NISM Chapter 7 8%

As per the fair valuation principles laid out by SEBI, it is mandatory to disclose the valuation policy in

• Fund fact sheet
• Statement of Accounts
• Statement of Additional Information
• The fair valuation principles are not to be put in public

What is the maximum Total Expense Ratio chargeable in case of index funds?

• 1 percent of the daily net assets
• 1.5 percent of the daily net assets
• Any amount that the AMC may deem appropriate
• It depends as the TER changes in line |with the size of the scheme

In case of mutual fund schemes, dividends can be paid only out of

• Premium reserve account
• Distributable surplus generated by the scheme
• Unit capital
• Mark-to-market profits

Mutual funds are allowed to charge differential exit loads based on the amount of investment.

• True
• False

SEBI has banned mutual funds to charge entry load to the investors. State whether the statement is True or False?

• True
• False

Higher the appreciation in the investment portfolio, ---------would be the NAV.

• None of the below
• Lower
• Depending on its Scheme
• Higher

Which of the Following Expenses are charged to a Mutual Fund Scheme?

• Audit fees
• Custodian fees
• in case of a capital- oriented scheme, rating fees
• All of the above

NAV is to be calculated up to decimal places in the case of index funds, liquid funds and other debt funds.

• 1
• 2
• 4
• 3

When a security is not traded on any stock exchange for a period of prior to the valuation date, the scrip must be treated as a ‘non-traded' scrip.

• 30 days
• 15 days
• 6 months
• 1 year

In respect of convertible debentures and bonds, the non-convertible and convertible components shall be valued separately.

• True
• False