NISM Basics

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Mutual funds units issued against purchase transactions would be subject to levy of stamp duty at ___of the amount invested.

• 0.5%

• 0.05%

• 0.005%

• 0.0005%

To whom does the profits or losses made by the MF belong?

• investors

• AMC

• Fund Manager

• Trustees

The Asset Management Companies have to disclose the Total Expense Ratios (TER) of the various schemes on their websites on a ______ basis.

• Daily

• Weekly

• Monthly

• Annual

Financial goals have to be defined in terms of _______ .

• Time horizon and external funds required

• Costs and economic policies

• Aspiration and desires

• Time horizon and money needed

Investors tend to extrapolate the current event into the future and expect a repeat. This is an example of ________ bias.

• Overconfidence

• Recency

• Herd Mentality

• Familiarity

Long Duration debt scheme invests in debt instruments with Macaulay duration _____ .

• between 1 year and 3 years

• below 1 year

• greater than 7 years

• 6 months and 12 months.

Segregated portfolio means _________ .

• a portfolio which is kept aside for a ‘rainy day’ or contingency fund

• a portfolio which is created out of debt or money market securities affected by a credit event

• a portfolio which is left after removing poor credit quality papers

• All of the above

Banks and NBFC's can lend money against ________ of mutual fund units.

• Nomination

• Redemption

• Pledge

• All of the above

Whom should the investor approach if his complaint is not resolved by the Asset Management Company (AMC) ?

• Securities and Exchange Board of India (SEBI)

• Custodian

• Company Law Board

• Ombudsman

Inflation Risk is also referred as _______ .

• Credit Risk

• Liquidity Risk

• Purchasing Power Risk

• none of the above