NISM Practice

______ are suitable for investors with a long term investment horizon and looking for growth.

• Equity funds
• Income funds
• Liquid funds
• Long duration funds

A custodian of a mutual fund scheme performs which of the following functions?

• Keep safe custody of the securities held by the mutual fund scheme
• Issue account statements to the unit holders
• Issue fund portfolio statement to the scheme investors
• Execute the buy and sell orders in the securities market on behalf of the mutual fund

A mutual fund can have a common _____ for all its schemes.

• Scheme Information Document (SID)
• Key Information Memorandum (KIM)
• Statement of Additional Information (SAI)
• Offer Document

A portfolio with a beta less than 1 is ________.

• Equally risky than market
• More risky than market
• Less risky than market
• Highly risky compared to market

All the transactions in securities by key personnel (who are directly involved in investment operations) of mutual fund schemes should be disclosed by the Asset Management Company (AMC) to its compliance officer at least on __________ basis.

• Monthly
• Half yearly
• Yearly
• Quarterly

An investor wants to invest Rs. One lakh in a mutual fund scheme but does not have a PAN card. If the investor does not fall in any of the exempt investor categories, what is the option available to the investor?

• A PAN card is mandatory and the investor cannot invest without one.
• The investor may invest by signing up for an SIP and get exempt from the requirement for PAN card
• The investor can provide other prescribed proofs of identity such as Voter's Id, Aadhaar card and Passport.

As per the SEBI Advertising Code for mutual funds, NO celebrities should endorse any schemes of a particular mutual fund. State whether True or False.

• true
• false

Asset Management Companies (AMC) in India are members of Association of Mutual Funds in India (AMFI). State whether True or False.

• true
• false

Code of conduct for Asset Management Companies (AMCs) and Trustees is specified under Schedule V of the SEBI (Mutual Funds) Regulation, 1996. State whether True or False.

• true
• false

Financial goal setting involves _____________.

• Presenting financial planning recommendations
• Determining risk profile
• Ascertaining asset allocation
• Setting monetary goals and needs of a client