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NISM-Series-V-A: Mutual Fund Distributors Certification Examination

1.       Investment select a mutual fund based on matching
A.      Investment philosophy
B.      Investment policy
C.      Investment objective
D.      Investment strategy
2.       One of the advantage of exchange traded fund (ETF) is
A.      Investor can buy or sell units on stock exchange at price that are closely track valuation at that time.
B.      These schemes generate higher return than mutual fund.
C.      Investor can see where his money is invested
D.      ETF offers tax benefit.
3.       The investment objective of which of these funds would be to seek capital appreciation
A.      Dividend yield fund
B.      Growth fund
C.      Liquid fund
D.      Income fund
4.       In the case of NFO unit capital is issued at
A.      Rs. 10
B.      Rs. 25
C.      Rs. 50
D.      Rs. 100
5.       Which fund is an actively managed fund
A.      Index fund
B.      Diversified equity fund
C.      Exchange traded fund (ETF)
D.      None of the above.
6.       Liquid schemes invest in securities
A.      Less than 91 days maturity
B.      More than 91 days maturity
C.      Less  than 1 year maturity
D.      More than 1 year  maturity
7.       Liquidity risk arise in
A.      Close ended schemes.
B.      Close ended schemes
C.      Gold
D.      Debt
8.       Mutual fund in India are not permitted to invest in
A.      Gold
B.      Real estate
C.      Art
D.      Debt.

9.       What remains constant in a close ended fund?
A.      Unit capital
B.      NAV
C.      Both
D.      None of these
10.   Which funds have features of both open ended & close
A.      Balance fund
B.      Sector fund
C.      Interval fund
D.      Thematic fund
11.   Which investment below  gives international exposures
A.      International fund
B.      Gold fund
C.      Both of the above
D.      None of the above
12.   Which of the following is not advantage of mutual fund
A.      Reduction of transaction cost
B.      Connivance and flexibility
C.      Tailor made portfolio
D.      Liquidity
13.   The comparable for liquid fund is
A.      Equity
B.      Balanced
C.      Savings bank account
D.      Gilt
14.   Which of the following is a truly international assets class
A.      Equity
B.      Debt
C.      Gold
D.      Real estate
15.   Sector funds invest in a diverse range of sectors
A.      True
B.      False
16.   Fund of funds scheme invest in
A.      A mutual fund scheme
B.      International fund
C.      Index fund
D.      Gilt fund
17.   High yield bond schemes invest in junk bonds
A.      True
B.      False


18.   Hybrid funds are invested in
A.      Across equity market capitalization
B.      International fund
C.      Both equity and debts
D.      None the above
19.   In the mutual fund, investors subscription are accounted for as
A.      Liabilities
B.      Unit capital
C.      Deposit
D.      None of these
20.   A mutual fund is not
A.      A portfolio of stocks bonds and other securities
B.      A company that manage investment portfolio
C.      A pool of funds to purchase securities on behalf of investor
D.      A collective investment vehicle
21.   After uti , the first mutual fund were started by
A.      Private sector bank
B.      Public sector banks
C.      Financial institution
D.      Non banking finance companies.
22.   Of the following funds types the highest risk associated with
A.      Balanced fund
B.      Gilt fund
C.      Equity growth fund
D.      Debt funds
23.   Mutual fund can benefit from economies of scale because of
A.      Portfolio diversification
B.      Risk reduction
C.      Large volume of traders
D.      None of above
24.   Equity linked savings scheme does not have which of the following features.
A.      It entitles the unit holder to tax rebate
B.      The investment is locked in for 3 years
C.      A minimum stated level of investment is made in equity and equity related business.
D.      None of the above
25.   A close ended mutual fund has a fixed
A.      NAV
B.      Fund size
C.      Rate of return
D.      Number of distributors

26.   The custodian of mutual fund
A.      Is appointed for safe keeping of securities.
B.      Need not be an entity independent of the sponsors
C.      Not required to be receive deliveries with SEBI
D.      Does not give or receive deliveries of physical securities.
27.   The mutual fund is constituted as
A.      A trust
B.      An asset mgt. co.
C.      A pvt. Ltd co.
D.      A trustee of co.
28.   A self regulatory organization can regulate
A.      All entities in the market
B.      Only its own member in a limited way
C.      Its own member with total jurisdiction
D.      No entity at all

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