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

Question 1

Inflation adjustment for goal values is considered critical because:

Question 2

Which of the following investment avenues falls under the 'Fixed Income' asset class?

Question 3

According to the workbook, for most investors, a mutual fund is a better option than self-managing investments primarily because:

Question 4

Tactical Asset Allocation (TAA) is typically suitable for:

Question 5

Strategic Asset Allocation (SAA) is best described as:

Question 6

To avoid behavioural biases in investment decisions, the workbook recommends:

Question 7

As per SEBI guidelines, the mandated rebalancing period for all schemes (other than Index Funds, ETFs, and Overnight Funds) in case of passive breaches is:

Question 8

Bonds issued by the Government of India are considered the safest because:

Question 9

The key difference between 'saving' and 'investing' is that:

Question 10

Which of the following is a characteristic of real estate as an asset class?

Question 11

If a family's monthly expenses are Rs. 30,000 today and inflation is 6% p.a., what will their monthly expenses be approximately after 10 years?

Question 12

Which two commodities are discussed in the workbook as globally accepted investment avenues?

Question 13

The 'real rate of return' on an investment is:

Question 14

Current income from an investment refers to:

Question 15

When a financial objective is assigned a specific amount and a timeline for achievement, it becomes a:

Question 16

The relationship between interest rates in the economy and prices of existing bonds is:

Question 17

Which of the following is NOT one of the three most important factors to evaluate investments?

Question 18

Liquidity Risk in PPF (Public Provident Fund) arises because:

Question 19

Which of the following is classified under the 'Equity' asset class?

Question 20

Which of the following is an example of an UNDESIRABLE financial event that cannot be funded through regular investment planning?

Question 21

An investor in commodities like gold and silver can expect which type of return?

Question 22

Recency Bias in investing refers to:

Question 23

Credit risk in fixed income instruments refers to:

Question 24

What is the first and most important step in investment planning according to the workbook?

Question 25

The 'Availability Heuristic' behavioural bias in investing leads to:

Question 26

Risk profiling of an investor involves evaluating which three aspects?

Question 27

Which of the following best describes the concept of 'portfolio rebalancing'?

Question 28

Loss Aversion, as first identified by Kahneman and Tversky, describes the tendency to:

Question 29

What is 'Inflation Risk' in the context of investments?

Question 30

Practice Set - 2