant amounts worth of units at regular interval basis is called
SIP
STP
SW P
Value investment
C
25
A company's PE PE ratio may be low ow because it is unlikely to replicate replicate it's past performance
TRUE
FALSE
A
26
Fundam Fundament ental al anal analysts y sts are called called "Chart "Chartist ists" s"
TRUE
FALSE
B
27
If absolute return was 2.4% over 50 days, annualized return would be____________
0.05
0.024
1.2
0.175
D
28
In case of liquid fund, investment less than 3 months old. which return would be calculated?
Total return
CAGR
Absolute return
Simple annualized
B
29
In case of equity fund, if fund has higher allocation to cash in bullish market the performance is likely to..
Be comparable to that of benchmark index
Be wo wo rs rse th tha n b en en ch chm ar ark re re tu tu rn rn
Be tttt er er th th an an be ben ch ch ma ma rk rk re re tu tu rn rn
c an an t s ay ay
B
30
CRISIL CRISIL's 's indic indicato atorr for highe highest st safet safety y in a deben debentur ture e is
AAA
High
Good
P1+
31
During During the period period of turm turmoil oil, gold gold prices prices
Go down
Go up
Remain steady
Mirror equities
B
32
Perform Performanc ance e of fund fund must alwa always ys be measu measured red relat relative ive to to the.
Index
Benchmark
Asset Class
Investment objective
B
33
Difference Difference between between scheme scheme's 's actual actual return return and and optima optimall return return for it's it's risk risk is
Sharpe
Treynor
Alpha
Spread
C
34
While evaluating return for an index fund across a peer group, which of the following is more important?
BETA Coefficient
Past performance
Tracking error
R-squared
C
35
Ba la nc nce fu fun ds ds ar ar e f o orr
highly aggressive investor
Moderate conservative conservative
Highly conservative
C
36
The The lowe lowerr risk risk amo among ng equ equit ity y fund fund is is
Index Fund
Value Fund
Dividend yield fund
Growth fund
C
37
Probabilities of losing money in equity is negligible if investment horizon is for at least
6 months
5 years
1 years
3 years
B
38
Return Returns s in intern internati ationa onall fund fund is is depen dependen dentt on
Exchange rates
Asset class performance
Both of the above
None of the above
C
Aggressive investors
B
A
NISM Mock Test 1 39
Mutual Mutual fund funds s in Indi India are not not perm permitt itted ed to invest invest in in
Gold
Real estate
Art
Secularized debt
C
40
A value value fund fund is expect expected ed to have have ______ ________ __ exposure exposure to front front line line stocks stocks
Entire
High
Half of it's
Low
D
41
Index Index funds funds are safe saferr becaus because e their their NAV NAV does does not go down down
TRUE
FALSE
42
Which Which of of the the follo followin wings gs are are leas leastt compa comparab rable le
Liquid and Savings account
Liquid and Current account
ETF and Index fund
GILT and Sector fund
D
43
An investor seeking seeking capital appreciation, appreciation, having high high risk tolerance and long term horizon must invest in
Bonds
Bank FD
Real-Estate
PPF
C
44
Credit Credit rating rating enable enables s an investo n vestors rs to to judge judge the
Duration of loan
Extent of securities against the borrowing
Risk of default by borrower
Interest rate risk
C
45
Which Which of the the follow following ing is is not gove governm rnment ent savi saving ng schem scheme? e?
Infrastructure Bonds
RBI Bonds
POST
KVP
A
46
An investor looking looking for capital appreciation, appreciation, having a high risk tolerance tolerance and long tem horizon must invest in
Bank FD
Equity
Bonds
Gold
B
47
Which Which of of the the follo followin wings gs is physi physical c al asset? asset?
Securised debt
Real estate
Real estate fund
Gold future
B
48
In new pension scheme(NPS) Tier I account new pension scheme is called pension account
TRUE
FALSE
A
49
Investor Investor in in MF can can choos choose e asset asset class ass but but not not investme investment nt manage manager r
TRUE
FALSE
A
50
Fina Financ ncia iall Plan Planni ning ng Invo Involv lves es
Helping client to select the out performing stock
Assessing the clients financial information
51
Value stocks
Have high current dividend
Yield high growth in earning
52
A bette betterr perfor performan mance ce than than the the retur return n on inde index x is give given n by
Passive fund manager
53
Emerging or new channel for distributors/marketing of mutual funds in India is
54
B
Advising client to invest only in secured investments
None of the above
B
Are currently under valued
None of the above
C
An active fund manager
All fund managers
Non fund manager
B
Internet
Stock Exchange
All of the above
None of the above
C
Trail Trail comm commis issi sion on mean means s pay payin ing g
No commission at all
The entire commission upfront
Part of commission up front and balance in phases
The entire commission after five years
C
55
Agents Agents are compen compensat sated ed by mutual mutual funds funds
Through salaries
Through commission
Through an annual fees
Not in cash but in kind
B
56
The fund fund sponsors sponsors should should have have a sound sound financial financial track record of
7 years
5 years
12 months
3 years
B
57
Which of the the following following are self regulatory regulatory organizat organization(S ion(SRO) RO)
BSE
SEBI
AMFI
RBI
A
58
Bank Bank owne owned d mutu mutual al fund fund are are supe supervi rvised sed by
SEBI
Jointly by SEBI & RBI
RBI
AMFI
A
NISM Mock Test 1 59
A passive fund manager
Researches stocks extensively
Does not buy and sell stocks often
Does not have to go through the process of stock selection
Does not have to track stocks
C
60
Debt securities bought at a discount to their face value are generally
Interest bearing
Zero coupon bonds
Paying interest at a floating rate
None of the above
B
61
When interest rates rise, bond prices
Also rise
Are not affected
Falls
Fluctuate either 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 investor cancels his investment
The investor redeems his investment in a very short time
An Agent retain the Investment
D
64
A debt fund distributes 10% dividend . how much tax does the investor have to pay on this dividend
10.00%
20.00%
12.00%
None
D
65
What is the current PPF rate
8.00 Percentage
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
67
Risk adjusted return is measured by
Sharpe ratio
Standard deviation
Treynor ratio
A&C
D
68
Intra day trading can be done on the basis of-
Fundamental analysis
Technical analysis
Economic analysis
Political analysis
B
69
Mid cap stocks are risky in the time of
Boom
Recession/Economic turmoil
Political instability
All of the above
B
70
W ho Ap poi nt s t he AM C
Custodian
R&T
Trustee
Distributors
C
71
Whic h of the following has lowest risk
Liquid fund (mmmf)
Gilt funds
Diversified debt fund
Diversified equity fund
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
What of the following is not a reason for investor to prefer mutual fund over Bank FD
Tax benefits
Possibility of capital gain
Deposit insurance
Investment convenience
C
74
In the NPS each investment manager appoints own distributor
TRUE
FALSE
75
Need of Life insurance in life is
Must
Not required
76
All investor have similar requirements at similar stage in the life/wealth cycle
TRUE
FALSE
77
Name of asset allocation strategy if it is fixed @ 50 %
Tactical Allocation
Strategic Allocation
78
Model portfolio should be determined based on commission income possibility for distributor
TRUE
FALSE
An agent invests his own money, not that of client
A can be done without
None of above
A B
A&B
None of above
B B
NISM Mock Test 1 79
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
Portfolio churning
Tax benefit
A
82
How to compare index fund
performance
expenses
Tracking error
None of above
C
83
What type of bond fund carrie s least in terest rate risk
Short term bonds
Long term Bonds
Mid term Bonds
All of above
A
84
Arbitrage fund are not equity fund
TRUE
FALSE
85
Whic h 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
87
The role of insurance is more critical for physical assets than financial assets
TRUE
FALSE
88
When price of gold goes up a buyer of gold future contract see it's value
Go up
Go down
Retain the same value
None of above
89
The investment portfolio 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 inclu de
Food crops
Industrial metals
Real Estate
Gold
C
91
Subsequent to NFO, open ended funds are
open for purchase by existing investor & new investor
open for purchase only for existing investor
available on stock market
None of above
A
92
If a fund seeks to grow in value overtime it can be said that it's investment objective is
capital appreciation
safety of capital
Capital adequacy
Regular income
A
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
96
Which of the following is not a function of R&T agent
Creating maintaining and updating the investor record
Updating unit capital of fund
Processing dividends & redemption payouts to investors
Settling investment transaction of the fund
D
97
Prior approval of SEBI needs to be taken before a person is appointed as trustee
TRUE
FALSE
A
98
Person, other than Indian residents, should also comply with RBI guidelines for investment in Indian mutual funds
TRUE
FALSE
A
B
A A
NISM Mock Test 1 99
The first step of financia l planning is
Evaluating the various alternatives
data gathering and goal setting
establishing the client planner relationship
Plan Review
C
NISM Mock Test 2 PRACTICE KIT – PAPER 2 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
1
In case of market correction _______ , takes more hit than _______ Fund.
Growth , Value
Momentum , Value
Value , Growth
Growth , momentum
C
2
Sponsor's net worth should be positive for
Last 5 years
last 2 years
last 3 years
last year
A
3
At time of NFO, which document compuls orily filed with SEBI
SID
SAI
Annual Report
4
Collection and payment of fund is a responsibility of
Custodian
R&T
Banker
5
Other than Indian residents, rest have to also comply RBI regulations
TRUE
FALSE
6
Which of the following not included in KIM
Details of Key personal of AMC
Tax benefit of MF
Expense and Load structure of scheme
Due diligence certificate of AMC
D
7
Function of OD is
Give detailed information about scheme to investors
Give current NAV
Gives Fund suggestion
None of the above
A
8
What should be the Sector Fund Allocation for a single income family having small investable surplus
0.00%
70.00%
50.00%
30.00%
A
9
Which expense can be not charged to scheme?
Expenses on investor communication
Service tax
Fees of custodian
General administration expense of AMC
D
10
Low PE indicates that stock is cheap and you should buy it
TRUE
FALSE
11
Which of the following need not be included in KIM?
Detail of sponsor
Minimum investment amount and cut off time
12
As per income tax act, Arbitrage Funds are taxed as per debt scheme
TRUE
FALSE
13
Which is purely treated as an international asset
Equity
Gold
14
Transfer of security from one scheme to another scheme is allowed in MF
TRUE
FALSE
15
Calculate the sales price of a unit when NAV is 15 and exit load 1%
15
14.85
15.15
15.5
A
16
If you get a cheque of 1 cr in a Gilt Fund at 2.30 pm, NAV date will be
NAV at 2.30pm
NAV at 3pm
Same day NAV
NAV of fund realization date
D
17
Who allots Amfi Registration Number?
AMFI
SEBI
AMC
none of the above
A
18
Which distribution channel don't have a huge branch network?
Institution
Corporate distributor
Bank
IFA
D
19
Dividends in the hands of investors are taxable at the rate of
10.00%
15.00%
33.00%
Tax Free
D
20
Last step in the process of designing model portfolio
Sector selection
Asset allocation
Scheme selection
Client selection
C
Memorandum and Articles of Association AMC
Answer
A B A
B Risk profile of the scheme
Opening and closing dates of NFO
A B
Real Estate
Debt
B A
NISM Mock Test 2 21
Goal based approach of financial planning focuses on
Risk profiling
22
What is the rate of return of PPF
20 Percentage
23
What is the indic ator of the risk adju sted performance ratio?
24
Achievement of the goal of investors
Tax liability of investors
Investible surplus of the investor
B
8 Percentage
8.50 Percentage
9.25 Percentage
B
Beta
Standard Deviation
Sharpe's Ratio
Variance
C
Interest Rate sensitivity in Bond fund depends on
Credit Profile
Avg Maturity
YTM
Current Yield
B
25
SEBI doesn't allow passing of commission to
Distributor
Investor
Bank
IFA
B
26
If you get a 50L in equity fund at 3:30 pm today,investor will get the NAV of
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
29
The information regarding Which category of investors can invest in MF, is given in
Offer document
SAI
MIN
SIN
A
30
Who can not be the distributor of the AMC
IFA
Bank
Employees of AMC
All of the above
C
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
32
MIP is a Debt Scheme
TRUE
FALSE
33
Asset allocation should be in line with
Financial Goal
Age of Client
Risk Appetite
All of the above
D
34
A young investor having objective of capital appreciation should invest in
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
Which one is false about debenture
Issued by PSU
High credit risk
It has maturity
Duration is greater than 1 yr
A
38
Investor has read the OD and then the invested in the f und and fund goes down, then he
Gets remedy from SEBI
Cant sue the AMC
Gets remedy from AMC
Gets remedy from NSE
B
39
STT charge on
equity Derivatives
Equity MF
Equity Schemes
All of Above
D
40
Which function AMC can't do in house
Custodian
Accounting
Distribution
Fund management
A
41
Value of Bond goes down when
Interest rate goes down
Interest rate goes up
IRR goes down
YTM goes down
A
A
B
NISM Mock Test 2 42
Which one is not exempted in wealth tax
Gold sector fund
Gold deposit
Gold ETF
Gold
D
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
D
46
In NPS investors get choice of the asset class but don't get choice of investment manager
TRUE
FALSE
47
In case of online transaction, transaction time is applicable
Time shown in the computer of investor
Time as web per web server
48
If investors invest through demat can AMC asks for KYC requirement
TRUE
FALSE
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
D
51
Who can not invest in mutual funds?
Foreign companies
Banks
insurance companies
NBFC
A
52
W hi ch is sa me as of OD ?
SID
SID+SAI
SAI
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
K IM h as to be up da ted
Twice in a year
Quarterly
Once in a year
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
Half yearly
Whenever material changes take place
Once in two year
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
D
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.100,00,000 in Equity MF Scheme at 3.30 pm through outstation cheque he will get NAV of
Same day closing value
When fund gets credited
Previous day closing value
Next day closing value
62
Trail commission to advisor helps in --
Retaining the investor for long term.
Portfolio Churning
New client acquisition
None of the above
B Mid night
B
Next day morning
B
KIM sumarry of SAI + SID.
B
C
B A
NISM Mock Test 2 63
E xit l oa d __ ___ __ __ _
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
65
Arrange in correct sequence
Risk profile, fund allocation, portfolio construction.
Risk profile, portfolio construction, fund allocation.
Portfolio construction,risk profile, fund allocation.
Fund allocation. risk profile, portfolio construction
B
66
Which of the following is against the ethics & Code of conduct guide line of AMFI
Churning investor's money to get better returns
All the associates of a distributor should be amfi approved.
Keeping the interest of all unit holders
All of the above
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 institution & trust.
None of the above
D
69
FMP can give better interest than a Bank Deposit.
TRUE
FALSE
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-
Govt. institutions
Company
Trust
NBFC
C
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 return
Simple return
compounded annualized return
all of the above
C
74
In KIM it has been mentioned that the 65% investment will be in equity and equity related instrument. this is called-
Policy of scheme
Objective of scheme
portfolio of scheme
None of the above.
A
75
K IM is att ach ed wi th ?
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
78
Formula to fin d 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
80
The expected return & yield of the scheme is mentioned in KIM
TRUE
FALSE
81
How frequently NAV of an equity scheme are calculated
Daily
Weekly
Quarterly
once in financial year.
82
If beta of a scheme is le ss than one the the fund is-
Mo re ri sk y c om pa re to ma rk et
L es s r is ky co mp ar e t o m ar ke t
n ei th er ri sk y n or pr of it ab le .
beta doesn't make any impact on scheme performance
B
83
What is not true objective of li fe insurance-
Risk coverage
Investment
Both
None of the above
B
A
A
B A
NISM Mock Test 2 84
Unit capital is issued at-
10
25
50
100
A
85
Fund management cost is more in-
Passive fund
Gilt fund
Liquid fund
Active fund.
D
86
Independent trustee are appointed by-
Sponsor
SEBI
AMFI
All of the above
A
87
D is tr ib ut or s ar e pa id-
Commission
Fees
Salary
All of the above
A
88
K YC i s r eq ui re d f or -
Guardian in case of minor
HUF
Sole proprietorship firm
All of the above.
D
89
KYC is compulsory -
For every investment
50000
50000 and above
first time investment
A
90
Formula for CAGR calculation is
Interest * No of years
(P1-P0)/PO*100
((End Value/Start Value)^(1/ (Period)) -1
None of above
C
91
The NAV of a fund is 15 applicable exit load is 1%, purchase NAV would be-
14.85
15
15.25
15.65
B
92
In case of breach of Code of conduct license is canceled by-
AMFI
SEBI
Sponsor
AMC
A
93
Which is true in case of PPF?
Partial withdrawal facility is available after one year
Investment & return are tax free.
Both
None of the above
B
94
A fixed term plan series is-
As open ended fund
A closed ended fund
A fixed term bank deposit
A fixed term corporate bond
B
95
The P/E ratio is an important measure of a company's anticipated performance. it is calculated using.
Market price and dividend
Market price and earning per share
Market capitalization and dividend
Market price and face value
B
NISM Mock Test 3 PRACTICE KIT – PAPER 3 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
Which one of the following is not an eligible investor?
Insurance Companies
Govt Institutions
Foreign Citizens
Provident Fund
2
For a customer holding units in demat , the AMC also requires to do his KYC ?
TRUE
FALSE
3
Which investment belo w gives international exposure
International Funds
Gold Fund
None
Both
D
4
On doing risk profiling which asset allo cation does it give ?
Strategic Asset Allocation
Fixed Asset Allocation
Flexible Asset Allocation
Tactical Asset Allocation
A
5
In a balance fund with net assets of 750 crores what is the expenses that can be charged ?
10.13
15.38
17.86
16.125
D
6
I invest Rs 50 lacs at 2.30 pm with a local cheque for funds other than liquid scheme, which NAV will you get ?
Next day NAV
Same days closing NAV
Previous day NAV
Closing NAV of the day preceding next business day
B
7
What is the DDT for an individual in liquid fund ?
0.25
0.2
0.13
0.1
A
8
If client invest in liquid fund at 11.30 am and the fund gets cleared on the same day which NAV the client gets ?
Next day NAV
Closing NAV of the day preceding next business day
Same days closing NAV
Previous days closing NAV
D
9
What is true about premium paid in a life insurance company ?
Customer can decide premium
Premium can be availed under Sec 80 c
Premium can be shown as exp
Premium is volatile
B
10
The person with whom the units are pledged is known as
Pledger
Pledgee
11
What is the highest expense ratio in a Fund of Fund scheme ?
2.25%
1.75%
12
SEBI is sole regulatory authority for MF are answerable
TRUE
FALSE
13
How is company fixed deposit compare to bank fixed deposit ?
Low Risk
Highly Volatile
Less Safe
Lower Return
C
14
Within how many days the dividend warrants to be dispatched on declaration?
15
7
10
30
D
15
A dis tributor needs different ARN for each AMC ?
TRUE
FALSE
16
A conservative investor need not be advised to invest in ?
Gilt Fund
Liquid Fund
17
The New Pension scheme is both regulated IRDA and PFRDA as it has an insurance component ?
TRUE
FALSE
18
Which is the fastest way of remitting funds on real time basis?
NEFT
D/D
SWIFT
RTGS
D
19
Which of the following is a financial asset ?
Govt Security
Gold
Real Estate
None of the above
A
20
Whic h of the following is an SRO ?
AMFI
SEBI
BSE
RBI
C
C B
B 0.75%
1.50%
C A
B High Yield Bond Fund
Short Term Plan
C B
NISM Mock Test 3 21
NFO other than ELSS can remain open for maxim um _________
7 days
15 days
21 days
30 days
B
22
In NFO the account statement is to be dispatched within â days on closure of NFO ?
5 days
15 days
20 days
30 days
A
23
Companies issuing short term debt is called
CD
Tbills
Debentures
CP
D
24
Within a category one can decide on investments based on Sharpe Ratio
TRUE
FALSE
25
Whic h of the following exempt from DDT ?
Equity Oriented Fund
Liquid Fund
26
The arbitrage funds are taxed lik e debt funds
TRUE
FALSE
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
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
32
According to Performance Advertisements the return shown for equity funds over 1 years are
Annualised Yield
Simple Return
Absolute return
CAGR
D
33
In New Pension Scheme portfolio of Assets class E predominantly investment in
Equity
debt
Govt. Sec.
34
Expense ratio is most important in case of
Index Fund
Offshore Fund
Active Fund
Fund of Fund
35
Code of ethics for employees of AMC is described by
SEBI
AMFI
Internal Audit Team
Trustee.
B
36
Recurring expenses in Equit y scheme has a limit up to
1.50%
0.50%
1.25%
2.50%
D
37
In Transition phase of Wealth Cycle investor tends to increase the proportion of_______ assets in his portfolio.
Equity
Liquid
Gold
None of above.
B
38
Which of the following is a Financial Asset?
Gold
Real State
Bank deposit
None of above.
C
39
Index fund can giv e better returns from its Benchmark.
TRUE
FALSE
B
40
The young BPO executives should not be advised to invest in long term schemes because of their lavish life style ?
TRUE
FALSE
B
41
Term âStock pickingâ is used in which of the following?
Bottom up approach
Top down approach
Both
None of above.
A
42
What is the applicable rate of STT in case of repurchase of Equity scheme?
0.13%
0.33%
0.02%
0.25%
D
A Income Fund
Gilt fund
A B
A
A A
NISM Mock Test 3 43
Market value is 152 crore, Dividend accrued but not received= 8 crore, liabilities = 2 crore Total no of outstanding units is 75 lakhs. What will be the NAV of the scheme?
200
210.67
213.33
None of above.
B
44
Investor selects an MF based on
Investment Philosophy
Investment Strategy
Investment Policy
Investment Objective
D
45
______ has been appointed by Trustee
Custodian
R&T
AMC
Distributor
C
46
R isk Ma y b e d ef in ed as
Asset Allocation
High Transaction Cost
Financial Loss
Portfolio Rebalancing
C
47
Financial Planner defines that client does not have r esources to meet goals. He should
Inform the Cl ient
Avoi d tell ing as cli ent wi l be di shearted
Avoi d tell ing as he may lose the cli ent
Increase risk to generate higher return
A
48
Which of the following account in NPS is a Saving Account
Tier I
Tier II
Tier III
Tier IV
49
Mutual Fund is exempted from Wealth Tax
TRUE
FALSE
50
KYC is required for investment more than
20000
10000
Not required
Needed for a single rupee investment
D
51
If a minor Invests Rs 10,000 in MF, KYC is needed or not
KYC for Minor is needed only if investment exceeds Rs 20000
KYC for Minor is needed only if investment exceeds Rs 50000
If investor is a minor, KYC should be of his guardian even for a single rupee investment
KYC is not at all required for minors
C
52
Since Preparation of WILL is a long process, it has to be avoided
TRUE
FALSE
53
Close ended fund allows investors to sale their units
By allowing fixed number of Units to sale
By selling number of units in a fixed interval
by listing MF in stock exchange
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 unit s
TRUE
FALSE
57
Change in the value of NAV is
Standard Risk
Systematic Risk
Unsystematic Risk
58
Whic h one is called cum-dividend NAV?
NAV on the date when trustee approves dividend
NAV of the date when notice is issued to meet trusteed to finalize dividend
N AV af te r th e d ate of di vi de nd
N one of th e a bo ve
A
59
When scheme is first launched and investor invests in MF... it is called
NFO
IPO
Purchase
Re-Purchase
A
60
KIM Document is a summary of
SID
SAI
OD
SID+SAI
D
61
If investor invests in a Guilt fund at 3:30 p.m., he would get the units at which NAV ?
Current NAV
Previous Days NAV
NAV of Next Business Day
Same day NAV
C
62
If investor invests in a Equity fund at 3:30 p.m., he would get the units at which NAV ?
Same day NAV
NAV of Next Business Day
Previous Days NAV
Current NAV
B
63
The guideline issued by AMFI for intermediaries are known as
AGNI
ACE
AMFI
None of the above
A
64
Time stamping arrangements is must for
Offices of Distributors
AMC Offices
Bank Distributors Branch
Offices declared as point of acceptance
D
B A
B C
B A
NISM Mock Test 3 65
Unaudited accounts of the scheme must be published in the news paper
66
An Investor Invests Rs 100000 in a 365 days FMP and got Rs 107750, what would be capital gain in this case ?
67
ST T is charged on
68
An investor plans to invest Rs 12000 in a scheme whose NAV is Rs 12, how many units he will likely to be obtained
69
B
Every 3 months
Every 6 months
Every 12 months
None of the above
7750
750
Insufficient Data
1000
A
Equity Share Trading
Derivative Trading
Equity MF
All of the Above
D
<1000
1000
1200
Cant Say
B
Company's Earning per share would be indicated by following
P/E Ratio
Current Ratio
EPS
Leverage Ration
C
70
Be ta of In dex wo ul d b e
Less than 1
Equals to 1
more than 1
None of the above
B
71
While evaluating return for an index fund across a peer g roup, which of the following is more important
Beta Coefficient
Past performance
Tracking error
R-Squared
C
72
The fund sponsors should have a sound 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
74
Father wants his son to be a doctor and study will start after 5 years. The current expense is 2500000. How to calculate the expense after 5 years
A = P + (1+r) ^ n -1
A = P x (1+r) ^ n
A = P / (1+r) ^ (1/n) -1
A = P / (1+r) ^ n
B
75
Appropriate benchmark for G-sec fund
I-sec+ I -bex
CRISIL liquid fund index
MIBOR
CRISIL - MIP bladed index
A
76
Whic h of the following has lowest risk ?
Liquid Fund
GILT Fund
Diversified debt fund
Diversified Equity fund
A
77
If I require 500000 after 2 years, which method will I follow ?
Discounting method with interest rate
Discounting method with inflation rate
Compounding method with interest rate
Compounding method with 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
80
Low PE compared with peer group or industry standard indicates that stock is cheap.
TRUE
FALSE
81
What would be the redemption value of a Unit if NAV is 15 and Exit load is 1%
15
14.85
15.5
15.15
B
82
Last step in the process of designing model portfolio
Sector Selection
Asset Allocation
Scheme selection
Client Selection
C
83
For a distribution channel, 60% of the employees should have AMFI Registration Number
TRUE
FALSE
84
Equity Fund's Risk relative to market is measured by
Tracking error
Sharpe's Ratio
Treynor
Beta
D
85
Standar d 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
B
A
NISM Mock Test 3 87
If an investor invests 1,000,000 at 3:30 p.m through outstation cheque, he will get NAV of
Same day closing NAV
When fund gets credited
Previous day closing NAV
Next Day NAV
88
Liquidity risk is highest in
Mid Cap stocks
Front Line Stocks
Index Stocks
Gilt Security
A
89
Mr A Holds 2000 Units, scheme declared 1:4 bonus. How many units will Mr A Gets ?
400
500
8000
Depends on NAV
C
90
Investor can sue the trust for breach of trust
TRUE
FALSE
B
91
Distributors do not get commission on self business
TRUE
FALSE
A
92
Whic h of the following is an SRO ?
AMFI
SEBI
AMC
93
What remains constant in a close ended fund ?
Unit Capital
NAV
Both
94
SEBI regulates
Mutual Funds
Depositories
RTA
95
Unit holders can hold their units in demat form
TRUE
FALSE
96
KIM needs to be updated every
3 months
6 months
97
Trail commission are linked to valuation of portfolio in the market
TRUE
FALSE
98
Risk can be measured by
Variance
Standard Deviation
Beta
99
According to the Certified Financial Planner - Board of Standards (USA), the third stage in Financial Planning is
Establish and Define the client planner relationship
Gather client data
Define client goals
None of above.
B
D A
All of the Above
D A
Once a year
No need to update it
C A
Any of the above Analyse and Evaluate Client's Financial Status
D D
NISM Mock Test 4 PRACTICE KIT – PAPER 4 No.
Q UESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
Commodity as an asset class does not include
Fiber
Spices
Energy
Art
2
Financial Planning is just a process and so Financial Planner can use any profile found in the web
TRUE
FALSE
3
5 st ar fu nd in di ca tes
Lowest Expense ratio
Lowest Load
4
Investor should invest in MF with few offices as office expense is charged to the fund
TRUE
FALSE
5
NAV changes with
Number of investor
Number of Units remaining invested
Size of Portfolio
Market value of the portfolio
D
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
9
Securities of a fund are held by
Custodian
AMC
R&T
Broker
10
Risk may be defined as
Asset Allocation
High Transaction Cost
Portfolio re balancing
Probability financial Loss
D
11
Financial Planner finds that client does not have resources to meet goals. He Should
Inform the Client
Avoid telling as client will be disheartened
Avoid telling as he may lose the client
Increase risk to generate higher return and meet the goal
A
12
Which of the following is with drawable in NPS
Tier I
Tier II
Tier III
Tier IV
13
Mutual fund is exempted from Wealth Tax
TRUE
FALSE
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
16
Which of the following is not a function of R&T
Process Dividend and redemption
Mai ntai n the records
Settl ing i nvestors transacti on of fund
Calculati on of NAV
D
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
19
High portfolio turnover ratio implies
High Cost
Low Expense
High return
Non Performance
20
Since preparation of WILL is a long process, it has to be avoided
TRUE
FALSE
21
Benefit of Demat a/c is that
Direct credit of bonus units
Single contact point for change of address
22
Among equity fund , growth fund has highest risk
TRUE
FALSE
D B
Highest Performance
Best Portfolio
C B
A
A
B A
A B
Single point for portfolio valuation
All of the above
D B
NISM Mock Test 4 23
What determines the interest rate sensit ivity
Credibility
Quality
24
Fundamental Analyst are also called " Chartist"
TRUE
FALSE
25
Fundamental Analyst's decis ion are base on
EPS in dollar
Trialling EPS
26
Debenture is physical asset because the paper has some value
TRUE
FALSE
27
Investing in Gold ETF helps
Guarantees high return
Not permitted in India
28
Which of these activity are carried out before getting SEBI approval
Updating the SID with NFO dates
Approval of the features by trustee and AMC board
29
Childhood and transition are similar stage of LIFE cycle and WEALTH cycle stage
TRUE
FALSE
30
Investor with a long term investment horizon for growth are likely to invest in
Equity Fund
ST Debt Fund
31
Some allocation to GOLD is likely in most model portfolio
TRUE
FALSE
A
32
Approval of SEBI is needed to appoint a person as Trustee
TRUE
FALSE
A
33
What is the drawback of PPF
One withdrawal at the end of Seventh Year
Interest and Withdrawals are not taxable
H al f ye ar ly Co mp ou nd ed i nt er es t
N ot Gu ar an te ed b y G ov t
A
34
Commission paid at the time of investment are called
Upfront Commission
Rebate
Trail
AUM Retention Fee
A
35
Investors in NPS can choose asset class but not fund managers
TRUE
FALSE
36
Settlement responsibility in BSE / NSE Platform are with
AMC
Clearing House Concerned
Stock Exchange
Member
A
37
Which of the following information does time stamp include
Machine Identifier
location code
Serial No
All of the above
D
38
Comprehensive FP should be restricted to fiv e years
TRUE
FALSE
39
Closed ended fund has
Fixed AUM
Fixed Unit Capital
Fixed NAV
Assured Dividend
B
40
To which of the following PAN does not apply
PIO
NRI
Minor & Senior Citizen
None of above
D
41
Father wants to start his busin ess, this is
Asset Allocation
Financial Goal
Appreciation
Financial Planning
B
42
In India one can invest in MF only through distributor
TRUE
FALSE
B
43
SIP is called RCA (Rupee Cost Averaging)
TRUE
FALSE
A
44
Liquidity risk arises in
Closed ended fund
Open ended fund
Gold
Debt
A
45
A mutual fund is
A pool of trustee money
A pool of investment institutions
A pool of investment managers
A pool of investment fund
D
46
The name and background of key personnel in AMC
Are not included in SID
Declared on MF website
Are included in SAI
Are not relevant so not disclosed
C
YTM
Avg Maturity
D B
Historic EPS
Projected EPS
D B
Provide risk cover
Reduce storage cost and risk
D
Di sp at ch p ro du ct l ite rat ur e
Pri nt in g KIM a nd ap pl ic ati on f orm
B B
Income fund
liquid Fund
A
B
B
NISM Mock Test 4 47
Annual report should announce the unclaimed amount and no. of investor
48
A
TRUE
FALSE
STCG in GOLD is applicable if the holding period is less than
12 months
36 months
6 months
9 months
B
49
_______ allots the ARN number
AMC
AMFI
SEBI
NISM
B
50
Application for MF would be rejected if paid in
Cheque
DD
Cash
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
53
C ut -o ff t ime ar e
Agreed between AMC & 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
55
For with-holding tax on income earned by NRI depends on nature of income, nature investment and investor's country of domicile
TRUE
FALSE
A
56
Gilt fund is a good alternative to Capital Appreciation
TRUE
FALSE
B
57
Which of the following is growth asset
Savings a/c
Current A/c
Real Estate
Govt Security
C
58
Which is prohibit ed in AMC's Code of ethics
Inter Scheme transfer
Front Running
Security transaction through associated broker
Distributor of MF through AMC
B
59
Loads are applicable to
Transfer of Closed ended Scheme
Redemption
Purchase and redemption
Purchase
B
60
Bank on receipt of money from abroad issue
IEC
FIRC
MIN + Folio
61
Mutual Fund investor can't pledge units
TRUE
FALSE
62
Standard risk factors are
Not market risk
Specific to scheme
not relevant to investor
63
Unit holders are entitled to
Receive information that can effect their investment
protection of capital even if market goes down
Sue the MF or Trust
64
Appropriate benchmark to large cap
BSE small cap index
Sensex
BSE 500
BSE Mid cap Index
B
65
If market crashes after bull run which fund is more safer
Growth
Value
Sector
Theme
B
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
67
Net Avg asset of the scheme is 300cr and Investment transaction value for the same is 1000 cr in a year. What is the avg holding period (months)?
0.3
0.36
Insufficient Data
3.6
D
68
Mutual Fund transaction on stock exchange are governed by stock exchange redressal system
TRUE
FALSE
69
Which one is called Cum-Dividend-NAV?
NAV on the date when trustee approves dividend
NAV of the date when notice is issued to meet the trustees to finalize the dividend
B B common to all scheme Assured return even if there is no guarantee
D A
B NAV after the date of di vidend
None of the above
A
NISM Mock Test 4 70
IF Gold price appreciates investors should invest in
Gold sector fund
Gold ETF
71
When scheme is first launched, AUM of the scheme would be nil
TRUE
FALSE
72
An investor looking to select a hybrid fund with tax benefits must choose.
Conservative MIP
Balance fund Equity oriented
Balance fund Debt oriented
Aggressive MIP
73
Encroachment risk is higher for
Land
Building
Gold
Art
74
Unaudited report has to be published in newspaper every
3 months
6 months
12 months
3 financial year
75
Tax differal is advantage
Growth
Dividend payout
Dividend reinvest
Capital gain
A
76
The expense ratio is affected by
Fund size
Average account size
Portfolio composition
Stock market conditions
A
77
In a mutual fund investors subscription are accounted for as
Liabilities
Unit capital
Deposits
None of the above
B
78
A disclosure should be made in the offer document if an AMC has invested more than the following percentage of its net assets in group companies.
0.5
0.25
0.4
0.1
B
79
Open ended fund can invest in unlisted securities up to-
0.05
0.0475
0.06
0.0525
A
80
Fund of Fund scheme invest in-
Mutual Fund scheme
International fund
Index fund
Gilt fund.
A
81
A scheme can distribute dividend on it s-
Realized profit.
Profit after tax
realized & non realized profit
none of the above
A
82
A newly married couple should invest into --
Debt fund
Balance fund
Equity fund
Liquid Funds
C
83
If an investor wants to invest in Mutual fund through exchange platform he can buy from
Existing investor
Broker
AMC
Distributor
B
84
Standard risk factors are
Changes from scheme to scheme.
Common for all scheme
Both
None of above
85
The presence of market makers provide liquidity in case of ETF
TRUE
FALSE
86
Net asset Rs.500cr./ total transaction value is Rs. 1000 cr what is portfolio turnover ratio
0.5
2
1
data insufficient
B
87
Avg net asset of scheme is 3000,total transaction of a scheme 10,000 what is portfolio turnover ratio
0.3
4
3.33
5
C
88
What is an ideal sector allocation in a sectoral fund
<5
>5
Not more than 2
>10
C
89
Which of the following is true with respect to the automatic reinvestment plan?
It allows the investor to reinvest the amount of dividend
It ensures that the investor reaps the benefit of compounding
Some funds allow the investor the invest the dividend in the other schemes also
All of the above.
D
90
Which of the following is not true for Exchange Traded Funds (ETF)?
ETF combines the best features of open end and closed end.
Its pricing is linked to the index
It offers the investors the benefit of flexibility of holding a single share as well as the di versification and cost efficiency of index
ETFs recover heavy load from the investors.
D
91
In which of the following the investor generally bears the highest expenses?
Exchange traded funds
Balanced funds
Commodity funds
Fund of funds.
D
Index Fund
Gilt edge Security
B A B A
B
B A
NISM Mock Test 4 92
Which of the following is not the advantage of mutual funds?
Reduction of transaction costs
Convenience and flexibility
Tailor made portfolio
Liquidity.
C
93
Investor who wants long term exposure to gold should opt for
ETF Gold
Gold Sector Fund
Gold Future
Jewellery's
A
94
Which is the short term Govt Security
Commercial Paper
T-Bills
Certificate of Deposit
Gilt
B
95
Which is the most Illiquid Asset?
Gold
Equity
Debt
Real state
D
NISM Mock Test 5 PRACTICE KIT – PAPER 5 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
Bank lends against
Pledged units
Dividend
Nomination
Redemption
A
2
SID is approved by
Investor
Sponsor
AMC and Trustee
Custodian
C
3
Cut-off time for NAV
decided by AMC
same for all scheme
by trustee
Prescribed by SEBI
D
4
preparation of WILL is pessimistic exercise, so it is better to avoid
TRUE
FALSE
5
Which document is not requir ed for institutional investor
P & L account
Memorandum of the articles of association
PAN card
Authorized signatory list
A
6
Distributors are provided commission for up to
3 yrs
5 yrs
10 yrs
investors stay invested
D
7
SEBI is responsible to develop a cadre of well trained agents and distributors
TRUE
FALSE
B
8
High regular income yield is indicator of scheme weakness
TRUE
FALSE
B
9
W ho promotes MF
Sponsor
custodian
AMC
trustee
A
10
Liquidity risk is highest in
Mid cap stocks
Front line stocks
Index stock
Gilt security
A
11
A unit hold er is not responsible for
reading OD
selecting stocks in a portfolio of the mutual fund scheme
regular monitoring investment
awareness of risk factors
B
12
Accepted standard for return calculation in financial market is
abs return
CAGR
total return
simple annualized return
B
13
S TT is ap pl ica bl e o n
Purchase of debt fund
Redemption of debt fund
Redemption of equity fund
All of above
14
Mr A holds 1200 units , scheme declares 1:3 bonus. How many units will Mr A gets
300
400
3600
depends on NAV
C
15
Corporate deposit interest rate depends on
liability of borrower
asset of borrower
credit rating
profit of borrower
C
16
Commodity does not include
Art
Energy product
spices
Fibres
A
17
The value of investment in mutual funds..
Increase gradually every day.
Change with the value of the investment portfolio
Decrease gradually every day
Be volatile in long-term
18
The first ever mutual fund scheme in India was launched in
1964
1951
1970
1994
19
Investors buy units of open-ended funds during the continuous offer at the
NFO price
Market Price
Both
none of the above
B
C
B A B
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
21
If we have a view that gold price will appreciate, which mutual fund scheme should we invest in?
Gold sector
Gilt edged securities
Index fund
Gold ETF
D
22
One of the advantage if ETF is..
Investor can see where his money is invested
These schemes can generate higher returns than mutual fund.
Investors can buy of sell units on stock exchanges at price that closely track valuation at that time.
ETF offer tax benefits.
C
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
27
The applicable guidelines for mutual funds are set out in SEBI (Mutual Fund) regulation, 1996..
TRUE
FALSE
28
Bank sponsored mutual funds are also regula ted by
AMFI
Stock Exchanges,
RBI
29
AMFI code of ethics prescribes that mutual fund scheme portfolios should be managed in interest of
Identified class of unit holder
All classes of unit holders
Retail individual
30
Although AGNI is mandated. there are no penalties for breach of code of conduct.
TRUE
FALSE
31
To achieve growth by investing in equity and equity related investments, balanced with income generation by investing in debt and money market instruments is likely to be the investment objective of ___________ .
Equity fund
Money market fund
32
Annual report of AMC should necessarily mention the unclaimed amount and the number of such investors for each scheme.
TRUE
FALSE
33
Unit holders enjoy rights to the asset of the funds...
According to the plan chooses by them.
As per decided by trustees
equally for all holders
In proportion of holding
D
34
For fund of fund NAV is to be updated on-line in the website of AMFI and the mutual fund website..
Before 9 pm same day
Before 10 am following day
after 10 pm same day
Before 9 pm following day
B
35
Which of the following is not a mandatory services standard as per SEBI.
Periodic disclosure of the fund's holding
Periodic disclosure of AMC'c accounts
On-line purchase and sells of units
Dispatch of dividend within 30 days
C
36
Investors can sue trustees for breach of trust.
TRUE
FALSE
37
Which of the following is the function of an offer document
To enable comparison of MFs
To give the FM's commentary on market
To report the performance of scheme
To give investors information about scheme
D
38
NFO other than ELSS can remain open for _________
15 days
30 days
45 days
Forever
A
39
Which of the following contain detail information on the portfolio characteristics and operational features of a scheme?
Key Information of Memorandum
Statement of additional information.
Scheme information document
Addendum
A C
SEBI
Institutional unit holders
B A
Balance fund
C
Debt Fund
A
A
C
NISM Mock Test 5 40
Which of the following is not fundamental attribute of scheme?
Investment objective
Name ff Fund Manager
Investment Pattern
Type of risk profile
B
41
Which of the following is a synopsis of the offer document?
Trust deed
Memorandum of Association
Statement of additional information
Key information of memorandum
D
42
T he 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
45
Distributors are compensated by mutual fund companies primarily through..
Salaries
Annual fees
Share in AMC's profit
Commission
D
46
Which of the following statement is true?
Distributors do not get upfront commission on self business but they get trail commission
Distributors do not get trail commission on self business but get upfront commission.
Distributors get upfront and trail on self business
Distributors do not get upfront and trail on self business.
D
47
AMFI is SRO for mutual fund and regulates all mutual Fund
TRUE
FALSE
48
AMFI code of ethics prescribes that mutual fund schemes portfolios should be managed in the interest of
identified special classes of unit holders
all classes of unit holders
49
Transfer of investment from one scheme to another is allowed
TRUE
FALSE
50
If the investor wishes to change the dis tributor
He will need to give written request to the fund house
he needs to give the NOC from previous distributor
51
Investor can sue the trust for breach of trust
TRUE
FALSE
B
52
Since NFO is a marketing decision ,CIO has limited role in deciding it's structure
TRUE
FALSE
B
53
Info provided in the SAI
addendum made in the scheme
Updation in OD
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
55
What remains constant in closed ended fund?
Unit capital
NAV
both
None of the above
A
56
Where do high-yield funds invest?
Junk Bonds
Gilt fund
Equity growth Fund
Treasury bills
A
57
High yield bond schemes in vest in junk bonds?
TRUE
FALSE
58
Which ratio measures risk-adjusted return?
Sharp Ratio
Treynor ratio
Both
None of the above
C
59
Which funds have features of both open ended & close ended?
Interval Fund
Balance Fund
Sector Fund
Thematic Fund
A
60
Which approach is used by Fund managers for picking up the Value stocks.
Bottom up approach
Top down
Both
None of the above
A
B retail individual class
None of above
B A
AMC may allow or disallow
All of above
A
A
NISM Mock Test 5 61
Can liquid funds invest in short term bank fixed deposit?
Yes
No
A
62
Expenses in fund of funds?
Less then direct Investment in scheme
More than direct investment in scheme
Equal to direct investment in scheme
None
B
63
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
65
What is not mandatory in application form?
Occupation
Status of Individual
66
Is KIM a synopsis of offer document?
TRUE
FALSE
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
70
Who can distribute mutual fund through stock exchange?
Equity Broker with out certification
NISM certified & AMFI registered member
Both
None of the above
B
71
What is the beta of index fund?
1
More than 1
Less than 1
None of the above
A
72
When a time stamping machine is installed should it be informed to trustees
TRUE
FALSE
A
73
The difference between the yield on gilt and the yield on a non government debt security is called its yield spread.
TRUE
FALSE
A
74
Liquid schemes invest in securities
Less then 91 days maturity
More then 91 days maturity
Less then 1 year maturi ty
More then 1 year maturi ty
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
R&T
Custodian
Sponsor
C
77
AMFI is a SRO ?
TRUE
FALSE
78
AGNI is
Code of Conduct For Intermediaries
Rules & Regulations
Terms & Conditions
Non of the above
A
79
NFO opening and closin g detail mention in
KIM
SID
OD
All of above
D
80
K IM i s t o u pd at ed
Once in quarter
Once in month
Once in year
weekly
C
81
Recurrin g expenses includes
Investment advisory fee
Charged by the AMC, R&T fee
Marketing and selling fee
All of above
D
B Mode of holding
PAN
A A
B
NISM Mock Test 5 82
Offer Document of Mutual Fund is approved by SEBI
TRUE
FALSE
B
83
Stock exchange brokers are permitted to distribute MF after passing the certifying exam
TRUE
FALSE
A
84
If the post tax rate of return on an investment is 8% and the inflation rate is 6% the real rate of return is
2.00 Percentage
1.89 Percentage
8.00 Percentage
Non of the above
B
85
A client is investing Rs. 1 Cr. in gilt fund which day NAV he will get?
Same day closing NAV
Next Day NAV
Previous day NAV
NAV of the day when funds are realized.
D
86
How many minim um client is required for a scheme to run
20
10
30
50
A
87
There is no TDS on dividend distribution and redemption
TRUE
FALSE
88
Which documents are needed for KYC?
PAN card
Address proof
Photo id proof
All of above
D
89
Which id proof is not valid identity proof for KYC (individual)
Credit card
Address proof
Driving license
All of the above
A
90
For additional purchase
Only transaction slip to be filled
Transaction slip with purchase cheque
Only cheque
None of the above
A
B
NISM Mock Test 6 PRACTICE KIT – PAPER 6 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
Which of the following entities reaches MF product beyond geographical locations
The Brokers
The Custodian
The Distributer
R & T Agents.
2
SEBI is sole regulatory authority for MF are answerable
TRUE
FALSE
A
3
Where the investor desires to hold MF unit in DMAT form the AMC will still be required to Perform KYC to such investors
TRUE
FALSE
B
4
Offer 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
D
shall mention the dividend declared or paid in Rs per unit along with face value of each unit ofthat scheme and the prevailing NAV at the time ofDeclaration of Dividend
All of the above
D
C
6
Performance advertisement
Shall identify Nature of scheme
shall only advertise compounded annualise yield Calculated using the prescribe procedure
7
Benef its of ST P is
Paper work is minimized
Idle funds situation reduced
Both
None
C
8
Company has issued 10 core equity shares. It earns profit of Rs. 105 core on which it has Paid tax of Rs. 5 core and distributed dividend of Rs 20 core. What is EPS ?
10
10.5
12
11.5
A
9
Floating Rate Interest is ?
government yield+ spread
yield spread
base + spread
payable only on maturity
C
10
Market price of which of the following investment instruments will fluctuates more ?
Long Tenor debt
Short tenor Debt
Floating Rate Securities
Debentures
A
11
Asset consid ered for Asset Allocation ideally be
Similar
only Physical
Only Financial Asset
Mix of different kind of Asset
D
12
Which of the following is most unlikely to have a model portfolio with 20% alloacation to sector fund?
Young Executive early in his career.
Well Placed Mid Level Executive
Investor in Distribution Phase
Senior Executive with Well Settled Children
C
13
A distributor can be empaneled by AMC only if
Such distributor and its representative has/have cleared certifying Exam
Such distributor is approved by AMFI
Such Distributor is registered with Stock Exchange
Approved by SEBI
A
14
A GN I is ma nd ate d b y ?
AMFI
AMFI and SEBI
RBI
SEBI
A
15
Junk Bond Scheme is also be known as High Yeild Scheme ?
TRUE
FALSE
A
16
According to Some studies Asset Allocations and Investment Policy can better explain the portfolio performance as compared to Stock selection and Investment Timimg?
TRUE
FALSE
A
17
Which Of the following benefits of starting Health Inurance Policy early?
Higher Money Back after 5 years
Protection against Insurance Company rejecting claim on the ground of pre-existing illness
Both of the above
None Of the above
B
18
Which of the gollo wing is Government Savings Scheme?
Infrastrucure Bond
RBI releif Bond
Post Office recurring Deposit
All of the above
C
NISM Mock Test 6 19
Duration of PPF deposit is
15 years
6 years
7 years
3 years
A
20
Relaxation from Documetation required for MICRO SIP is available for
Only Individuals other than NRIs and PIOs
Individual Including NRI and PIOs
Individuals Including NRI but not PIOs
Individuals including PIOs but not NRIs
C
21
Intial Phase of Life Cycle is Accumulation?
TRUE
FALSE
22
Life insurance is meant for
Tax planing
Risk protection
23
Real Estate mutual fund is
Beyond means of retail investor's
Provided benefits of real estate & MF investing
24
B la ck swa n r ef er to
P ro ba bi li ti es o f l ar ge l os se s
M F r at in gs
25
A five star rating in MF schemes indicates that
Lowest expense ration
26
Which of the bond fund carries least amount of interest risk
27
B Savings
B
Are not easy to liquidate
B
K in d o f o ff er d oc um en ts
I nc en ti ve t o d is tr ib ut er
A
Lowest load
Demonstrate superior performance
Best portfolio
C
Dynamic bond
G-sec fund
Income fund
Money market fund
D
Asset allocation must primarily based on
Investment needs
Insurance needs
Taxation needs
Financial goals
D
28
Faced with the financial difficulties a family is likely to do all this except following
Move to a larger house in a better locality
Economi se Expenses
W ifes starts worki ng
Husband takes additional part time job
A
29
Pre-retirement stage
Annual investment amount gets reduced
Parents reach towards peak of their earning capacity
Saving for retirement gets minimized
Saving for investment is not required
30
Teir I account of new pension scheme is called pension account ?
TRUE
FALSE
31
Which is false ?
Government is trying to convert financial Asset to physical asset
Investment in bank FD can be transfered to loan
Investment share can be translated into projects
Investment in MF helps the real economic
A
32
Minimum Networth requirement of the AMC is
Rs 10 crore
Rs 5 crore
Rs 4 core
Rs 2 crore
A
If a scheme is launched in the second six months of financial year the the 1 st update of the
SID is due within
Within 3 months of the end of the financial Year
With 3 months from the begining of Next financial year
Within 3 months from the end of the next financial year
Within 6 months of the end of the financial Year
C
34
Legally SAI is the part of SID
TRUE
FALSE
35
Income tax allows setting of certain types of capital gain losses against certain type of Income which of the following is true in case of such provision.
Capital losses can be offset again salary
Long term capital losses from equity MF can Be offset against long term gain from property
Short term capital losses can be offset against dividend income for the year In which the loss has occurred
Long term capital losses in equity MF is not available for setting of against business or Salary income
D
36
The __________ is the main driver of returns in a mutual fund scheme .
Return
Profit of invested company
Portfolio
None of the above
C
37
Fundamental Analysis entails review of the company's
Financial Statements
Quality of Management
Competitive Position
All of the above
D
38
___________________ ratio indicates how much investors in the share market are prepared to pay (to become owners of the company ) , in relation to the company's earnings .
Earnings per Share
Price to Earnings ratio
Book Value Per Share
Price to Book Value
B
33
Investment Are popular investment options
B A
A
NISM Mock Test 6 39
A ____________ fund maintains a portfolio that is in line with the passive fund .
Active fund
Index Fund
Equity fund
Debt fund
B
40
Value investment style is an approach of picking up stocks which are valued __________ , based on fundamental analysis .
Lower
High
Medium
A&B
41
Which is approcach is also call ed stock picking .
Top – down Approach
Bottom – up Approach
Either A & B
None Of the above
B
42
If the proceeds on redemption are higher than the amount invested then it is called __________ .
Capital Gain
Capital Loss
No Profit No Loss
None Of the above
A
43
Treasury Bills are short term debt instruments issued by the ____________ on behalf of the Goverment of India .
SEBI
Reserve Bank of India
Central Government
State Government
B
44
Commercial papers are short term Debt Securities issued by corporates.
TRUE
FALSE
45
Credit rating companies are like _______________ .
CRISIL
ICRA
46
Higher the credit risk , lower is likely to be the yield on the debt security .
TRUE
FALSE
47
Which of the following are derivative _______________ .
Forwards
Futures
Options 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 .
Thematic Funds
Mid cap funds
Contra funds
Dividend yield funds
C
50
Liquid schemes, which invest in securities of up 91 days maturity , have the _________ risk amongest all kinds of schemes .
Higher
Lowest
Zero
None of the above
B
51
W hat is MIBOR ?
Mumbai Inter – Bank Offered Rate
Money Inter – Bank offered Offered Rate
Mutual Inter – Bank offered rate
Multiple Inter – bank Offred rate
52
To convert the demat units into physical from . This process is called re-materialisation .
TRUE
FALSE
53
RTGS refers to _______________ .
Real time Growth Settlement
Real Time Gross Settlement
Real Technique Gross Settlement
Real Technique Growth Settlement
B
54
What is ASBA _____________ .
Application Supported by Blocked Account
Application Supported by Blocked Acknowledgement
Application Supported by Blocked Amount
None of the Above
C
55
NSE's Mutua; Fund platform is called NEAT MFSS .
TRUE
FALSE
A
56
When a dividend is paid , the NAV of the units falls to that extent .
TRUE
FALSE
A
57
Risk can be measured by
variance
Standard Deviation
58
SEBI has Facilitated buying and selling of mutual fund units through the stock exchanges.
TRUE
FALSE
59
ARN REFERS TO _____________ .
Agent registration Number
AMFI Registration Number
A
A CARE & FITCH
All of the Above
D B
A A
Beta
Any of the above
D A
Application Registration Number
Account Registration Number
B
NISM Mock Test 6 60
In hoardings / posters, the statement , “ Mutual fund investments are subject to market risks, read the offer document carefully before investing ” is to be displayed at least _________ inches height .
61
6
9
5
8
D
If a scheme is launched in the first 6 months of the financial year then the first update of the SID is due with in ________ months of the end of the financial year .
2
6
5
3
D
62
No single investor shall account for more than 20% of the corpus of the scheme/plans.
TRUE
FALSE
63
The asset management company shall confirm that a due diligence certificate is signed by the ____________ .
Compliance officer
Chif executive officer
Managing Director
Any of the above
A
64
In case of specifice request recived from investors, mutual funds shall provide the account statement (SIP/STP) to the investor's within __________ working days from the receipt of such request without any charges .
5
10
7
15
A
65
The mutual fund would update the current expense ratios on the website within _________ working days mentioning the effective date of the change .
5
7
2
10
C
66
Offer documents of mutual fund schemes are approved by SEBI .
TRUE
FALSE
67
_______________ regulates mutual funds, depositories, custodians and registrars & transfer agents in the country .
RBI
SEBI
AMFI
All of the above
B
68
The objectives of AMFI is/are ____________ .
To recommend and Promote best business practices
To interact with the securities and Exchange Board of India (SEBI)
To represent to the Government, Reserve bank of india
All of the above
D
69
“ To generate income by investing predominantly in wide range of debt and money market securities “ is an objective of _________ .
Diversify equity Scheme
Diversify Debt Scheme
balanced scheme
None
B
70
Institutional Distributors Build Reach through
Employees
Agents
Sub Brokers
Any of the Above
D
71
The distributor can charge fees from the Investor
TRUE
FALSE
72
The difference between NAV and repurchase price is
Entry Load
Exit Load
Expense
Dividend Stripping
73
NAV of Income Funds is to be calculated upto _______ decimals
4
3
2
1
A
74
Investments in Mutual Fund can be made using
Cheque/DD
Remittance
ASBA
Any of the Above
D
75
STP is the combination of SIP and SWP
TRUE
FALSE
A
76
In a Top Down approach, sector allocation precedes stock selection
TRUE
FALSE
A
77
Loads and taxes may account for the difference between scheme return and investor return
TRUE
FALSE
A
78
Mutual Fund Ranking and rating amount to same
TRUE
FALSE
B
79
Which of the following aspects of portfolio would an investor in a debt scheme give more importance
Sector Selection
Stock Selecti on
B
B
A
W eighted Average Maturity
No of Securiti es in portfoli o
B
C
NISM Mock Test 6 80
The comparable for a Liquid Scheme is
Equity Scheme
Balanced Scheme
Gilt Fund
Savings Bank Account
D
81
Providing Funds for daughter's Marraige is an example of
Goal Oriented Financial Plan
Comprehensive Financial Plan
Financial Goal
None of the above
C
82
Distribution phase of Wealth Cycle is a parallel of retirement phase of life cycle
TRUE
FALSE
83
Incase of NPS investor can choose which of the asset class of the following
Equity
Corporate Debt
government Securities
All of the above
D
84
New Pension Scheme is regulated by
PFRDA
IRDA
PFRDA+IRDA
None of this
A
85
What % of the total wealth of Indian People is in physical asset
More than 10%
More than 25%
More than 50%
All of the above
C
86
PFRDA r efer s to
Private Fund Regulatory and Development Authority
Provident Fund Regulatory and Development Authority
Pension Fund Regulatory and Development Authority
All of the above
C
87
Investment in a Financial Assets can be productive for the economy
TRUE
FALSE
88
NCDEX refer s to
National Contract Exchange
National Currency Exchange
89
In case of the buying of the Gold Future Contract, entire value of the Gold has to be paid
TRUE
FALSE
90
------exempted from the Wealth Tax
Gold Deposit Scheme
MF
Both A and B
None of this
C
91
Many investors invest money in Bank FD and not in Debt market because
Lack of Interest
Lack of awareness
Lack of Money
Lack of confidence
B
92
Interest earned in Bank FD is Taxable each year
TRUE
FALSE
A
93
The primary objective of the Financial Planner is to make available the right amount of money at the right time.
TRUE
FALSE
A
94
The third stage of the wealth cycle is
Accumulation
Transition
95
In many health insurance policies, the customer has to bear the expenses and that can get reimbursed from the Insurance company
TRUE
FALSE
96
Risk appetitte ---------- as no of dependant menber increases
Decreases
Increases
No change
Any of the above
A
97
Many-------have made available the risk profiling tool on their web sites
AMCs
Research Houses
Both
None of this
C
98
------is the decision outcome based on the market behaviour
Tacti cal Asset All ocation
Strategi c Asset All ocati on
Flexi ble Asset Al location
Fixed Asset Al location
A
99
Many Financial advisor work on the Model Portfolio
TRUE
FALSE
100
Which are the aspects that affect the Risk profiling of the investors?
Family Information
Financial Information
A
A National Commodity Exchange
National Conversion Exchange
C B
Reaping
Intergenerational Transfer
D A
A Personal Information
All of the above
D
NISM Mock Test 7 PRACTICE KIT – PAPER 7
No.
Q UESTION
OPTION A
OPTION B
OPTION C
OPTION D
1
We have to do the registration of the mutual fund with the SEBI. Who gets registration done
Trust
R&T
Sponsor
AMC
C
2
AMFI do the following activity
Publish NAV, AUM of the fund house and maintain and publish industry data
Compute NAV
Manages money under
None of the above
A
3
In a liquid fund a application for repurchase comes at 3.30. Whats is the NAV which would be available to it
Closing NAV of the date of application
Closing NAV of the next business day
Closing NAV of the day preceeding the next business day
Closing NAV of the day preceesing the date of application
B
4
In creating of model portfolio which is the first step
Deciding the Asset Allocation
Identify financial Goal
Selection of Sector
Selection of the scheme
A
5
Once the asset allocation is decided, sharpe ratio can help us to select the good debt and equity Schemes
TRUE
FALSE
A
6
Once the asset allocation is decide, treynor ratio can help us to select the good debt and equity schemes
TRUE
FALSE
B
7
With the increase in the regular income from the job risk taking ability of the investor _________
Remains the same
Decreases
Increases
Insufficient data
C
8
A repurchase comes in a GILT fund at 2.30 pm. Whats would be the NAV available to the redemption
Closing NAV of Next Business Day
Closing NAV of the Application Day
Closing NAV of the day preceeding the next business day
Closing NAV of the day preceeding the Application date
B
9
75% investment in debt is suggested to
Aged couple with no immediate family support
40 year old man with a family with grown up children
Young call centre executive
Yound couple with 2 school going kinds
A
10
An investor with interest to earn high return and willing to take high risk are refferred to as
Cautious Investor
Conservative Investor
Adventurous Investor
Aggressive Investor
D
11
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 amount at rate of 5%. which of the following formula needs to be used
100000*(1+0.05)^3
100000/(1+0.05)^3
100000/(1+0.05)*3
C
12
For an Micro SIP which one of the following is not a valid photo ID proof
PAN proof
Debit card with photo ID
Credit card with Photo ID
Voter ID proof
C
13
The responsiblity to manage funds in the new pension scheme is with
PFRDA
Insurance Companies
AMCs
PFMs
D
14
Where you get the information in regards to the key personals involved in an AMC
They are not published as it is not very important for the investor
They are published on the website of the mutual Fund
Available in SAI ( Statement of Additonal Information )
15
Which of the following is not available in SID
Type of Fund
Risk Factor
Due Diligence certificate
16
Legally SAI is the part of SID
TRUE
FALSE
17
The date of the applicablity of the NAV is not dependent on
Time at which the application is submiited
b) Scheme in which the money is invested
100000*(1+0.05)*3
Answer
C None of the above
D A
The day on which the application is submiited
The amount which is getting invested
C
NISM Mock Test 7 18
The AMFI allots unique the ARN no which is valid for the period of three years
TRUE
FALSE
19
The following would not affect the trail commission to the advisor in mutual Fund
Portfolio value going up with the increase in the market
Investor making fresh purchase during the period
Change in the unit capital of the the scheme
Investor redeeming the money during the period
C
20
The STT paid on the equity mutual fund sold on the stock exchange is
0.00125
Nil
0.0025
0.00017
A
21
The STT paid on th equity mutual fund purchased on the stock exchange is
0.00125
Nil
0.0025
0.00017
A
22
STT paid on the re purchase of units by the AMC
0.00125
Nil
0.0025
0.00017
C
23
Which of the following when transacted on the stock exchange STT is not applicable
ELSS
GOLD ETF
Index ETF
Diversified Equity Fund
B
24
Its is advisable for an average investor to do T actical Asset allocation for planning his retirement
TRUE
FALSE
25
In case of sudden wealth which among the following is least advisable
Park the money in the liquid fund for a short time
Invest all money into equity at one go
26
Tactical asset allocation is suitable for seasoned investor with large investible surpluses
TRUE
FALSE
27
An application for re purchase in equity comes at 3.30. What would be the applicable NAV
Closing NAV of Next Business Day
Closing NAV of the Application Day
28
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 as redemption
TRUE
FALSE
B
29
The investment grow faster in dividend re investment options as compared to the growth option because more units are added on dividend reinvest
TRUE
FALSE
B
30
Maximum expense that can we charged in a debt fund is
0.0175
b) 0.75%
0.025
0.0225
D
31
In case of the growth option which of the following is not true
The NAV capture the full value of the porfolio gain
There is no dividend declared
The number of units increases over period
There is a Tax Deffereal
C
32
We require the board resolution from companies to invest is mutual fund as it may not be specified in the Memorundum and Articale of Assoiation to invest in such schemes
TRUE
FALSE
33
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 what is the EPS
10
8
34
An investor in the debt scheme who completely want to eliminate investment in equity should invest in MIP
TRUE
FALSE
35
The fund have an average asset of 300 crore. The portfolio turnover for the portfolio is Rs 1000 crore. For how many months the investment are held for
0.36
3.6
36
The floating rate fund hold on to there value even if the interest rate are fluctuating
TRUE
FALSE
37
Performance of the fund is most sensitive to the expense ratio in which of the following Fund
Liquid Fund
Diversified Equity Fund
A
B Start STP from liquid fund into Equity Funds
Review the financial plan
B A
Closing NAV of the day preceeding the next business day
Closing NAV of the day preceeding the Application date
A
B
Not sufficient Data
5
A
B
3
0.25
B
A ETF
Sector Fund
A
NISM Mock Test 7 38
Who among the following are not distributor for Mutual Funds
National Distributors
Branches of public Sector Bank
Branches of reserve bank of India
39
Importance of credit rating agency is most important in
Equity Funds
Secutised Debt
ETF
40
Full form of AGNI
AMFI gudieline and Norms for Intermidiary
AMFI guideline and norms for Investment
AMFI guideline for Asset Management Company
41
Which of the following scheme is exempted from the divident distribution Tax
Debt Oriented Funds
Balance Funds
42
Sector selection is the key decision in the Bottom Up Apprach
TRUE
FALSE
43
Illiquid Shares would be valued at
Value Decided by the br oker
Fair market value as the the guidelines of SEBI
44
Tax consultant should not advice financial planning to his client
TRUE
FALSE
45
M ot he r w an t t o s et ap ar t R s 25 la kh s i n 3 ye ar s t im e
F in an ci al Go al
As se t A l oc at ion
F in an ci al Pl an ni ng
F ina nc ia l D esi re
A
46
Followinf is the Asset Allocation
Dividend payout and Growth Option
Art and Gold Fund
Growth and Value Fund
Active fund and Passive Fund
B
47
Limit of the commission to be paid to distributor is decided by SEBI
TRUE
FALSE
48
Whats is an NFO Investments?
Investment done by any investor in the new Scheme
49
W hats is true about the FMP
NAV dose fluctuate
50
SAI needs to be updated every
51
Liquid Funds
Branches of Forein Banks
C B
AMFI Guideline for Non Indians
A
Equity Funds
D B
Price decided by the offmarket Trade
None of the above
B B
B First time investment in any of the mutual Fund Scheme
Additional Purhase by the existing investot in another scheme
A
No defaul Involve
Returns can be reasonably predicted before the maturity
All of the above
C
Yearly
Monthly
Quarterly
Half Yearly
C
Who is responsible for the information available in OD
Trustee
AMC
Sponsor
Custodian
A
52
Which of the following government secuity have leasr maturity period
CD
CP
T Bills
Gilt Scheme
C
53
Which of the following credit rating is not required
Shor term debt Fund
Liquid Schemes
GILT Schemes
FMPs
C
54
Insurance is more important in case of Physical Asset Vis a Vis financial Asset
TRUE
FALSE
55
Which of the asset have the higest risk to be stolen
Real Estate
GOLD
56
Most best way to decide the risk appetite of the person is to ask client that “ how mush risk you are ready to take in the market”
TRUE
FALSE
57
Share price of the Gold Mining Company is dependent on
Gold Reserve
Quality of the operation of the company
Gold Price
All of the above
D
58
Expense ration is more important in case of
Offshore Fund
Equity Fund
Debt Fund
Sector Fund
C
59
While construction of the portfolio the relative performance is done with
Peer Group
Asset Alllocaton
Model Portfolio
Tracking error
A
Additonal Purchase by the existing investor
A Mutual Fund
Bank Balance
B B
NISM Mock Test 7 60
The balance funds based on flexible Asset Allication is lower riskier than high yield debt fund
FALSE
TRUE
61
Between whom the Trustdeed is executed between
Trustee and Sponsor
Sponsor and Custodian
Trustee and AMC
AMC and Sponsor
A
62
Repurchasing the predecided no unit at the regular interval is called
STP
SWP
SIP
All of the above
B
63
Unclaimed investment amount and dividend can be demand by the investor
TRUE
FALSE
64
Applicable NAV for the different scheme is as per the following time
Office time of AMC
Office time of R&T
As per the time of stock market
Cut-Off time decided by SEBI for various MF scheme
D
65
While empannel with the AMC, every distributor have to provide the following
Correct and complete information
Commitment to abide by instruction given as also statutory codes and guideline
Provide all information and document that the AMC may ask for from time to time
All of the above
D
66
Transaction done of MF on the NSE NEAT and BSE Start the exchange gurantee the settlement of Funds
TRUE
FALSE
B
67
Low P/E ratio indicate that it is unlikely to replicate its past performance
TRUE
FALSE
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
Invesment in a Real Estate Mutual Fund is
Beyond the means of the retail investor
Extremally Liquid and cost effedctive
Highly illiquid
Offer the benefit of both real estate and Mutual Fund
D
70
Advantage of investing in PPF is
Loan is available any time
Premature withdrwal is allowable after one year
Any amount of investment in the scheme
Tax free return every year
D
71
Self Regulatory Organisation 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
1st and 2nd Holder
All joint holders
Only 1st Holder
Any One
B
73
Maximum number of nominee which can be added
5
1
3
2
C
74
In case New Pension scheme how many PFM( Pesion Fund Managers) are managing the money
5
3
3
6
D
75
Which is the right Sequence
Liquid Fund, MIP,Gilt Fund
Gilt Fund.Liquid Fund,MIP
Diversify Debt,Gilt Fund, Liquid Fund.
MIP ,Liquid Fund, Diversify Debt.
C
76
In Lower Interest Rate Senario Debt Product of MF will Generate higher return compared to Fixed Deposit.
TRUE
FALSE
A
77
An employee of the mutual Fund can be an Agent
TRUE
FALSE
B
78
Commission on Investment done by Sponsor in a Fund is
Not Payable
Payable to Sponsor
79
Book Value of a Share is dependent on Accounting Policies of the company
TRUE
FALSE
80
Code of Conduct for AMC Personnel & Trustees are mentioned in
Chapter II
Chapter IV
A
A
Payable to Distributor whose ARN is mentioned in the Application Form
None of the above
A
A Schedule II
Schedule V ( 5th Schedule)
D
