nism paper 1 to 7 09112011

NISM Mock Test 1

PRACTICE KIT – PAPER 1No. QUESTION OPTION A OPTION B OPTION C OPTION D Answer

1 A mutual fund distributor is paid commission for.. D

2 The guideline issued by AMFI for intermediaries are known as... AGNI ACE AMFI none of above A

3 The investment in MF portfolio are valued at Face value of portfolio cost of investment Market value of portfolio Book value of portfolio C

4 Exit loads are generally lower for large investors. TRUE FALSE B

5 Time stamping arrangement is must at.. Offices of distributors AMC offices Bank distributor's branch D

6 SEBI has put a stop on charging ____________ to the scheme. Exit load Entry Load Recurring Expenses CDSC B

7 Unaudited accounts of the scheme must be published through monthly fact sheet Only at AMFI website Only on AMC's website C

8 9 months 6 months 12 months 13 months C

9 7750 750 Insufficient details A

10 Which of the following is true B

11 TRUE FALSE A

12 STT is charged on Equity share trading Derivatives trading Equity MF All of the above D

13 Which of the following is not required for KYC norms. Proof of investment Proof of Identity Proof of address All of the above A

14 Application form Nomination Form KIM None of the above C

15 Trust deed List of authorized signatories certificate of registration C

16 SIP is a good investment strategy because.. It helps regular income for investor No load investment done B

17 HUF Non Individual NRI PIO C

18 NRI can not make repartition investment in MF using demand draft. TRUE FALSE B

First 5 years of Investment done by investor

First 3 years of Investment done by investor

First 10 years of investment done by investor

As long as investor held the investment

Offices declared as point of acceptance.

Once every six month in one national & Regional news paper

Capital gain or loss from mutual fund investment are classified as a short term investment are if sold within

An investor invested Rs.100000/in a 370 day FMP and got Rs. 107750/-, what is capital gain in this case?

10% Plus surcharge or 20% after index benefit

STT is payable when investor purchase equity MF

STT is payable when investor does redemption from equity MF

STT is payable when investor purchase debt MF

STT is payable when investor sale debt MF

Liquid funds can not charge management fees of funds parked in a short term bank deposits.

The information on minimum investment amount, investor's service centers, and how to make purchase is provided in.

Which of the following document is not require to be submitted by charitable trust to invest in MF?

Board resolution and Memorandum and article of association

Investor gets units at a discount to NAV

It offers benefits of rupee cost averaging

Relaxation from documentation requirements for micro SIP is available for..

NISM Mock Test 1

19 <1000 1000 1200 cant say B

20 Next working day Same day C

21 Same day Next business day Next preceding day. C

22 Time stamping needs to start with serial no 1 on every business day. TRUE FALSE B

23 Funds pay dividend in Dividend Option Dividend Re-Investment option Both of the above Growth option C

24 SIP STP SWP Value investment C

25 TRUE FALSE A

26 Fundamental analysts are called "Chartists" TRUE FALSE B

27 0.05 0.024 1.2 0.175 D

28 Total return CAGR Absolute return Simple annualized B

29 Be worse than benchmark return Better than benchmark return cant say B

30 CRISIL's indicator for highest safety in a debenture is AAA High Good P1+ A

31 During the period of turmoil, gold prices Go down Go up Remain steady Mirror equities B

32 Performance of fund must always be measured relative to the. Index Benchmark Asset Class Investment objective B

33 Difference between scheme's actual return and optimal return for it's risk is Sharpe Treynor Alpha Spread C

34 BETA Coefficient Past performance Tracking error R-squared C

35 Balance funds are for Aggressive investors highly aggressive investor Moderate conservative Highly conservative C

36 The lower risk among equity fund is Index Fund Value Fund Dividend yield fund Growth fund C

37 6 months 5 years 1 years 3 years B

38 Returns in international fund is dependent on Exchange rates Asset class performance Both of the above None of the above C

An investor plans to invest Rs.12000 in a scheme whose NAV is 12 and FV is 10, how many units is he likely to be obtained.

An investor is doing a liquid investment, fund is available and time is 12.30. NAV would be applicable for the ________

Closing NAV of Day immediately preceding the date of application

Closing NAV of Day immediately preceding next business day

Investor invest 50 lakh in GILT at 3.30 pm with a local cheque. he gets NAV of

Closing NAV of day fund are available

Offering for repurchase, constant amounts worth of units at regular interval basis is called

A company's PE ratio may be low because it is unlikely to replicate it's past performance

If absolute return was 2.4% over 50 days, annualized return would be____________

In case of liquid fund, investment less than 3 months old. which return would be calculated?

In case of equity fund, if fund has higher allocation to cash in bullish market the performance is likely to..

Be comparable to that of benchmark index

While evaluating return for an index fund across a peer group, which of the following is more important?

Probabilities of losing money in equity is negligible if investment horizon is for at least

NISM Mock Test 1

39 Mutual funds in India are not permitted to invest in Gold Real estate Art Secularized debt C

40 A value fund is expected to have ________ exposure to front line stocks Entire High Half of it's Low D

41 Index funds are safer because their NAV does not go down TRUE FALSE B

42 Which of the followings are least comparable Liquid and Savings account Liquid and Current account ETF and Index fund GILT and Sector fund D

43 Bonds Bank FD Real-Estate PPF C

44 Credit rating enables an investors to judge the Duration of loan Risk of default by borrower Interest rate risk C

45 Which of the following is not government saving scheme? Infrastructure Bonds RBI Bonds POST KVP A

46 Bank FD Equity Bonds Gold B

47 Which of the followings is physical asset? Securised debt Real estate Real estate fund Gold future B

48 TRUE FALSE A

49 Investor in MF can choose asset class but not investment manager TRUE FALSE A

50 Financial Planning Involves None of the above B

51 Value stocks Have high current dividend Yield high growth in earning Are currently under valued None of the above C

52 A better performance than the return on index is given by Passive fund manager An active fund manager All fund managers Non fund manager B

53 Internet Stock Exchange All of the above None of the above C

54 Trail commission means paying No commission at all The entire commission upfront C

55 Agents are compensated by mutual funds Through salaries Through commission Through an annual fees Not in cash but in kind B

56 The fund sponsors should have a sound financial track record of 7 years 5 years 12 months 3 years B

57 Which of the following are self regulatory organization(SRO) BSE SEBI AMFI RBI A

58 Bank owned mutual fund are supervised by SEBI Jointly by SEBI & RBI RBI AMFI A

An investor seeking capital appreciation, having high risk tolerance and long term horizon must invest in

Extent of securities against the borrowing

An investor looking for capital appreciation, having a high risk tolerance and long tem horizon must invest in

In new pension scheme(NPS) Tier I account new pension scheme is called pension account

Helping client to select the out performing stock

Assessing the clients financial information

Advising client to invest only in secured investments

Emerging or new channel for distributors/marketing of mutual funds in India is

Part of commission up front and balance in phases

The entire commission after five years

NISM Mock Test 1

59 A passive fund manager Researches stocks extensively Does not buy and sell stocks often Does not have to track stocks C

60 Debt securities bought at a discount to their face value are generally Interest bearing Zero coupon bonds Paying interest at a floating rate None of the above B

61 When interest rates rise, bond prices Also rise Are not affected Falls Fluctuate either up or down C

62 The maturity period of RBI relief bonds is 5 years 7 years 6 years 8 years A

63 A trail commission is justified when An investor cancels his investment An Agent retain the Investment D

64 10.00% 20.00% 12.00% None D

65 What is the current PPF rate 8.00 Percentage 8.50 Percentage 7.75 Percentage 7.50 Percentage A

66 What is the recurring expense on first 100 cr for equity schemes 2.00 Percentage 1.75 Percentage 2.25 Percentage 2.50 Percentage D

67 Risk adjusted return is measured by Sharpe ratio Standard deviation Treynor ratio A & C D

68 Intra day trading can be done on the basis of- Fundamental analysis Technical analysis Economic analysis Political analysis B

69 Mid cap stocks are risky in the time of Boom Recession/Economic turmoil Political instability All of the above B

70 Who Appoints the AMC Custodian R&T Trustee Distributors C

71 Which of the following has lowest risk Liquid fund (mmmf) Gilt funds Diversified debt fund Diversified equity fund A

72 Long term capital gains in a debt fund without indexation for an investor is 10.00% 15.00% 20.00% No tax A

73 Tax benefits Possibility of capital gain Deposit insurance Investment convenience C

74 In the NPS each investment manager appoints own distributor TRUE FALSE A

75 Need of Life insurance in life is Must Not required can be done without None of above A

76 TRUE FALSE B

77 Name of asset allocation strategy if it is fixed @ 50 % Tactical Allocation Strategic Allocation A & B None of above B

78 TRUE FALSE B

Does not have to go through the process of stock selection

The investor redeems his investment in a very short time

An agent invests his own money, not that of client

A debt fund distributes 10% dividend . how much tax does the investor have to pay on this dividend

What of the following is not a reason for investor to prefer mutual fund over Bank FD

All investor have similar requirements at similar stage in the life/wealth cycle

Model portfolio should be determined based on commission income possibility for distributor

NISM Mock Test 1

79 Which of the following is true for model portfolio Stipulated by SEBI Guaranteed by AMC Decided by financial planner Common across industry C

80 As the no of earning member in a family increases risk appetite Increases Decreases Stays constant None of above A

81 Equity investment through sip can be suggested for investor looking for Long term growth Short term target Portfolio churning Tax benefit A

82 How to compare index fund performance expenses Tracking error None of above C

83 What type of bond fund carries least interest rate risk Short term bonds Long term Bonds Mid term Bonds All of above A

84 Arbitrage fund are not equity fund TRUE FALSE B

85 Which of the following is true for FMP NAV do not fluctuate Capital Guaranteed Fixed income None of above D

86 Index funds are_____________fund Passive fund Active fund Both None of above A

87 TRUE FALSE A

88 When price of gold goes up a buyer of gold future contract see it's value Go up Go down Retain the same value None of above A

89 The investment portfolio is created based on Market views of fund manager Investment objective of fund risk appetite of investor profile of unit holder B

90 Commodities as an asset class does not include Food crops Industrial metals Real Estate Gold C

91 Subsequent to NFO, open ended funds are available on stock market None of above A

92 capital appreciation safety of capital Capital adequacy Regular income A

93 Hybrid funds are invested in across equity market capitalization International markets both equity and debt None of above C

94 Mutual fund are constituted in India as Companies Trusts Partnerships NGO B

95 Mutual Fund sponsor can be compared to Depositor of a company Company director Promoter of Company CEO of a company C

96 Which of the following is not a function of R&T agent Updating unit capital of fund D

97 TRUE FALSE A

98 TRUE FALSE A

The role of insurance is more critical for physical assets than financial assets

open for purchase by existing investor & new investor

open for purchase only for existing investor

If a fund seeks to grow in value overtime it can be said that it's investment objective is

Creating maintaining and updating the investor record

Processing dividends & redemption payouts to investors

Settling investment transaction of the fund

Prior approval of SEBI needs to be taken before a person is appointed as trustee

Person, other than Indian residents, should also comply with RBI guidelines for investment in Indian mutual funds

NISM Mock Test 1

99 The first step of financial planning is Evaluating the various alternatives data gathering and goal setting Plan Review Cestablishing the client planner relationship

NISM Mock Test 2


1 In case of market correction _______ , takes more hit than _______ Fund. Growth , Value Momentum , Value Value , Growth Growth , momentum C

2 Sponsor's net worth should be positive for Last 5 years last 2 years last 3 years last year A

3 At time of NFO, which document compulsorily filed with SEBI SID SAI Annual Report A

4 Collection and payment of fund is a responsibility of Custodian R&T Banker AMC B

5 Other than Indian residents, rest have to also comply RBI regulations TRUE FALSE A

6 Which of the following not included in KIM Details of Key personal of AMC Tax benefit of MF Due diligence certificate of AMC D

7 Function of OD is Give current NAV Gives Fund suggestion None of the above A

8 0.00% 70.00% 50.00% 30.00% A

9 Which expense can be not charged to scheme? Service tax Fees of custodian D

10 Low PE indicates that stock is cheap and you should buy it TRUE FALSE B

11 Which of the following need not be included in KIM? Detail of sponsor Risk profile of the scheme A

12 As per income tax act, Arbitrage Funds are taxed as per debt scheme TRUE FALSE B

13 Which is purely treated as an international asset Equity Gold Real Estate Debt B

14 Transfer of security from one scheme to another scheme is allowed in MF TRUE FALSE A

15 Calculate the sales price of a unit when NAV is 15 and exit load 1% 15 14.85 15.15 15.5 A

16 If you get a cheque of 1 cr in a Gilt Fund at 2.30 pm, NAV date will be NAV at 2.30pm NAV at 3pm Same day NAV NAV of fund realization date D

17 Who allots Amfi Registration Number? AMFI SEBI AMC none of the above A

18 Which distribution channel don't have a huge branch network? Institution Corporate distributor Bank IFA D

19 Dividends in the hands of investors are taxable at the rate of 10.00% 15.00% 33.00% Tax Free D

20 Last step in the process of designing model portfolio Sector selection Asset allocation Scheme selection Client selection C

Memorandum and Articles of Association

Expense and Load structure of scheme

Give detailed information about scheme to investors

What should be the Sector Fund Allocation for a single income family having small investable surplus

Expenses on investor communication

General administration expense of AMC

Minimum investment amount and cut off time

Opening and closing dates of NFO

NISM Mock Test 2

21 Goal based approach of financial planning focuses on Risk profiling Tax liability of investors Investible surplus of the investor B

22 What is the rate of return of PPF 20 Percentage 8 Percentage 8.50 Percentage 9.25 Percentage B

23 What is the indicator of the risk adjusted performance ratio? Beta Standard Deviation Sharpe's Ratio Variance C

24 Interest Rate sensitivity in Bond fund depends on Credit Profile Avg Maturity YTM Current Yield B

25 SEBI doesn't allow passing of commission to Distributor Investor Bank IFA B

26 If you get a 50L in equity fund at 3:30 pm today,investor will get the NAV of Yesterday Today Tomorrow NAV of fund realization date C

27 Index against which performance of a fund is measured, is called Tracking Error Benchmark Investment objective Ex-mark B

28 FMP are essentially a closed ended Scheme TRUE FALSE A

29 Offer document SAI MIN SIN A

30 Who can not be the distributor of the AMC IFA Bank Employees of AMC All of the above C

31 Asset allocation means Putting all eggs in Same basket Investing according to Market Investing in different assets C

32 MIP is a Debt Scheme TRUE FALSE A

33 Asset allocation should be in line with Financial Goal Age of Client Risk Appetite All of the above D

34 A young investor having objective of capital appreciation should invest in GILT Liquid Equity debt C

35 In NPS class-C predominantly invests in Equity Debt Gold Real Estate B

36 Fund's risk relative to market is measured by tracking error Sharps' Ratio Treynor Beta D

37 Which one is false about debenture Issued by PSU High credit risk It has maturity Duration is greater than 1 yr A

38 Gets remedy from SEBI Cant sue the AMC Gets remedy from AMC Gets remedy from NSE B

39 STT charge on equity Derivatives Equity MF Equity Schemes All of Above D

40 Which function AMC can't do in house Custodian Accounting Distribution Fund management A

41 Value of Bond goes down when Interest rate goes down Interest rate goes up IRR goes down YTM goes down B

Achievement of the goal of investors

The information regarding Which category of investors can invest in MF, is given in

investing only in Equity Gold and Silver

Investor has read the OD and then the invested in the fund and fund goes down, then he

NISM Mock Test 2

42 Which one is not exempted in wealth tax Gold sector fund Gold deposit Gold ETF Gold D

43 Institutional distributors needs to be Registered with SEBI Registered with AMFI Listed on stock exchange All of Above B

44 Standard risk are Uncommon to all Common to all Specific to a scheme Systematic B

45 Request for purchase can be made In units and amount In units only In units or amounts In amount only D

46 TRUE FALSE B

47 In case of online transaction, transaction time is applicable Time as web per web server Mid night Next day morning B

48 If investors invest through demat can AMC asks for KYC requirement TRUE FALSE B

49 According to the asset allocation rule, equity exposure should be equal to Age 100-age Age-100 100.00% B

50 Mutual fund is made up of Pool of trustees fund Pool of institutional investors Pool of investment managers Pool of investment money D

51 Who can not invest in mutual funds? Foreign companies Banks insurance companies NBFC A

52 Which is same as of OD? SID SID+SAI SAI KIM sumarry of SAI + SID. B

53 Mutual fund distributor in India are member of AMFI. TRUE FALSE A

54 Mutual fund in India is regulated by SEBI(Mutual Fund) act 1996. TRUE FALSE A

55 Which of the following is appointed by trustee? Custodian Distributor AMC R&T C

56 KIM has to be updated Twice in a year Quarterly Once in a year Once in two year C

57 Which of the following is more risky? Liquid fund Index fund growth fund gilt fund C

58 Material changes in KIM need to be updated once in a year Half yearly Once in two year C

59 If an investor wants full exposure of gold his investment should be into Gold ETFs Physical gold Shares of gold mining company All of the above D

60 7.75% 7.47% 10% or 20% with indexation insufficient data A

61 Same day closing value When fund gets credited Previous day closing value Next day closing value B

62 Trail commission to advisor helps in -- Portfolio Churning New client acquisition None of the above A

In NPS investors get choice of the asset class but don't get choice of investment manager

Time shown in the computer of investor

Whenever material changes take place

If an investor invest 1 lakh rupees in a debt fund after 365 days it's value is 107756/- what is CAGR?

If an investor invest Rs.100,00,000 in Equity MF Scheme at 3.30 pm through outstation cheque he will get NAV of

Retaining the investor for long term.

NISM Mock Test 2

63 Exit load __________ Is ame for all schemes Is same for all amc's Varies from investor to investor Varies from scheme to scheme. D

64 Which fund is an actively managed fund? Index fund Diversified equity fund Growth fund B&C D

65 Arrange in correct sequence B

66 All of the above A

67 Minimum contribution of a sponsor in an AMC should be- 50.00% 60.00% 40.00% 25.00% C

68 PAN card is not required in case of- NRI Minor & Senior Citizen Corporate institution & trust. None of the above D

69 FMP can give better interest than a Bank Deposit. TRUE FALSE A

70 The insurance associated with new pension schemes are regulated by- PFRDA + IRDA IRDA PFRDA None of the above. C

71 In India mutual funds are- Govt. institutions Company Trust NBFC C

72 Initial issue expenses in a liquid fund has to be- 0 0.000125 0.25 percentage none of the above A

73 A schemes NAV value increases for the period of 2 yrs . it will show- Absolute return Simple return compounded annualized return all of the above C

74 Policy of scheme Objective of scheme portfolio of scheme None of the above. A

75 KIM is attached with ? Transaction slip Application Form Both A and B Neither a nor b B

76 Which is technical analysis- Volume & price behavior Mark to market book value analysis all of the above. A

77 Who keeps detail report of transaction- Custodian AMC R & T Distributor C

78 Formula to find out the Standard Deviation in excel is stdev sd stddev stddv A

79 Time stamp machine contains- Time stamping serial no Machine identification location code all of the above D

80 The expected return & yield of the scheme is mentioned in KIM TRUE FALSE B

81 How frequently NAV of an equity scheme are calculated Daily Weekly Quarterly once in financial year. A

82 If beta of a scheme is less than one the the fund is- More risky compare to market Less risky compare to market neither risky nor profitable. B

83 What is not true objective of life insurance- Risk coverage Investment Both None of the above B

Risk profile, fund allocation, portfolio construction.

Risk profile, portfolio construction, fund allocation.

Portfolio construction,risk profile, fund allocation.

Fund allocation. risk profile, portfolio construction

Which of the following is against the ethics & Code of conduct guide line of AMFI

Churning investor's money to get better returns

All the associates of a distributor should be amfi approved.

Keeping the interest of all unit holders

In KIM it has been mentioned that the 65% investment will be in equity and equity related instrument. this is called-

beta doesn't make any impact on scheme performance

NISM Mock Test 2

84 Unit capital is issued at- 10 25 50 100 A

85 Fund management cost is more in- Passive fund Gilt fund Liquid fund Active fund. D

86 Independent trustee are appointed by- Sponsor SEBI AMFI All of the above A

87 Distributors are paid- Commission Fees Salary All of the above A

88 KYC is required for- Guardian in case of minor HUF Sole proprietorship firm All of the above. D

89 KYC is compulsory - For every investment 50000 50000 and above first time investment A

90 Formula for CAGR calculation is Interest * No of years (P1-P0)/PO*100 None of above C

91 The NAV of a fund is 15 applicable exit load is 1%, purchase NAV would be- 14.85 15 15.25 15.65 B

92 In case of breach of Code of conduct license is canceled by- AMFI SEBI Sponsor AMC A

93 Which is true in case of PPF? Investment & return are tax free. Both None of the above B

94 A fixed term plan series is- As open ended fund A closed ended fund A fixed term bank deposit A fixed term corporate bond B

95 Market price and dividend Market price and earning per share Market capitalization and dividend Market price and face value B

((End Value/Start Value)^(1/(Period)) -1

Partial withdrawal facility is available after one year

The P/E ratio is an important measure of a company's anticipated performance. it is calculated using.

NISM Mock Test 3

PRACTICE KIT – PAPER 3

No. QUESTION OPTION A OPTION B OPTION C OPTION D Answer

1 Which one of the following is not an eligible investor? Insurance Companies Govt Institutions Foreign Citizens Provident Fund C

2 TRUE FALSE B

3 Which investment below gives international exposure International Funds Gold Fund None Both D

4 On doing risk profiling which asset allocation does it give ? Strategic Asset Allocation Fixed Asset Allocation Flexible Asset Allocation Tactical Asset Allocation A

5 10.13 15.38 17.86 16.125 D

6 Next day NAV Same days closing NAV Previous day NAV B

7 What is the DDT for an individual in liquid fund ? 0.25 0.2 0.13 0.1 A

8 Next day NAV Same days closing NAV Previous days closing NAV D

9 What is true about premium paid in a life insurance company ? Customer can decide premium Premium can be shown as exp Premium is volatile B

10 The person with whom the units are pledged is known as Pledger Pledgee B

11 What is the highest expense ratio in a Fund of Fund scheme ? 2.25% 1.75% 0.75% 1.50% C

12 SEBI is sole regulatory authority for MF are answerable TRUE FALSE A

13 How is company fixed deposit compare to bank fixed deposit ? Low Risk Highly Volatile Less Safe Lower Return C

14 15 7 10 30 D

15 A distributor needs different ARN for each AMC ? TRUE FALSE B

16 A conservative investor need not be advised to invest in ? Gilt Fund Liquid Fund High Yield Bond Fund Short Term Plan C

17 TRUE FALSE B

18 Which is the fastest way of remitting funds on real time basis? NEFT D/D SWIFT RTGS D

19 Which of the following is a financial asset ? Govt Security Gold Real Estate None of the above A

20 Which of the following is an SRO ? AMFI SEBI BSE RBI C

For a customer holding units in demat , the AMC also requires to do his KYC ?

In a balance fund with net assets of 750 crores what is the expenses that can be charged ?

I invest Rs 50 lacs at 2.30 pm with a local cheque for funds other than liquid scheme, which NAV will you get ?

Closing NAV of the day preceding next business day

If client invest in liquid fund at 11.30 am and the fund gets cleared on the same day which NAV the client gets ?

Closing NAV of the day preceding next business day

Premium can be availed under Sec 80 c

Within how many days the dividend warrants to be dispatched on declaration?

The New Pension scheme is both regulated IRDA and PFRDA as it has an insurance component ?

NISM Mock Test 3

21 NFO other than ELSS can remain open for maximum _________ 7 days 15 days 21 days 30 days B

22 5 days 15 days 20 days 30 days A

23 Companies issuing short term debt is called CD Tbills Debentures CP D

24 TRUE FALSE A

25 Which of the following exempt from DDT ? Equity Oriented Fund Liquid Fund Income Fund Gilt fund A

26 The arbitrage funds are taxed like debt funds TRUE FALSE B

27 Which of the below is not in a Transition phase ? Buying of house Providing for daughter marriage Shifting of job for higher income Providing for foreign study for son C

28 The NAV of scheme is impacted by ? No of Investors Unit Capital Market Value of Portfolio Size of Fund C

29 Technical analysis is projecting trend based on human behavior ? TRUE FALSE A

30 Sub distributors work with Online platform Banks IFA Distribution companies D

31 Initial issue expense that can be charged to fund NIL 1.00% 2.00% 1.75% A

32 Annualised Yield Simple Return Absolute return CAGR D

33 Equity debt Govt. Sec. A

34 Expense ratio is most important in case of Index Fund Offshore Fund Active Fund Fund of Fund A

35 Code of ethics for employees of AMC is described by SEBI AMFI Internal Audit Team Trustee. B

36 Recurring expenses in Equity scheme has a limit up to 1.50% 0.50% 1.25% 2.50% D

37 Equity Liquid Gold None of above. B

38 Which of the following is a Financial Asset? Gold Real State Bank deposit None of above. C

39 Index fund can give better returns from its Benchmark. TRUE FALSE B

40 TRUE FALSE B

41 Term â �Stock pickingâ � is used in which of the following?� � Bottom up approach Top down approach Both None of above. A

42 0.13% 0.33% 0.02% 0.25% D

In NFO the account statement is to be dispatched within â � days �on closure of NFO ?

Within a category one can decide on investments based on Sharpe Ratio

According to Performance Advertisements the return shown for equity funds over 1 years are

In New Pension Scheme portfolio of Assets class E predominantly investment in

In Transition phase of Wealth Cycle investor tends to increase the proportion of_______ assets in his portfolio.

The young BPO executives should not be advised to invest in long term schemes because of their lavish life style ?

What is the applicable rate of STT in case of repurchase of Equity scheme?

NISM Mock Test 3

43 200 210.67 213.33 None of above. B

44 Investor selects an MF based on Investment Philosophy Investment Strategy Investment Policy Investment Objective D

45 ______ has been appointed by Trustee Custodian R & T AMC Distributor C

46 Risk May be defined as Asset Allocation High Transaction Cost Financial Loss Portfolio Rebalancing C

47 Inform the Client Avoid telling as client will be dishearted Avoid telling as he may lose the client A

48 Which of the following account in NPS is a Saving Account Tier I Tier II Tier III Tier IV B

49 Mutual Fund is exempted from Wealth Tax TRUE FALSE A

50 KYC is required for investment more than 20000 10000 Not required D

51 If a minor Invests Rs 10,000 in MF, KYC is needed or not C

52 Since Preparation of WILL is a long process, it has to be avoided TRUE FALSE B

53 Close ended fund allows investors to sale their units by listing MF in stock exchange C

54 ______ Allots the ARN Number AMC SEBI NISM AMFI D

55 Application for MF would be rejected if paid in Cheque DD Cash Bankers cheque C

56 Mutual Fund Investor can't pledge units TRUE FALSE B

57 Change in the value of NAV is Standard Risk Systematic Risk Unsystematic Risk A

58 Which one is called cum-dividend NAV? NAV after the date of dividend None of the above A

59 NFO IPO Purchase Re-Purchase A

60 KIM Document is a summary of SID SAI OD SID+SAI D

61 Current NAV Previous Days NAV NAV of Next Business Day Same day NAV C

62 Same day NAV NAV of Next Business Day Previous Days NAV Current NAV B

63 The guideline issued by AMFI for intermediaries are known as AGNI ACE AMFI None of the above A

64 Time stamping arrangements is must for Offices of Distributors AMC Offices Bank Distributors Branch D

Market value is 152 crore, Dividend accrued but not received= 8 crore, liabilities = 2 crore Total no of outstanding units is 75 lakhs. What will be the NAV of the scheme?

Financial Planner defines that client does not have resources to meet goals. He should

Increase risk to generate higher return

Needed for a single rupee investment

KYC for Minor is needed only if investment exceeds Rs 20000

KYC for Minor is needed only if investment exceeds Rs 50000

If investor is a minor, KYC should be of his guardian even for a single rupee investment

KYC is not at all required for minors

By allowing fixed number of Units to sale

By selling number of units in a fixed interval

NAV on the date when trustee approves dividend

NAV of the date when notice is issued to meet trusteed to finalize dividend

When scheme is first launched and investor invests in MF... it is called

If investor invests in a Guilt fund at 3:30 p.m., he would get the units at which NAV ?

If investor invests in a Equity fund at 3:30 p.m., he would get the units at which NAV ?

Offices declared as point of acceptance

NISM Mock Test 3

65 Every 3 months Every 6 months Every 12 months None of the above B

66 7750 750 Insufficient Data 1000 A

67 STT is charged on Equity Share Trading Derivative Trading Equity MF All of the Above D

68 <1000 1000 1200 Cant Say B

69 Company's Earning per share would be indicated by following P/E Ratio Current Ratio EPS Leverage Ration C

70 Beta of Index would be Less than 1 Equals to 1 more than 1 None of the above B

71 Beta Coefficient Past performance Tracking error R-Squared C

72 The fund sponsors should have a sound financial track record of 12 months 3 Years 5 Years 7 Years C

73 What is the current PPF Rate ? 7.50% 7.75% 8.00% 8.50% C

74 A = P + (1+r) ^ n -1 A = P x (1+r) ^ n A = P / (1+r) ^ (1/n) -1 A = P / (1+r) ^ n B

75 Appropriate benchmark for G-sec fund I-sec+ I -bex CRISIL liquid fund index MIBOR CRISIL - MIP bladed index A

76 Which of the following has lowest risk ? Liquid Fund GILT Fund Diversified debt fund Diversified Equity fund A

77 If I require 500000 after 2 years, which method will I follow ? Discounting method with interest rate Discounting method with inflation rate C

78 Mutual Fund Sponsors can be compared to Depositor of a company Company director Promoter of a company CEO of a company C

79 Which of the following can be charged to the scheme Salary of Fund Administratives Office rent General Administration Expenses Fees of Custodian D

80 TRUE FALSE A

81 15 14.85 15.5 15.15 B

82 Last step in the process of designing model portfolio Sector Selection Asset Allocation Scheme selection Client Selection C

83 TRUE FALSE B

84 Equity Fund's Risk relative to market is measured by Tracking error Sharpe's Ratio Treynor Beta D

85 Standard Risk is Common to all Uncommon to all Systematic Specific to all A

86 Request of Purchase can be made Along with requisite form and Cheque Only With Cheque Only Purchase requisite form A

Unaudited accounts of the scheme must be published in the news paper

An Investor Invests Rs 100000 in a 365 days FMP and got Rs 107750, what would be capital gain in this case ?

An investor plans to invest Rs 12000 in a scheme whose NAV is Rs 12, how many units he will likely to be obtained

While evaluating return for an index fund across a peer group, which of the following is more important

Father wants his son to be a doctor and study will start after 5 years. The current expense is 2500000. How to calculate the expense after 5 years

Compounding method with interest rate

Compounding method with inflation rate

Low PE compared with peer group or industry standard indicates that stock is cheap.

What would be the redemption value of a Unit if NAV is 15 and Exit load is 1%

For a distribution channel, 60% of the employees should have AMFI Registration Number

NISM Mock Test 3

87 Same day closing NAV When fund gets credited Previous day closing NAV Next Day NAV B

88 Liquidity risk is highest in Mid Cap stocks Front Line Stocks Index Stocks Gilt Security A

89 400 500 8000 Depends on NAV C

90 Investor can sue the trust for breach of trust TRUE FALSE B

91 Distributors do not get commission on self business TRUE FALSE A

92 Which of the following is an SRO ? AMFI SEBI AMC None of above. D

93 What remains constant in a close ended fund ? Unit Capital NAV Both A

94 SEBI regulates Mutual Funds Depositories RTA All of the Above D

95 Unit holders can hold their units in demat form TRUE FALSE A

96 KIM needs to be updated every 3 months 6 months Once a year No need to update it C

97 Trail commission are linked to valuation of portfolio in the market TRUE FALSE A

98 Risk can be measured by Variance Standard Deviation Beta Any of the above D

99 Gather client data Define client goals D

If an investor invests 1,000,000 at 3:30 p.m through outstation cheque, he will get NAV of

Mr A Holds 2000 Units, scheme declared 1:4 bonus. How many units will Mr A Gets ?

According to the Certified Financial Planner - Board of Standards (USA), the third stage in Financial Planning is

Establish and Define the client planner relationship

Analyse and Evaluate Client's Financial Status

NISM Mock Test 4


1 Commodity as an asset class does not include Fiber Spices Energy Art D

2 TRUE FALSE B

3 5 star fund indicates Lowest Expense ratio Lowest Load Highest Performance Best Portfolio C

4 TRUE FALSE B

5 NAV changes with Number of investor Size of Portfolio Market value of the portfolio D

6 Investor select an MF based on matching Investment Philosophy Investment Policy Investment Objective Investment Strategy C

7 Indian investor in a US $ based fund benefit when $ becomes Weak Strong Euro Becomes Weak Steady B

8 Understanding the psychology helps in risk profiling TRUE FALSE A

9 Securities of a fund are held by Custodian AMC R&T Broker A

10 Risk may be defined as Asset Allocation High Transaction Cost Portfolio re balancing Probability financial Loss D

11 Inform the Client Avoid telling as he may lose the client A

12 Which of the following is with drawable in NPS Tier I Tier II Tier III Tier IV B

13 Mutual fund is exempted from Wealth Tax TRUE FALSE A

14 KYC is required for investment more than 50 K 5 K Any Amount 100K C

15 Which of the distribution channel does not have wide branch network Bank Distribution House Broking company IFA D

16 Which of the following is not a function of R&T Maintain the records Settling investors transaction of fund Calculation of NAV D

17 AMFI interacts with _______ on all issues related to MF industry RBI SEBI Govt All of the above B

18 CVL system generates Acknowledge along with PAN MIN KYC Folio B

19 High portfolio turnover ratio implies High Cost Low Expense High return Non Performance A

20 Since preparation of WILL is a long process, it has to be avoided TRUE FALSE B

21 Benefit of Demat a/c is that Direct credit of bonus units Single point for portfolio valuation All of the above D

22 Among equity fund , growth fund has highest risk TRUE FALSE B

Financial Planning is just a process and so Financial Planner can use any profile found in the web

Investor should invest in MF with few offices as office expense is charged to the fund

Number of Units remaining invested

Financial Planner finds that client does not have resources to meet goals. He Should

Avoid telling as client will be disheartened

Increase risk to generate higher return and meet the goal

Process Dividend and redemption

Single contact point for change of address

NISM Mock Test 4

23 What determines the interest rate sensitivity Credibility Quality YTM Avg Maturity D

24 Fundamental Analyst are also called " Chartist" TRUE FALSE B

25 Fundamental Analyst's decision are base on EPS in dollar Trialling EPS Historic EPS Projected EPS D

26 Debenture is physical asset because the paper has some value TRUE FALSE B

27 Investing in Gold ETF helps Guarantees high return Not permitted in India Provide risk cover Reduce storage cost and risk D

28 Which of these activity are carried out before getting SEBI approval Dispatch product literature Printing KIM and application form B

29 TRUE FALSE B

30 Equity Fund ST Debt Fund Income fund liquid Fund A

31 Some allocation to GOLD is likely in most model portfolio TRUE FALSE A

32 Approval of SEBI is needed to appoint a person as Trustee TRUE FALSE A

33 What is the drawback of PPF Half yearly Compounded interest Not Guaranteed by Govt A

34 Commission paid at the time of investment are called Upfront Commission Rebate Trail AUM Retention Fee A

35 Investors in NPS can choose asset class but not fund managers TRUE FALSE B

36 Settlement responsibility in BSE / NSE Platform are with AMC Clearing House Concerned Stock Exchange Member A

37 Which of the following information does time stamp include Machine Identifier location code Serial No All of the above D

38 Comprehensive FP should be restricted to five years TRUE FALSE B

39 Closed ended fund has Fixed AUM Fixed Unit Capital Fixed NAV Assured Dividend B

40 To which of the following PAN does not apply PIO NRI Minor & Senior Citizen None of above D

41 Father wants to start his business, this is Asset Allocation Financial Goal Appreciation Financial Planning B

42 In India one can invest in MF only through distributor TRUE FALSE B

43 SIP is called RCA (Rupee Cost Averaging) TRUE FALSE A

44 Liquidity risk arises in Closed ended fund Open ended fund Gold Debt A

45 A mutual fund is A pool of trustee money A pool of investment institutions A pool of investment managers A pool of investment fund D

46 The name and background of key personnel in AMC Are not included in SID Declared on MF website Are included in SAI Are not relevant so not disclosed C

Updating the SID with NFO dates

Approval of the features by trustee and AMC board

Childhood and transition are similar stage of LIFE cycle and WEALTH cycle stageInvestor with a long term investment horizon for growth are likely to invest in

One withdrawal at the end of Seventh Year

Interest and Withdrawals are not taxable

NISM Mock Test 4

47 TRUE FALSE A

48 STCG in GOLD is applicable if the holding period is less than 12 months 36 months 6 months 9 months B

49 _______ allots the ARN number AMC AMFI SEBI NISM B

50 Application for MF would be rejected if paid in Cheque DD Cash Bankers cheque C

51 Role of Credit rating agencies is highest in Debt Fund Gold Fund Real Estate Fund Equity A

52 Investors in PPF gets deduction up to 100000 10000 70000 75000 C

53 Cut-off time are Different for every RTA Prescribed by SEBI Different from AMC to AMC C

54 Money market in which MF invests are regulated by AMFI SEBI RBI Stock exchange C

55 TRUE FALSE A

56 Gilt fund is a good alternative to Capital Appreciation TRUE FALSE B

57 Which of the following is growth asset Savings a/c Current A/c Real Estate Govt Security C

58 Which is prohibited in AMC's Code of ethics Inter Scheme transfer Front Running Distributor of MF through AMC B

59 Loads are applicable to Redemption Purchase and redemption Purchase B

60 Bank on receipt of money from abroad issue IEC FIRC MIN + Folio B

61 Mutual Fund investor can't pledge units TRUE FALSE B

62 Standard risk factors are Not market risk Specific to scheme not relevant to investor common to all scheme D

63 Unit holders are entitled to Sue the MF or Trust A

64 Appropriate benchmark to large cap BSE small cap index Sensex BSE 500 BSE Mid cap Index B

65 If market crashes after bull run which fund is more safer Growth Value Sector Theme B

66 Insurance in case of MF is Up to 1 Lac per scheme 1Lac per fund More than 1 lac None of the above D

67 0.3 0.36 Insufficient Data 3.6 D

68 TRUE FALSE B

69 Which one is called Cum-Dividend-NAV? NAV after the date of dividend None of the above A

Annual report should announce the unclaimed amount and no. of investor

Agreed between AMC & Distributor

For with-holding tax on income earned by NRI depends on nature of income, nature investment and investor's country of domicile

Security transaction through associated broker

Transfer of Closed ended Scheme

Receive information that can effect their investment

protection of capital even if market goes down

Assured return even if there is no guarantee

Net Avg asset of the scheme is 300cr and Investment transaction value for the same is 1000 cr in a year. What is the avg holding period (months)?

Mutual Fund transaction on stock exchange are governed by stock exchange redressal system

NAV on the date when trustee approves dividend

NAV of the date when notice is issued to meet the trustees to finalize the dividend

NISM Mock Test 4

70 IF Gold price appreciates investors should invest in Gold sector fund Gold ETF Index Fund Gilt edge Security B

71 When scheme is first launched, AUM of the scheme would be nil TRUE FALSE A

72 Conservative MIP Balance fund Equity oriented Balance fund Debt oriented Aggressive MIP B

73 Encroachment risk is higher for Land Building Gold Art A

74 Unaudited report has to be published in newspaper every 3 months 6 months 12 months 3 financial year B

75 Tax differal is advantage Growth Dividend payout Dividend reinvest Capital gain A

76 The expense ratio is affected by Fund size Average account size Portfolio composition Stock market conditions A

77 In a mutual fund investors subscription are accounted for as Liabilities Unit capital Deposits None of the above B

78 0.5 0.25 0.4 0.1 B

79 Open ended fund can invest in unlisted securities up to- 0.05 0.0475 0.06 0.0525 A

80 Fund of Fund scheme invest in- Mutual Fund scheme International fund Index fund Gilt fund. A

81 A scheme can distribute dividend on its- Realized profit. Profit after tax realized & non realized profit none of the above A

82 A newly married couple should invest into -- Debt fund Balance fund Equity fund Liquid Funds C

83 Existing investor Broker AMC Distributor B

84 Standard risk factors are Common for all scheme Both None of above B

85 The presence of market makers provide liquidity in case of ETF TRUE FALSE A

86 0.5 2 1 data insufficient B

87 0.3 4 3.33 5 C

88 What is an ideal sector allocation in a sectoral fund <5 >5 Not more than 2 >10 C

89 All of the above. D

90 Which of the following is not true for Exchange Traded Funds (ETF)? Its pricing is linked to the index D

91 Exchange traded funds Balanced funds Commodity funds Fund of funds. D

An investor looking to select a hybrid fund with tax benefits must choose.

A disclosure should be made in the offer document if an AMC has invested more than the following percentage of its net assets in group companies.

If an investor wants to invest in Mutual fund through exchange platform he can buy from

Changes from scheme to scheme.

Net asset Rs.500cr./ total transaction value is Rs. 1000 cr what is portfolio turnover ratio

Avg net asset of scheme is 3000,total transaction of a scheme 10,000 what is portfolio turnover ratio

Which of the following is true with respect to the automatic reinvestment plan?

It allows the investor to reinvest the amount of dividend

It ensures that the investor reaps the benefit of compounding

Some funds allow the investor the invest the dividend in the other schemes also

ETF combines the best features of open end and closed end.

It offers the investors the benefit of flexibility of holding a single share as well as the diversification and cost efficiency of index

ETFs recover heavy load from the investors.

In which of the following the investor generally bears the highest expenses?

NISM Mock Test 4

92 Which of the following is not the advantage of mutual funds? Reduction of transaction costs Convenience and flexibility Tailor made portfolio Liquidity. C

93 Investor who wants long term exposure to gold should opt for ETF Gold Gold Sector Fund Gold Future Jewellery's A

94 Which is the short term Govt Security Commercial Paper T-Bills Certificate of Deposit Gilt B

95 Which is the most Illiquid Asset? Gold Equity Debt Real state D

NISM Mock Test 5


1 Bank lends against Pledged units Dividend Nomination Redemption A

2 SID is approved by Investor Sponsor AMC and Trustee Custodian C

3 Cut-off time for NAV decided by AMC same for all scheme by trustee Prescribed by SEBI D

4 preparation of WILL is pessimistic exercise, so it is better to avoid TRUE FALSE B

5 Which document is not required for institutional investor P & L account PAN card Authorized signatory list A

6 Distributors are provided commission for up to 3 yrs 5 yrs 10 yrs investors stay invested D

7 TRUE FALSE B

8 High regular income yield is indicator of scheme weakness TRUE FALSE B

9 Who promotes MF Sponsor custodian AMC trustee A

10 Liquidity risk is highest in Mid cap stocks Front line stocks Index stock Gilt security A

11 A unit holder is not responsible for reading OD regular monitoring investment awareness of risk factors B

12 Accepted standard for return calculation in financial market is abs return CAGR total return simple annualized return B

13 STT is applicable on Purchase of debt fund Redemption of debt fund Redemption of equity fund All of above C

14 300 400 3600 depends on NAV C

15 Corporate deposit interest rate depends on liability of borrower asset of borrower credit rating profit of borrower C

16 Commodity does not include Art Energy product spices Fibres A

17 The value of investment in mutual funds.. Increase gradually every day. Decrease gradually every day Be volatile in long-term B

18 The first ever mutual fund scheme in India was launched in 1964 1951 1970 1994 A

19 Investors buy units of open-ended funds during the continuous offer at the NFO price Market Price Both none of the above B

Memorandum of the articles of association

SEBI is responsible to develop a cadre of well trained agents and distributors

selecting stocks in a portfolio of the mutual fund scheme

Mr A holds 1200 units , scheme declares 1:3 bonus. How many units will Mr A gets

Change with the value of the investment portfolio

NISM Mock Test 5

20 Dividend yield fund Growth Fund Liquid Fund Income Fund B

21 Gold sector Gilt edged securities Index fund Gold ETF D

22 One of the advantage if ETF is.. ETF offer tax benefits. C

23 Mutual funds are constituted in India as a.. Companies Trust Partnership firms. NGO B

24 Mutual fund sponsor can be compared to .. A depositor in company A company director Promoter of a company CEO C

25 Which of these entities enables collection and payment of fund. Broker Banker R&T Agents, Custodian C

26 The constituents of mutual fund are appointed with the approval of .. Sponsor Trustees SEBI AMC B

27 TRUE FALSE A

28 Bank sponsored mutual funds are also regulated by AMFI Stock Exchanges, RBI SEBI C

29 Identified class of unit holder All classes of unit holders Retail individual Institutional unit holders B

30 TRUE FALSE A

31 Equity fund Money market fund Balance fund Debt Fund C

32 TRUE FALSE A

33 Unit holders enjoy rights to the asset of the funds... As per decided by trustees equally for all holders In proportion of holding D

34 Before 9 pm same day Before 10 am following day after 10 pm same day Before 9 pm following day B

35 Which of the following is not a mandatory services standard as per SEBI. C

36 Investors can sue trustees for breach of trust. TRUE FALSE A

37 Which of the following is the function of an offer document To enable comparison of MFs D

38 NFO other than ELSS can remain open for _________ 15 days 30 days 45 days Forever A

39 Key Information of Memorandum Scheme information document Addendum C

The investment objective of which of these funds would be to seek capital appreciation?

If we have a view that gold price will appreciate, which mutual fund scheme should we invest in?

Investor can see where his money is invested

These schemes can generate higher returns than mutual fund.

Investors can buy of sell units on stock exchanges at price that closely track valuation at that time.

The applicable guidelines for mutual funds are set out in SEBI (Mutual Fund) regulation, 1996..

AMFI code of ethics prescribes that mutual fund scheme portfolios should be managed in interest of

Although AGNI is mandated. there are no penalties for breach of code of conduct.

To achieve growth by investing in equity and equity related investments, balanced with income generation by investing in debt and money market instruments is likely to be the investment objective of ___________ .

Annual report of AMC should necessarily mention the unclaimed amount and the number of such investors for each scheme.

According to the plan chooses by them.

For fund of fund NAV is to be updated on-line in the website of AMFI and the mutual fund website..

Periodic disclosure of the fund's holding

Periodic disclosure of AMC'c accounts

On-line purchase and sells of units

Dispatch of dividend within 30 days

To give the FM's commentary on market

To report the performance of scheme

To give investors information about scheme

Which of the following contain detail information on the portfolio characteristics and operational features of a scheme?

Statement of additional information.

NISM Mock Test 5

40 Which of the following is not fundamental attribute of scheme? Investment objective Name ff Fund Manager Investment Pattern Type of risk profile B

41 Which of the following is a synopsis of the offer document? Trust deed Memorandum of Association Key information of memorandum D

42 The format of KIM Given by SEBI Given by AMFI Varies to fund to fund By Stock Exchange A

43 Some MF companies allow investors to transact through their website. TRUE FALSE A

44 There is no need for educational qualification to be MF advisor. TRUE FALSE B

45 Salaries Annual fees Share in AMC's profit Commission D

46 Which of the following statement is true? D

47 AMFI is SRO for mutual fund and regulates all mutual Fund TRUE FALSE B

48 all classes of unit holders retail individual class None of above B

49 Transfer of investment from one scheme to another is allowed TRUE FALSE A

50 If the investor wishes to change the distributor AMC may allow or disallow All of above A

51 Investor can sue the trust for breach of trust TRUE FALSE B

52 TRUE FALSE B

53 Info provided in the SAI addendum made in the scheme Updation in OD Updation in KIM None of above A

54 Which of the following form a part of fundamental attributes of a fund Fund manager Investment objective of fund Load None of above B

55 What remains constant in closed ended fund? Unit capital NAV both None of the above A

56 Where do high-yield funds invest? Junk Bonds Gilt fund Equity growth Fund Treasury bills A

57 High yield bond schemes invest in junk bonds? TRUE FALSE A

58 Which ratio measures risk-adjusted return? Sharp Ratio Treynor ratio Both None of the above C

59 Which funds have features of both open ended & close ended? Interval Fund Balance Fund Sector Fund Thematic Fund A

60 Bottom up approach Top down Both None of the above A

Statement of additional information

Distributors are compensated by mutual fund companies primarily through..

Distributors do not get upfront commission on self business but they get trail commission

Distributors do not get trail commission on self business but get upfront commission.

Distributors get upfront and trail on self business

Distributors do not get upfront and trail on self business.

AMFI code of ethics prescribes that mutual fund schemes portfolios should be managed in the interest of

identified special classes of unit holders

He will need to give written request to the fund house

he needs to give the NOC from previous distributor

Since NFO is a marketing decision ,CIO has limited role in deciding it's structure

Which approach is used by Fund managers for picking up the Value stocks.

NISM Mock Test 5

61 Can liquid funds invest in short term bank fixed deposit? Yes No A

62 Expenses in fund of funds? None B

63 Which fund has highest risk? Liquid Income G-securities Liquid Plus B

64 Childhood & transition phase is common in life cycle & wealth cycle? TRUE FALSE B

65 What is not mandatory in application form? Occupation Status of Individual Mode of holding PAN A

66 Is KIM a synopsis of offer document? TRUE FALSE A

67 Absolute return is best judged if the investment horizon is <1yrs >1 yr Anytime <2Yrs A

68 Dividend distribution tax in liquid fund payable by investor? Nil 12.50% 10.38% 30.00% A

69 What is the rate of TDS in liquid mutual Fund? Nil 12.50% 10.38% 30.00% A

70 Who can distribute mutual fund through stock exchange? Both None of the above B

71 What is the beta of index fund? 1 More than 1 Less than 1 None of the above A

72 TRUE FALSE A

73 TRUE FALSE A

74 Liquid schemes invest in securities Less then 91 days maturity More then 91 days maturity Less then 1 year maturity More then 1 year maturity A

75 Mutual fund is Trust Company Society None of the above A

76 Who is keeps the custody of security of Mutual Fund ? AMC R&T Custodian Sponsor C

77 AMFI is a SRO ? TRUE FALSE B

78 AGNI is Rules & Regulations Terms & Conditions Non of the above A

79 NFO opening and closing detail mention in KIM SID OD All of above D

80 KIM is to updated Once in quarter Once in month Once in year weekly C

81 Recurring expenses includes Investment advisory fee Charged by the AMC, R&T fee Marketing and selling fee All of above D

Less then direct Investment in scheme

More than direct investment in scheme

Equal to direct investment in scheme

Equity Broker with out certification

NISM certified & AMFI registered member

When a time stamping machine is installed should it be informed to trustees

The difference between the yield on gilt and the yield on a non government debt security is called its yield spread.

Code of Conduct For Intermediaries

NISM Mock Test 5

82 Offer Document of Mutual Fund is approved by SEBI TRUE FALSE B

83 TRUE FALSE A

84 2.00 Percentage 1.89 Percentage 8.00 Percentage Non of the above B

85 A client is investing Rs. 1 Cr. in gilt fund which day NAV he will get? Same day closing NAV Next Day NAV Previous day NAV D

86 How many minimum client is required for a scheme to run 20 10 30 50 A

87 There is no TDS on dividend distribution and redemption TRUE FALSE A

88 Which documents are needed for KYC? PAN card Address proof Photo id proof All of above D

89 Which id proof is not valid identity proof for KYC (individual) Credit card Address proof Driving license All of the above A

90 For additional purchase Only transaction slip to be filled Only cheque None of the above B

Stock exchange brokers are permitted to distribute MF after passing the certifying exam

If the post tax rate of return on an investment is 8% and the inflation rate is 6% the real rate of return is

NAV of the day when funds are realized.

Transaction slip with purchase cheque

NISM Mock Test 6


1 Which of the following entities reaches MF product beyond geographical locations The Brokers The Custodian The Distributer R & T Agents. C

2 SEBI is sole regulatory authority for MF are answerable TRUE FALSE A

3 TRUE FALSE B

4 Offer document enable investor to compare the of MF scheme with another MF scheme TRUE FALSE B

5 which of the following investors belong to institutional group? HUF NRI Proprietary firm FII D

6 Performance advertisement Shall identify Nature of scheme All of the above D

7 Benefits of STP is Paper work is minimized Idle funds situation reduced Both None C

8 10 10.5 12 11.5 A

9 Floating Rate Interest is ? government yield+ spread yield spread base + spread payable only on maturity C

10 Market price of which of the following investment instruments will fluctuates more ? Long Tenor debt Short tenor Debt Floating Rate Securities Debentures A

11 Asset considered for Asset Allocation ideally be Similar only Physical Only Financial Asset Mix of different kind of Asset D

12 Investor in Distribution Phase C

13 A distributor can be empaneled by AMC only if Approved by SEBI A

14 AGNI is mandated by ? AMFI AMFI and SEBI RBI SEBI A

15 Junk Bond Scheme is also be known as High Yeild Scheme ? TRUE FALSE A

16 TRUE FALSE A

17 Which Of the following benefits of starting Health Inurance Policy early? Both of the above None Of the above B

18 Which of the gollowing is Government Savings Scheme? Infrastrucure Bond RBI releif Bond Post Office recurring Deposit All of the above C

Where the investor desires to hold MF unit in DMAT form the AMC will still be required to Perform KYC to such investors

shall only advertise compounded annualise yield Calculated using the prescribe procedure

shall mention the dividend declared or paid in Rs per unit along with face value of each unit ofthat scheme and the prevailing NAV at the time ofDeclaration of Dividend

Company has issued 10 core equity shares. It earns profit of Rs. 105 core on which it has Paid tax of Rs. 5 core and distributed dividend of Rs 20 core. What is EPS ?

Which of the following is most unlikely to have a model portfolio with 20% alloacation to sector fund?

Young Executive early in his career.

Well Placed Mid Level Executive

Senior Executive with Well Settled Children

Such distributor and its representative has/have cleared certifying Exam

Such distributor is approved by AMFI

Such Distributor is registered with Stock Exchange

According to Some studies Asset Allocations and Investment Policy can better explain the portfolio performance as compared to Stock selection and Investment Timimg?

Higher Money Back after 5 years

Protection against Insurance Company rejecting claim on the ground of pre-existing illness

NISM Mock Test 6

19 Duration of PPF deposit is 15 years 6 years 7 years 3 years A

20 Relaxation from Documetation required for MICRO SIP is available for C

21 Intial Phase of Life Cycle is Accumulation? TRUE FALSE B

22 Life insurance is meant for Tax planing Risk protection Investment Savings B

23 Real Estate mutual fund is Are popular investment options Are not easy to liquidate B

24 Black swan refer to Probabilities of large losses MF ratings Kind of offer documents Incentive to distributer A

25 A five star rating in MF schemes indicates that Lowest expense ration Lowest load Best portfolio C

26 Which of the bond fund carries least amount of interest risk Dynamic bond G-sec fund Income fund Money market fund D

27 Asset allocation must primarily based on Investment needs Insurance needs Taxation needs Financial goals D

28 Faced with the financial difficulties a family is likely to do all this except following Economise Expenses Wifes starts working A

29 Pre-retirement stage B

30 Teir I account of new pension scheme is called pension account ? TRUE FALSE A

31 Which is false ? A

32 Minimum Networth requirement of the AMC is Rs 10 crore Rs 5 crore Rs 4 core Rs 2 crore A

33 C

34 Legally SAI is the part of SID TRUE FALSE A

35 D

36 The __________ is the main driver of returns in a mutual fund scheme . Return Profit of invested company Portfolio None of the above C

37 Fundamental Analysis entails review of the company's Financial Statements Quality of Management Competitive Position All of the above D

38 Earnings per Share Price to Earnings ratio Book Value Per Share Price to Book Value B

Only Individuals other than NRIs and PIOs

Individual Including NRI and PIOs

Individuals Including NRI but not PIOs

Individuals including PIOs but not NRIs

Beyond means of retail investor's

Provided benefits of real estate & MF investing

Demonstrate superior performance

Move to a larger house in a better locality

Husband takes additional part time job

Annual investment amount gets reduced

Parents reach towards peak of their earning capacity

Saving for retirement gets minimized

Saving for investment is not required

Government is trying to convert financial Asset to physical asset

Investment in bank FD can be transfered to loan

Investment share can be translated into projects

Investment in MF helps the real economic

If a scheme is launched in the second six months of financial year the the 1st update of the SID is due within

Within 3 months of the end of the financial Year

With 3 months from the begining of Next financial year

Within 3 months from the end of the next financial year

Within 6 months of the end of the financial Year

Income tax allows setting of certain types of capital gain losses against certain type of Income which of the following is true in case of such provision.

Capital losses can be offset again salary

Long term capital losses from equity MF can Be offset against long term gain from property

Short term capital losses can be offset against dividend income for the year In which the loss has occurred

Long term capital losses in equity MF is not available for setting of against business or Salary income

___________________ ratio indicates how much investors in the share market are prepared to pay (to become owners of the company ) , in relation to the company's earnings .

NISM Mock Test 6

39 A ____________ fund maintains a portfolio that is in line with the passive fund . Active fund Index Fund Equity fund Debt fund B

40 Lower High Medium A & B A

41 Which is approcach is also called stock picking . Top – down Approach Bottom – up Approach Either A & B None Of the above B

42 Capital Gain Capital Loss No Profit No Loss None Of the above A

43 SEBI Reserve Bank of India Central Government State Government B

44 Commercial papers are short term Debt Securities issued by corporates. TRUE FALSE A

45 Credit rating companies are like _______________ . CRISIL ICRA CARE & FITCH All of the Above D

46 Higher the credit risk , lower is likely to be the yield on the debt security . TRUE FALSE B

47 Which of the following are derivative _______________ . Forwards Futures Options and swaps All of The above D

48 Every scheme should have at least __________ investors . 15 20 25 30 B

49 __________ funds take Positions that are countrary to the market . Thematic Funds Mid cap funds Contra funds Dividend yield funds C

50 Higher Lowest Zero None of the above B

51 What is MIBOR ? Mutual Inter – Bank offered rate A

52 To convert the demat units into physical from . This process is called re-materialisation . TRUE FALSE A

53 RTGS refers to _______________ . Real time Growth Settlement Real Time Gross Settlement B

54 What is ASBA _____________ . None of the Above C

55 NSE's Mutua; Fund platform is called NEAT MFSS . TRUE FALSE A

56 When a dividend is paid , the NAV of the units falls to that extent . TRUE FALSE A

57 Risk can be measured by variance Standard Deviation Beta Any of the above D

58 SEBI has Facilitated buying and selling of mutual fund units through the stock exchanges. TRUE FALSE A

59 ARN REFERS TO _____________ . Agent registration Number AMFI Registration Number Application Registration Number B

Value investment style is an approach of picking up stocks which are valued __________ , based on fundamental analysis .

If the proceeds on redemption are higher than the amount invested then it is called __________ .

Treasury Bills are short term debt instruments issued by the ____________ on behalf of the Goverment of India .

Liquid schemes, which invest in securities of up 91 days maturity , have the _________ risk amongest all kinds of schemes .

Mumbai Inter – Bank Offered Rate

Money Inter – Bank offered Offered Rate

Multiple Inter – bank Offred rate

Real Technique Gross Settlement

Real Technique Growth Settlement

Application Supported by Blocked Account

Application Supported by Blocked Acknowledgement

Application Supported by Blocked Amount

Account Registration Number

NISM Mock Test 6

60 6 9 5 8 D

61 2 6 5 3 D

62 No single investor shall account for more than 20% of the corpus of the scheme/plans. TRUE FALSE B

63 Compliance officer Chif executive officer Managing Director Any of the above A

64 5 10 7 15 A

65 5 7 2 10 C

66 Offer documents of mutual fund schemes are approved by SEBI . TRUE FALSE B

67 RBI SEBI AMFI All of the above B

68 The objectives of AMFI is/are ____________ . All of the above D

69 Diversify equity Scheme Diversify Debt Scheme balanced scheme None B

70 Institutional Distributors Build Reach through Employees Agents Sub Brokers Any of the Above D

71 The distributor can charge fees from the Investor TRUE FALSE A

72 The difference between NAV and repurchase price is Entry Load Exit Load Expense Dividend Stripping B

73 NAV of Income Funds is to be calculated upto _______ decimals 4 3 2 1 A

74 Investments in Mutual Fund can be made using Cheque/DD Remittance ASBA Any of the Above D

75 STP is the combination of SIP and SWP TRUE FALSE A

76 In a Top Down approach, sector allocation precedes stock selection TRUE FALSE A

77 Loads and taxes may account for the difference between scheme return and investor return TRUE FALSE A

78 Mutual Fund Ranking and rating amount to same TRUE FALSE B

79 Sector Selection Stock Selection Weighted Average Maturity No of Securities in portfolio C

In hoardings / posters, the statement , “ Mutual fund investments are subject to market risks, read the offer document carefully before investing ” is to be displayed at least _________ inches height .

If a scheme is launched in the first 6 months of the financial year then the first update of the SID is due with in ________ months of the end of the financial year .

The asset management company shall confirm that a due diligence certificate is signed by the ____________ .

In case of specifice request recived from investors, mutual funds shall provide the account statement (SIP/STP) to the investor's within __________ working days from the receipt of such request without any charges .

The mutual fund would update the current expense ratios on the website within _________ working days mentioning the effective date of the change .

_______________ regulates mutual funds, depositories, custodians and registrars & transfer agents in the country .

To recommend and Promote best business practices

To interact with the securities and Exchange Board of India (SEBI)

To represent to the Government, Reserve bank of india

“ To generate income by investing predominantly in wide range of debt and money market securities “ is an objective of _________ .

Which of the following aspects of portfolio would an investor in a debt scheme give more importance

NISM Mock Test 6

80 The comparable for a Liquid Scheme is Equity Scheme Balanced Scheme Gilt Fund Savings Bank Account D

81 Providing Funds for daughter's Marraige is an example of Goal Oriented Financial Plan Comprehensive Financial Plan Financial Goal None of the above C

82 Distribution phase of Wealth Cycle is a parallel of retirement phase of life cycle TRUE FALSE A

83 Incase of NPS investor can choose which of the asset class of the following Equity Corporate Debt government Securities All of the above D

84 New Pension Scheme is regulated by PFRDA IRDA PFRDA+IRDA None of this A

85 What % of the total wealth of Indian People is in physical asset More than 10% More than 25% More than 50% All of the above C

86 PFRDA refers to All of the above C

87 Investment in a Financial Assets can be productive for the economy TRUE FALSE A

88 NCDEX refers to National Contract Exchange National Currency Exchange National Commodity Exchange C

89 In case of the buying of the Gold Future Contract, entire value of the Gold has to be paid TRUE FALSE B

90 ------exempted from the Wealth Tax Gold Deposit Scheme MF Both A and B None of this C

91 Many investors invest money in Bank FD and not in Debt market because Lack of Interest Lack of awareness Lack of Money Lack of confidence B

92 Interest earned in Bank FD is Taxable each year TRUE FALSE A

93 TRUE FALSE A

94 The third stage of the wealth cycle is Accumulation Transition Reaping Intergenerational Transfer D

95 TRUE FALSE A

96 Risk appetitte ---------- as no of dependant menber increases Decreases Increases No change Any of the above A

97 Many-------have made available the risk profiling tool on their web sites AMCs Research Houses Both None of this C

98 ------is the decision outcome based on the market behaviour Tactical Asset Allocation Strategic Asset Allocation Flexible Asset Allocation Fixed Asset Allocation A

99 Many Financial advisor work on the Model Portfolio TRUE FALSE A

100 Which are the aspects that affect the Risk profiling of the investors? Family Information Financial Information Personal Information All of the above D

Private Fund Regulatory and Development Authority

Provident Fund Regulatory and Development Authority

Pension Fund Regulatory and Development Authority

National Conversion Exchange

The primary objective of the Financial Planner is to make available the right amount of money at the right time.

In many health insurance policies, the customer has to bear the expenses and that can get reimbursed from the Insurance company

NISM Mock Test 7

PRACTICE KIT – PAPER 7

No. QUESTION OPTION A OPTION B OPTION C OPTION D Answer

1 Trust R & T Sponsor AMC C

2 AMFI do the following activity Compute NAV Manages money under None of the above A

3 B

4 In creating of model portfolio which is the first step Deciding the Asset Allocation Identify financial Goal Selection of Sector Selection of the scheme A

5 TRUE FALSE A

6 TRUE FALSE B

7 Remains the same Decreases Increases Insufficient data C

8 B

9 75% investment in debt is suggested to Young call centre executive A

10 Cautious Investor Conservative Investor Adventurous Investor Aggressive Investor D

11 100000*(1+0.05)^3 100000*(1+0.05)*3 100000/(1+0.05)^3 100000/(1+0.05)*3 C

12 PAN proof Debit card with photo ID Credit card with Photo ID Voter ID proof C

13 PFRDA Insurance Companies AMCs PFMs D

14 C

15 Which of the following is not available in SID Type of Fund Risk Factor Due Diligence certificate None of the above D

16 Legally SAI is the part of SID TRUE FALSE A

17 The date of the applicablity of the NAV is not dependent on C

We have to do the registration of the mutual fund with the SEBI. Who gets registration done

Publish NAV, AUM of the fund house and maintain and publish industry data

In a liquid fund a application for repurchase comes at 3.30. Whats is the NAV which would be available to it

Closing NAV of the date of application

Closing NAV of the next business day

Closing NAV of the day preceeding the next business day

Closing NAV of the day preceesing the date of application

Once the asset allocation is decided, sharpe ratio can help us to select the good debt and equity Schemes

Once the asset allocation is decide, treynor ratio can help us to select the good debt and equity schemes

With the increase in the regular income from the job risk taking ability of the investor _________

A repurchase comes in a GILT fund at 2.30 pm. Whats would be the NAV available to the redemption

Closing NAV of Next Business Day

Closing NAV of the Application Day


Closing NAV of the day preceeding the Application date

Aged couple with no immediate family support

40 year old man with a family with grown up children

Yound couple with 2 school going kinds

An investor with interest to earn high return and willing to take high risk are refferred to as

A person requires 1,00,000 rs for the specific goal after 3 years. If we want to known what amount he needs to invest no to get the said amount at rate of 5%. which of the following formula needs to be used

For an Micro SIP which one of the following is not a valid photo ID proof

The responsiblity to manage funds in the new pension scheme is with

Where you get the information in regards to the key personals involved in an AMC

They are not published as it is not very important for the investor

They are published on the website of the mutual Fund

Available in SAI ( Statement of Additonal Information )

Time at which the application is submiited

b) Scheme in which the money is invested

The day on which the application is submiited

The amount which is getting invested

NISM Mock Test 7

18 TRUE FALSE A

19 C

20 0.00125 Nil 0.0025 0.00017 A

21 0.00125 Nil 0.0025 0.00017 A

22 STT paid on the re purchase of units by the AMC 0.00125 Nil 0.0025 0.00017 C

23 ELSS GOLD ETF Index ETF Diversified Equity Fund B

24 TRUE FALSE B

25 Review the financial plan B

26 TRUE FALSE A

27 A

28 TRUE FALSE B

29 TRUE FALSE B

30 Maximum expense that can we charged in a debt fund is 0.0175 b) 0.75% 0.025 0.0225 D

31 In case of the growth option which of the following is not true There is no dividend declared There is a Tax Deffereal C

32 TRUE FALSE B

33 10 8 Not sufficient Data 5 A

34 TRUE FALSE B

35 0.36 3.6 3 0.25 B

36 TRUE FALSE A

37 Liquid Fund Diversified Equity Fund ETF Sector Fund A

The AMFI allots unique the ARN no which is valid for the period of three years

The following would not affect the trail commission to the advisor in mutual Fund

Portfolio value going up with the increase in the market

Investor making fresh purchase during the period

Change in the unit capital of the the scheme

Investor redeeming the money during the period

The STT paid on the equity mutual fund sold on the stock exchange is

The STT paid on th equity mutual fund purchased on the stock exchange is

Which of the following when transacted on the stock exchange STT is not applicable

Its is advisable for an average investor to do Tactical Asset allocation for planning his retirement

In case of sudden wealth which among the following is least advisable

Park the money in the liquid fund for a short time

Invest all money into equity at one go

Start STP from liquid fund into Equity Funds

Tactical asset allocation is suitable for seasoned investor with large investible surpluses

An application for re purchase in equity comes at 3.30. What would be the applicable NAV

Closing NAV of Next Business Day

Closing NAV of the Application Day


Closing NAV of the day preceeding the Application date

In case there is a redemption from a NRI who have invested the money on a non repatriable basis. The mutual would pay in dollors as redemption

The investment grow faster in dividend re investment options as compared to the growth option because more units are added on dividend reinvest

The NAV capture the full value of the porfolio gain

The number of units increases over period

We require the board resolution from companies to invest is mutual fund as it may not be specified in the Memorundum and Articale of Assoiation to invest in such schemes

If the company have 10 cores if Issued shares. The profit it makes is 105 coree. IT pays 5 crore as tax. Also pays 20 crore as dividend what is the EPS

An investor in the debt scheme who completely want to eliminate investment in equity should invest in MIP

The fund have an average asset of 300 crore. The portfolio turnover for the portfolio is Rs 1000 crore. For how many months the investment are held for

The floating rate fund hold on to there value even if the interest rate are fluctuating

Performance of the fund is most sensitive to the expense ratio in which of the following Fund

NISM Mock Test 7

38 Who among the following are not distributor for Mutual Funds National Distributors Branches of public Sector Bank Branches of Forein Banks C

39 Importance of credit rating agency is most important in Equity Funds Secutised Debt ETF B

40 Full form of AGNI AMFI Guideline for Non Indians A

41 Debt Oriented Funds Balance Funds Liquid Funds Equity Funds D

42 Sector selection is the key decision in the Bottom Up Apprach TRUE FALSE B

43 Illiquid Shares would be valued at Value Decided by the broker None of the above B

44 Tax consultant should not advice financial planning to his client TRUE FALSE B

45 Mother want to set apart Rs 25 lakhs in 3 years time Financial Goal Asset Allocation Financial Planning Financial Desire A

46 Followinf is the Asset Allocation Art and Gold Fund Growth and Value Fund Active fund and Passive Fund B

47 TRUE FALSE B

48 Whats is an NFO Investments? A

49 Whats is true about the FMP NAV dose fluctuate No defaul Involve All of the above C

50 SAI needs to be updated every Yearly Monthly Quarterly Half Yearly C

51 Who is responsible for the information available in OD Trustee AMC Sponsor Custodian A

52 CD CP T Bills Gilt Scheme C

53 Which of the following credit rating is not required Shor term debt Fund Liquid Schemes GILT Schemes FMPs C

54 TRUE FALSE A

55 Which of the asset have the higest risk to be stolen Real Estate GOLD Mutual Fund Bank Balance B

56 TRUE FALSE B

57 Share price of the Gold Mining Company is dependent on Gold Reserve Gold Price All of the above D

58 Expense ration is more important in case of Offshore Fund Equity Fund Debt Fund Sector Fund C

59 Peer Group Asset Alllocaton Model Portfolio Tracking error A

Branches of reserve bank of India

AMFI gudieline and Norms for Intermidiary

AMFI guideline and norms for Investment

AMFI guideline for Asset Management Company

Which of the following scheme is exempted from the divident distribution Tax

Fair market value as the the guidelines of SEBI

Price decided by the offmarket Trade

Dividend payout and Growth Option

Limit of the commission to be paid to distributor is decided by SEBI

Investment done by any investor in the new Scheme

Additonal Purchase by the existing investor

First time investment in any of the mutual Fund Scheme

Additional Purhase by the existing investot in another scheme

Returns can be reasonably predicted before the maturity

Which of the following government secuity have leasr maturity period

Insurance is more important in case of Physical Asset Vis a Vis financial Asset

Most best way to decide the risk appetite of the person is to ask client that “ how mush risk you are ready to take in the market”

Quality of the operation of the company

While construction of the portfolio the relative performance is done with

NISM Mock Test 7

60 FALSE TRUE A

61 Between whom the Trustdeed is executed between Trustee and Sponsor Sponsor and Custodian Trustee and AMC AMC and Sponsor A

62 Repurchasing the predecided no unit at the regular interval is called STP SWP SIP All of the above B

63 TRUE FALSE A

64 Applicable NAV for the different scheme is as per the following time Office time of AMC Office time of R&T As per the time of stock market D

65 Correct and complete information All of the above D

66 TRUE FALSE B

67 TRUE FALSE A

68 Churning of the portfolio by the Fund Manager is called Portfolio Turnover Ratio Liquidity Ratio Annual Turnover Ration All of the above A

69 Invesment in a Real Estate Mutual Fund is Highly illiquid D

70 Advantage of investing in PPF is Loan is available any time Tax free return every year D

71 Self Regulatory Organisation controls All his member completely All mutual fund company All share brokers B

72 In case of Joint holder the pan card requriment for All joint holders Any One B

73 Maximum number of nominee which can be added 5 1 3 2 C

74 5 3 3 6 D

75 Which is the right Sequence Liquid Fund, MIP,Gilt Fund Gilt Fund.Liquid Fund,MIP C

76 TRUE FALSE A

77 An employee of the mutual Fund can be an Agent TRUE FALSE B

78 Commission on Investment done by Sponsor in a Fund is Not Payable Payable to Sponsor None of the above A

79 TRUE FALSE A

80 Code of Conduct for AMC Personnel & Trustees are mentioned in Chapter II Chapter IV Schedule II D

The balance funds based on flexible Asset Allication is lower riskier than high yield debt fund

Unclaimed investment amount and dividend can be demand by the investor

Cut-Off time decided by SEBI for various MF scheme

While empannel with the AMC, every distributor have to provide the following

Commitment to abide by instruction given as also statutory codes and guideline

Provide all information and document that the AMC may ask for from time to time

Transaction done of MF on the NSE NEAT and BSE Start the exchange gurantee the settlement of Funds

Low P/E ratio indicate that it is unlikely to replicate its past performance

Beyond the means of the retail investor

Extremally Liquid and cost effedctive

Offer the benefit of both real estate and Mutual Fund

Premature withdrwal is allowable after one year

Any amount of investment in the scheme

All his member to the limited extent

1st and 2nd Holder Only 1st Holder

In case New Pension scheme how many PFM( Pesion Fund Managers) are managing the money

Diversify Debt,Gilt Fund, Liquid Fund.

MIP ,Liquid Fund, Diversify Debt.

In Lower Interest Rate Senario Debt Product of MF will Generate higher return compared to Fixed Deposit.

Payable to Distributor whose ARN is mentioned in the Application Form

Book Value of a Share is dependent on Accounting Policies of the company

Schedule V ( 5th Schedule)

NISM Mock Test 7

81 SEBI Trustees Sponsor R & T A

82 Feeder Fund can invest in International Market as Only International Equity Only International Debt All of the above A

83 Tax Deferral is available in Growth Dividend Dividend Reinvest A

84 Benchmark of Sectoral Fund investing in Banking Sector would be BSE Bankex Nifty Junior S&P Nifty S&P 500 A

85 Before going to SEBI for approval of a Fund Launch AMC needs to Take approval from Trustees Print the application Form Finalise the Launch Date All of the above A

86 Which of the Following Fund is most Sensitive to Expense Ratio Liquid Fund Index Fund Equity Fund Off shore Fund B

87 ASBA is an Excellent Facility for Additional Purchase in a Fund TRUE FALSE B

88 TRUE FALSE A

89 Indexation means All of the above B

90 Investor in Reaping Phase would primarily invest in Equity Securities yielding Regular Return Both None of the above B

91 Most of the AMC publish Portfolio of their scheme on their Website Daily Monthly Six Monthly Yearly A

92 Difference between Unit Certificate & Account Statement There is no difference A

93 Which of the following is not the scheme specific risk factor? D

94 Expense Ratio of an Index Fund is 0.01 0.0125 0.025 0.015 D

95 TRUE FALSE B

96 In NPS Tier – I account is compulsory for opening Tier – II account TRUE FALSE A

97 TRUE FALSE B

98 SIP can be done by Standing Instruction ECS PDCs All of the above D

99 Concentration risk is highest in Equity Share Bank deposit Real Estate Commodity B

100 Accumulation phase Transition phase Distribution phase A

If complaint of an investor is not solved by AMC, investor has to complain to

Anywhere as per Investment Objective of the Fund

Converting Units of a Mutual Fund from Demat Form to Physical & Vice Versa is Possible

Finalising the benchmark for the fund

Adjusting the Purchase Price of the Fund considering the Inflation

Considering the growth of partcular asset class

Unit certificate shows only the closing balance while account statement shows opening balance, transactions and closing balance

Unit certificate is issued at the time of NFO and account statement are send consecutively

Account statement shows closing balance and unit certificate shows opening balance, transactions and closing balance

Risk arising from the schemes objective

Risk arising from the non-diversification

No previous experience in managing a fund

Movement in NAV because of the market movements.

A Financial Planner can use any of the Model Portfolio available on the Web

A Retired couple with Zero income should invest all the money in Liquid Fund

A high amount of equity investment is suggested to the investor if he is in which stage ?

No such relation with any phase of life.

nism paper 1 to 7 09112011

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