NISM Series V-A free mock test questions

A distributor mobilized investments into a mutual fund scheme where an investor currently holds 12,500 units. The prevailing NAV is ₹84. If the agreed trail commission structure is 0.75% per annum on daily average assets, calculate the trail commission earned for one day.

A mutual fund distributor receives trail commissions based on the daily average net assets of investors brought into the scheme. An investor currently holds 15,000 units in a debt fund whose latest NAV is ₹26.40. If the trail commission rate is 0.60% p.a., what is the approximate commission earned per day?

A close-ended mutual fund scheme has only 17 unitholders after completion of the New Fund Offer (NFO). Which of the following is MOST likely to be the regulatory implication under SEBI Mutual Fund Regulations?

An investor purchased units of an equity mutual fund at an NAV of ₹40 through a distributor. After three years, the NAV increased to ₹64. During this period, inflation averaged 7% annually while the fund generated 16% CAGR. Which statement BEST describes the investor’s real return situation?

A first-time mutual fund investor submits an application of ₹60,000 through a distributor in a regular plan. The applicable transaction charge is ₹150. If the NAV applicable is ₹30 per unit, how many units will the investor receive?

A first-time investor submits a mutual fund application for ₹48,000 through a distributor under the regular plan. The applicable transaction charge is ₹150 and the NAV applicable is ₹24. What will be the number of units allotted to the investor?

An investor redeems units of an equity mutual fund after holding them for 9 months and earns gains of ₹1,20,000. Which of the following statements regarding taxation is MOST appropriate?

Mr. Arvind, an NRI investor residing in the United States, applies for investment in an Indian mutual fund scheme. During onboarding, the AMC asks him to submit FATCA-related declarations and tax residency details. The primary purpose of collecting FATCA-related information is to enable reporting and sharing of financial information with:

A debt mutual fund scheme has a large exposure to long-duration government securities. RBI unexpectedly announces a 100-basis-point increase in policy rates. Which of the following outcomes is MOST likely in the immediate short term?

An investor compares two equity mutual funds over a 5-year period. Fund A generated 14% returns with high volatility, Fund B generated 12.8% with lower volatility. Which metric is MOST appropriate?

Under SEBI framework, who can invest in mutual funds?

A) Salaried individual

B) Foreign Portfolio Investor

C) Insurance company

A debt fund sees RBI repo rate increase by 75 bps. What happens?

SIP investor benefits from falling NAV due to:

Investor puts 80% in sector fund ignoring diversification. Principle ignored:

AMFI Code of Ethics restricts:

Investor can change distributor:

Which information has to be included in the mutual fund application form when a Non-Resident Indian (NRI) subscribes for the units?

In which of the following cases can Goods and Service Tax (GST) be charged to the mutual fund scheme over and above the Total Expense Ratio of the scheme?

Identify the false statement/s:

A. While evaluating the mutual fund schemes, the expense ratio matters more in debt funds than equity funds

B. An Ultra-short term debt fund has to mandatorily invest in high credit quality debt securities

Which of these statement/s is/are TRUE?

1.Mutual Funds offer various options like Growth, Income distribution cum capital withdrawal / Reinvestment etc. as different investors have different preferences on how profits are to be handled

2.Interval funds offer better liquidity to investors as compared to Close-Ended mutual fund

Identify the true statement with respect to Total Expense Ratio?

Identify the true statement(s) -

A) Beta is a measure of risk only for equity schemes

B) Variance is a measure of risk for both debt and equity schemes

C) A fall in prices of the debt securities due to default etc is known as a 'credit event'

If a person has to trade in units of a closed-ended mutual fund on the stock exchange platform then the units have to be held in _______.

Which of these is an important criteria for choosing either Growth option or Dividend option in the same mutual fund scheme?

A mutual fund scheme can invest _______ in the equity instruments of a company.

If an investor claims his unclaimed redemption amount after 3 years then the payment will be based on the ________.

Identify the TRUE statement(s)

a) In an Assured Return scheme, if the scheme is not able to pay the assured return amount then the guarantor has to pay the same

b) Investor returns might vary from the scheme returns on account of choices regarding investment schedule

c) The returns published in a mutual fund advertisement factor the entry or exit load, as may be applicable

The choice of benchmark for a Debt Scheme could be chosen on the basis of:

Scheme Size

Scheme Type

Investment Universe

Identify the TRUE statement.

A) While calculating scheme returns for an investor, if there is an entry load, then the initial value of the Net Asset Value (NAV) is taken as NAV plus Entry Load

B) While calculating scheme returns for an investor, if there is an exit load, then the later value of the Net Asset Value (NAV) is taken as NAV plus Exit Load

Asset allocation must primarily match ________.