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$estor tors. s.
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FA+,#
-
Time Time stam stampi ping ng arra arrang ngem emen entt is is mus mustt at. at...
ffices of distributors
AM" offices
&ank distributor/s branch
ffices declared as point of acceptance.
D
0
,#&I ,#&I has put a stop stop on char chargin ging g to the the schem scheme. e.
#(it load
#ntry +oad
)ecurring #(penses
"D,"
&
*naudi *naudited ted accoun accounts ts of of the the sche scheme me must must be publis published hed
through monthly fact sheet
nly at AMFI website
nce e$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$estment in MF using using demand demand draft.
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FA+,#
&
A
&
NISM Mock Test 1 14
An in$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
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A
20
Fundam Fundament ental al anal analysts y sts are called called E"hart E"hartist istsE sE
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&
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 pass passi$ i$e e fund fund mana manage ger r
)esearches stocks e(tensi$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 securitie securities s bought bought at a discount discount to their their face face $alue $alue are genera generally lly
Interest bearing
Kero coupon bonds
:aying interest at a floating rate
!one of the abo$e
&
01
6hen 6hen inte intere rest st rat rates es ris rise@ e@ bon bond d pric prices es
Also rise
Are not affected affected
Falls
Fluctuate either up or down
"
02
The maturi maturity ty period period of )&I )&I relief relief bonds bonds is
- years
years
0 years
3 years
A
0%
A trai traill comm commis issi sion on is is Gust Gustif ifie ied d when when
An in$estor cancels cancels his in$estment
The in$estor redeems his in$estment in a $ery short time
An Agent retain retain the In$estment In$estment
D
0'
A debt fund distributes distributes 15B di$idend dend . how much ta( ta( does the in$estor in$estor ha$e to pay on this di$idend
0-
An agent in$ests his own money@ money@ not that of client
15.55B
25.55B
12.55B
!one
D
6hat 6hat is the the cur curre rent nt ::F ::F rat rate e
3.55 :ercentage
3.-5 :ercentage
.- :ercentage
.-5 :ercentage
A
00
6hat is the the recurrin recurring g e(pens e(pense e on first 155 cr for for e7uity e7uity schemes schemes
2.55 :ercentage
1.- :ercentage
2.2- :ercentage
2.-5 :ercentage
D
0
)isk )isk adG adGus uste ted d retu return rn is is meas measur ured ed by by
,harpe ratio
,tandard de$iation
Treynor ratio
A="
D
03
Intra Intra day day trad trading ing can be done done on the the basi basis s of? of?
Fundamental analysis
Technical analysis
#conomic analysis
:olitical analysis
&
04
Mid Mid cap cap sto stock cks s are are ris risky ky in the the tim time e of
&oom
)ecession>#conomic turmoil
:olitical instability
All of the abo$e
&
5
6h ho o Ap Ap po poi nt nt s t h he e AM AM "
"ustodian
)=T
Trustee
Distributors
"
1
6hich c h of of the the foll follow owin ing g has has lowe lowest st ris risk k
+i7uid fund Hmmmf
ilt funds
Di$ersified debt fund
Di$ersified e7uity fund
A
2
+ong term capit capital al gains gains in in a debt debt fund fund without without inde(atio inde(ation n for an an in$estor in$estor is is
15.55B
1-.55B
25.55B
!o ta(
A
%
6hat of the following is not a reason for in$estor to prefer mutual fund o$er &ank FD
Ta( benefits
:ossibility of capital gain
Deposit insurance
In$estment con$enience
"
'
In the the !:, !:, each in$estment in$estment manager manager appoi appoints nts own distributo distributor r
T)*#
FA+,#
-
!eed !eed of +ife +ife insu insura ranc nce e in in lif life e is is
Must
!ot re7uired
0
All in$estor ha$e similar re7uirements at similar stage in the the life>wealth cycle
T)*#
FA+,#
!ame !ame of asset asset allo allocat cation ion strate strategy gy ifif it is fi(ed fi(ed L -5 -5 B
Tactical Allocation
,trategic Allocation
3
Model portfolio should be determined based on commission income possibility for distributor
T)*#
FA+,#
A can be done without
!one of abo$e
A &
A=&
!one of abo$e
& &
NISM Mock Test 1 4
6hich 6hich of of the the follo followin wing g is true true for for model model port portfol folio io
,tipulated by ,#&I
uaranteed by AM"
Decided by financial planner
"ommon across industry
"
35
As the the no of earning earning member member in a family family increases increases risk appetite appetite
Increases
Decreases
,tays constant
!one of abo$e
A
31
#7uity #7uity in$est in$estment ment throug through h sip can be be suggest suggested ed for in$estor in$estor lookin looking g for
+ong term growth
,hort term target
:ortfolio churning
Ta( benefit
A
32
performance
e(penses
Tracking error
!one of abo$e
"
3%
6hat 6hat type type of bond bond fund fund carri carries e s least least interes n terestt rate rate risk risk
,hort term bonds
+ong term &onds
Mid term &onds
All of abo$e
A
3'
Arbi Arbitr trag age e fund fund are are not not e7u e7uit ity y fund fund
T)*#
FA+,#
3-
6hich c h of of the the foll follow owin ing g is true true for for FM: FM:
!AC do not fluctuate
"apital uaranteed
Fi(ed income
!one of abo$e
D
30
Inde Inde( ( funds funds are are f fun und d
:assi$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 price of of gold gold goes goes up a buyer buyer of gold gold future future contra contract ct see see it/s $alue $alue
o up
o down
)etain the same $alue
!one of abo$e
34
The in$est in$estmen mentt portfo portfolio lio is crea created ted based based on on
Market $i $iews of of fu fund ma manager
In$estment ob obGecti$e of of fu fund
risk ap appetite of of in in$estor
profile of of un unit ho holder
&
45
"ommod "ommoditi ities es as as an asset asset clas class s does does not not incl include u de
Food crops
Industrial metals
)eal #state
old
"
41
,ubse7 ,ubse7uen uentt to to !F@ !F@ open open ende ended d fund funds s are 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 e7 e7uity market capitali;ation
International ma markets
both e7 e7uity and de debt
!one of of ab abo$e
"
4'
Mutual Mutual fund fund are are consti constitut tuted ed in India India as
"ompanies
Trusts
:artnerships
!
&
4-
Mutual Mutual Fund Fund spon sponsor sor can be compar compared ed to
Depositor of a company
"ompany director
:romoter of "ompany
"# of a company
"
40
6hich 6hich of of the the follo followin wing g is not a funct function ion of )=T )=T agent agent
"reating maintaining and updating the in$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$estment in Indian mutual funds
T)*#
FA+,#
A
&
A A
NISM Mock Test 1 44
The first first step step of of fina financi ncial a l planni planning ng is
#$aluating the $arious alternati$es
data gathering and goal setting
establishing the client planner relationship
:lan )e$iew
"
NISM Mock Test 2 PRACTICE KIT – PAPER 2 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
1
In case case of mark market et correc correctio tion n @ takes takes more more hit hit than than Fund. Fund.
rowth @ Calue
Momentum @ Calue
Calue @ rowth
rowth @ momentum
"
2
,pon ,ponso sor/ r/s s net net wort worth h shou should ld be be posi positi ti$e $e for for
+ast - years
last 2 years
last % years
last year
A
%
At time time of !F@ !F@ whic which h docum document ent compul compulsorily s orily filed filed with with ,#&I ,#&I
,ID
,AI
Annual )eport
'
"ollec "ollectio tion n and and payme payment nt of of fund fund is is a respon responsib sibili ility ty of
"ustodian
)=T
&anker
-
ther ther than than India Indian n reside residents nts@@ rest rest ha$e ha$e to also also compl comply y )&I regu regulat lation ions s
T)*#
FA+,#
0
6hich 6hich of the the fol follo lowi wing ng not not inc inclu lude ded d in in 8IM 8IM
Details of 8ey personal of AM"
Ta( benefit of MF
#(pense and +oad structure of scheme
Due diligence certificate of AM"
D
Function of D is
i$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 6hich e(p e(pen ense se can can be be not not char charge ged d to sche scheme me
#(penses on in$estor communication
,er$ice ta(
Fees of custodian
eneral administration e(pense of AM"
D
15
+ow :# :# indica indicates tes that that stock stock is is cheap cheap and you you shou should ld buy buy itit
T)*#
FA+,#
11
6hich 6hich of the the foll followi owing ng need need not be incl include uded d in 8IM 8IM
Detail of sponsor
Minimum in$estment amount and cut off time
12
As per per incom income e ta( ta( act@ act@ Arbitr Arbitrage age Funds are ta(ed as per debt debt scheme scheme
T)*#
FA+,#
1%
6hich 6hich is pure purely ly trea treated ted as an an inter internat nation ional al asse assett
#7uity
old
1'
Transfer Transfer of securi security ty from from one one scheme scheme to to another another scheme scheme is allowed allowed in MF
T)*#
FA+,#
1-
"alculate "alculate the sales sales price of a unit when !AC is 1- and e(it load 1B
1-
1'.3-
1-.1-
1-.-
A
10
If you you get get a che7u che7ue e of 1 cr in a ilt Fund at 2.%5 2.%5 pm@ pm@ !AC date will be
!AC at 2.%5pm
!AC at %pm
,ame day !AC
!AC of fund reali;ation date
D
1
6ho allo allots ts Amfi Amfi )egi )egist stra rati tion on !um !umbe ber r
AMFI
,#&I
AM"
none of the abo$e
A
13
6hich 6hich distri distribut bution ion chan channel nel don/ don/t ha$e a huge huge branch branch netw network ork
Institution
"orporate distributor
&ank
IFA
D
14
Di$ide Di$idends nds in in the hand hands s of in$es in$estor tors s are ta(a ta(able ble at at the rate rate of
15.55B
1-.55B
%%.55B
Ta( Free
D
25
+ast +ast step step in the the proce process ss of of design designing ing model model portfo portfolio lio
,ector selection
Asset allocation
,cheme selection
"lient selection
"
Memorandum and Articles of Association AM"
Answer
A & A
& )isk profile of the scheme
pening and closing dates of !F
A &
)eal #state
Debt
& A
NISM Mock Test 2 21
oal oal based based appr approac oach h of finan financia ciall plann planning ing focuse focuses s on
)isk profiling
22
6hat 6hat is is the the rate rate of retu return rn of ::F ::F
25 :ercentage
2%
6hat is is the indi indicator c ator of the the risk risk adGusted u sted perfo performa rmance nce rati ratio o
2'
Achie$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$iation
,harpe/s )atio
Cariance
"
Intere Interest st )ate )ate sensit sensiti$i i$ity ty in in &ond &ond fund fund depend depends s on
"redit :rofile
A$g Maturity
9TM
"urrent 9ield
&
2-
,#&I ,#&I does doesn/t n/t allow allow passin passing g of of commi commiss ssion ion to
Distributor
In$estor
&ank
IFA
&
20
If you get a -5+ in in e7uity e7uity fund fund at %%5 pm pm today@in today@in$esto $estorr will get the the !AC !AC of
9esterday
Today
Tomorrow
!AC of fund reali;ation date
"
2
Inde( Inde( again against st which which perf perform ormanc ance e of a fund fund is measu measured red@@ is calle called d
Tracking #rror
&enchmark
In$estment obGecti$e
#(?mark
&
23
FM: are essent essential ially ly a clos closed ed ended ended ,cheme ,cheme
T)*#
FA+,#
24
The information regarding 6hich category of in$estors can in$est in MF@ is gi$en in
ffer document
,AI
MI!
,I!
A
%5
6ho can can not not be the the dist distri ribu buto torr of the the AM" AM"
IFA
&ank
#mployees of AM"
All of the abo$e
"
%1
Asse Assett allo alloca cati tion on mean means s
:utt :utting ing all all egg eggs s in ,ame ,ame bask basket et
In$e In$est stin ing g acco accord rdin ing g to Mark Market et
In$e In$est stin ing g in diff differ eren entt asse assets ts
in$esting only in #7uity old and ,il$er
"
%2
MI: is is a Debt ,c ,cheme
T)*#
FA+,#
%%
Asse Assett allo alloca cati tion on sho shoul uld d be in in line line wit with h
Financial oal
Age of "lient
)isk Appetite
All of the abo$e
D
%'
A young young in$est in$estor or ha$ing ha$ing obGec obGecti$e ti$e of of capital capital apprec appreciatio iation n should should in$est in$est in
I+T
+i7uid
#7uity
debt
"
%-
In !:, class? class?" " pred predomi ominan nantly tly in$est in$ests s in
#7uity
Debt
old
)eal #state
&
%0
Fund/s Fund/s risk risk relat relati$e i$e to market market is measur measured ed by
tracking error
,harps/ )atio
Treynor
&eta
D
%
6hich 6hich one one is is fal false se abou aboutt deb deben entu ture re
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$e
D
'5
6hich 6hich func functi tion on AM" AM" can can/t /t do do in in hou house se
"ustodian
Accounting
Distribution
Fund management
A
'1
Calu Calue e of of &on &ond d goe goes s dow down n whe when n
Interest rate goes down
Interest rate goes up
I)) goes down
9TM goes down
A
A
&
NISM Mock Test 2 '2
6hich 6hich one one is is not not e(em e(empt pted ed in in wea wealt lth h ta( ta(
old sector fund
old deposit
old #TF
old
D
'%
Inst Instit itut utio iona nall distr distrib ibut utor ors s need needs s to be
)egistered with ,#&I
)egistered with AMFI
+isted on stock e(change
All of Abo$e
&
''
,tandard ririsk are
*ncommon to all
"ommon to all
,pecific to a scheme
,ystematic
&
'-
)e7u )e7ues estt for for purc purcha hase se can can be be mad made e
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 case of onlin online e transa transactio ction@ n@ transacti transaction on time is applicab applicable le
Time shown in the computer of in$estor
Time as web per web ser$er
'3
If in$esto in$estors rs in$est in$est through through demat demat can AM" asks for 89" 89" re7uiremen re7uirementt
T)*#
FA+,#
'4
According According to the the asset asset alloca allocation tion rule@ rule@ e7uity e7uity e(posure e(posure should should be e7ual e7ual to to
Age
155?age
Age?155
155.55B
&
-5
Mutu Mutual al fund fund is made made up of
:ool of of trtrustees fu fund
:ool of of institutional in in$estors
:ool of of in$estment managers
:ool of of in$estment money
D
-1
6ho can can not not in$e in$est st in mutu mutual al fund funds s
Foreign companies
&anks
insurance companies
!&F"
A
-2
6h hii ch ch is is sa sa me me as as of of D D
,ID
,ID,AI
,AI
-%
Mutual Mutual fund fund distr distribu ibutor tor in Indi India a are are membe memberr of AMFI AMFI..
T)*#
FA+,#
A
-'
Mutual Mutual fund fund in in India India is regul regulated ated by ,#&IHMutu ,#&IHMutual al Fund Fund act 1440. 1440.
T)*#
FA+,#
A
--
6hich 6hich of the follow following ing is appo appoint inted ed by by trust trustee ee
"ustodian
Distributor
AM"
)=T
"
-0
8 IM IM h as as to to be be up up da da tte ed
Twice in a year
Nuarterly
nce in a year
nce in two year
"
-
6hich 6hich of the the fol follo lowi wing ng is more more ris risky ky
+i7uid fund
Inde( fund
growth fund
gilt fund
"
-3
Materi Material al change changes s in in 8IM 8IM need need to to be be upda updated ted
once in a year
6hene$er material changes take place
nce in two year
-4
If an in$estor in$estor wants wants full e(posure e(posure of of gold gold his in$estment in$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 $alue
02
Trail Trail com commi miss ssio ion n to ad$ ad$is isor or hel helps ps in in ??
)etaining the in$estor for long term.
:ortfolio "hurning
!ew client ac7uisition
!one of the abo$e
& Mid night
&
!e(t day morning
&
8IM sumarry of ,AI ,ID.
&
"
& A
NISM Mock Test 2 0%
# (i (it l oa oa d
Is ame for all schemes
Is same for all amc/s
Caries from in$estor to in$estor
Caries from scheme to scheme.
D
0'
6hich 6hich fun fund d is an an acti acti$e $ely ly man manag aged ed fun fund d
Inde( fund
Di$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$e
0
Minimu Minimum m contr contribu ibutio tion n of a spon sponsor sor in in an AM" AM" shoul should d be? be?
-5.55B
05.55B
'5.55B
2-.55B
"
03
:A! :A! car card d is is not not re7u re7uir ired ed in case case of? of?
!)I
Minor = ,enior "iti;en
"orporate institution = trust.
!one of the abo$e
D
04
FM: can gi$e gi$e bette betterr inter interest est than than a &ank &ank Deposi Deposit. t.
T)*#
FA+,#
5
The insuran insurance ce assoc associated iated with new pensi pension on schemes schemes are regulat regulated ed by? by?
:F)DA I)DA
I)DA
:F)DA
!one of the abo$e.
"
1
In Indi India a mut mutua uall fun funds ds are? are?
o$t. institutions
"ompany
Trust
!&F"
"
2
Initia Initiall issue issue e(pens e(penses es in in a li7u li7uid id fund fund has to be? be?
5
5.55512-
5.2- percentage
none of the abo$e
A
%
A schemes schemes !AC $alue $alue increases increases for the the period period of 2 yrs . it willll show? show?
Absolute return
,imple return
compounded annuali;ed return return
all of the abo$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$e.
A
-
8 IM IM is is at att a ac ch ed ed wi wi th th
Transaction slip
Application Form
&oth A and &
!either a nor b
&
0
6hich 6hich is tech techni nica call anal analys ysis is??
Colume = price beha$ior
Mark to market
book $alue analysis
all of the abo$e.
A
6ho kee keeps ps det detai aill repo report rt of of trans transac acti tion on??
"ustodian
AM"
)=T
Distributor
"
3
Formula Formula to find n d out out the the ,tan ,tandar dard d De$ia De$iatio tion n in e(ce e(cell is
stde$
sd
stdde$
stdd$
A
4
Time Time stam stamp p mach machin ine e cont contai ains ns??
Time stamping serial no
Machine identification
location code
all of the abo$e
D
35
The e(pe e(pecte cted d return return = yield yield of the the sche scheme me is is mentio mentioned ned in in 8IM 8IM
T)*#
FA+,#
31
Daily
6eekly
Nuarterly
once in financial year.
32
If beta beta of of a schem scheme e is less e ss than than one one the the the the fund fund is? is?
Mo re re riri sk sk y c om om pa pa re re to to ma ma rk rk et et
+ es es s r is is ky ky co co mp mp ar ar e t o m ar ar ke ke t
n ei ei th th er er riri sk sk y n or or pr pr of of itit ab ab le le .
beta doesn/t make any impact on scheme performance
&
3%
6hat is not true true obG obGect ecti$e i$e of life i fe insura insurance nce??
)isk co$erage
In$estment
&oth
!one of the abo$e
&
A
A
& A
NISM Mock Test 2 3'
*nit *nit capi capita tall is is iss issue ued d at? at?
15
2-
-5
155
A
3-
Fund Fund mana manage geme ment nt cost cost is more more in? in?
:assi$e fund
ilt fund
+i7uid fund
Acti$e fund.
D
30
Inde Indepe pend nden entt trust trustee ee are are appo appoin inte ted d by? by?
,ponsor
,#&I
AMFI
All of the abo$e
A
3
D is is trtr ib ib ut ut o orr s ar ar e pa pa id id?
"ommission
Fees
,alary
All of the abo$e
A
33
8 9" 9" i s r e7 e7 ui ui re re d f o orr ?
uardian in case of minor
<*F
,ole proprietorship firm
All of the abo$e.
D
34
89" is is co compulsory ?
For e$ery in$estment
-5555
-5555 and abo$e
first time in$estment
A
45
Formu Formula la for for "A "A) ) cal calcu cula lati tion on is
Interest O !o of years
H:1?:5>:O155
HH#nd Calue>,tart CaluePH1> H:eriod ?1
!one of abo$e
"
41
The !AC of a fund fund is 1- applica applicable ble e(it e(it load load is 1B@ purcha purchase se !AC would would be?
1'.3-
1-
1-.2-
1-.0-
&
42
In case case of of breach breach of "ode "ode of cond conduct uct licens license e is canc cancele eled d by? by?
AMFI
,#&I
,ponsor
AM"
A
4%
6hic 6hich h is is tru true e in in cas case e of of ::F ::F
:artial withdrawal facility is a$ailable after one year
In$estment = return are ta( free.
&oth
!one of the abo$e
&
4'
A fi( fi(ed ed term term plan plan seri series es is? is?
As open ended fund fund
A closed ended fund fund
A fi(ed term bank deposit
A fi(ed term corporate bond
&
4-
The :># ratio is an important measure of a company/s anticipated performance. performance. it is calculated using.
Mark Market et pric price e and and di$i di$ide dend nd
Mark Market et price price and and ear earnin ning g per per shar share e
Mark Market et capit capital ali;a i;ati tion on and and di$ di$id iden end d
Mark Market et pric price e and and face face $alu $alue e
&
NISM Mock Test 3 PRACTICE KIT – PAPER 3 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
6hich 6hich one one of of the follow following ing is not not an an eligi eligible ble in$est in$estor or
Insurance "ompanies
o$t Institutions
Foreign "iti;ens
:ro$ident Fund
2
For a customer holding units in demat @ the AM" also re7uires to do his 89"
T)*#
FA+,#
%
6hich 6hich in$e in$estm stment ent below o w gi$e gi$es s inter internat nation ional al e(po e(posur sure e
International Funds
old Fund
!one
&oth
D
'
n doin doing g risk risk profil profiling ing which which asse assett allocatio o cation n does does it gi$e 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$ious day !AC
"losing !AC of the day preceding ne(t business day
&
6hat 6hat is is the the DDT for an indi$i indi$idua duall in in li7u li7uid id fund fund
5.2-
5.2
5.1%
5.1
A
3
If client in$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$ious days closing !AC
D
4
6hat 6hat is true true abou aboutt premiu premium m paid paid in in a life life insura insurance nce compan company y
"ustomer can decide premium
:remium can be a$ailed under ,ec 35 c
:remium can be shown as e(p
:remium is $olatile
&
15
The pers person on with with whom whom the the unit units s are pled pledged ged is known known as as
:ledger
:ledgee
11
6hat 6hat is the the highe highest st e(pen e(pense se ratio ratio in in a Fund Fund of Fund Fund scheme scheme
2.2-B
1.-B
12
,#&I ,#&I is sole sole regul regulato atory ry autho authorit rity y for MF are are answe answerab rable le
T)*#
FA+,#
1%
+ow )isk
+ess ,afe
+ower )eturn
"
1'
6ithin how many days the di$idend warrants to be dispatched on declaration
1-
15
%5
D
1-
A distribu s tributor tor needs needs diff differe erent nt A)! A)! for for each each AM"
T)*#
FA+,#
10
A conser conser$at $ati$e i$e in$e in$esto storr need need not be be ad$ise ad$ised d to in$es in$estt in
ilt Fund
+i7uid Fund
1
The !ew :ension scheme is both regulated I)DA and :F)DA as it has an insurance component
T)*#
FA+,#
13
6hich is the the faste fastest st way way of remitti remitting ng funds funds on real real time time basis basis
!#FT
D>D
,6 IFT
)T,
D
14
6hich 6hich of of the the follo followin wing g is a finan financia ciall asset asset
o$t ,ecurity
old
)eal #state
!one of the abo$e
A
25
6hich c h of the the fol follo lowi wing ng is an ,) ,)
AMFI
,#&I
&,#
)&I
"
" &
& 5.-B
1.-5B
" A
&
,hort Term :lan
" &
NISM Mock Test 3 21
!F othe otherr than than #+,, #+,, can rema remain in open open for for ma(imum m um
days
1- days
21 days
%5 days
&
22
In !F the account account statement is to be dispatched within Q days on closure of !F
- days
1- days
25 days
%5 days
A
2%
"ompan "ompanies ies issuin issuing g shor shortt term term debt debt is call called ed
"D
Tbills
Debentures
":
D
2'
6ithin a category one can decide on in$estments based on ,harpe )atio
T)*#
FA+,#
2-
6hich c h of of the the foll follow owin ing g e(em e(empt pt fro from m DDT DDT
#7uity riented Fund
+i7uid Fund
20
The arbitr arbitrage age funds funds are are ta(e ta(ed d like k e debt debt funds funds
T)*#
FA+,#
2
6hich 6hich of of the the below below is not not in in a Tran Transit sition ion phase phase
&uying of house
:ro$iding for daughter marriage
,hifting of Gob for higher income
:ro$iding for foreign study for son
"
23
The The !AC !AC of sche scheme me is impa impact cted ed by
!o of In$estors
*nit "apital
Market Calue of :ortfolio
,i;e of Fund
"
24
Technical Technical analysis analysis is proGec proGecting ting trend based based on human beha$ior beha$ior
T)*#
FA+,#
%5
,ub ,ub dis distr trib ibut utor ors s wor work k wit with h
nline platform
&anks
IFA
Distribution companies
D
%1
Initia Initiall issue issue e(pens e(pense e that that can can be be charg charged ed to to fund fund
!I+
1.55B
2.55B
1.-B
A
%2
According to :erformance :erformance Ad$ertisements the return shown for 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$t. ,ec.
%'
#(pens #(pense e ratio ratio is most most impo importa rtant nt in case case of of
Inde( Fund
ffshore Fund
Acti$e Fund
Fund of Fund
%-
"ode "ode of ethi ethics cs for for empl employ oyees ees of AM" AM" is is descr describe ibed d by
,#&I
AMFI
Internal Audit Team
Trustee.
&
%0
)ecurr )ecurring ing e(pe e(pense nses s in #7ui #7uity t y sche scheme me has has a limit limit up up to
1.-5B
5.-5B
1.2-B
2.-5B
D
%
In Transition phase of 6ealth "ycle in$estor tends to increase the proportion of assets in his portfolio. portfolio.
#7uity
+i7uid
old
!one of abo$e.
&
%3
6hich 6hich of of the the follo followin wing g is a Finan Financia ciall Asset Asset
old
)eal ,tate
&ank deposit
!one of abo$e.
"
%4
Inde( Inde( fund fund can can gi$e $ e bette betterr return returns s from from its &enchm &enchmark ark..
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 Term QR,to R,tock ck pick pickin ingQ gQS is is use used d in in whi which ch of the the foll follow owin ing g
&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 accrued but not recei$edU 3 crore@ liabilities U 2 crore Total no of outstanding units is - lakhs. lakhs. 6hat will be the !AC of the scheme
255
215.0
21%.%%
!one of abo$e.
&
''
In$e In$est stor or sele select cts s an an MF MF bas based ed on
In$estment :hilosophy
In$estment ,trategy
In$estment :olicy
In$estment bGecti$e
D
'-
has has bee been n appo appoin inte ted d by Tru Trust stee ee
"ustodian
)=T
AM"
Distributor
"
'0
) is isk Ma Ma y b e d ef ef iin n ed ed as as
Asset Allocation
Financial +oss
:ortfolio )ebalancing
"
'
Financial :lanner defines that client does not ha$e r esources to meet goals.
Inform th the "l "l ient
A$oi d tell ing as as cl cli en ent wi wi l be be di di sh shearted
A$oi d tell ing as as he he ma may lose th the cl cli en ent
Increase risk to generate higher return
A
'3
6hich 6hich of the the follo followin wing g accou account nt in in !:, is a ,a$i ,a$ing ng Acco Account unt
Tier I
Tier II
Tier III
Tier IC
'4
Mutu Mutual al Fun Fund d is e(e e(emp mpte ted d from from 6eal 6ealth th Ta( Ta(
T)*#
FA+,#
-5
89" 89" is is re7u re7uire ired d for for in$est in$estmen mentt more more than 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$estment
89" is not at all re7uired for minors
"
-2
,ince ,ince :reparat :reparation ion of 6I++ 6I++ is a long long process process@@ it has to be a$oided a$oided
T)*#
FA+,#
-%
"lose "lose ende ended d fund fund allow allows s in$es in$estor tors s to sale sale their their units units
&y allowing fi(ed number of *nits to sale
&y selling number of units in a fi(ed inter$al
by listing MF in stock e(change
-'
Allo Allots ts the the A)! A)! !um !umbe ber r
AM"
,#&I
!I,M
AMFI
D
--
Applic Applicati ation on for for MF MF would would be reG reGect ected ed ifif paid paid in in
"he7ue
DD
"ash
&ankers che7ue
"
-0
Mutual Mutual Fund Fund In$e In$esto storr can/ can/t pled pledge ge units ts
T)*#
FA+,#
-
"han "hange ge in the the $al $alue ue of !AC !AC is is
,tandard )isk
,ystematic )isk
*nsystematic )isk
-3
6hich c h one one is is call called ed cum cum?d ?di$ i$id iden end d !AC !AC
!AC on the date when trustee appro$es di$idend
!AC of the date when notice is issued to meet trusteed to finali;e di$idend
! AC AC af af te te r th e d at ate of of di di $i $i de de nd nd
! on one of of th th e a bo bo $e $e
A
-4
6hen scheme is first launched and in$estor in$ests in MF... it is called
!F
I:
:urchase
)e?:urchase
A
05
8IM 8IM Doc Docum umen entt is is a sum summa mary ry of
,ID
,AI
D
,ID,AI
D
01
If in$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$ious Days !AC
"urrent !AC
&
0%
The guid guideli eline ne issue issued d by AMFI AMFI for inte interme rmedia diarie ries s are know known n as
A!I
A"#
AMFI
!one of the abo$e abo$e
A
0'
Time Time sta stamp mpin ing g arra arrang ngem emen ents ts is is must must for for
ffices of Distributors
AM" ffices
&ank Distributors &ranch
ffices declared as point of acceptance
D
& A
& "
& A
NISM Mock Test 3 0-
*naudited accounts of the scheme must be published in the news paper
00
An In$estor In$ests In$ests )s 155555 in a %0- days FM: and and got )s 15-5@ what would be capital gain in this case
0
,T T is charged on
03
An in$estor plans plans to in$est )s 12555 12555 in a scheme whose 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$e
D
1555
1555
1255
"ant ,ay
&
"ompany/s "ompany/s #arning #arning per per share share would be indicated ndicated by following following
:># )atio
"urrent )atio
#:,
+e$erage )ation
"
5
&e tta a of of In In de de( wo wo ul 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 fund sponsors sponsors should should ha$e ha$e a sound sound financial financial track record of
12 months
% 9ears
- 9ears
9ears
"
%
6hat 6hat is the the cur curre rent nt ::F ::F )at )ate e
.-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 H1r P n ?1 ?1
A U : ( H1r P n
A U : > H1r P H1>n H1>n ?1
A U : > H1r P n
-
Appr Approp opri riat ate e benc benchm hmar ark k for for ?sec ?sec fun fund d
I?sec I ?be(
")I,I+ li7uid fund inde(
MI&)
")I,I+ ? MI: bladed inde(
A
0
6hich c h of of the the foll follow owin ing g has has lowe lowest st ris risk k
+i7uid Fund
I+T Fund
Di$ersified debt fund
Di$ersified #7uity fund
A
If I re7uir re7uire e -55555 -55555 afte afterr 2 years@ years@ whic which h method method will will I foll follow ow
Discounting Discounting method method with with interest interest rate
Discounting Discounting method method with with inflation inflation rate rate
"ompounding method with interest rate
"ompounding method with inflation rate
"
3
Mutu Mutual al Fun Fund d ,pon ,ponso sors rs can can be be comp compar ared ed to to
Depositor of a company
"ompany director
:romoter of a company
"# of a company
"
4
6hich 6hich of of the the follo followin wing g can can be charge charged d to the scheme 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 $alue of a *nit if !AC is 1- and #(it load is 1B
1-
1'.3-
1-.-
1-.1-
&
32
+ast +ast step step in the the proc process ess of desig designin ning g model model portf portfoli olio o
,ector ,election
Asset Allocation
,cheme selection
"lient ,election
"
3%
For a distribution channel@ 05B of the employees should ha$e AMFI )egistration !umber !umber
T)*#
FA+,#
3'
#7uity #7uity Fund/s Fund/s )isk )isk relati relati$e $e to mark market et is measur measured ed by
Tracking error
,harpe/s )atio
Treynor
&eta
D
3-
,tandar d )isk is
"ommon to all
*ncommon to all
,ystematic
,pecific to all
A
30
)e7u )e7ues estt of of :ur :urch chas ase e can can be made made
Along with re7uisite re7uisite form and "he7ue "he7ue
nly 6ith "he7ue
nly :urchase re7uisite form
&
A
&
A
NISM Mock Test 3 3
If an in$estor in$ests 1@555@555 at %%5 p.m through outstation che7ue@ he will get !AC of
,ame day closing !AC
6 hen fund gets credited
:re$ious day closing !AC
!e(t Day !AC
33
+i7u +i7uid idit ity y risk risk is high highes estt in
Mid "ap stocks
Front +ine ,tocks
Inde( ,tocks
ilt ,ecurity
A
34
Mr A
'55
-55
3555
Depends on !AC
"
45
In$est In$estor or can can sue sue the trust trust for for brea breach ch of of trust trust
T)*#
FA+,#
&
41
Distri Distribut butors ors do do not get get commi commiss ssion ion on on self busine business ss
T)*#
FA+,#
A
42
6hich c h of the the fol follo lowi wing ng is an ,) ,)
AMFI
,#&I
AM"
4%
6hat 6hat remai remains ns cons constan tantt in a close close ended ended fund fund
*nit "apital
!AC
&oth
4'
,#&I regulates
Mutual Funds
Depositories
)TA
4-
*nit *nit holde holders rs can can hold hold their their unit units s in demat demat form form
T)*#
FA+,#
40
8IM 8IM nee needs ds to be upda update ted d e$er e$ery y
% months
0 months
4
Trail commissi commission on are are linked linked to to $aluati $aluation on of of portfolio portfolio in the the market market
T)*#
FA+,#
43
)isk )isk can can be meas measur ured ed by
Cariance
,tandard De$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 #$aluate "lient/s Financial ,tatus
D D
NISM Mock Test 4 PRACTICE KIT – PAPER 4 No.
Q UESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
"ommod "ommodity ity as an an asset asset class class does does not not inclu include de
Fiber
,pices
#nergy
Art
2
Financial :lanning is Gust a process and so Financial :lanner can use any profile found in the web
T)*#
FA+,#
%
- st st a arr fu fu nd nd in di di ca ca tte es
+owest #(pense ratio
+owest +oad
'
In$estor should in$est in MF with few offices as office e(pense is charged to the fund
T)*#
FA+,#
-
!AC ch changes wi with
!umber of in$estor
!umber of *nits remaining in$ested
,i;e of :ortfolio
Market $alue of the portfolio
D
0
In$e In$est stor or sel selec ectt an MF MF base based d on mat match chin ing g
In$estment :hilosophy
In$estment :olicy
In$estment bGecti$e
In$estment ,trategy
"
Indian Indian in$e in$esto storr in a *, V based based fund fund bene benefit fit when when V become becomes s
6eak
,trong
#uro &ecomes 6 eak
,teady
&
3
*nders *nderstan tandin ding g the psyc psychol hology ogy help helps s in risk risk profi profilin ling g
T)*#
FA+,#
4
,ecu ,ecuri riti ties es of a fun fund d are are held held by
"ustodian
AM"
)=T
&roker
15
)isk )isk may may be be def defin ined ed 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 will be disheartened
A$oid telling as he may lose the client
Increase risk to generate higher return and meet the goal
A
12
6hich 6hich of the the foll followi owing ng is is with with draw drawabl able e in !:,
Tier I
Tier II
Tier III
Tier IC
1%
Mutual Mutual fund fund is is e(em e(empte pted d from from 6ealth 6ealth Ta(
T)*#
FA+,#
1'
89" is re7u re7uire ired d for for in$es in$estme tment nt more more than than
-5 8
-8
Any Amount
1558
"
1-
6hich of of the distri distribution bution channel channel does does not not ha$e ha$e wide wide branch branch network network
&ank
Distribution
&roking company
IFA
D
10
6hich 6hich of the follow following ing is not not a functi function on of of )=T
:rocess Di$idend and redemption
Mai nt ntai n the records
,ettl ing i n$ n$estors transacti on on of fund
"alculati on on of !AC
D
1
AMFI intera interacts cts with with on all all issues issues related related to MF industry industry
)&I
,#&I
o$t
All of the abo$e
&
13
"C+ sys system tem gene generat rates es Ackno Acknowle wledge dge alon along g with with
:A!
MI!
89"
Folio
&
14
+ow #(pense
!on :erformance
25
,ince ,ince preparati preparation on of 6I++ is a long long process@ process@ it has has to be be a$oided a$oided
T)*#
FA+,#
21
&ene &enefi fitt of of Dem Demat at a>c a>c is is tha thatt
Direct credit of bonus units
,ingle contact point for change of address
22
Among Among e7uit e7uity y fund fund @ growth growth fund fund has has highes highestt risk 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 determ determine ines s the intere interest st rate rate sensi sensiti$ity t i$ity
"redibility
Nuality
2'
Fundam Fundament ental al Analy Analyst st are are also also called called E "har "hartis tistE tE
T)*#
FA+,#
2-
Fundam Fundament ental al Anal Analys yst/s t/s deci decision s ion are base base on
#:, in dollar
Trialling #:,
20
Debenture Debenture is physi physical cal asset asset because because the paper paper has some some $alue $alue
T)*#
FA+,#
2
In$e In$est stin ing g in in ol old d #TF #TF hel helps ps
uarantees high return
!ot permitted in India
23
6hich of of these these acti$ity acti$ity are carried carried out before before gettin getting g ,#&I ,#&I appro$al 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$est in
#7uity Fund
,T Debt Fund
%1
,ome allocati allocation on to +D is likely kely in most most model model portfol portfolio io
T)*#
FA+,#
A
%2
Appro$al Appro$al of of ,#&I ,#&I is needed needed to appoint nt a person person as Trustee Trustee
T)*#
FA+,#
A
%%
6hat 6hat is is the the draw drawba back ck of ::F ::F
ne withdrawal at the end of ,e$enth 9ear
Interest and 6ithdrawals are not ta(able
< al al f ye ye ar ar ly ly "o "o mp mp ou ou nd nd ed ed i nt nt er er es es t
! ot ot u u ar ar an an te te ed ed b y o o$ $t
A
%'
"ommis "ommissio sion n paid paid at the the time time of in$es in$estme tment nt are are called called
*pfront "ommission
)ebate
Trail
A*M )etention Fee
A
%-
In$estors In$estors in !:, !:, can can choose choose asset asset class class but but not not fund fund managers managers
T)*#
FA+,#
%0
,ettlemen ,ettlementt respons responsibili ibility ty in &,# &,# > !,# :latform :latform are with
AM"
"learing
,tock #(change #(change
Member
A
%
6hich of the the follow following ing informatio information n does does time stamp include include
Machine Identifier
location code
,erial !o
All of the abo$e
D
%3
"ompre "omprehen hensi$ si$e e F: shoul should d be restr restrict icted ed to fi$e $ e years years
T)*#
FA+,#
%4
"los "losed ed ende ended d fun fund d has has
Fi(ed A*M
Fi(ed *nit "apital
Fi(ed !AC
Assured Di$idend
&
'5
To which which of the the follo followin wing g :A! :A! does does not not appl apply
:I
!)I
Minor = ,enior "iti;en
!one of abo$e
D
'1
Father Father wants wants to to start start his his busi business@ n ess@ this this is
Asset Allocation
Financial oal
Appreciation
Financial :lanning
&
'2
In India India one can in$est in$est in MF only only through through distri distributor butor
T)*#
FA+,#
&
'%
,I: is call called ed )"A )"A H)up H)upee ee "ost "ost A$erag A$eraging ing
T)*#
FA+,#
A
''
+i7u +i7uid idit ity y risk risk aris arises es in
"losed ended fund
pen ended fund
old
Debt
A
'-
A mu mutual fu fund is is
A pool of trustee trustee money
A pool of in$estment in$estment institutions
A pool of in$estment in$estment managers
A pool of in$estment in$estment fund
D
'0
The name name and back backgro ground und of key key perso personne nnell in AM" AM"
Are not included in ,ID
Declared on MF website
Are included in ,AI
Are not rele$ant rele$ant so not disclosed
"
9TM
A$g Maturity
D &
:roGected #:,
D &
:ro$ide risk co$er
)educe storage cost and risk
D
Di sp sp at at ch ch p ro ro du du ct ct l itite ra rat ur ur e
:ri nt nt in g 8IM a nd nd ap pl pl ic ic at ati on on f or orm
& &
Income fund
li7uid Fund
A
&
&
NISM Mock Test 4 '
Annual report should should announce the unclaimed unclaimed amount and no. of in$estor
'3
A
T)*#
FA+,#
,T" in +D +D is applicabl applicable if the holdi holding ng period period is less less than
12 months
%0 months
0 months
4 months
&
'4
all allot ots s the the A)! A)! num numbe ber r
AM"
AMFI
,#&I
!I,M
&
-5
Applic Applicati ation on for for MF would would be reGec reGected ted if paid paid in
"he7ue
DD
"ash
&ankers che7ue
"
-1
)ole )ole of "red "redit it ratin rating g agenc agencies ies is high highest est in
Debt Fund
old Fund
)eal #state Fund
#7uity
A
-2
In$est In$estors ors in ::F ::F gets gets deduct deduction ion up to
155555
15555
5555
-555
"
-%
" ut ut ?o ?o ffff t iim me ar e
Agreed between between AM" = Distributor
Different for e$ery )TA
:rescribed by ,#&I
Different from AM" to AM"
"
-'
Money Money marke markett in whic which h MF in$es in$ests ts are are regula regulated ted by by
AMFI
,#&I
)&I
,tock e(change
"
--
For with?holding ta( on income earned by !)I depends on nature of income@ nature in$estment and in$estor/s country of domicile
T)*#
FA+,#
A
-0
ilt fund is a good alternati$ alternati$e e to "apital "apital Apprec Appreciati iation on
T)*#
FA+,#
&
-
6hich 6hich of of the the foll followi owing ng is growth growth asset asset
,a$ings a>c
"urrent A>c
)eal #state
o$t ,ecurity
"
-3
6hich 6hich is proh prohibi ibited t ed in AM"/ AM"/s s "ode "ode of of ethic ethics s
Inter ,cheme transfer
Front )unning
,ecurity transaction through associated broker
Distributor of MF through AM"
&
-4
+oad +oads s are are appl applic icab able le to
Transfer of "losed ended ,cheme
)edemption
:urchase and redemption
:urchase
&
05
&ank &ank on receip receiptt of mone money y from from abro abroad ad issu issue e
I#"
FI)"
MI! Folio
01
Mutual Mutual Fund Fund in$es in$estor tor can/t can/t pled pledge ge unit units s
T)*#
FA+,#
02
,tan ,tanda dard rd risk risk fact factor ors s are are
!ot market risk
,pecific to scheme
not rele$ant to in$estor
0%
*nit *nit hold holder ers s are are enti entitl tled ed to
)ecei$e information that can effect their in$estment
protection of capital e$en if market goes down
,ue the MF or Trust
0'
Approp Appropria riate te benchm benchmark ark to large large cap
&,# small cap inde(
,ense(
&,# -55
&,# Mid cap Inde(
&
0-
If market market cras crashes hes afte afterr bull bull run whic which h fund fund is more more safer safer
rowth
Calue
,ector
Theme
&
00
Insu Insura ranc nce e in in cas case e of 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$erned by stock e(change redressal system
T)*#
FA+,#
04
6hich 6hich one one is called called "um?Di "um?Di$id $idend end?!A ?!AC C
!AC on the date when trustee appro$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 return e$en if there is no guarantee
D A
& !AC after th the da date of of di $i $idend
!one of of th the ab abo$e
A
NISM Mock Test 4 5
IF old old price price apprec appreciat iates es in$es in$estor tors s should should in$e in$est st in
old sector fund
old #TF
1
6hen schem scheme e is first launched launched@@ A*M of the the scheme scheme would would be nil
T)*#
FA+,#
2
An in$estor looking looking to select a hybrid hybrid fund with ta( benefits benefits must choose.
"onser$ati$e MI:
&alance fund #7uity oriented
&alance fund Debt oriented
Aggressi$e MI:
%
#ncr #ncroa oach chme ment nt ris risk k is hig highe herr for for
+and
&uilding
old
Art
'
*naudited *naudited report has to be be publis published hed in newsp newspaper aper e$ery
% months
0 months
12 months
% financial year
-
Ta( diff differ eral al is ad$a ad$ant ntag age e
rowth
Di$idend payout
Di$idend rein$est
"apital gain
A
0
The e(pe e(pens nse e rati ratio o is is affe affect cted ed by by
Fund si;e
A$erage account si;e
:ortfolio composition
,tock market conditions
A
In a mutual mutual fund fund in$esto in$estors rs subscr subscriptio iption n are accounted accounted for as
+iabilities
*nit capital
Deposits
!one of the abo$e
&
3
A disclosure should should be made in the the offer document if an AM" AM" has in$ested more than the following percentage of its net assets in group companies.
5.-
5.2-
5.'
5.1
&
4
pen ended ended fund fund can in$est in$est in unlisted unlisted securitie securities s up to?
5.5-
5.5'-
5.50
5.5-2-
A
35
Fund Fund of Fun Fund d sch schem eme e in$ in$es estt in? in?
Mutual Fund scheme
International fund
Inde( fund
ilt fund.
A
31
A schem scheme e can can distr distribu ibute te di$i di$iden dend d on its? t s?
)eali;ed profit.
:rofit after ta(
reali;ed = non reali;ed profit
none of the abo$e
A
32
A newly newly marrie married d coupl couple e shoul should d in$es in$estt into 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$estor
&roker
AM"
Distributor
&
3'
,tan ,tanda dard rd risk risk fact factor ors s are are
"hanges from scheme to scheme.
"ommon for all scheme
&oth
!one of abo$e
3-
The presen presence ce of market market makers makers pro$id pro$ide e li7uidi li7uidity ty in in case 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$g net asset of scheme scheme is %555@total %555@total transaction of a scheme 15@555 what is portfolio turno$er ratio
5.%
'
%.%%
-
"
33
6hat is is an ideal ideal sect sector or alloc allocati ation on in a sect sectora orall fund 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$e.
D
45
6hich of the the followi following ng is is not true for #(chan #(change ge Traded Traded Funds H#TF
#TF combines the best features of open end and closed end.
Its pricing is linked to the inde(
It offers the in$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$estor generally bears the highest e(penses
#(change traded funds
&alanced funds
"ommodity funds
Fund of funds.
D
Inde( Fund
ilt edge ,ecurity
& A & A
&
& A
NISM Mock Test 4 42
6hich of the the followi following ng is is not the ad$ant ad$antage age of mutual mutual funds funds
)eduction of transaction costs
"on$enience and fle(ibility
Tailor made portfolio
+i7uidity.
"
4%
In$estor In$estor who who wants wants long term e(posu e(posure re to gold should should opt opt for for
#TF old
old ,ector Fund
old Future
Jewellery/s
A
4'
6hich 6hich is is the the short short term term o$t o$t ,ecu ,ecurit rity y
"ommercial :aper
T?&ills
"ertificate of Deposit
ilt
&
4-
6hich 6hich is is the the most most Ill Illi7 i7ui uid d Asse Asset t
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 le lends ag against
:ledged units
Di$idend
!omination
)edemption
A
2
,ID is appro$ed by
In$estor
,ponsor
AM" and Trustee
"ustodian
"
%
"ut?off titime fo for !A !AC
decided by AM"
same for all scheme
by trustee
:rescribed by ,#&I
D
'
preparatio preparation n of 6I++ is is pessim pessimistic istic e(ercise@ e(ercise@ so itit is better better to a$oid
T)*#
FA+,#
-
6hich 6hich docume document nt is not not re7ui re7uired r ed for for instit instituti utiona onall in$est in$estor or
: = + account
Memorandum of the articles of association
:A! card
Authori;ed signatory list
A
0
Distri Distribut butors ors are pro$id pro$ided ed commis commissio sion n for for up up to to
% yrs
- yrs
15 yrs
in$estors stay in$ested
D
,#&I is responsible to de$elop a cadre of well trained agents and distributors
T)*#
FA+,#
&
3
T)*#
FA+,#
&
4
6 ho ho promotes MF
,ponsor
custodian
AM"
trustee
A
15
+i7u +i7uid idit ity y ris risk k is is hig highe hest st in
Mid cap stocks
Front line stocks
Inde( stock
ilt security
A
11
A unit unit holder d er is not respon responsib sible le for
reading D
selecting stocks in a portfolio of the mutual fund scheme
regular monitoring in$estment
awareness of risk factors
&
12
Accepted Accepted standard standard for for return return calcul calculation ation in financ financial ial market market is
abs return
"A)
total return
simple annuali;ed return
&
1%
, TT TT is is ap ap pl pl ic ica bl 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-
"orpor "orporate ate deposi depositt inter interest est rate rate depen depends ds on on
liability of borrower
asset of borrower
credit rating
profit of borrower
"
10
"omm "ommod odit ity y doe does s not not incl includ ude e
Art
#nergy product
spices
Fibres
A
1
The $alue $alue of of in$es in$estme tment nt in in mutua mutuall funds funds.. ..
Increase gradually e$ery day.
"hange with the $alue of the in$estment portfolio
Decrease gradually e$ery day
&e $olatile in long?term
13
The first first e$er mutual mutual fund fund schem scheme e in India was launched launched in
140'
14-1
145
144'
14
In$estors In$estors buy buy units units of open?ende open?ended d funds funds during ng the continuou continuous s offer offer at the 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 ne of of the the ad$ ad$an anta tage ge if #TF #TF is. is...
In$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 $aluation at that time.
#TF offer ta( benefits.
"
2%
Mutual Mutual funds funds are are cons constit titute uted d in India India as as a.. a..
"ompanies
Trust
:artnership firms.
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Mutual Mutual fund fund spons sponsor or can can be be compa compared red to ....
A depositor in company company
A company director director
:romoter of a company
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2-
6hich of these these entities entities enables enables collectio collection n and payment payment of of fund. fund.
&roker
&anker
)=T Agents@
"ustodian
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20
The consti constituents tuents of mutual mutual fund are appoi appointed nted with the appro$ appro$al al of of ..
,ponsor
Trustees
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AM"
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The applicable guidelines for mutual funds are set out in ,#&I HMutual Fund regulation@ 1440..
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&ank &ank sponso sponsored red mutu mutual al funds funds are are also also regul regulated a ted by
AMFI
,tock #(changes@ #(changes@
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,#&I
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AMFI code of ethics prescribes that mutual mutual fund scheme portfolios portfolios should be managed in interest of
Identified class of unit holder
All cl classes of unit holders
)etail indi$idual
Institutional un unit holders
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Although A!I is mandated. there are no penalties for breach breach of code of conduct.
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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 should necessarily mention the unclaimed unclaimed amount and the number of such in$estors for each scheme.
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*nit *nit holder holders s enGoy enGoy right rights s to the the asset asset of the the funds. funds... ..
According to the the plan chooses by them.
As per decided by trustees
e7ually for all holders
In proportion of holding
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For fund of fund !AC is to be updated on?line in the website of AMFI and the mutual fund website..
&efore 4 pm same day
&efore 15 am following day
after 15 pm same day
&efore 4 pm following day
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6 hich of the following is not a mandatory ser$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$idend within %5 days
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In$est In$estors ors can can sue sue trust trustees ees for for breac breach h of trust trust..
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6hich of the the follow following ing is the function function of an an offer offer docume document nt
To enable comparison of MFs
To gi$e the FM/s commentary on market
To report the performance of scheme
To gi$e in$estors information about scheme
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!F othe otherr than than #+,, #+,, can can remai remain n open open for
1- days
%5 days
'- days
Fore$er
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%4
6hich of the following contain detail information on the portfolio characteristics and operational features of a scheme
8ey Information of Memorandum
,tatement of additional information.
,cheme information document
Addendum
A
A
&alance fund
"
Debt Fund
A
A
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NISM Mock Test 5 '5
6hich of the the following lowing is not fundam fundamental ental attribute attribute of of scheme scheme
In$estment obGecti$e
!ame ff Fund Manager
In$estment :attern
Type of risk profile
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6hich of the the following lowing is a synops synopsis is of of the offer document document
Trust deed
Memorandum of Association
,tatement of additional information
8ey information of memorandum
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'2
Th he e fo format of of 8I 8IM
i$en by ,#&I
i$en by AMFI
Caries to fund to fund
&y ,tock #(change
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,ome MF compani companies es allow allow in$est in$estors ors to transact transact throug through h their their website website..
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There is no no need need for educatio educational nal 7uali 7ualificat fication ion to be MF ad$isor ad$isor..
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Distributors are compensated by mutual fund companies primarily through..
,alaries
Annual fees
,hare in AM"/s profit
"ommission
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6h 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.
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AMFI AMFI is ,) ,) for mutu mutual al fund fund and and regula regulates tes all all mutua mutuall Fund Fund
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AMFI code of ethics prescribes that mutual mutual fund schemes portfolios should be managed in the interest of
identified special classes of unit holders
all classes of unit holders
'4
Transfer Transfer of in$estmen in$estmentt from from one one scheme scheme to anoth another er is is allowe allowed d
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If the the in$es in$estor tor wish wishes es to to change change the the distribu s tributor tor
he needs to gi$e the !" from pre$ious distributor
-1
In$est In$estor or can can sue sue the the trust trust for for breach breach of trust trust
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,ince !F is a marketing decision @"I has limited role in deciding it/s structure
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Info Info pro$ pro$id ided ed in the the ,AI ,AI
addendum made in the scheme
*pdation in D
*pdation in 8IM
!one of abo$e
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6hich of of the follow following ing form form a part part of fundam fundamental ental attributes attributes of a fund fund
Fund manager
In$estment obGecti$e of fund
+oad
!one of abo$e
&
--
6hat remain remains s const constant ant in clos closed ed ende ended d fund fund
*nit capital
!AC
both
!one of the abo$e
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6here 6here do do high high?y ?yie ield ld fun funds ds in$ in$es est t
Junk &onds
ilt fund
#7uity growth Fund
Treasury bills
A
-
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6hich 6hich ratio ratio meas measure ures s risk?a risk?adGu dGuste sted d return return
,harp )atio
Treynor ratio
&oth
!one of the abo$e
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6hich funds ha$e features features of of both both open open ended ended = close close ended ended
Inter$al Fund
&alance Fund
,ector Fund
Thematic Fund
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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 funds in$est in$est in in short short term term bank fi(ed deposit deposit
9es
!o
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02
#(pe #(pens nses es in fund fund of fund funds s
+ess then direct In$estment in scheme
More than direct in$estment in scheme
#7ual to direct in$estment in scheme
!one
&
0%
6hich 6hich fund fund has has hig highe hest st risk risk
+i7uid
Income
?securities
+i7uid :lus
&
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"hildhood "hildhood = transitio transition n phase phase is common common in life life cycle cycle = wealth wealth cycle cycle
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6hat is not not mand mandato atory ry in in appli applicat cation ion form form
ccupation
,tatus of Indi$idual
00
Is 8IM 8IM a syn synop opsi sis s of off offer er doc docum umen ent t
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Absolute Absolute return return is best Gudged Gudged if the in$estment n$estment hori;on hori;on is
1yrs
W1 yr
Anytime
29rs
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03
Di$idend Di$idend distri distributi bution on ta( ta( in li7uid fund fund payable payable by in$estor n$estor
!il
12.-5B
15.%3B
%5.55B
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04
6hat is the the rate rate of TD, TD, in li7uid li7uid mutual mutual Fund Fund
!il
12.-5B
15.%3B
%5.55B
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5
6ho can can distribut distribute e mutual mutual fund through through stock stock e(cha e(change nge
#7uity &roker with out certification
!I,M certified = AMFI registered member
&oth
!one of the abo$e
&
1
6hat 6hat is is the the beta beta of inde inde( ( fun fund d
1
More than 1
+ess than 1
!one of the abo$e
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2
6hen a time stamping machine is installed should it be informed to trustees
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The difference between the yield on gilt and the yield on a non go$ernment debt security is called its yield spread.
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+i7uid +i7uid schem schemes es in$est in$est in securi securitie ties s
+ess then 41 days maturity
More then 41 days maturity
+ess then 1 year maturi ty ty
More then 1 year maturi ty ty
A
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Mutual fund is
Trust
"ompany
,ociety
!one of the abo$e
A
0
6ho is is keeps keeps the custod custody y of securi security ty of Mutua Mutuall Fund Fund
AM"
)=T
"ustodian
,ponsor
"
AMFI is a ,)
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3
A!I is
"ode of "onduct For Intermediaries
)ules = )egulations
Terms = "onditions
!on of the abo$e
A
4
!F openin opening g and and closi closing n g deta detailil ment mention ion in
8IM
,ID
D
All of abo$e
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8 IM IM i s t o u pd pd at at e ed d
nce in 7uarter
nce in month
nce in year
weekly
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)ecu )ecurri rring n g e(pe e(pens nses es incl includ udes es
In$estment ad$isory fee
"harged by the AM"@ )=T fee
Marketing and selling fee
All of abo$e
D
& Mode of holding
:A!
A A
&
NISM Mock Test 5 32
ffer ffer Docum Document ent of of Mutual Mutual Fund Fund is appr appro$e o$ed d by ,#&I ,#&I
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3%
,tock e(change brokers are permitted to distribute MF after passing the certifying e(am
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3'
If the post ta( rate of return on an in$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$e
&
3-
A client client is is in$esting in$esting )s. 1 "r. in gilt fund fund which which day !AC !AC he will get
,ame day closing !AC
!e(t Day !AC
:re$ious day !AC
!AC of the day when funds are reali;ed.
D
30
25
15
%5
-5
A
3
There is no no TD, on di$ide di$idend nd distri distributi bution on and and redemp redemption tion
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6hich 6hich doc docum umen ents ts are are need needed ed for for 89" 89"
:A! card
Address proof
:hoto id proof
All of abo$e
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34
6hich id proof proof is not $alid identity identity proof for 89" 89" Hindi$ Hindi$idual idual
"redit card
Address proof
Dri$ing license
All of the abo$e
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45
For For addi additi tion onal al pur purch chas ase e
nly transaction slip to be filled
Transaction slip with purchase che7ue
nly che7ue
!one of the abo$e
A
&
NISM Mock Test 6 PRACTICE KIT – PAPER 6 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
6hich of of the follow following ing entiti entities es reache reaches s MF product product beyond beyond geograp geographica hicall locatio locations ns
The &rokers
The "ustodian
The Distributer
) = T Agents.
2
,#&I ,#&I is sole sole regu regulat latory ory auth authori ority ty for for MF are are answ answera erable ble
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A
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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
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ffer docum document ent enable enable in$estor in$estor to compare compare the the of MF scheme scheme with with another another MF scheme scheme
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which which of of the the follow following ing in$estors in$estors belong belong to institutional tutional group 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
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0
:erf :erfor orma manc nce e ad$ ad$er erti tise seme ment nt
,hall identify !ature of scheme
shall only ad$ertise compounded annualise yield "alculated using the prescribe procedure
&enef its of ,T ,T : is
:aper work is minimi;ed
Idle funds situation reduced
&oth
!one
"
3
"ompany has issued 15 core core e7uity shares. It earns profit of )s. 15- core on which it has :aid ta( of )s. - core and distributed di$idend di$idend of )s 25 core. 6hat is #:,
15
15.-
12
11.-
A
4
Floa Floati ting ng )ate )ate Inte Intere rest st is
go$ernment yield spread
yield spread
base spread
payable only on maturity
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15
Market Market price of which which of the follo following wing in$es in$estment tment instruments nstruments will fluctuates uctuates more more
+ong Tenor debt
,hort tenor Debt
Floating )ate ,ecurities
Debentures
A
11
Asset Asset consi considered d ered for for Asset Asset Alloc Allocati ation on ideal ideally ly be be
,imilar
only :hysical
nly Financial Asset
Mi( of different kind of Asset
D
12
6hich of the following is most unlikely to ha$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$e with 6ell ,ettled "hildren
"
1%
A distr distribu ibutor tor can can be be empan empanele eled d by AM" only only if
,uch distributor and its representati$e has>ha$e cleared certifying #(am
,uch distributor is appro$ed by AMFI
,uch Distributor is registered with ,tock #(change
Appro$ed by ,#&I
A
1'
A ! ! I is ma ma nd nd at ate d b y
AMFI
AMFI and ,#&I ,#&I
)&I
,#&I
A
1-
Junk &ond ,cheme ,cheme is also be known known as
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A
10
According to ,ome studies Asset Allocations and and In$estment :olicy :olicy can better e(plain the portfolio performance as compared to ,tock selection and In$estment Timimg
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A
1
6hich f the the followi following ng benefit benefits s of starting starting
:rotection against Insurance "ompany reGecting claim on the ground of pre?e(isting illness
&oth of the abo$e
!one f the abo$e
&
13
6hich 6hich of the goll gollowing o wing is o$e o$ernm rnment ent ,a$i ,a$ings ngs ,che ,cheme me
Infrastrucure &ond
)&I releif &ond
:ost ffice recurring Deposit
All of the abo$e
"
NISM Mock Test 6 14
Dura Durati tion on of ::F ::F dep depos osit it 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$iduals including :Is but not !)Is
"
21
Intial Intial :hase :hase of +ife +ife "ycle "ycle is Accum Accumula ulatio tion n
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+ife +ife insu insura ranc nce e is mea meant nt for for
Ta( planing
)isk protection
2%
)eal )eal #sta #state te mutu mutual al fund fund is
&eyond means of retail in$estor/s
:ro$ided benefits of real estate = MF in$esting
2'
& la ck ck sw swa n r ef ef e err to to
: ro ro ba ba bi bi lili titi es es o f l ar ar ge ge l os os se se s
M F r at at in in gs gs
2-
A fi$e fi$e star star rating rating in MF sche schemes mes indica indicates tes that that
+owest e(pense ration
20
6hich of the the bond bond fund carries carries least least amount amount of of interes interestt risk risk
2
& ,a$ings
&
Are not easy to li7uidate
&
8 in d o f o ffff er er d oc oc um um en en ts ts
I nc nc en en titi $e $e t o d is is trtr ib ib ut ut er er
A
+owest load
Demonstrate superior performance
&est portfolio
"
Dynamic bond
?sec fund
Income fund
Money market fund
D
Asset Asset allo allocat cation ion must must prima primaril rily y based based on
In$estment needs
Insurance needs
Ta(ation needs
Financial goals
D
23
Faced with the financial financial difficulti difficulties es a family family is is likely likely to do do all this e(cept following following
Mo$e to a larger house in a better locality
#conomi se se #( #(penses
6 ififes starts worki ng ng
A
24
:re?retirement stage
Annual in$estment amount amount gets reduced
:arents reach towards peak of their earning capacity
,a$ing for retirement retirement gets minimi;ed
,a$ing for in$estment is not re7uired
%5
Teir I account account of of new pension pension schem scheme e is called called pensi pension on accoun accountt
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6 hich is false
o$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
Minimu Minimum m !etwo !etworth rth re7uir re7uireme ement nt of of the the AM" 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
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+ega +egall lly y ,AI ,AI is the the par partt of of ,ID ,ID
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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$ailable a$ailable for setting of against business or ,alary income
D
%0
The is the main dri$er of returns returns in in a mutual mutual fund scheme scheme .
)eturn
:rofit of in$ested company
:ortfolio
!one of the abo$e
"
%
Fundamenta Fundamentall Analy Analysis sis entails entails re$iew re$iew of of the the compa company/s ny/s
Financial ,tatements
Nuality of Management
"ompetiti$e :osition
All of the abo$e
D
%3
ratio indicates how much much in$estors in the 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 in$estment options
& A
A
NISM Mock Test 6 %4
A fund fund maintai maintains ns a portfoli portfolio o that is in line line with the the passi$e passi$e fund fund .
Acti$e fund
Inde( Fund
#7uity fund
Debt fund
&
'5
Calue in$estment style is an approach of picking up stocks which are $alued @ based on fundamental analysis .
+ower
Medium
A=&
'1
6hich 6hich is appr approca ocach ch is also also called l ed stoc stock k picki picking ng .
Top X down Approach
&ottom X up Approach
#ither A = &
!one f the abo$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 "ommercial papers papers are short term Debt Debt ,ecuri ,ecurities ties issued issued by corporates corporates..
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"redit "redit ratin rating g compan companies ies are are like like .
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6hich of the following following are deri$ati$e deri$ati$e .
Forwards
Futures
ptions and swaps
All of The abo$e
D
'3
#$ery scheme scheme shoul should d ha$e ha$e at at least least in$es in$estors tors .
1-
25
2-
%5
&
'4
funds take :ositions :ositions that are countra countrary ry to the market 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 ha hat is is MI 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$ert con$ert the demat demat units units into physi physical cal from . This process process is called called re?mater re?materialis ialisation ation .
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)T, )T, refe refers rs to to .
)eal )eal time time row rowth th ,ett ,ettlem lement ent
)eal )eal Time Time ross ross ,ettle ,ettlemen mentt
)eal Techni7ue ross ,ettlement
)eal Techni7ue rowth ,ettlement
&
-'
6hat 6hat is is A,& A,&A A .
Application ,upported by &locked Account
Application ,upported by &locked Acknowledgement
Application ,upported ,upported by &locked Amount
!one of the Abo$e
"
--
!,#/s !,#/s Mutu MutuaY aY Fund Fund plat platfor form m is called called !#AT !#AT MF,, MF,, .
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A
-0
6hen a di$ide di$idend nd is paid @ the !AC of the units units falls to that that e(tent e(tent .
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A
-
)isk )isk can can be be mea measu sure red d by by
$ariance
,tandard De$iation
-3
,#&I has has Facilitate Facilitated d buying buying and selling selling of of mutual mutual fund units units through through the stock stock e(chan e(changes. ges.
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-4
A)! A)! )#F )#F#) #), , T T .
Agent registration registration !umber
AMFI )egistration )egistration !umber
A
A "A)# = FIT"<
All of the Abo$e
D &
A A
&eta
Any of the abo$e
D A
Application )egistration )egistration !umber
Account )egistration )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 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 single in$esto in$estorr shall account account for more more than than 25B of the corpus corpus of the scheme scheme>plan >plans. s.
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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$e date of the change .
-
2
15
"
00
ffer documents documents of mutual mutual fund schemes schemes are are appro$e appro$ed d by ,#&I .
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regulates mutual funds@ depositories@ depositories@ custodians and and registrars = transfer agents in the country .
)&I
,#&I
AMFI
All of the abo$e
&
03
The obG obGect ecti$e i$es s of AMFI AMFI is>a is>are re .
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$e of .
Di$e Di$ers rsif ify y e7ui e7uity ty ,che ,cheme me
Di$e Di$ers rsif ify y Debt Debt ,che ,cheme me
balan balance ced d sche scheme me
!one !one
&
5
Instit Instituti utiona onall Distri Distribut butors ors &uild &uild )eac )each h throu through gh
#mployees
Agents
,ub &rokers
Any of the Abo$e
D
1
The dist distrib ributo utorr can char charge ge fees fees from from the the In$est In$estor or
T)*#
FA+,#
2
The differen f ference ce betwe between en !AC !AC and repu repurch rchase ase pric price e is
#ntry +oad
#(it +oad
#(pense
Di$idend ,tripping
%
!AC of of Income Income Funds Funds is to be calcul calculated ated upto decima decimals ls
'
%
2
1
A
'
In$est In$estmen ments ts in in Mutua Mutuall Fund Fund can can be be made made usin using g
"he7ue>DD
)emittance
A,&A
Any of the Abo$e
D
-
,T: is the combin combinati ation on of ,I: and ,6:
T)*#
FA+,#
A
0
In a Top Top Down approach@ approach@ sector sector allocat allocation ion preced precedes es stock stock selec selection tion
T)*#
FA+,#
A
+oads and and ta(es ta(es may account account for for the difference difference betwee between n scheme scheme return and and in$estor in$estor return return
T)*#
FA+,#
A
3
Mutual Mutual Fund Fund )anki )anking ng and and rati rating ng amou amount nt to to same 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 on
&
&
A
6 ei eighted A$erage Maturity
!o of ,ecuriti es es in portfoli o
&
"
NISM Mock Test 6 35
The compar comparabl able e for for a +i7u +i7uid id ,cheme ,cheme is
#7uity ,cheme
&alanced ,cheme
ilt Fund
,a$ings &ank Account
D
31
:ro$id :ro$iding ing Funds Funds for for daughte daughter/s r/s Marra Marraige ige is is an e(ampl e(ample e of
oal riented Financial :lan
"omprehensi$e Financial :lan
Financial oal
!one of the abo$e
"
32
Distribution bution phase phase of 6ealth 6ealth "ycle "ycle is a parall parallel el of retireme retirement nt phase phase of life life cycle cycle
T)*#
FA+,#
3%
Incase Incase of !:, !:, in$esto in$estorr can choos choose e which which of the asset asset class class of the the followi following ng
#7uity
"orporate Debt
go$ernment ,ecurities
All of the abo$e
D
3'
!ew !ew :ens :ensio ion n ,che ,cheme me is is regu regula late ted d by
:F)DA
I)DA
:F)DAI)DA
!one of this
A
3-
6hat B of the total total wealth wealth of Indian Indian :eople :eople is is in physical physical asset asset
More than 15B
More than 2-B
More than -5B
All of the abo$e
"
30
:F)DA re refer s to
:ri$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$e
"
3
In$estmen In$estmentt in a Financial Financial Assets Assets can can be produc producti$e ti$e for for the economy economy
T)*#
FA+,#
33
!"D#\ re refer s to
!ati !ation onal al "on "ontr trac actt #(c #(cha hang nge e
!ati !ation onal al "ur "urre renc ncy y #(c #(cha hang nge e
34
In case case of the buyin buying g of the old old Future Future "ontrac "ontract@ t@ entire entire $alue ue of the the old has to be be paid
T)*#
FA+,#
45
?????? ??????e( e(em empt pted ed fro from m the the 6eal 6ealth th Ta( Ta(
old Deposit ,cheme
MF
&oth A and &
!one of this
"
41
Many in$estors in$estors in$est in$est money money in &ank FD and not in Debt Debt market market becaus because e
+ack of Interest
+ack of awareness
+ack of Money
+ack of confidence
&
42
Intere Interest st earn earned ed in in &ank &ank FD FD is Ta(a Ta(able ble each each year year
T)*#
FA+,#
A
4%
The primary obGecti$e of the Financial :lanner is to make a$ailable the right amount of money at the right time.
T)*#
FA+,#
A
4'
The third third stag stage e of of the the weal wealth th cycle cycle is
Accumulation
Transition
4-
In many health insurance policies@ the customer has to bear the e(penses and that can get reimbursed from the Insurance company
T)*#
FA+,#
40
)isk appetitte appetitte ?????????? as no no of dependan dependantt menber menber increases increases
Decreases
Increases
!o change
Any of the abo$e
A
4
Many???????ha Many???????ha$e $e made made a$ailabl a$ailable the risk profili profiling ng tool tool on their their web sites sites
AM"s
)esearch
&oth
!one of this
"
43
??????is the decision decision outcome outcome based based on the market market beha$io beha$iour ur
Tacti ca cal As Asset Al All oc ocation
,trategi c Asset Al All oc ocati on on
Fle(i bl ble As Asset Al location
Fi(ed As Asset Al location
A
44
Many Many Financ Financial ial ad$i ad$isor sor work work on on the Mode Modell :ortfo :ortfolio lio
T)*#
FA+,#
155
6hich are are the aspec aspects ts that that affect affect the )isk )isk profilin profiling g of the in$estors in$estors
Family Information
Financial Information
A
A !ati !ation onal al "om "ommo modi dity ty #(ch #(chan ange ge
!ational "on$ersion #(change
" &
)eaping
Intergenerational Transfer 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. ,#&I. 6ho gets registration done
Trust
)=T
,ponsor
AM"
"
2
AMFI do the following following acti$ity acti$ity
:ublish !AC@ A*M of the fund house and maintain and publish industry data
"ompute "ompute !AC
Manages Manages money under
!one of the abo$e abo$e
A
%
In a li7uid fund a application application for repurchase comes at %.%5. 6hats is the !AC which would be a$ailable to it
"losing !AC of the date of application
"losing !AC of the ne(t business day
"losing !AC of the day preceeding the ne(t business day
"losing !AC of the day preceesing the date of application
&
'
In crea creati ting ng of mode modell port portfo foli lio o whic which h is the the firs firstt step step
Deci Decidi ding ng the the Asse Assett Allo Alloca cati tion on
Iden Identi tify fy fina financ ncia iall oal oal
,ele ,elect ctio ion n of ,ect ,ector or
,ele ,elect ctio ion n of the the sche scheme me
A
-
nce the asset allocation is decided@ sharpe ratio can help us to select the good debt and e7uity ,chemes
T)*#
FA+,#
A
0
nce the asset allocation is decide@ treynor ratio can help us to select the good debt and e7uity schemes
T)*#
FA+,#
&
6ith the increase in the regular income from the Gob risk taking ability of the in$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 th 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 interest to earn high return 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 1@55@555 rs for the specific specific goal after % years. 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 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$ailable in ,AI ,AI H ,tatement of Additonal Information Information
1-
6 hich of the following is not a$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 applicab applicablity lity of the !AC is not dependent dependent on
Time at which the application is submiited
b ,cheme in which ch 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 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 $alue going going up with the increase in the market
In$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$estible surpluses
T)*#
FA+,#
2
An application for re purchase in e7uity ty comes at %.%5. %.%5. 6hat would be the applicable !AC
"losing !AC of !e(t &usiness Day
"losing !AC of the Application Day
23
In case there is a redemption from a !)I who ha$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 growth option option which which of the following following is not true
The !AC capture the full $alue of the porfolio gain
There is no di$idend di$idend declared declared
The number of units increases o$er period
There is a Ta( Deffereal 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$est in such schemes schemes
T)*#
FA+,#
%%
If the company ha$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 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$iew the financial plan
& A
"losing !AC of the day preceeding the ne(t business day
"losing !AC of the day preceeding the Application date
A
&
!ot sufficient Data
-
A
&
%
5.2-
&
A #TF
,ector Fund
A
NISM Mock Test 7 %3
6ho amon among g the the foll follow owin ing g are are not not dist distri ribu buto torr for for Mutu Mutual al Fund Funds s
!ati !ation onal al Dist Distri ribu buto tors rs
&ran &ranch ches es of publ public ic ,ect ,ector or &ank &ank
&ranches of reser$e bank of India
%4
Importance of credit rating agency is most important in
#7uity Funds
,ecutised Debt
#TF
'5
Full Full form form of A!I A!I
AMFI gudieline and and !orms for Intermidiary
AMFI guideline and and norms for In$estment
AMFI guideline for Asset Asset Management "ompany
'1
6hich of the following scheme is e(empted from the di$ident distribution Ta(
Debt riented Funds
&alance Funds
'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 ok 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 ot h he e r w an an t t o s et et ap ar ar t ) s 2- la kh kh s i n % ye ar ar s t im e
F in in an an ci ci al al o al al
As se se t A l oc oc at at iio on
F in in an an ci ci al al :l an an ni ni ng ng
F in ina nc nc ia l D es esi re re
A
'0
Followinf Followinf is the Asset Asset Allocati Allocation on
Di$idend payout and rowth ption
Art and old Fund
rowth rowth and Calue Calue Fund
Acti$e Acti$e fund and :assi$e :assi$e Fund
&
'
+imit of the commission to be paid to distributor is decided by ,#&I
T)*#
FA+,#
'3
6hats 6hats is an !F !F In$e In$est stme ment nts s
In$estment done by any in$estor in the new ,cheme
Additonal :urchase :urchase by the e(isting e(isting in$estor
First time in$estment in any of the mutual Fund ,cheme
Additional :urhase :urhase by the e(isting in$estot in another scheme
A
'4
6 ha 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
6 ho is responsible for the information a$ailable in D
Trustee
AM"
,ponsor
"ustodian
A
-2
6hich of the following go$ernment secuity ha$e leasr maturity period
"D
":
T &ills
ilt ,cheme
"
-%
6 hich of the following credit rating is not re7uired
,hor term debt Fund
+i7uid ,chemes
I+T ,chemes
FM:s
"
-'
Insurance is more important in case of :hysical Asset Cis a Cis financial Asset
T)*#
FA+,#
--
6 hich of the asset ha$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$e performance is done with
:eer roup
Asset Alllocaton
Model :ortfolio
Tracking error
A
+i7uid Funds
&ran &ranch ches es of Fore Forein in &ank &anks s
" &
AMFI AMFI uid uidel elin ine e for for !on !on Indi Indian ans s
A
#7uity Funds
D &
:rice decided by the offmarket Trade
!one of the abo$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$esment In$esment in a )eal #state #state Mutual Mutual Fund is
&eyond the means 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$estment in the scheme
Ta( free return e$ery year
D
1
,elf )egulatory rganisation controls
All his member to the 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
-
6 hich 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$estment done by ,ponsor in a Fund is
!ot :ayable
:ayable to ,ponsor
4
&ook Calue of a ,hare is dependent on Accounting :olicies of the company
T)*#
FA+,#
35
"ode of "onduct for AM" :ersonnel = Trustees are mentioned in
"hapter II
"hapter IC
A
A
:ayable to Distributor whose A)! is mentioned in in the Application Form
!one of the abo$e
A
A ,chedule II
,chedule C H - th ,chedule
D
NISM Mock Test 7 31
If complaint of an in$estor is not sol$ed by AM"@ in$estor has to complain to
,#&I
Trustees
,ponsor
)=T
A
32
Feeder Fund can in$est in International Market as
Anywhere as per per In$estment bGecti$e of the Fund
nly International #7uity
nly International Debt
All of the abo$e
A
3%
Ta( Deferral is a$ailable in
rowth
Di$idend
Di$idend )ein$est
3'
&enchmark of ,ectoral Fund in$esting in &anking ,ector would be
&,# &anke(
!ifty Junior
,=: !ifty
,=: -55
A
3-
&efore going to ,#&I for ap appro$al of a Fund +aunch AM" needs to
Take appro$al from Trustees
:rint the application Form
Finalise the +aunch Date
All of the abo$e
A
30
6 hich of the Following Fund is most ,ensiti$e to #(pense )atio
+i7uid Fund
Inde( Fund
#7uity Fund
ff shore Fund
&
3
A,&A is an #(cellent Facility for Additional :urchase in a Fund
T)*#
FA+,#
&
33
"on$erting *nits of a Mutual Fund from Demat Form to :hysical = Cice Cersa is :ossible
T)*#
FA+,#
A
34
Inde(ation means
Finalising the benchmark for the fund
AdGusting the the :urchase :rice of of the Fund considering the Inflation
"onsidering the growth of partcular asset class
All of the abo$e
&
45
In$estor in )eaping :hase would primarily in$est in
#7uity
,ecurities yielding )egular )eturn
&oth
!one of the abo$e
&
41
Most of the AM" publish :ortfolio of their scheme on their 6ebsite
Daily
Monthly
,i( Monthly
9early
A
42
Difference Difference between between *nit "ertificat "ertificate e = Account Account ,tatement ,tatement
*nit certificate shows only the closing balance while account statement shows opening balance@ transactions and closing balance
There is no difference difference
*nit certificate is issued at the time of !F and account statement are send consecuti$ely
Account statement statement shows closing balance and unit certificate shows opening balance@ transactions and closing balance
A
4%
6 hich of the following is not the scheme specific risk factor
)isk arising from the schemes obGecti$e
)isk arising from the non? di$ersification
!o pre$ious e(perience in managing a fund
Mo$ement in !AC because of the market mo$ements.
D
4'
#(pense )atio of an Inde( Fund is
5.51
5.512-
5.52-
5.51-
D
4-
A Financial :lanner :lanner can use any of the Model :ortfolio a$ailable on the 6eb
T)*#
FA+,#
&
40
In !:, Tier X I account is compulsory for opening Tier X II account
T)*#
FA+,#
A
4
A )etired couple with with Kero income should should in$est all the money in +i7uid Fund
T)*#
FA+,#
&
43
,I: can be done by
,tanding Instruction
#",
:D"s
All of the abo$e
D
44
"oncentration risk is highest in
#7uity ,hare
&ank deposit
)eal #state
"ommodity
&
A high amount of e7uity e7uity in$estment is suggested to the in$estor if he is in which stage
Accumulation phase
Transition phase
Distribution phase
!o such relation with any phase of life.
A
155
A
