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 - years of In$estment done by in$estor
First % years of In$estment done by in$estor
First 15 years of in$estment done by in$estor
As long as in$estor held the in$estment
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...
A!I
A"#
AMFI
none of abo$e
A
%
The The in$e in$est stme ment nt in in MF por portf tfol olio io are are $al $alue ued d at
Face $alue of portfolio
cost of in$estment
Market $alue of portfolio
&ook $alue of portfolio
"
'
#(it #(it loads loads are genera generally lly lower lower for for larg large e in$es in$estor tors. s.
T)*#
FA+,#
-
Time Time stam stampi ping ng arra arrang ngem emen entt is is mus mustt at. at...
ffices of distributors
AM" offices
&ank distributor/s branch
ffices declared as point of acceptance.
D
0
,#&I ,#&I has put a stop stop on char chargin ging g to the the schem scheme. e.
#(it load
#ntry +oad
)ecurring #(penses
"D,"
&
*naudi *naudited ted accoun accounts ts of of the the sche scheme me must must be publis published hed
through monthly fact sheet
nly at AMFI website
nce e$ery si( month in one national = )egional news paper
nly on AM"/s website
"
3
"apital gain or loss from mutual fund in$estment are classified as a short term in$estment are if sold within
4 months
0 months
12 months
1% months
"
4
An in$estor in$ested in$ested )s.155555>in a %5 day FM: and and got )s. 15-5>?@ what is capital gain in this case
-5
-5
Insufficient details
15B :lus surcharge or 25B after inde( benefit
A
15
6hich of the following is true
,TT is payable when in$estor purchase e7uity MF
,TT is payable when in$estor does redemption from e7uity MF
,TT is payable when in$estor purchase debt MF
,TT is payable when in$estor sale debt MF
&
11
+i7uid funds can not charge management fees of funds parked in a short term bank deposits.
T)*#
FA+,#
12
,T T is charged on on
#7uity share trading
Deri$ati$es trading
#7uity MF
All of the abo$e
D
1%
6hich 6hich of the the follo followin wing g is not not re7ui re7uired r ed for for 89" 89" norms. norms.
:roof of in$estment
:roof of Identity
:roof of address
All of the abo$e
A
1'
The information on minimum in$estment amount@ in$estor/s ser$ice centers@ and how to make purchase is pro$ided in.
Application form
!omination Form
8IM
!one of the abo$e abo$e
"
1-
6hich of the following document is not re7uire to be submitted by charitable trust to in$est in MF
Trust deed
+ist of authori;ed signatories
&oard resolution and Memorandum and article of association
certificate of registration
"
10
,I: is a good good in$es in$estme tment nt stra strateg tegy y beca because use.. ..
In$estor gets units at a discount to !AC
It offers benefits of rupee cost a$eraging
It help helps s regul regular ar incom income e for in$est in$estor or
!o load load in$es in$estme tment nt done done
&
1
)ela(ation from documentation re7uirements for micro ,I: is a$ailable for..
<*F
!on Indi$idual
!)I
:I
"
13
!)I can can not not make make reparti repartition tion in$estment in$estment in MF using using demand demand draft.
T)*#
FA+,#
&
A
&
NISM Mock Test 1 14
An in$estor plans to in$est )s.12555 )s.12555 in a scheme whose whose !AC is 12 and and FC is 15@ how many units is he likely to be obtained.
1555
1555
1255
cant say
&
25
An in$estor is doing doing a li7uid in$estment@ in$estment@ fund is a$ailable a$ailable and time is 12.%5. !AC would be applicable for the
!e(t working day
,ame day
"losing !AC of Day immediately preceding the date of application
"losing !AC of Day immediately preceding ne(t business day
"
21
In$estor in$est -5 lakh in I+T at %.%5 pm with a local che7ue. he gets !AC of
"losing !AC of day fund are a$ailable
,ame day
!e(t business day
!e(t preceding day.
"
22
Time stamping stamping needs needs to start with serial serial no 1 on e$ery business business day.
T)*#
FA+,#
2%
Fund Funds s pay pay di$i di$ide dend nd in
Di$idend ption
Di$idend )e?In$estment option
&oth of the abo$e
rowth option
"
2'
ffering for repurchase@ constant amounts worth of units at regular inter$al basis is called
,I:
,T:
,6 :
Calue in$estment
"
2-
A company/s :# :# ratio may be low low because it is unlikely to replicate replicate it/s past performance
T)*#
FA+,#
A
20
Fundam Fundament ental al anal analysts y sts are called called E"hart E"hartist istsE sE
T)*#
FA+,#
&
2
If absolute return was 2.'B o$er -5 days@ annuali;ed return would be
5.5-
5.52'
1.2
5.1-
D
23
In case of li7uid fund@ in$estment less than % months old. which return would be calculated
Total return
"A)
Absolute return
,imple annuali;ed
&
24
In case of e7uity fund@ if fund has higher allocation to cash in bullish market the performance is likely to..
&e comparable to that of benchmark inde(
&e wo wo rs rse th tha n b en en ch chm ar ark re re tu tu rn rn
&e 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
&
%5
")I,I+ ")I,I+/s /s indic indicato atorr for highe highest st safet safety y in a deben debentur ture e is
AAA
ood
:1
%1
During During the period period of turm turmoil oil@ gold gold prices prices
o down
o up
)emain steady
Mirror e7uities
&
%2
:erform :erformanc ance e of fund fund must alwa always ys be measu measured red relat relati$e i$e to to the.
Inde(
&enchmark
Asset "lass
In$estment obGecti$e
&
%%
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
,harpe
Treynor
Alpha
,pread
"
%'
6hile e$aluating return for an inde( fund across a peer group@ which of the following is more important
&#TA "oefficient
:ast performance
Tracking error
)?s7uared
"
%-
&a la nc nce fu fun ds ds ar ar e f o orr
highly aggressi$e in$estor
Moderate conser$ati$e conser$ati$e
"
%0
The The lowe lowerr risk risk amo among ng e7u e7uit ity y fund fund is is
Inde( Fund
Calue Fund
Di$idend yield fund
rowth fund
"
%
:robabilities of losing money in e7uity is negligible if in$estment hori;on is for at least
0 months
- years
1 years
% years
&
%3
)eturn )eturns s in intern internati ationa onall fund fund is is depen dependen dentt on
#(change rates
Asset class performance
&oth of the abo$e
!one of the abo$e
"
Aggressi$e in$estors
&
A
NISM Mock Test 1 14
An in$estor plans to in$est )s.12555 )s.12555 in a scheme whose whose !AC is 12 and and FC is 15@ how many units is he likely to be obtained.
1555
1555
1255
cant say
&
25
An in$estor is doing doing a li7uid in$estment@ in$estment@ fund is a$ailable a$ailable and time is 12.%5. !AC would be applicable for the
!e(t working day
,ame day
"losing !AC of Day immediately preceding the date of application
"losing !AC of Day immediately preceding ne(t business day
"
21
In$estor in$est -5 lakh in I+T at %.%5 pm with a local che7ue. he gets !AC of
"losing !AC of day fund are a$ailable
,ame day
!e(t business day
!e(t preceding day.
"
22
Time stamping stamping needs needs to start with serial serial no 1 on e$ery business business day.
T)*#
FA+,#
2%
Fund Funds s pay pay di$i di$ide dend nd in
Di$idend ption
Di$idend )e?In$estment option
&oth of the abo$e
rowth option
"
2'
ffering for repurchase@ constant amounts worth of units at regular inter$al basis is called
,I:
,T:
,6 :
Calue in$estment
"
2-
A company/s :# :# ratio may be low low because it is unlikely to replicate replicate it/s past performance
T)*#
FA+,#
A
20
Fundam Fundament ental al anal analysts y sts are called called E"hart E"hartist istsE sE
T)*#
FA+,#
&
2
If absolute return was 2.'B o$er -5 days@ annuali;ed return would be
5.5-
5.52'
1.2
5.1-
D
23
In case of li7uid fund@ in$estment less than % months old. which return would be calculated
Total return
"A)
Absolute return
,imple annuali;ed
&
24
In case of e7uity fund@ if fund has higher allocation to cash in bullish market the performance is likely to..
&e comparable to that of benchmark inde(
&e wo wo rs rse th tha n b en en ch chm ar ark re re tu tu rn rn
&e 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
&
%5
")I,I+ ")I,I+/s /s indic indicato atorr for highe highest st safet safety y in a deben debentur ture e is
AAA
ood
:1
%1
During During the period period of turm turmoil oil@ gold gold prices prices
o down
o up
)emain steady
Mirror e7uities
&
%2
:erform :erformanc ance e of fund fund must alwa always ys be measu measured red relat relati$e i$e to to the.
Inde(
&enchmark
Asset "lass
In$estment obGecti$e
&
%%
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
,harpe
Treynor
Alpha
,pread
"
%'
6hile e$aluating return for an inde( fund across a peer group@ which of the following is more important
&#TA "oefficient
:ast performance
Tracking error
)?s7uared
"
%-
&a la nc nce fu fun ds ds ar ar e f o orr
highly aggressi$e in$estor
Moderate conser$ati$e conser$ati$e
"
%0
The The lowe lowerr risk risk amo among ng e7u e7uit ity y fund fund is is
Inde( Fund
Calue Fund
Di$idend yield fund
rowth fund
"
%
:robabilities of losing money in e7uity is negligible if in$estment hori;on is for at least
0 months
- years
1 years
% years
&
%3
)eturn )eturns s in intern internati ationa onall fund fund is is depen dependen dentt on
#(change rates
Asset class performance
&oth of the abo$e
!one of the abo$e
"
Aggressi$e in$estors
&
A
NISM Mock Test 1 %4
Mutual Mutual fund funds s in Indi India are not not perm permitt itted ed to in$est in$est in in
old
)eal estate
Art
,eculari;ed debt
"
'5
A $alue $alue fund fund is e(pect e(pected ed to ha$e ha$e e(posure e(posure to front front line line stocks stocks
#ntire
+ow
D
'1
Inde( Inde( funds funds are safe saferr becaus because e their their !AC !AC does does not go down down
T)*#
FA+,#
'2
6hich 6hich of of the the follo followin wings gs are are leas leastt compa comparab rable le
+i7uid and ,a$ings account
+i7uid and "urrent account
#TF and Inde( fund
I+T and ,ector fund
D
'%
An in$estor seeking seeking capital appreciation@ appreciation@ ha$ing high high risk tolerance and long term hori;on must in$est in
&onds
&ank FD
)eal?#state
::F
"
''
"redit "redit rating rating enable enables s an in$esto n $estors rs to to Gudge Gudge the
Duration of loan
#(tent of securities against the borrowing
)isk of default by borrower
Interest rate risk
"
'-
6hich 6hich of the the follow following ing is is not go$e go$ernm rnment ent sa$i sa$ing ng schem scheme e
Infrastructure &onds
)&I &onds
:,T
8C:
A
'0
An in$estor looking looking for capital appreciation@ appreciation@ ha$ing a high risk tolerance tolerance and long tem hori;on must in$est in
&ank FD
#7uity
&onds
old
&
'
6hich 6hich of of the the follo followin wings gs is physi physical c al asset asset
,ecurised debt
)eal estate
)eal estate fund
old future
&
'3
In new pension schemeH!:, Tier I account new pension scheme is called pension account
T)*#
FA+,#
A
'4
In$estor In$estor in in MF can can choos choose e asset asset class ass but but not not in$estme in$estment nt manage manager r
T)*#
FA+,#
A
-5
Fina Financ ncia iall :lan :lanni ning ng In$o In$ol$ l$es es
Assessing the clients financial information
-1
Calue stocks
9ield high growth in earning
-2
A bette betterr perfor performan mance ce than than the the retur return n on inde inde( ( is gi$e gi$en n by
:assi$e fund manager
-%
#merging or new channel for distributors>marketing of mutual funds in India is
-'
&
Ad$ising client to in$est only in secured in$estments
!one of the abo$e
&
Are currently under $alued
!one of the abo$e
"
An acti$e fund manager
All fund managers
!on fund manager
&
Internet
,tock #(change
All of the abo$e
!one of the abo$e
"
Trail Trail comm commis issi sion on mean means s pay payin ing g
!o commission at all
The entire commission upfront
:art of commission up front and balance in phases
The entire commission after fi$e years
"
--
Agents Agents are compen compensat sated ed by mutual mutual funds funds
Through salaries
Through commission
Through an annual fees
!ot in cash but in kind
&
-0
The fund fund sponsors sponsors should should ha$e ha$e a sound sound financial financial track record of
years
- years
12 months
% years
&
-
6hich of the the following following are self regulatory regulatory organi;at organi;ationH, ionH,) )
&,#
,#&I
AMFI
)&I
A
-3
&ank &ank owne owned d mutu mutual al fund fund are are supe super$i r$ised sed by
,#&I
Jointly by ,#&I = )&I
)&I
AMFI
A
NISM Mock Test 1 -4
A passi$e fund manager
)esearches stocks e(tensi$ely
Does not buy and sell stocks often
Does not ha$e to go through the process of stock selection
Does not ha$e to track stocks
"
05
Debt securities bought at a discount to their face $alue are generally
Interest bearing
Kero coupon bonds
:aying interest at a floating rate
!one of the abo$e
&
01
6hen interest rates rise@ bond prices
Also rise
Are not affected
Falls
Fluctuate either up or down
"
02
The maturity period of )&I relief bonds is
- years
years
0 years
3 years
A
0%
A trail commission is Gustified when
An in$estor cancels his in$estment
The in$estor redeems his in$estment in a $ery short time
An Agent retain the In$estment
D
0'
A debt fund distributes 15B di$idend . how much ta( does the in$estor ha$e to pay on this di$idend
15.55B
25.55B
12.55B
!one
D
0-
6hat is the current ::F rate
3.55 :ercentage
3.-5 :ercentage
.- :ercentage
.-5 :ercentage
A
00
6hat is the recurring e(pense on first 155 cr for e7uity schemes
2.55 :ercentage
1.- :ercentage
2.2- :ercentage
2.-5 :ercentage
D
0
)isk adGusted return is measured by
,harpe ratio
,tandard de$iation
Treynor ratio
A="
D
03
Intra day trading can be done on the basis of?
Fundamental analysis
Technical analysis
#conomic analysis
:olitical analysis
&
04
Mid cap stocks are risky in the time of
&oom
)ecession>#conomic turmoil
:olitical instability
All of the abo$e
&
5
6 ho Ap poi nt s t he AM "
"ustodian
)=T
Trustee
Distributors
"
1
6hic h of the following has lowest risk
+i7uid fund Hmmmf
ilt funds
Di$ersified debt fund
Di$ersified e7uity fund
A
2
+ong term capital gains in a debt fund without inde(ation for an in$estor is
15.55B
1-.55B
25.55B
!o ta(
A
%
6hat of the following is not a reason for in$estor to prefer mutual fund o$er &ank FD
Ta( benefits
:ossibility of capital gain
Deposit insurance
In$estment con$enience
"
'
In the !:, each in$estment manager appoints own distributor
T)*#
FA+,#
-
!eed of +ife insurance in life is
Must
!ot re7uired
0
All in$estor ha$e similar re7uirements at similar stage in the life>wealth cycle
T)*#
FA+,#
!ame of asset allocation strategy if it is fi(ed L -5 B
Tactical Allocation
,trategic Allocation
3
Model portfolio should be determined based on commission income possibility for distributor
T)*#
FA+,#
An agent in$ests his own money@ not that of client
A can be done without
!one of abo$e
A &
A=&
!one of abo$e
& &
NISM Mock Test 1 4
6hich of the following is true for model portfolio
,tipulated by ,#&I
uaranteed by AM"
Decided by financial planner
"ommon across industry
"
35
As the no of earning member in a family increases risk appetite
Increases
Decreases
,tays constant
!one of abo$e
A
31
#7uity in$estment through sip can be suggested for in$estor looking for
+ong term growth
,hort term target
:ortfolio churning
Ta( benefit
A
32
performance
e(penses
Tracking error
!one of abo$e
"
3%
6hat type of bond fund carrie s least in terest rate risk
,hort term bonds
+ong term &onds
Mid term &onds
All of abo$e
A
3'
Arbitrage fund are not e7uity fund
T)*#
FA+,#
3-
6hic h of the following is true for FM:
!AC do not fluctuate
"apital uaranteed
Fi(ed income
!one of abo$e
D
30
Inde( funds arefund
:assi$e fund
Acti$e fund
&oth
!one of abo$e
A
3
The role of insurance is more critical for physical assets than financial assets
T)*#
FA+,#
33
6hen price of gold goes up a buyer of gold future contract see it/s $alue
o up
o down
)etain the same $alue
!one of abo$e
34
The in$estment portfolio is created based on
Market $iews of fund manager
In$estment obGecti$e of fund
risk appetite of in$estor
profile of unit holder
&
45
"ommodities as an asset class does not inclu de
Food crops
Industrial metals
)eal #state
old
"
41
,ubse7uent to !F@ open ended funds are
open for purchase by e(isting in$estor = new in$estor
open for purchase only for e(isting in$estor
a$ailable on stock market
!one of abo$e
A
42
If a fund seeks to grow in $alue o$ertime it can be said that it/s in$estment obGecti$e is
capital appreciation
safety of capital
"apital ade7uacy
)egular income
A
4%
across e7uity market capitali;ation
International markets
both e7uity and debt
!one of abo$e
"
4'
Mutual fund are constituted in India as
"ompanies
Trusts
:artnerships
!
&
4-
Mutual Fund sponsor can be compared to
Depositor of a company
"ompany director
:romoter of "ompany
"# of a company
"
40
6hich of the following is not a function of )=T agent
"reating maintaining and updating the in$estor record
*pdating unit capital of fund
:rocessing di$idends = redemption payouts to in$estors
,ettling in$estment transaction of the fund
D
4
:rior appro$al of ,#&I needs to be taken before a person is appointed as trustee
T)*#
FA+,#
A
43
:erson@ other than Indian residents@ should also comply with )&I guidelines for in$estment in Indian mutual funds
T)*#
FA+,#
A
&
A A
NISM Mock Test 1 44
The first step of financia l planning is
#$aluating the $arious alternati$es
data gathering and goal setting
establishing the client planner relationship
:lan )e$iew
"
NISM Mock Test 2 PRACTICE KIT – PAPER 2 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
1
In case of market correction @ takes more hit than Fund.
rowth @ Calue
Momentum @ Calue
Calue @ rowth
rowth @ momentum
"
2
,ponsor/s net worth should be positi$e for
+ast - years
last 2 years
last % years
last year
A
%
At time of !F@ which document compuls orily filed with ,#&I
,ID
,AI
Annual )eport
'
"ollection and payment of fund is a responsibility of
"ustodian
)=T
&anker
-
ther than Indian residents@ rest ha$e to also comply )&I regulations
T)*#
FA+,#
0
6hich of the following not included in 8IM
Details of 8ey personal of AM"
Ta( benefit of MF
#(pense and +oad structure of scheme
Due diligence certificate of AM"
D
Function of D is
i$e detailed information about scheme to in$estors
i$e current !AC
i$es Fund suggestion
!one of the abo$e
A
3
6hat should be the ,ector Fund Allocation for a single income family ha$ing small in$estable surplus
5.55B
5.55B
-5.55B
%5.55B
A
4
6hich e(pense can be not charged to scheme
#(penses on in$estor communication
,er$ice ta(
Fees of custodian
eneral administration e(pense of AM"
D
15
+ow :# indicates that stock is cheap and you should buy it
T)*#
FA+,#
11
6hich of the following need not be included in 8IM
Detail of sponsor
Minimum in$estment amount and cut off time
12
As per income ta( act@ Arbitrage Funds are ta(ed as per debt scheme
T)*#
FA+,#
1%
6hich is purely treated as an international asset
#7uity
old
1'
Transfer of security from one scheme to another scheme is allowed in MF
T)*#
FA+,#
1-
"alculate the sales price of a unit when !AC is 1- and e(it load 1B
1-
1'.3-
1-.1-
1-.-
A
10
If you get a che7ue of 1 cr in a ilt Fund at 2.%5 pm@ !AC date will be
!AC at 2.%5pm
!AC at %pm
,ame day !AC
!AC of fund reali;ation date
D
1
6ho allots Amfi )egistration !umber
AMFI
,#&I
AM"
none of the abo$e
A
13
6hich distribution channel don/t ha$e a huge branch network
Institution
"orporate distributor
&ank
IFA
D
14
Di$idends in the hands of in$estors are ta(able at the rate of
15.55B
1-.55B
%%.55B
Ta( Free
D
25
+ast step in the process of designing model portfolio
,ector selection
Asset allocation
,cheme selection
"lient selection
"
Memorandum and Articles of Association AM"
Answer
A & A
& )isk profile of the scheme
pening and closing dates of !F
A &
)eal #state
Debt
& A
NISM Mock Test 2 21
oal based approach of financial planning focuses on
)isk profiling
22
6hat is the rate of return of ::F
25 :ercentage
2%
6hat is the indic ator of the risk adGu sted performance ratio
2'
Achie$ement of the goal of in$estors
Ta( liability of in$estors
In$estible surplus of the in$estor
&
3 :ercentage
3.-5 :ercentage
4.2- :ercentage
&
&eta
,tandard De$iation
,harpe/s )atio
Cariance
"
Interest )ate sensiti$ity in &ond fund depends on
"redit :rofile
A$g Maturity
9TM
"urrent 9ield
&
2-
,#&I doesn/t allow passing of commission to
Distributor
In$estor
&ank
IFA
&
20
If you get a -5+ in e7uity fund at %%5 pm today@in$estor will get the !AC of
9esterday
Today
Tomorrow
!AC of fund reali;ation date
"
2
Inde( against which performance of a fund is measured@ is called
Tracking #rror
&enchmark
In$estment obGecti$e
#(?mark
&
23
FM: are essentially a closed ended ,cheme
T)*#
FA+,#
24
The information regarding 6hich category of in$estors can in$est in MF@ is gi$en in
ffer document
,AI
MI!
,I!
A
%5
6ho can not be the distributor of the AM"
IFA
&ank
#mployees of AM"
All of the abo$e
"
%1
Asset allocation means
:utting all eggs in ,ame basket
In$esting according to Market
In$esting in different assets
in$esting only in #7uity old and ,il$er
"
%2
MI: is a Debt ,cheme
T)*#
FA+,#
%%
Asset allocation should be in line with
Financial oal
Age of "lient
)isk Appetite
All of the abo$e
D
%'
A young in$estor ha$ing obGecti$e of capital appreciation should in$est in
I+T
+i7uid
#7uity
debt
"
%-
In !:, class?" predominantly in$ests in
#7uity
Debt
old
)eal #state
&
%0
Fund/s risk relati$e to market is measured by
tracking error
,harps/ )atio
Treynor
&eta
D
%
6hich one is false about debenture
Issued by :,*
It has maturity
Duration is greater than 1 yr
A
%3
In$estor has read the D and then the in$ested in the f und and fund goes down@ then he
ets remedy from ,#&I
"ant sue the AM"
ets remedy from AM"
ets remedy from !,#
&
%4
,TT charge on
e7uity Deri$ati$es
#7uity MF
#7uity ,chemes
All of Abo$e
D
'5
6hich function AM" can/t do in house
"ustodian
Accounting
Distribution
Fund management
A
'1
Calue of &ond goes down when
Interest rate goes down
Interest rate goes up
I)) goes down
9TM goes down
A
A
&
NISM Mock Test 2 '2
6hich one is not e(empted in wealth ta(
old sector fund
old deposit
old #TF
old
D
'%
Institutional distributors needs to be
)egistered with ,#&I
)egistered with AMFI
+isted on stock e(change
All of Abo$e
&
''
,tandard risk are
*ncommon to all
"ommon to all
,pecific to a scheme
,ystematic
&
'-
)e7uest for purchase can be made
In units and amount
In units only
In units or amounts
In amount only
D
'0
In !:, in$estors get choice of the asset class but don/t get choice of in$estment manager
T)*#
FA+,#
'
In case of online transaction@ transaction time is applicable
Time shown in the computer of in$estor
Time as web per web ser$er
'3
If in$estors in$est through demat can AM" asks for 89" re7uirement
T)*#
FA+,#
'4
According to the asset allocation rule@ e7uity e(posure should be e7ual to
Age
155?age
Age?155
155.55B
&
-5
Mutual fund is made up of
:ool of trustees fund
:ool of institutional in$estors
:ool of in$estment managers
:ool of in$estment money
D
-1
6ho can not in$est in mutual funds
Foreign companies
&anks
insurance companies
!&F"
A
-2
6 hi ch is sa me as of D
,ID
,ID,AI
,AI
-%
Mutual fund distributor in India are member of AMFI.
T)*#
FA+,#
A
-'
Mutual fund in India is regulated by ,#&IHMutual Fund act 1440.
T)*#
FA+,#
A
--
6hich of the following is appointed by trustee
"ustodian
Distributor
AM"
)=T
"
-0
8 IM h as to be up da ted
Twice in a year
Nuarterly
nce in a year
nce in two year
"
-
6hich of the following is more risky
+i7uid fund
Inde( fund
growth fund
gilt fund
"
-3
Material changes in 8IM need to be updated
once in a year
6hene$er material changes take place
nce in two year
-4
If an in$estor wants full e(posure of gold his in$estment should be into
old #TFs
:hysical gold
,hares of gold mining company
All of the abo$e
D
05
If an in$estor in$est 1 lakh rupees in a debt fund after %0- days it/s $alue is 15-0>? what is "A)
.-B
.'B
15B or 25B with inde(ation
insufficient data
A
01
If an in$estor in$est )s.155@55@555 in #7uity MF ,cheme at %.%5 pm through outstation che7ue he will get !AC of
,ame day closing $alue
6hen fund gets credited
:re$ious day closing $alue
!e(t day closing $alue
02
Trail commission to ad$isor helps in ??
)etaining the in$estor for long term.
:ortfolio "hurning
!ew client ac7uisition
!one of the abo$e
& Mid night
&
!e(t day morning
&
8IM sumarry of ,AI ,ID.
&
"
& A
NISM Mock Test 2 0%
# (it l oa d
Is ame for all schemes
Is same for all amc/s
Caries from in$estor to in$estor
Caries from scheme to scheme.
D
0'
6hich fund is an acti$ely managed fund
Inde( fund
Di$ersified e7uity fund
rowth fund
&="
D
0-
Arrange in correct se7uence
)isk profile@ fund allocation@ portfolio construction.
)isk profile@ portfolio construction@ fund allocation.
:ortfolio construction@risk profile@ fund allocation.
Fund allocation. risk profile@ portfolio construction
&
00
6hich of the following is against the ethics = "ode of conduct guide line of AMFI
"hurning in$estor/s money to get better returns
All the associates of a distributor should be amfi appro$ed.
8eeping the interest of all unit holders
All of the abo$e
0
Minimum contribution of a sponsor in an AM" should be?
-5.55B
05.55B
'5.55B
2-.55B
"
03
:A! card is not re7uired in case of?
!)I
Minor = ,enior "iti;en
"orporate institution = trust.
!one of the abo$e
D
04
FM: can gi$e better interest than a &ank Deposit.
T)*#
FA+,#
5
The insurance associated with new pension schemes are regulated by?
:F)DA I)DA
I)DA
:F)DA
!one of the abo$e.
"
1
In India mutual funds are?
o$t. institutions
"ompany
Trust
!&F"
"
2
Initial issue e(penses in a li7uid fund has to be?
5
5.55512-
5.2- percentage
none of the abo$e
A
%
A schemes !AC $alue increases for the period of 2 yrs . it will show?
Absolute return
,imple return
compounded annuali;ed return
all of the abo$e
"
'
In 8IM it has been mentioned that the 0-B in$estment will be in e7uity and e7uity related instrument. this is called?
:olicy of scheme
bGecti$e of scheme
portfolio of scheme
!one of the abo$e.
A
-
8 IM is att ach ed wi th
Transaction slip
Application Form
&oth A and &
!either a nor b
&
0
6hich is technical analysis?
Colume = price beha$ior
Mark to market
book $alue analysis
all of the abo$e.
A
6ho keeps detail report of transaction?
"ustodian
AM"
)=T
Distributor
"
3
Formula to fin d out the ,tandard De$iation in e(cel is
stde$
sd
stdde$
stdd$
A
4
Time stamp machine contains?
Time stamping serial no
Machine identification
location code
all of the abo$e
D
35
The e(pected return = yield of the scheme is mentioned in 8IM
T)*#
FA+,#
31
Daily
6eekly
Nuarterly
once in financial year.
32
If beta of a scheme is le ss than one the the fund is?
Mo re ri sk y c om pa re to ma rk et
+ es s r is ky co mp ar e t o m ar ke t
n ei th er ri sk y n or pr of it ab le .
beta doesn/t make any impact on scheme performance
&
3%
6hat is not true obGecti$e of li fe insurance?
)isk co$erage
In$estment
&oth
!one of the abo$e
&
A
A
& A
NISM Mock Test 2 3'
*nit capital is issued at?
15
2-
-5
155
A
3-
Fund management cost is more in?
:assi$e fund
ilt fund
+i7uid fund
Acti$e fund.
D
30
Independent trustee are appointed by?
,ponsor
,#&I
AMFI
All of the abo$e
A
3
D is tr ib ut or s ar e pa id?
"ommission
Fees
,alary
All of the abo$e
A
33
8 9" i s r e7 ui re d f or ?
uardian in case of minor
<*F
,ole proprietorship firm
All of the abo$e.
D
34
89" is compulsory ?
For e$ery in$estment
-5555
-5555 and abo$e
first time in$estment
A
45
Formula for "A) calculation is
Interest O !o of years
H:1?:5>:O155
HH#nd Calue>,tart CaluePH1> H:eriod ?1
!one of abo$e
"
41
The !AC of a fund is 1- applicable e(it load is 1B@ purchase !AC would be?
1'.3-
1-
1-.2-
1-.0-
&
42
In case of breach of "ode of conduct license is canceled by?
AMFI
,#&I
,ponsor
AM"
A
4%
6hich is true in case of ::F
:artial withdrawal facility is a$ailable after one year
In$estment = return are ta( free.
&oth
!one of the abo$e
&
4'
A fi(ed term plan series is?
As open ended fund
A closed ended fund
A fi(ed term bank deposit
A fi(ed term corporate bond
&
4-
The :># ratio is an important measure of a company/s anticipated performance. it is calculated using.
Market price and di$idend
Market price and earning per share
Market capitali;ation and di$idend
Market price and face $alue
&
NISM Mock Test 3 PRACTICE KIT – PAPER 3 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
6hich one of the following is not an eligible in$estor
Insurance "ompanies
o$t Institutions
Foreign "iti;ens
:ro$ident Fund
2
For a customer holding units in demat @ the AM" also re7uires to do his 89"
T)*#
FA+,#
%
6hich in$estment belo w gi$es international e(posure
International Funds
old Fund
!one
&oth
D
'
n doing risk profiling which asset allo cation does it gi$e
,trategic Asset Allocation
Fi(ed Asset Allocation
Fle(ible Asset Allocation
Tactical Asset Allocation
A
-
In a balance fund with net assets of -5 crores what is the e(penses that can be charged
15.1%
1-.%3
1.30
10.12-
D
0
I in$est )s -5 lacs at 2.%5 pm with a local che7ue for funds other than li7uid scheme@ which !AC will you get
!e(t day !AC
,ame days closing !AC
:re$ious day !AC
"losing !AC of the day preceding ne(t business day
&
6hat is the DDT for an indi$idual in li7uid fund
5.2-
5.2
5.1%
5.1
A
3
If client in$est in li7uid fund at 11.%5 am and the fund gets cleared on the same day which !AC the client gets
!e(t day !AC
"losing !AC of the day preceding ne(t business day
,ame days closing !AC
:re$ious days closing !AC
D
4
6hat is true about premium paid in a life insurance company
"ustomer can decide premium
:remium can be a$ailed under ,ec 35 c
:remium can be shown as e(p
:remium is $olatile
&
15
The person with whom the units are pledged is known as
:ledger
:ledgee
11
6hat is the highest e(pense ratio in a Fund of Fund scheme
2.2-B
1.-B
12
,#&I is sole regulatory authority for MF are answerable
T)*#
FA+,#
1%
+ow )isk
+ess ,afe
+ower )eturn
"
1'
6ithin how many days the di$idend warrants to be dispatched on declaration
1-
15
%5
D
1-
A dis tributor needs different A)! for each AM"
T)*#
FA+,#
10
A conser$ati$e in$estor need not be ad$ised to in$est in
ilt Fund
+i7uid Fund
1
The !ew :ension scheme is both regulated I)DA and :F)DA as it has an insurance component
T)*#
FA+,#
13
6hich is the fastest way of remitting funds on real time basis
!#FT
D>D
,6IFT
)T,
D
14
6hich of the following is a financial asset
o$t ,ecurity
old
)eal #state
!one of the abo$e
A
25
6hic h of the following is an ,)
AMFI
,#&I
&,#
)&I
"
" &
& 5.-B
1.-5B
" A
&
,hort Term :lan
" &
NISM Mock Test 3 21
!F other than #+,, can remain open for ma(im um
days
1- days
21 days
%5 days
&
22
In !F the account statement is to be dispatched within Q days on closure of !F
- days
1- days
25 days
%5 days
A
2%
"ompanies issuing short term debt is called
"D
Tbills
Debentures
":
D
2'
6ithin a category one can decide on in$estments based on ,harpe )atio
T)*#
FA+,#
2-
6hic h of the following e(empt from DDT
#7uity riented Fund
+i7uid Fund
20
The arbitrage funds are ta(ed lik e debt funds
T)*#
FA+,#
2
6hich of the below is not in a Transition phase
&uying of house
:ro$iding for daughter marriage
,hifting of Gob for higher income
:ro$iding for foreign study for son
"
23
The !AC of scheme is impacted by
!o of In$estors
*nit "apital
Market Calue of :ortfolio
,i;e of Fund
"
24
Technical analysis is proGecting trend based on human beha$ior
T)*#
FA+,#
%5
,ub distributors work with
nline platform
&anks
IFA
Distribution companies
D
%1
Initial issue e(pense that can be charged to fund
!I+
1.55B
2.55B
1.-B
A
%2
According to :erformance Ad$ertisements the return shown for e7uity funds o$er 1 years are
Annualised 9ield
,imple )eturn
Absolute return
"A)
D
%%
In !ew :ension ,cheme portfolio of Assets class # predominantly in$estment in
#7uity
debt
o$t. ,ec.
%'
#(pense ratio is most important in case of
Inde( Fund
ffshore Fund
Acti$e Fund
Fund of Fund
%-
"ode of ethics for employees of AM" is described by
,#&I
AMFI
Internal Audit Team
Trustee.
&
%0
)ecurring e(penses in #7uit y scheme has a limit up to
1.-5B
5.-5B
1.2-B
2.-5B
D
%
In Transition phase of 6ealth "ycle in$estor tends to increase the proportion of assets in his portfolio.
#7uity
+i7uid
old
!one of abo$e.
&
%3
6hich of the following is a Financial Asset
old
)eal ,tate
&ank deposit
!one of abo$e.
"
%4
Inde( fund can gi$ e better returns from its &enchmark.
T)*#
FA+,#
&
'5
The young &: e(ecuti$es should not be ad$ised to in$est in long term schemes because of their la$ish life style
T)*#
FA+,#
&
'1
Term QR,tock pickingQS is used in which of the following
&ottom up approach
Top down approach
&oth
!one of abo$e.
A
'2
6hat is the applicable rate of ,TT in case of repurchase of #7uity scheme
5.1%B
5.%%B
5.52B
5.2-B
D
A Income Fund
ilt fund
A &
A
A A
NISM Mock Test 3 '%
Market $alue is 1-2 crore@ Di$idend accrued but not recei$edU 3 crore@ liabilities U 2 crore Total no of outstanding units is - lakhs. 6hat will be the !AC of the scheme
255
215.0
21%.%%
!one of abo$e.
&
''
In$estor selects an MF based on
In$estment :hilosophy
In$estment ,trategy
In$estment :olicy
In$estment bGecti$e
D
'-
has been appointed by Trustee
"ustodian
)=T
AM"
Distributor
"
'0
) isk Ma y b e d ef in ed as
Asset Allocation
Financial +oss
:ortfolio )ebalancing
"
'
Financial :lanner defines that client does not ha$e r esources to meet goals.
Inform the "l ient
A$oi d tell ing as cli ent wi l be di shearted
A$oi d tell ing as he may lose the cli ent
Increase risk to generate higher return
A
'3
6hich of the following account in !:, is a ,a$ing Account
Tier I
Tier II
Tier III
Tier IC
'4
Mutual Fund is e(empted from 6ealth Ta(
T)*#
FA+,#
-5
89" is re7uired for in$estment more than
25555
15555
!ot re7uired
!eeded for a single rupee in$estment
D
-1
If a minor In$ests )s 15@555 in MF@ 89" is needed or not
89" for Minor is needed only if in$estment e(ceeds )s 25555
89" for Minor is needed only if in$estment e(ceeds )s -5555
If in$estor is a minor@ 89" should be of his guardian e$en for a single rupee in$estment
89" is not at all re7uired for minors
"
-2
,ince :reparation of 6I++ is a long process@ it has to be a$oided
T)*#
FA+,#
-%
"lose ended fund allows in$estors to sale their units
&y allowing fi(ed number of *nits to sale
&y selling number of units in a fi(ed inter$al
by listing MF in stock e(change
-'
Allots the A)! !umber
AM"
,#&I
!I,M
AMFI
D
--
Application for MF would be reGected if paid in
"he7ue
DD
"ash
&ankers che7ue
"
-0
Mutual Fund In$estor can/t pledge unit s
T)*#
FA+,#
-
"hange in the $alue of !AC is
,tandard )isk
,ystematic )isk
*nsystematic )isk
-3
6hic h one is called cum?di$idend !AC
!AC on the date when trustee appro$es di$idend
!AC of the date when notice is issued to meet trusteed to finali;e di$idend
! AC af te r th e d ate of di $i de nd
! one of th e a bo $e
A
-4
6hen scheme is first launched and in$estor in$ests in MF... it is called
!F
I:
:urchase
)e?:urchase
A
05
8IM Document is a summary of
,ID
,AI
D
,ID,AI
D
01
If in$estor in$ests in a uilt fund at %%5 p.m.@ he would get the units at which !AC
"urrent !AC
:re$ious Days !AC
!AC of !e(t &usiness Day
,ame day !AC
"
02
If in$estor in$ests in a #7uity fund at %%5 p.m.@ he would get the units at which !AC
,ame day !AC
!AC of !e(t &usiness Day
:re$ious Days !AC
"urrent !AC
&
0%
The guideline issued by AMFI for intermediaries are known as
A!I
A"#
AMFI
!one of the abo$e
A
0'
Time stamping arrangements is must for
ffices of Distributors
AM" ffices
&ank Distributors &ranch
ffices declared as point of acceptance
D
& A
& "
& A
NISM Mock Test 3 0-
*naudited accounts of the scheme must be published in the news paper
00
An In$estor In$ests )s 155555 in a %0- days FM: and got )s 15-5@ what would be capital gain in this case
0
,T T is charged on
03
An in$estor plans to in$est )s 12555 in a scheme whose !AC is )s 12@ how many units he will likely to be obtained
04
&
#$ery % months
#$ery 0 months
#$ery 12 months
!one of the abo$e
-5
-5
Insufficient Data
1555
A
#7uity ,hare Trading
Deri$ati$e Trading
#7uity MF
All of the Abo$e
D
1555
1555
1255
"ant ,ay
&
"ompany/s #arning per share would be indicated by following
:># )atio
"urrent )atio
#:,
+e$erage )ation
"
5
&e ta of In de( wo ul d b e
+ess than 1
#7uals to 1
more than 1
!one of the abo$e
&
1
6hile e$aluating return for an inde( fund across a peer g roup@ which of the following is more important
&eta "oefficient
:ast performance
Tracking error
)?,7uared
"
2
The fund sponsors should ha$e a sound financial track record of
12 months
% 9ears
- 9ears
9ears
"
%
6hat is the current ::F )ate
.-5B
.-B
3.55B
3.-5B
"
'
Father wants his son to be a doctor and study will start after years. The current e(pense is 2-55555.
A U : H1r P n ?1
A U : ( H1r P n
A U : > H1r P H1>n ?1
A U : > H1r P n
-
Appropriate benchmark for ?sec fund
I?sec I ?be(
")I,I+ li7uid fund inde(
MI&)
")I,I+ ? MI: bladed inde(
A
0
6hic h of the following has lowest risk
+i7uid Fund
I+T Fund
Di$ersified debt fund
Di$ersified #7uity fund
A
If I re7uire -55555 after 2 years@ which method will I follow
Discounting method with interest rate
Discounting method with inflation rate
"ompounding method with interest rate
"ompounding method with inflation rate
"
3
Mutual Fund ,ponsors can be compared to
Depositor of a company
"ompany director
:romoter of a company
"# of a company
"
4
6hich of the following can be charged to the scheme
,alary of Fund Administrati$es
ffice rent
eneral Administration #(penses
Fees of "ustodian
D
35
+ow :# compared with peer group or industry standard indicates that stock is cheap.
T)*#
FA+,#
31
6hat would be the redemption $alue of a *nit if !AC is 1- and #(it load is 1B
1-
1'.3-
1-.-
1-.1-
&
32
+ast step in the process of designing model portfolio
,ector ,election
Asset Allocation
,cheme selection
"lient ,election
"
3%
For a distribution channel@ 05B of the employees should ha$e AMFI )egistration !umber
T)*#
FA+,#
3'
#7uity Fund/s )isk relati$e to market is measured by
Tracking error
,harpe/s )atio
Treynor
&eta
D
3-
,tandar d )isk is
"ommon to all
*ncommon to all
,ystematic
,pecific to all
A
30
)e7uest of :urchase can be made
Along with re7uisite form and "he7ue
nly 6ith "he7ue
nly :urchase re7uisite form
&
A
&
A
NISM Mock Test 3 3
If an in$estor in$ests 1@555@555 at %%5 p.m through outstation che7ue@ he will get !AC of
,ame day closing !AC
6hen fund gets credited
:re$ious day closing !AC
!e(t Day !AC
33
+i7uidity risk is highest in
Mid "ap stocks
Front +ine ,tocks
Inde( ,tocks
ilt ,ecurity
A
34
Mr A
'55
-55
3555
Depends on !AC
"
45
In$estor can sue the trust for breach of trust
T)*#
FA+,#
&
41
Distributors do not get commission on self business
T)*#
FA+,#
A
42
6hic h of the following is an ,)
AMFI
,#&I
AM"
4%
6hat remains constant in a close ended fund
*nit "apital
!AC
&oth
4'
,#&I regulates
Mutual Funds
Depositories
)TA
4-
*nit holders can hold their units in demat form
T)*#
FA+,#
40
8IM needs to be updated e$ery
% months
0 months
4
Trail commission are linked to $aluation of portfolio in the market
T)*#
FA+,#
43
)isk can be measured by
Cariance
,tandard De$iation
&eta
44
According to the "ertified Financial :lanner ? &oard of ,tandards H*,A@ the third stage in Financial :lanning is
#stablish and Define the client planner relationship
ather client data
Define client goals
!one of abo$e.
&
D A
All of the Abo$e
D A
nce a year
!o need to update it
" A
Any of the abo$e Analyse and #$aluate "lient/s Financial ,tatus
D D
NISM Mock Test 4 PRACTICE KIT – PAPER 4 No.
Q UESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
"ommodity as an asset class does not include
Fiber
,pices
#nergy
Art
2
Financial :lanning is Gust a process and so Financial :lanner can use any profile found in the web
T)*#
FA+,#
%
- st ar fu nd in di ca tes
+owest #(pense ratio
+owest +oad
'
In$estor should in$est in MF with few offices as office e(pense is charged to the fund
T)*#
FA+,#
-
!AC changes with
!umber of in$estor
!umber of *nits remaining in$ested
,i;e of :ortfolio
Market $alue of the portfolio
D
0
In$estor select an MF based on matching
In$estment :hilosophy
In$estment :olicy
In$estment bGecti$e
In$estment ,trategy
"
Indian in$estor in a *, V based fund benefit when V becomes
6eak
,trong
#uro &ecomes 6eak
,teady
&
3
*nderstanding the psychology helps in risk profiling
T)*#
FA+,#
4
,ecurities of a fund are held by
"ustodian
AM"
)=T
&roker
15
)isk may be defined as
Asset Allocation
:ortfolio re balancing
:robability financial +oss
D
11
Financial :lanner finds that client does not ha$e resources to meet goals.
Inform the "lient
A$oid telling as client will be disheartened
A$oid telling as he may lose the client
Increase risk to generate higher return and meet the goal
A
12
6hich of the following is with drawable in !:,
Tier I
Tier II
Tier III
Tier IC
1%
Mutual fund is e(empted from 6ealth Ta(
T)*#
FA+,#
1'
89" is re7uired for in$estment more than
-5 8
-8
Any Amount
1558
"
1-
6hich of the distribution channel does not ha$e wide branch network
&ank
Distribution
&roking company
IFA
D
10
6hich of the following is not a function of )=T
:rocess Di$idend and redemption
Mai ntai n the records
,ettl ing i n$estors transacti on of fund
"alculati on of !AC
D
1
AMFI interacts with on all issues related to MF industry
)&I
,#&I
o$t
All of the abo$e
&
13
"C+ system generates Acknowledge along with
:A!
MI!
89"
Folio
&
14
+ow #(pense
!on :erformance
25
,ince preparation of 6I++ is a long process@ it has to be a$oided
T)*#
FA+,#
21
&enefit of Demat a>c is that
Direct credit of bonus units
,ingle contact point for change of address
22
Among e7uity fund @ growth fund has highest risk
T)*#
FA+,#
D &
&est :ortfolio
" &
A
A
& A
A &
,ingle point for portfolio $aluation
All of the abo$e
D &
NISM Mock Test 4 2%
6hat determines the interest rate sensit i$ity
"redibility
Nuality
2'
Fundamental Analyst are also called E "hartistE
T)*#
FA+,#
2-
Fundamental Analyst/s decis ion are base on
#:, in dollar
Trialling #:,
20
Debenture is physical asset because the paper has some $alue
T)*#
FA+,#
2
In$esting in old #TF helps
uarantees high return
!ot permitted in India
23
6hich of these acti$ity are carried out before getting ,#&I appro$al
*pdating the ,ID with !F dates
Appro$al of the features by trustee and AM" board
24
"hildhood and transition are similar stage of +IF# cycle and 6#A+T< cycle stage
T)*#
FA+,#
%5
In$estor with a long term in$estment hori;on for growth are likely to in$est in
#7uity Fund
,T Debt Fund
%1
,ome allocation to +D is likely in most model portfolio
T)*#
FA+,#
A
%2
Appro$al of ,#&I is needed to appoint a person as Trustee
T)*#
FA+,#
A
%%
6hat is the drawback of ::F
ne withdrawal at the end of ,e$enth 9ear
Interest and 6ithdrawals are not ta(able
< al f ye ar ly "o mp ou nd ed i nt er es t
! ot u ar an te ed b y o$ t
A
%'
"ommission paid at the time of in$estment are called
*pfront "ommission
)ebate
Trail
A*M )etention Fee
A
%-
In$estors in !:, can choose asset class but not fund managers
T)*#
FA+,#
%0
,ettlement responsibility in &,# > !,# :latform are with
AM"
"learing
,tock #(change
Member
A
%
6hich of the following information does time stamp include
Machine Identifier
location code
,erial !o
All of the abo$e
D
%3
"omprehensi$e F: should be restricted to fi$ e years
T)*#
FA+,#
%4
"losed ended fund has
Fi(ed A*M
Fi(ed *nit "apital
Fi(ed !AC
Assured Di$idend
&
'5
To which of the following :A! does not apply
:I
!)I
Minor = ,enior "iti;en
!one of abo$e
D
'1
Father wants to start his busin ess@ this is
Asset Allocation
Financial oal
Appreciation
Financial :lanning
&
'2
In India one can in$est in MF only through distributor
T)*#
FA+,#
&
'%
,I: is called )"A H)upee "ost A$eraging
T)*#
FA+,#
A
''
+i7uidity risk arises in
"losed ended fund
pen ended fund
old
Debt
A
'-
A mutual fund is
A pool of trustee money
A pool of in$estment institutions
A pool of in$estment managers
A pool of in$estment fund
D
'0
The name and background of key personnel in AM"
Are not included in ,ID
Declared on MF website
Are included in ,AI
Are not rele$ant so not disclosed
"
9TM
A$g Maturity
D &
:roGected #:,
D &
:ro$ide risk co$er
)educe storage cost and risk
D
Di sp at ch p ro du ct l ite rat ur e
:ri nt in g 8IM a nd ap pl ic ati on f orm
& &
Income fund
li7uid Fund
A
&
&
NISM Mock Test 4 '
Annual report should announce the unclaimed amount and no. of in$estor
'3
A
T)*#
FA+,#
,T" in +D is applicable if the holding period is less than
12 months
%0 months
0 months
4 months
&
'4
allots the A)! number
AM"
AMFI
,#&I
!I,M
&
-5
Application for MF would be reGected if paid in
"he7ue
DD
"ash
&ankers che7ue
"
-1
)ole of "redit rating agencies is highest in
Debt Fund
old Fund
)eal #state Fund
#7uity
A
-2
In$estors in ::F gets deduction up to
155555
15555
5555
-555
"
-%
" ut ?o ff t ime ar e
Agreed between AM" = Distributor
Different for e$ery )TA
:rescribed by ,#&I
Different from AM" to AM"
"
-'
Money market in which MF in$ests are regulated by
AMFI
,#&I
)&I
,tock e(change
"
--
For with?holding ta( on income earned by !)I depends on nature of income@ nature in$estment and in$estor/s country of domicile
T)*#
FA+,#
A
-0
ilt fund is a good alternati$e to "apital Appreciation
T)*#
FA+,#
&
-
6hich of the following is growth asset
,a$ings a>c
"urrent A>c
)eal #state
o$t ,ecurity
"
-3
6hich is prohibit ed in AM"/s "ode of ethics
Inter ,cheme transfer
Front )unning
,ecurity transaction through associated broker
Distributor of MF through AM"
&
-4
+oads are applicable to
Transfer of "losed ended ,cheme
)edemption
:urchase and redemption
:urchase
&
05
&ank on receipt of money from abroad issue
I#"
FI)"
MI! Folio
01
Mutual Fund in$estor can/t pledge units
T)*#
FA+,#
02
,tandard risk factors are
!ot market risk
,pecific to scheme
not rele$ant to in$estor
0%
*nit holders are entitled to
)ecei$e information that can effect their in$estment
protection of capital e$en if market goes down
,ue the MF or Trust
0'
Appropriate benchmark to large cap
&,# small cap inde(
,ense(
&,# -55
&,# Mid cap Inde(
&
0-
If market crashes after bull run which fund is more safer
rowth
Calue
,ector
Theme
&
00
Insurance in case of MF is
*p to 1 +ac per scheme
1+ac per fund
More than 1 lac
!one of the abo$e
D
0
!et A$g asset of the scheme is %55cr and In$estment transaction $alue for the same is 1555 cr in a year. 6hat is the a$g holding period Hmonths
5.%
5.%0
Insufficient Data
%.0
D
03
Mutual Fund transaction on stock e(change are go$erned by stock e(change redressal system
T)*#
FA+,#
04
6hich one is called "um?Di$idend?!AC
!AC on the date when trustee appro$es di$idend
!AC of the date when notice is issued to meet the trustees to finali;e the di$idend
& & common to all scheme Assured return e$en if there is no guarantee
D A
& !AC after the date of di $idend
!one of the abo$e
A
NISM Mock Test 4 5
IF old price appreciates in$estors should in$est in
old sector fund
old #TF
1
6hen scheme is first launched@ A*M of the scheme would be nil
T)*#
FA+,#
2
An in$estor looking to select a hybrid fund with ta( benefits must choose.
"onser$ati$e MI:
&alance fund #7uity oriented
&alance fund Debt oriented
Aggressi$e MI:
%
#ncroachment risk is higher for
+and
&uilding
old
Art
'
*naudited report has to be published in newspaper e$ery
% months
0 months
12 months
% financial year
-
Ta( differal is ad$antage
rowth
Di$idend payout
Di$idend rein$est
"apital gain
A
0
The e(pense ratio is affected by
Fund si;e
A$erage account si;e
:ortfolio composition
,tock market conditions
A
In a mutual fund in$estors subscription are accounted for as
+iabilities
*nit capital
Deposits
!one of the abo$e
&
3
A disclosure should be made in the offer document if an AM" has in$ested more than the following percentage of its net assets in group companies.
5.-
5.2-
5.'
5.1
&
4
pen ended fund can in$est in unlisted securities up to?
5.5-
5.5'-
5.50
5.5-2-
A
35
Fund of Fund scheme in$est in?
Mutual Fund scheme
International fund
Inde( fund
ilt fund.
A
31
A scheme can distribute di$idend on it s?
)eali;ed profit.
:rofit after ta(
reali;ed = non reali;ed profit
none of the abo$e
A
32
A newly married couple should in$est into ??
Debt fund
&alance fund
#7uity fund
+i7uid Funds
"
3%
If an in$estor wants to in$est in Mutual fund through e(change platform he can buy from
#(isting in$estor
&roker
AM"
Distributor
&
3'
,tandard risk factors are
"hanges from scheme to scheme.
"ommon for all scheme
&oth
!one of abo$e
3-
The presence of market makers pro$ide li7uidity in case of #TF
T)*#
FA+,#
30
!et asset )s.-55cr.> total transaction $alue is )s. 1555 cr what is portfolio turno$er ratio
5.-
2
1
data insufficient
&
3
A$g net asset of scheme is %555@total transaction of a scheme 15@555 what is portfolio turno$er ratio
5.%
'
%.%%
-
"
33
6hat is an ideal sector allocation in a sectoral fund
-
W-
!ot more than 2
W15
"
34
6hich of the following is true with respect to the automatic rein$estment plan
It allows the in$estor to rein$est the amount of di$idend
It ensures that the in$estor reaps the benefit of compounding
,ome funds allow the in$estor the in$est the di$idend in the other schemes also
All of the abo$e.
D
45
6hich of the following is not true for #(change Traded Funds H#TF
#TF combines the best features of open end and closed end.
Its pricing is linked to the inde(
It offers the in$estors the benefit of fle(ibility of holding a single share as well as the di $ersification and cost efficiency of inde(
#TFs reco$er hea$y load from the in$estors.
D
41
In which of the following the in$estor generally bears the highest e(penses
#(change traded funds
&alanced funds
"ommodity funds
Fund of funds.
D
Inde( Fund
ilt edge ,ecurity
& A & A
&
& A
NISM Mock Test 4 42
6hich of the following is not the ad$antage of mutual funds
)eduction of transaction costs
"on$enience and fle(ibility
Tailor made portfolio
+i7uidity.
"
4%
In$estor who wants long term e(posure to gold should opt for
#TF old
old ,ector Fund
old Future
Jewellery/s
A
4'
6hich is the short term o$t ,ecurity
"ommercial :aper
T?&ills
"ertificate of Deposit
ilt
&
4-
6hich is the most Illi7uid Asset
old
#7uity
Debt
)eal state
D
NISM Mock Test 5 PRACTICE KIT – PAPER 5 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
&ank lends against
:ledged units
Di$idend
!omination
)edemption
A
2
,ID is appro$ed by
In$estor
,ponsor
AM" and Trustee
"ustodian
"
%
"ut?off time for !AC
decided by AM"
same for all scheme
by trustee
:rescribed by ,#&I
D
'
preparation of 6I++ is pessimistic e(ercise@ so it is better to a$oid
T)*#
FA+,#
-
6hich document is not re7uir ed for institutional in$estor
: = + account
Memorandum of the articles of association
:A! card
Authori;ed signatory list
A
0
Distributors are pro$ided commission for up to
% yrs
- yrs
15 yrs
in$estors stay in$ested
D
,#&I is responsible to de$elop a cadre of well trained agents and distributors
T)*#
FA+,#
&
3
T)*#
FA+,#
&
4
6 ho promotes MF
,ponsor
custodian
AM"
trustee
A
15
+i7uidity risk is highest in
Mid cap stocks
Front line stocks
Inde( stock
ilt security
A
11
A unit hold er is not responsible for
reading D
selecting stocks in a portfolio of the mutual fund scheme
regular monitoring in$estment
awareness of risk factors
&
12
Accepted standard for return calculation in financial market is
abs return
"A)
total return
simple annuali;ed return
&
1%
, TT is ap pl ica bl e o n
:urchase of debt fund
)edemption of debt fund
)edemption of e7uity fund
All of abo$e
1'
Mr A holds 1255 units @ scheme declares 1% bonus.
%55
'55
%055
depends on !AC
"
1-
"orporate deposit interest rate depends on
liability of borrower
asset of borrower
credit rating
profit of borrower
"
10
"ommodity does not include
Art
#nergy product
spices
Fibres
A
1
The $alue of in$estment in mutual funds..
Increase gradually e$ery day.
"hange with the $alue of the in$estment portfolio
Decrease gradually e$ery day
&e $olatile in long?term
13
The first e$er mutual fund scheme in India was launched in
140'
14-1
145
144'
14
In$estors buy units of open?ended funds during the continuous offer at the
!F price
Market :rice
&oth
none of the abo$e
&
"
& A &
NISM Mock Test 5 25
The in$estment obGecti$e of which of these funds would be to seek capital appreciation
Di$idend yield fund
rowth Fund
+i7uid Fund
Income Fund
&
21
If we ha$e a $iew that gold price will appreciate@ which mutual fund scheme should we in$est in
old sector
ilt edged securities
Inde( fund
old #TF
D
22
ne of the ad$antage if #TF is..
In$estor can see where his money is in$ested
These schemes can generate higher returns than mutual fund.
In$estors can buy of sell units on stock e(changes at price that closely track $aluation at that time.
#TF offer ta( benefits.
"
2%
Mutual funds are constituted in India as a..
"ompanies
Trust
:artnership firms.
!
&
2'
Mutual fund sponsor can be compared to ..
A depositor in company
A company director
:romoter of a company
"#
"
2-
6hich of these entities enables collection and payment of fund.
&roker
&anker
)=T Agents@
"ustodian
"
20
The constituents of mutual fund are appointed with the appro$al of ..
,ponsor
Trustees
,#&I
AM"
&
2
The applicable guidelines for mutual funds are set out in ,#&I HMutual Fund regulation@ 1440..
T)*#
FA+,#
23
&ank sponsored mutual funds are also regula ted by
AMFI
,tock #(changes@
)&I
,#&I
"
24
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
)etail indi$idual
Institutional unit holders
&
%5
Although A!I is mandated. there are no penalties for breach of code of conduct.
T)*#
FA+,#
%1
To achie$e growth by in$esting in e7uity and e7uity related in$estments@ balanced with income generation by in$esting in debt and money market instruments is likely to be the in$estment obGecti$e of .
#7uity fund
Money market fund
%2
Annual report of AM" should necessarily mention the unclaimed amount and the number of such in$estors for each scheme.
T)*#
FA+,#
%%
*nit holders enGoy rights to the asset of the funds...
According to the plan chooses by them.
As per decided by trustees
e7ually for all holders
In proportion of holding
D
%'
For fund of fund !AC is to be updated on?line in the website of AMFI and the mutual fund website..
&efore 4 pm same day
&efore 15 am following day
after 15 pm same day
&efore 4 pm following day
&
%-
6hich of the following is not a mandatory ser$ices standard as per ,#&I.
:eriodic disclosure of the fund/s holding
:eriodic disclosure of AM"/c accounts
n?line purchase and sells of units
Dispatch of di$idend within %5 days
"
%0
In$estors can sue trustees for breach of trust.
T)*#
FA+,#
%
6hich of the following is the function of an offer document
To enable comparison of MFs
To gi$e the FM/s commentary on market
To report the performance of scheme
To gi$e in$estors information about scheme
D
%3
!F other than #+,, can remain open for
1- days
%5 days
'- days
Fore$er
A
%4
6hich of the following contain detail information on the portfolio characteristics and operational features of a scheme
8ey Information of Memorandum
,tatement of additional information.
,cheme information document
Addendum
A
A
&alance fund
"
Debt Fund
A
A
"
NISM Mock Test 5 '5
6hich of the following is not fundamental attribute of scheme
In$estment obGecti$e
!ame ff Fund Manager
In$estment :attern
Type of risk profile
&
'1
6hich of the following is a synopsis of the offer document
Trust deed
Memorandum of Association
,tatement of additional information
8ey information of memorandum
D
'2
T he format of 8IM
i$en by ,#&I
i$en by AMFI
Caries to fund to fund
&y ,tock #(change
A
'%
,ome MF companies allow in$estors to transact through their website.
T)*#
FA+,#
A
''
There is no need for educational 7ualification to be MF ad$isor.
T)*#
FA+,#
&
'-
Distributors are compensated by mutual fund companies primarily through..
,alaries
Annual fees
,hare in AM"/s profit
"ommission
D
'0
6hich 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
'
AMFI is ,) for mutual fund and regulates all mutual Fund
T)*#
FA+,#
'3
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
'4
Transfer of in$estment from one scheme to another is allowed
T)*#
FA+,#
-5
If the in$estor wishes to change the dis tributor
he needs to gi$e the !" from pre$ious distributor
-1
In$estor can sue the trust for breach of trust
T)*#
FA+,#
&
-2
,ince !F is a marketing decision @"I has limited role in deciding it/s structure
T)*#
FA+,#
&
-%
Info pro$ided in the ,AI
addendum made in the scheme
*pdation in D
*pdation in 8IM
!one of abo$e
A
-'
6hich of the following form a part of fundamental attributes of a fund
Fund manager
In$estment obGecti$e of fund
+oad
!one of abo$e
&
--
6hat remains constant in closed ended fund
*nit capital
!AC
both
!one of the abo$e
A
-0
6here do high?yield funds in$est
Junk &onds
ilt fund
#7uity growth Fund
Treasury bills
A
-
T)*#
FA+,#
-3
6hich ratio measures risk?adGusted return
,harp )atio
Treynor ratio
&oth
!one of the abo$e
"
-4
6hich funds ha$e features of both open ended = close ended
Inter$al Fund
&alance Fund
,ector Fund
Thematic Fund
A
05
6hich approach is used by Fund managers for picking up the Calue stocks.
&ottom up approach
Top down
&oth
!one of the abo$e
A
& retail indi$idual class
!one of abo$e
& A
AM" may allow or disallow
All of abo$e
A
A
NISM Mock Test 5 01
"an li7uid funds in$est in short term bank fi(ed deposit
9es
!o
A
02
#(penses in fund of funds
+ess then direct In$estment in scheme
More than direct in$estment in scheme
#7ual to direct in$estment in scheme
!one
&
0%
6hich fund has highest risk
+i7uid
Income
?securities
+i7uid :lus
&
0'
"hildhood = transition phase is common in life cycle = wealth cycle
T)*#
FA+,#
0-
6hat is not mandatory in application form
ccupation
,tatus of Indi$idual
00
Is 8IM a synopsis of offer document
T)*#
FA+,#
0
Absolute return is best Gudged if the in$estment hori;on is
1yrs
W1 yr
Anytime
29rs
A
03
Di$idend distribution ta( in li7uid fund payable by in$estor
!il
12.-5B
15.%3B
%5.55B
A
04
6hat is the rate of TD, in li7uid mutual Fund
!il
12.-5B
15.%3B
%5.55B
A
5
6ho can distribute mutual fund through stock e(change
#7uity &roker with out certification
!I,M certified = AMFI registered member
&oth
!one of the abo$e
&
1
6hat is the beta of inde( fund
1
More than 1
+ess than 1
!one of the abo$e
A
2
6hen a time stamping machine is installed should it be informed to trustees
T)*#
FA+,#
A
%
The difference between the yield on gilt and the yield on a non go$ernment debt security is called its yield spread.
T)*#
FA+,#
A
'
+i7uid schemes in$est in securities
+ess then 41 days maturity
More then 41 days maturity
+ess then 1 year maturi ty
More then 1 year maturi ty
A
-
Mutual fund is
Trust
"ompany
,ociety
!one of the abo$e
A
0
6ho is keeps the custody of security of Mutual Fund
AM"
)=T
"ustodian
,ponsor
"
AMFI is a ,)
T)*#
FA+,#
3
A!I is
"ode of "onduct For Intermediaries
)ules = )egulations
Terms = "onditions
!on of the abo$e
A
4
!F opening and closin g detail mention in
8IM
,ID
D
All of abo$e
D
35
8 IM i s t o u pd at ed
nce in 7uarter
nce in month
nce in year
weekly
"
31
)ecurrin g e(penses includes
In$estment ad$isory fee
"harged by the AM"@ )=T fee
Marketing and selling fee
All of abo$e
D
& Mode of holding
:A!
A A
&
NISM Mock Test 5 32
ffer Document of Mutual Fund is appro$ed by ,#&I
T)*#
FA+,#
&
3%
,tock e(change brokers are permitted to distribute MF after passing the certifying e(am
T)*#
FA+,#
A
3'
If the post ta( rate of return on an in$estment is 3B and the inflation rate is 0B the real rate of return is
2.55 :ercentage
1.34 :ercentage
3.55 :ercentage
!on of the abo$e
&
3-
A client is in$esting )s. 1 "r. in gilt fund which day !AC he will get
,ame day closing !AC
!e(t Day !AC
:re$ious day !AC
!AC of the day when funds are reali;ed.
D
30
25
15
%5
-5
A
3
There is no TD, on di$idend distribution and redemption
T)*#
FA+,#
33
6hich documents are needed for 89"
:A! card
Address proof
:hoto id proof
All of abo$e
D
34
6hich id proof is not $alid identity proof for 89" Hindi$idual
"redit card
Address proof
Dri$ing license
All of the abo$e
A
45
For additional purchase
nly transaction slip to be filled
Transaction slip with purchase che7ue
nly che7ue
!one of the abo$e
A
&
NISM Mock Test 6 PRACTICE KIT – PAPER 6 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
6hich of the following entities reaches MF product beyond geographical locations
The &rokers
The "ustodian
The Distributer
) = T Agents.
2
,#&I is sole regulatory authority for MF are answerable
T)*#
FA+,#
A
%
6here the in$estor desires to hold MF unit in DMAT form the AM" will still be re7uired to :erform 89" to such in$estors
T)*#
FA+,#
&
'
ffer document enable in$estor to compare the of MF scheme with another MF scheme
T)*#
FA+,#
&
-
which of the following in$estors belong to institutional group
<*F
!)I
:roprietary firm
FII
D
shall mention the di$idend declared or paid in )s per unit along with face $alue of each unit ofthat scheme and the pre$ailing !AC at the time ofDeclaration of Di$idend
All of the abo$e
D
"
0
:erformance ad$ertisement
,hall identify !ature of scheme
shall only ad$ertise compounded annualise yield "alculated using the prescribe procedure
&enef its of ,T : is
:aper work is minimi;ed
Idle funds situation reduced
&oth
!one
"
3
"ompany has issued 15 core e7uity shares. It earns profit of )s. 15- core on which it has :aid ta( of )s. - core and distributed di$idend of )s 25 core. 6hat is #:,
15
15.-
12
11.-
A
4
Floating )ate Interest is
go$ernment yield spread
yield spread
base spread
payable only on maturity
"
15
Market price of which of the following in$estment instruments will fluctuates more
+ong Tenor debt
,hort tenor Debt
Floating )ate ,ecurities
Debentures
A
11
Asset consid ered for Asset Allocation ideally be
,imilar
only :hysical
nly Financial Asset
Mi( of different kind of Asset
D
12
6hich of the following is most unlikely to ha$e a model portfolio with 25B alloacation to sector fund
9oung #(ecuti$e early in his career.
6ell :laced Mid +e$el #(ecuti$e
In$estor in Distribution :hase
,enior #(ecuti$e with 6ell ,ettled "hildren
"
1%
A distributor can be empaneled by AM" only if
,uch distributor and its representati$e has>ha$e cleared certifying #(am
,uch distributor is appro$ed by AMFI
,uch Distributor is registered with ,tock #(change
Appro$ed by ,#&I
A
1'
A ! I is ma nd ate d b y
AMFI
AMFI and ,#&I
)&I
,#&I
A
1-
Junk &ond ,cheme is also be known as
T)*#
FA+,#
A
10
According to ,ome studies Asset Allocations and In$estment :olicy can better e(plain the portfolio performance as compared to ,tock selection and In$estment Timimg
T)*#
FA+,#
A
1
6hich f the following benefits of starting
:rotection against Insurance "ompany reGecting claim on the ground of pre?e(isting illness
&oth of the abo$e
!one f the abo$e
&
13
6hich of the gollo wing is o$ernment ,a$ings ,cheme
Infrastrucure &ond
)&I releif &ond
:ost ffice recurring Deposit
All of the abo$e
"
NISM Mock Test 6 14
Duration of ::F deposit is
1- years
0 years
years
% years
A
25
)ela(ation from Documetation re7uired for MI") ,I: is a$ailable for
nly Indi$iduals other than !)Is and :Is
Indi$idual Including !)I and :Is
Indi$iduals Including !)I but not :Is
Indi$iduals including :Is but not !)Is
"
21
Intial :hase of +ife "ycle is Accumulation
T)*#
FA+,#
22
+ife insurance is meant for
Ta( planing
)isk protection
2%
)eal #state mutual fund is
&eyond means of retail in$estor/s
:ro$ided benefits of real estate = MF in$esting
2'
& la ck swa n r ef er to
: ro ba bi li ti es o f l ar ge l os se s
M F r at in gs
2-
A fi$e star rating in MF schemes indicates that
+owest e(pense ration
20
6hich of the bond fund carries least amount of interest risk
2
& ,a$ings
&
Are not easy to li7uidate
&
8 in d o f o ff er d oc um en ts
I nc en ti $e t o d is tr ib ut er
A
+owest load
Demonstrate superior performance
&est portfolio
"
Dynamic bond
?sec fund
Income fund
Money market fund
D
Asset allocation must primarily based on
In$estment needs
Insurance needs
Ta(ation needs
Financial goals
D
23
Faced with the financial difficulties a family is likely to do all this e(cept following
Mo$e to a larger house in a better locality
#conomi se #(penses
6 ifes starts worki ng
A
24
:re?retirement stage
Annual in$estment amount gets reduced
:arents reach towards peak of their earning capacity
,a$ing for retirement gets minimi;ed
,a$ing for in$estment is not re7uired
%5
Teir I account of new pension scheme is called pension account
T)*#
FA+,#
%1
6hich is false
o$ernment is trying to con$ert financial Asset to physical asset
In$estment in bank FD can be transfered to loan
In$estment share can be translated into proGects
In$estment in MF helps the real economic
A
%2
Minimum !etworth re7uirement of the AM" is
)s 15 crore
)s - crore
)s ' core
)s 2 crore
A
If a scheme is launched in the second si( months of financial year the the 1 st update of the
SID s due !th"
6ithin % months of the end of the financial 9ear
6ith % months from the begining of !e(t financial year
6ithin % months from the end of the ne(t financial year
6ithin 0 months of the end of the financial 9ear
"
%'
+egally ,AI is the part of ,ID
T)*#
FA+,#
%-
Income ta( allows setting of certain types of capital gain losses against certain type of Income which of the following is true in case of such pro$ision.
"apital losses can be offset again salary
+ong term capital losses from e7uity MF can &e offset against long term gain from property
,hort term capital losses can be offset against di$idend income for the year In which the loss has occurred
+ong term capital losses in e7uity MF is not a$ailable for setting of against business or ,alary income
D
%0
The is the main dri$er of returns in a mutual fund scheme .
)eturn
:rofit of in$ested company
:ortfolio
!one of the abo$e
"
%
Fundamental Analysis entails re$iew of the company/s
Financial ,tatements
Nuality of Management
"ompetiti$e :osition
All of the abo$e
D
%3
ratio indicates how much in$estors in the share market are prepared to pay Hto become owners of the company @ in relation to the company/s earnings .
#arnings per ,hare
:rice to #arnings ratio
&ook Calue :er ,hare
:rice to &ook Calue
&
%%
In$estment Are popular in$estment options
& A
A
NISM Mock Test 6 %4
A fund maintains a portfolio that is in line with the passi$e fund .
Acti$e fund
Inde( Fund
#7uity fund
Debt fund
&
'5
Calue in$estment style is an approach of picking up stocks which are $alued @ based on fundamental analysis .
+ower
Medium
A=&
'1
6hich is approcach is also call ed stock picking .
Top X down Approach
&ottom X up Approach
#ither A = &
!one f the abo$e
&
'2
If the proceeds on redemption are higher than the amount in$ested then it is called .
"apital ain
"apital +oss
!o :rofit !o +oss
!one f the abo$e
A
'%
Treasury &ills are short term debt instruments issued by the on behalf of the o$erment of India .
,#&I
)eser$e &ank of India
"entral o$ernment
,tate o$ernment
&
''
"ommercial papers are short term Debt ,ecurities issued by corporates.
T)*#
FA+,#
'-
"redit rating companies are like .
")I,I+
I")A
'0
T)*#
FA+,#
'
6hich of the following are deri$ati$e .
Forwards
Futures
ptions and swaps
All of The abo$e
D
'3
#$ery scheme should ha$e at least in$estors .
1-
25
2-
%5
&
'4
funds take :ositions that are countrary to the market .
Thematic Funds
Mid cap funds
"ontra funds
Di$idend yield funds
"
-5
+i7uid schemes@ which in$est in securities of up 41 days maturity @ ha$e the risk amongest all kinds of schemes .
+owest
Kero
!one of the abo$e
&
-1
6 hat is MI&)
Mumbai Inter X &ank ffered )ate
Money Inter X &ank offered ffered )ate
Mutual Inter X &ank offered rate
Multiple Inter X bank ffred rate
-2
To con$ert the demat units into physical from . This process is called re?materialisation .
T)*#
FA+,#
-%
)T, refers to .
)eal time rowth ,ettlement
)eal Time ross ,ettlement
)eal Techni7ue ross ,ettlement
)eal Techni7ue rowth ,ettlement
&
-'
6hat is A,&A .
Application ,upported by &locked Account
Application ,upported by &locked Acknowledgement
Application ,upported by &locked Amount
!one of the Abo$e
"
--
!,#/s MutuaY Fund platform is called !#AT MF,, .
T)*#
FA+,#
A
-0
6hen a di$idend is paid @ the !AC of the units falls to that e(tent .
T)*#
FA+,#
A
-
)isk can be measured by
$ariance
,tandard De$iation
-3
,#&I has Facilitated buying and selling of mutual fund units through the stock e(changes.
T)*#
FA+,#
-4
A)! )#F#), T .
Agent registration !umber
AMFI )egistration !umber
A
A "A)# = FIT"<
All of the Abo$e
D &
A A
&eta
Any of the abo$e
D A
Application )egistration !umber
Account )egistration !umber
&
NISM Mock Test 6 05
In hoardings > posters@ the statement @ Z Mutual fund in$estments are subGect to market risks@ read the offer document carefully before in$esting [ is to be displayed at least inches height .
01
0
4
-
3
D
If a scheme is launched in the first 0 months of the financial year then the first update of the ,ID is due with in months of the end of the financial year .
2
0
-
%
D
02
!o single in$estor shall account for more than 25B of the corpus of the scheme>plans.
T)*#
FA+,#
0%
The asset management company shall confirm that a due diligence certificate is signed by the .
"ompliance officer
"hif e(ecuti$e officer
Managing Director
Any of the abo$e
A
0'
In case of specifice re7uest reci$ed from in$estors@ mutual funds shall pro$ide the account statement H,I:>,T: to the in$estor/s within working days from the receipt of such re7uest without any charges .
-
15
1-
A
0-
The mutual fund would update the current e(pense ratios on the website within working days mentioning the effecti$e date of the change .
-
2
15
"
00
ffer documents of mutual fund schemes are appro$ed by ,#&I .
T)*#
FA+,#
0
regulates mutual funds@ depositories@ custodians and registrars = transfer agents in the country .
)&I
,#&I
AMFI
All of the abo$e
&
03
The obGecti$es of AMFI is>are .
To recommend and :romote best business practices
To interact with the securities and #(change &oard of India H,#&I
To represent to the o$ernment@ )eser$e bank of india
All of the abo$e
D
04
Z To generate income by in$esting predominantly in wide range of debt and money market securities Z is an obGecti$e of .
Di$ersify e7uity ,cheme
Di$ersify Debt ,cheme
balanced scheme
!one
&
5
Institutional Distributors &uild )each through
#mployees
Agents
,ub &rokers
Any of the Abo$e
D
1
The distributor can charge fees from the In$estor
T)*#
FA+,#
2
The dif ference between !AC and repurchase price is
#ntry +oad
#(it +oad
#(pense
Di$idend ,tripping
%
!AC of Income Funds is to be calculated upto decimals
'
%
2
1
A
'
In$estments in Mutual Fund can be made using
"he7ue>DD
)emittance
A,&A
Any of the Abo$e
D
-
,T: is the combination of ,I: and ,6:
T)*#
FA+,#
A
0
In a Top Down approach@ sector allocation precedes stock selection
T)*#
FA+,#
A
+oads and ta(es may account for the difference between scheme return and in$estor return
T)*#
FA+,#
A
3
Mutual Fund )anking and rating amount to same
T)*#
FA+,#
&
4
6hich of the following aspects of portfolio would an in$estor in a debt scheme gi$e more importance
,ector ,election
,tock ,electi on
&
&
A
6 eighted A$erage Maturity
!o of ,ecuriti es in portfoli o
&
"
NISM Mock Test 6 35
The comparable for a +i7uid ,cheme is
#7uity ,cheme
&alanced ,cheme
ilt Fund
,a$ings &ank Account
D
31
:ro$iding Funds for daughter/s Marraige is an e(ample of
oal riented Financial :lan
"omprehensi$e Financial :lan
Financial oal
!one of the abo$e
"
32
Distribution phase of 6ealth "ycle is a parallel of retirement phase of life cycle
T)*#
FA+,#
3%
Incase of !:, in$estor can choose which of the asset class of the following
#7uity
"orporate Debt
go$ernment ,ecurities
All of the abo$e
D
3'
!ew :ension ,cheme is regulated by
:F)DA
I)DA
:F)DAI)DA
!one of this
A
3-
6hat B of the total wealth of Indian :eople is in physical asset
More than 15B
More than 2-B
More than -5B
All of the abo$e
"
30
:F)DA refer s to
:ri$ate Fund )egulatory and De$elopment Authority
:ro$ident Fund )egulatory and De$elopment Authority
:ension Fund )egulatory and De$elopment Authority
All of the abo$e
"
3
In$estment in a Financial Assets can be producti$e for the economy
T)*#
FA+,#
33
!"D#\ refer s to
!ational "ontract #(change
!ational "urrency #(change
34
In case of the buying of the old Future "ontract@ entire $alue of the old has to be paid
T)*#
FA+,#
45
??????e(empted from the 6ealth Ta(
old Deposit ,cheme
MF
&oth A and &
!one of this
"
41
Many in$estors in$est money in &ank FD and not in Debt market because
+ack of Interest
+ack of awareness
+ack of Money
+ack of confidence
&
42
Interest earned in &ank FD is Ta(able each year
T)*#
FA+,#
A
4%
The primary obGecti$e of the Financial :lanner is to make a$ailable the right amount of money at the right time.
T)*#
FA+,#
A
4'
The third stage of the wealth cycle is
Accumulation
Transition
4-
In many health insurance policies@ the customer has to bear the e(penses and that can get reimbursed from the Insurance company
T)*#
FA+,#
40
)isk appetitte ?????????? as no of dependant menber increases
Decreases
Increases
!o change
Any of the abo$e
A
4
Many???????ha$e made a$ailable the risk profiling tool on their web sites
AM"s
)esearch
&oth
!one of this
"
43
??????is the decision outcome based on the market beha$iour
Tacti cal Asset All ocation
,trategi c Asset All ocati on
Fle(i ble Asset Al location
Fi(ed Asset Al location
A
44
Many Financial ad$isor work on the Model :ortfolio
T)*#
FA+,#
155
6hich are the aspects that affect the )isk profiling of the in$estors
Family Information
Financial Information
A
A !ational "ommodity #(change
!ational "on$ersion #(change
" &
)eaping
Intergenerational Transfer
D A
A :ersonal Information
All of the abo$e
D
NISM Mock Test 7 PRACTICE KIT – PAPER 7
No.
Q UESTION
OPTION A
OPTION B
OPTION C
OPTION D
1
6e ha$e to do the registration of the mutual fund with the ,#&I. 6ho gets registration done
Trust
)=T
,ponsor
AM"
"
2
AMFI do the following acti$ity
:ublish !AC@ A*M of the fund house and maintain and publish industry data
"ompute !AC
Manages money under
!one of the abo$e
A
%
In a li7uid fund a application for repurchase comes at %.%5. 6hats is the !AC which would be a$ailable to it
"losing !AC of the date of application
"losing !AC of the ne(t business day
"losing !AC of the day preceeding the ne(t business day
"losing !AC of the day preceesing the date of application
&
'
In creating of model portfolio which is the first step
Deciding the Asset Allocation
Identify financial oal
,election of ,ector
,election of the scheme
A
-
nce the asset allocation is decided@ sharpe ratio can help us to select the good debt and e7uity ,chemes
T)*#
FA+,#
A
0
nce the asset allocation is decide@ treynor ratio can help us to select the good debt and e7uity schemes
T)*#
FA+,#
&
6ith the increase in the regular income from the Gob risk taking ability of the in$estor
)emains the same
Decreases
Increases
Insufficient data
"
3
A repurchase comes in a I+T fund at 2.%5 pm. 6hats would be the !AC a$ailable to the redemption
"losing !AC of !e(t &usiness Day
"losing !AC of the Application Day
"losing !AC of the day preceeding the ne(t business day
"losing !AC of the day preceeding the Application date
&
4
-B in$estment in debt is suggested to
Aged couple with no immediate family support
'5 year old man with a family with grown up children
9oung call centre e(ecuti$e
9ound couple with 2 school going kinds
A
15
An in$estor with interest to earn high return and willing to take high risk are refferred to as
"autious In$estor
"onser$ati$e In$estor
Ad$enturous In$estor
Aggressi$e In$estor
D
11
A person re7uires 1@55@555 rs for the specific goal after % years. If we want to known what amount he needs to in$est no to get the said amount at rate of -B. which of the following formula needs to be used
155555OH15.5-P%
155555>H15.5-P%
155555>H15.5-O%
"
12
For an Micro ,I: which one of the following is not a $alid photo ID proof
:A! proof
Debit card with photo ID
"redit card with :hoto ID
Coter ID proof
"
1%
The responsiblity to manage funds in the new pension scheme is with
:F)DA
Insurance "ompanies
AM"s
:FMs
D
1'
6here you get the information in regards to the key personals in$ol$ed in an AM"
They are not published as it is not $ery important for the in$estor
They are published on the website of the mutual Fund
A$ailable in ,AI H ,tatement of Additonal Information
1-
6hich of the following is not a$ailable in ,ID
Type of Fund
)isk Factor
Due Diligence certificate
10
+egally ,AI is the part of ,ID
T)*#
FA+,#
1
The date of the applicablity of the !AC is not dependent on
Time at which the application is submiited
b ,cheme in which the money is in$ested
155555OH15.5-O%
Answer
" !one of the abo$e
D A
The day on which the application is submiited
The amount which is getting in$ested
"
NISM Mock Test 7 13
The AMFI allots uni7ue the A)! no which is $alid for the period of three years
T)*#
FA+,#
14
The following would not affect the trail commission to the ad$isor in mutual Fund
:ortfolio $alue going up with the increase in the market
In$estor making fresh purchase during the period
"hange in the unit capital of the the scheme
In$estor redeeming the money during the period
"
25
The ,TT paid on the e7uity mutual fund sold on the stock e(change is
5.5512-
!il
5.552-
5.5551
A
21
The ,TT paid on th e7uity mutual fund purchased on the stock e(change is
5.5512-
!il
5.552-
5.5551
A
22
,TT paid on the re purchase of units by the AM"
5.5512-
!il
5.552-
5.5551
"
2%
6hich of the following when transacted on the stock e(change ,TT is not applicable
#+,,
+D #TF
Inde( #TF
Di$ersified #7uity Fund
&
2'
Its is ad$isable for an a$erage in$estor to do T actical Asset allocation for planning his retirement
T)*#
FA+,#
2-
In case of sudden wealth which among the following is least ad$isable
:ark the money in the li7uid fund for a short time
In$est all money into e7uity at one go
20
Tactical asset allocation is suitable for seasoned in$estor with large in$estible surpluses
T)*#
FA+,#
2
An application for re purchase in e7uity comes at %.%5. 6hat would be the applicable !AC
"losing !AC of !e(t &usiness Day
"losing !AC of the Application Day
23
In case there is a redemption from a !)I who ha$e in$ested the money on a non repatriable basis. The mutual would pay in dollors as redemption
T)*#
FA+,#
&
24
The in$estment grow faster in di$idend re in$estment options as compared to the growth option because more units are added on di$idend rein$est
T)*#
FA+,#
&
%5
Ma(imum e(pense that can we charged in a debt fund is
5.51-
b 5.-B
5.52-
5.522-
D
%1
In case of the growth option which of the following is not true
The !AC capture the full $alue of the porfolio gain
There is no di$idend declared
The number of units increases o$er period
There is a Ta( Deffereal
"
%2
6e re7uire the board resolution from companies to in$est is mutual fund as it may not be specified in the Memorundum and Articale of Assoiation to in$est in such schemes
T)*#
FA+,#
%%
If the company ha$e 15 cores if Issued shares. The profit it makes is 15- coree. IT pays - crore as ta(. Also pays 25 crore as di$idend what is the #:,
15
3
%'
An in$estor in the debt scheme who completely want to eliminate in$estment in e7uity should in$est in MI:
T)*#
FA+,#
%-
The fund ha$e an a$erage asset of %55 crore. The portfolio turno$er for the portfolio is )s 1555 crore. For how many months the in$estment are held for
5.%0
%.0
%0
The floating rate fund hold on to there $alue e$en if the interest rate are fluctuating
T)*#
FA+,#
%
:erformance of the fund is most sensiti$e to the e(pense ratio in which of the following Fund
+i7uid Fund
Di$ersified #7uity Fund
A
& ,tart ,T: from li7uid fund into #7uity Funds
)e$iew the financial plan
& A
"losing !AC of the day preceeding the ne(t business day
"losing !AC of the day preceeding the Application date
A
&
!ot sufficient Data
-
A
&
%
5.2-
&
A #TF
,ector Fund
A
NISM Mock Test 7 %3
6ho among the following are not distributor for Mutual Funds
!ational Distributors
&ranches of public ,ector &ank
&ranches of reser$e bank of India
%4
Importance of credit rating agency is most important in
#7uity Funds
,ecutised Debt
#TF
'5
Full form of A!I
AMFI gudieline and !orms for Intermidiary
AMFI guideline and norms for In$estment
AMFI guideline for Asset Management "ompany
AMFI uideline for !on Indians
A
'1
6hich of the following scheme is e(empted from the di$ident distribution Ta(
Debt riented Funds
&alance Funds
+i7uid Funds
#7uity Funds
D
'2
,ector selection is the key decision in the &ottom *p Apprach
T)*#
FA+,#
'%
Illi7uid ,hares would be $alued at
Calue Decided by the br oker
Fair market $alue as the the guidelines of ,#&I
''
Ta( consultant should not ad$ice financial planning to his client
T)*#
FA+,#
'-
M ot he r w an t t o s et ap ar t ) s 2- la kh s i n % ye ar s t im e
F in an ci al o al
As se t A l oc at ion
F in an ci al :l an ni ng
F ina nc ia l D esi re
A
'0
Followinf is the Asset Allocation
Di$idend payout and rowth ption
Art and old Fund
rowth and Calue Fund
Acti$e fund and :assi$e Fund
&
'
+imit of the commission to be paid to distributor is decided by ,#&I
T)*#
FA+,#
'3
6hats is an !F In$estments
In$estment done by any in$estor in the new ,cheme
Additonal :urchase by the e(isting in$estor
First time in$estment in any of the mutual Fund ,cheme
Additional :urhase by the e(isting in$estot in another scheme
A
'4
6 hats is true about the FM:
!AC dose fluctuate
!o defaul In$ol$e
)eturns can be reasonably predicted before the maturity
All of the abo$e
"
-5
,AI needs to be updated e$ery
9early
Monthly
Nuarterly
"
-1
6ho is responsible for the information a$ailable in D
Trustee
AM"
,ponsor
"ustodian
A
-2
6hich of the following go$ernment secuity ha$e leasr maturity period
"D
":
T &ills
ilt ,cheme
"
-%
6hich of the following credit rating is not re7uired
,hor term debt Fund
+i7uid ,chemes
I+T ,chemes
FM:s
"
-'
Insurance is more important in case of :hysical Asset Cis a Cis financial Asset
T)*#
FA+,#
--
6hich of the asset ha$e the higest risk to be stolen
)eal #state
+D
-0
Most best way to decide the risk appetite of the person is to ask client that Z how mush risk you are ready to take in the market[
T)*#
FA+,#
-
,hare price of the old Mining "ompany is dependent on
old )eser$e
Nuality of the operation of the company
old :rice
All of the abo$e
D
-3
#(pense ration is more important in case of
ffshore Fund
#7uity Fund
Debt Fund
,ector Fund
"
-4
6hile construction of the portfolio the relati$e performance is done with
:eer roup
Asset Alllocaton
Model :ortfolio
Tracking error
A
&ranches of Forein &anks
" &
& :rice decided by the offmarket Trade
!one of the abo$e
& &
&
A Mutual Fund
&ank &alance
& &
NISM Mock Test 7 05
The balance funds based on fle(ible Asset Allication is lower riskier than high yield debt fund
FA+,#
T)*#
01
&etween whom the Trustdeed is e(ecuted between
Trustee and ,ponsor
,ponsor and "ustodian
Trustee and AM"
AM" and ,ponsor
A
02
)epurchasing the predecided no unit at the regular inter$al is called
,T:
,6:
,I:
All of the abo$e
&
0%
*nclaimed in$estment amount and di$idend can be demand by the in$estor
T)*#
FA+,#
0'
Applicable !AC for the different scheme is as per the following time
ffice time of AM"
ffice time of )=T
As per the time of stock market
"ut?ff time decided by ,#&I for $arious MF scheme
D
0-
6hile empannel with the AM"@ e$ery distributor ha$e to pro$ide the following
"orrect and complete information
"ommitment to abide by instruction gi$en as also statutory codes and guideline
:ro$ide all information and document that the AM" may ask for from time to time
All of the abo$e
D
00
Transaction done of MF on the !,# !#AT and &,# ,tart the e(change gurantee the settlement of Funds
T)*#
FA+,#
&
0
+ow :># ratio indicate that it is unlikely to replicate its past performance
T)*#
FA+,#
A
03
"hurning of the portfolio by the Fund Manager is called
:ortfolio Turno$er )atio
+i7uidity )atio
Annual Turno$er )ation
All of the abo$e
A
04
In$esment in a )eal #state Mutual Fund is
&eyond the means of the retail in$estor
#(tremally +i7uid and cost effedcti$e
ffer the benefit of both real estate and Mutual Fund
D
5
Ad$antage of in$esting in ::F is
+oan is a$ailable any time
:remature withdrwal is allowable after one year
Any amount of in$estment in the scheme
Ta( free return e$ery year
D
1
,elf )egulatory rganisation controls
All his member to the limited e(tent
All his member completely
All mutual fund company
All share brokers
&
2
In case of Joint holder the pan card re7uriment for
1st and 2nd
All Goint holders
nly 1st
Any ne
&
%
Ma(imum number of nominee which can be added
-
1
%
2
"
'
In case !ew :ension scheme how many :FMH :esion Fund Managers are managing the money
-
%
%
0
D
-
6hich is the right ,e7uence
+i7uid Fund@ MI:@ilt Fund
ilt Fund.+i7uid Fund@MI:
Di$ersify Debt@ilt Fund@ +i7uid Fund.
MI: @+i7uid Fund@ Di$ersify Debt.
"
0
In +ower Interest )ate ,enario Debt :roduct of MF will enerate higher return compared to Fi(ed Deposit.
T)*#
FA+,#
A
An employee of the mutual Fund can be an Agent
T)*#
FA+,#
&
3
"ommission on In$estment done by ,ponsor in a Fund is
!ot :ayable
:ayable to ,ponsor
4
&ook Calue of a ,hare is dependent on Accounting :olicies of the company
T)*#
FA+,#
35
"ode of "onduct for AM" :ersonnel = Trustees are mentioned in
"hapter II
"hapter IC
A
A
:ayable to Distributor whose A)! is mentioned in the Application Form
!one of the abo$e
A
A ,chedule II
,chedule C H - th ,chedule
D
