Practice Set - 2 | Practice Set | NISM Series V-A: Mutual Fund Distributors Certification Examination

Question 1

Which situation best reflects conflict of interest?

Question 2

A distributor earns higher commission from one product and recommends it despite mismatch. This is:

Question 3

A distributor recommends a high-risk fund to a low-risk investor without explaining risks. What does this indicate?

Question 4

Which behavior improves investor decision-making?

Question 5

Which action reduces mis-selling?

Question 6

If disclosure is clear and complete, investor benefit is:

Question 7

Which scenario shows proper investor protection?

Question 8

If SEBI regulations are strictly followed, result is:

Question 9

If an investor relies only on past returns, what is ignored?

Question 10

If an investor invests without reading documents, main risk is:

Question 11

If a distributor provides incomplete information, what is the likely impact?

Question 12

A distributor avoids discussing risks to close a sale. This is:

Question 13

If investor is aware and informed, what is reduced?

Question 14

If disclosure documents are too complex for investors, what risk arises?

Question 15

If an investor receives biased advice, outcome is:

Question 16

If a distributor hides key risks but highlights only returns, which principle is violated?

Question 17

An investor is told 'returns are guaranteed' in equity funds. This statement is:

Question 18

A distributor prioritizes client interest over commission. This reflects:

Question 19

Which situation ensures fair treatment of investors?

Question 20

Which factor is most important in ethical investing advice?

Question 21

If distributor pressures investor to invest quickly, what is the issue?

Question 22

If investor invests based on rumors instead of facts, outcome is most likely:

Question 23

If an investor ignores risk profiling, what is the consequence?

Question 24

Which principle ensures investors understand risks?

Question 25

If an investor’s risk profile changes but investments are not updated, what risk arises?

Question 26

If regulations are weak, what is the most likely outcome?

Question 27

Which situation indicates strong regulation?

Question 28

If a distributor fails to disclose exit load, what principle is violated?

Question 29

An investor blindly follows advice without understanding the product. Who is at fault primarily?

Question 30

Practice Set - 2