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

Question 1

Which mutual fund participant maintains investor records?

Question 2

Which of these is NOT a mutual fund participant?

Question 3

Most correct understanding of mutual fund structure is:

Question 4

If total fund assets are Rs. 800 crore and liabilities are Rs. 80 crore with 40 crore units, NAV is:

Question 5

Complex: If NAV is Rs. 25 and investor redeems 400 units, redemption value before exit load is:

Question 6

Can mutual fund units be inherited by nominees?

Question 7

Which entity mainly ensures compliance and investor protection?

Question 8

Which entity actually manages the investment portfolio?

Question 9

Can one AMC operate multiple mutual fund schemes?

Question 10

Which entity appoints the AMC?

Question 11

Can the custodian own the investor's money personally?

Question 12

Which fee mainly supports advertising and distribution?

Question 13

Which is the best description of diversification in mutual funds?

Question 14

A mutual fund unit represents:

Question 15

Which person checks financial statements of the mutual fund?

Question 16

Which party legally holds mutual fund assets for investor protection?

Question 17

Can mutual funds help small investors access professional management?

Question 18

AMC stands for:

Question 19

Which professional mainly makes stock selection decisions?

Question 20

Can high expenses lower investor’s final return?

Question 21

Can trustees directly manage daily portfolio buying and selling?

Question 22

Tricky: Higher NAV always means a better fund than a lower NAV fund.

Question 23

Which scheme type has fixed maturity period?

Question 24

Which cost reduces investor return if units are sold early?

Question 25

Can an investor redeem open-ended fund units directly with AMC?

Question 26

The transfer agent helps mainly with:

Question 27

The role of the sponsor is mainly:

Question 28

RTA in mutual funds mainly refers to:

Question 29

Can the sponsor of a mutual fund be compared to a promoter of a company?

Question 30

Can the NAV of a scheme change daily?

Question 31

The custodian in a mutual fund mainly handles:

Question 32

Which participant is responsible for scheme audit and financial verification?

Question 33

Complex: If fund return is 12% and expenses are 2%, approximate net return becomes:

Question 34

Can a trustee act independently to protect investors?

Question 35

Practice Set - 2