Practice Set - 3 | Practice Set | NISM Series V-A: Mutual Fund Distributors Certification Examination

Question 1

Can trustees directly make daily stock buying decisions?

Question 2

Which agreement exists between trustees and AMC?

Question 3

Incorrect unit balance in investor folio should mainly be corrected by:

Question 4

Why is RTA not responsible for investment decisions?

Question 5

If the AMC manages investments, why are trustees still necessary in a mutual fund structure?

Question 6

Which entity is closest to being the promoter of a mutual fund?

Question 7

Which statement correctly explains the sponsor’s role?

Question 8

Most complex but correct understanding of mutual fund structure is:

Question 9

Why are mutual funds in India formed as trusts?

Question 10

Who appoints the custodian?

Question 11

Which function belongs to AMC and not custodian?

Question 12

Why can't AMC itself hold the securities without custodian separation?

Question 13

A complex governance structure mainly exists to:

Question 14

Why is the custodian separate from the AMC?

Question 15

Who mainly tracks bonus, rights, and dividend actions on securities?

Question 16

If NAV falls due to market decline, who directly guarantees prevention of losses?

Question 17

Why does SEBI regulate mutual funds strictly?

Question 18

If AMC faces financial trouble, scheme assets are generally protected because:

Question 19

Why are trustee and AMC leadership overlap restrictions important?

Question 20

Main difference between SEBI and AMFI is:

Question 21

Which statement is tricky but correct?

Question 22

Who applies to SEBI for mutual fund registration?

Question 23

If a trustee fails to protect investors, the main issue is:

Question 24

Why can lack of financial services experience be a problem for a sponsor?

Question 25

Who are the real beneficiaries of the mutual fund trust?

Question 26

Which case best shows trustee importance?

Question 27

If AMC acts against the scheme objective, who should primarily ensure correction?

Question 28

Who legally safeguards the securities purchased by a mutual fund scheme?

Question 29

A trustee company differs from Board of Trustees because:

Question 30

Practice Set - 3