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

Question 1

Which action leads to higher tax liability?

Question 2

If an investor holds investment but does not sell, what is the tax status?

Question 3

What determines whether a gain is short-term or long-term?

Question 4

Which decision is best for tax efficiency?

Question 5

What is the meaning of capital gain in investments?

Question 6

Which income is received without selling the investment?

Question 7

What happens if an investor sells units at a loss?

Question 8

If investor books a loss, what benefit may arise?

Question 9

When does tax liability arise in mutual funds?

Question 10

What is the purpose of tax planning?

Question 11

Which strategy can reduce tax burden?

Question 12

What is the benefit of long-term investing from a tax perspective?

Question 13

What happens to returns if tax planning is ignored?

Question 14

Which investment approach improves after-tax returns?

Question 15

Which scenario results in better net returns?

Question 16

Which type of gain usually attracts higher tax?

Question 17

If an investor earns profit but does not redeem, what happens?

Question 18

What is the meaning of holding period?

Question 19

If an investor keeps switching between funds, what happens?

Question 20

Practice Set - 2