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WorksheetsNISM test 2
Total questions: 99
Worksheet time: 8hrs 15mins
Name
Class
Date
1.
In case of market correction , takes more hit than Fund.
a)
Growth , Value
b)
Momentum , Value
c)
Value , Growth
d)
Growth , momentum
2.
Sponsor's net worth should be positive for
a)
Last 5 years
b)
last 2 years
c)
last 3 years
d)
last year
3.
At time of NFO, which document compulsorily filed with SEBI
a)
SID
b)
SAI
c)
Annual Report
d)
Memorandum and Articles of Association
4.
Collection and payment of fund is a responsibility of
a)
Custodian
b)
R&T
c)
Banker
d)
AMC
5.
Other than Indian residents, rest have to also comply RBI regulations
a)
TRUE
b)
FALSE
6.
Which of the following not included in KIM
a)
Details of Key personal of AMC
b)
Tax benefit of MF
c)
Expense and Load structure of scheme
d)
Due diligence certificate of AMC
7.
Function of OD is
a)
Give detailed information about scheme to investors
b)
Give current NAV
c)
Gives Fund suggestion
d)
None of the above
8.
What should be the Sector Fund Allocation for a single income family having small investable surplus
a)
0
b)
0.7
c)
0.5
d)
0.3
9.
Which expense can be not charged to scheme?
a)
Expenses on investor communication
b)
Service tax
c)
Fees of custodian
d)
General administration expense of AMC
10.
Low PE indicates that stock is cheap and you should buy it
a)
TRUE
b)
FALSE
11.
Which of the following need not be included in KIM?
a)
Detail of sponsor
b)
Minimum investment amount and cut off time
c)
Risk profile of the scheme
d)
Opening and closing dates of NFO
12.
As per income tax act, Arbitrage Funds are taxed as per debt scheme
a)
TRUE
b)
FALSE
13.
Which is purely treated as an international asset
a)
Equity
b)
Gold
c)
Real Estate
d)
Debt
14.
Transfer of security from one scheme to another scheme is allowed in MF
a)
TRUE
b)
FALSE
15.
Calculate the sales price of a unit when NAV is 15 and exit load 1%
a)
15
b)
14.85
c)
15.15
d)
15.5
16.
If you get a cheque of 1 cr in a Gilt Fund at 2.30 pm, NAV date will be
a)
NAV at 2.30pm
b)
NAV at 3pm
c)
Same day NAV
d)
NAV of fund realization date
17.
Who allots Amfi Registration Number?
a)
AMFI
b)
SEBI
c)
AMC
d)
none of the above
18.
Which distribution channel don't have a huge branch network?
a)
Institution
b)
Corporate distributor
c)
Bank
d)
IFA
19.
Dividends in the hands of investors are taxable at the rate of
a)
0.1
b)
0.15
c)
0.33
d)
Tax Free
20.
Last step in the process of designing model portfolio
a)
Sector selection
b)
Asset allocation
c)
Scheme selection
d)
Client selection
21.
Goal based approach of financial planning focuses on
a)
Risk profiling
b)
Achievement of the goal of investors
c)
Tax liability of investors
d)
Investible surplus of the investor
22.
What is the rate of return of PPF
a)
20 Percentage
b)
8 Percentage
c)
8.50 Percentage
d)
9.25 Percentage
23.
What is the indicator of the risk adjusted performance ratio?
a)
Beta
b)
Standard Deviation
c)
Sharpe's Ratio
d)
Variance
24.
Interest Rate sensitivity in Bond fund depends on
a)
Credit Profile
b)
Avg Maturity
c)
YTM
d)
Current Yield
25.
SEBI doesn't allow passing of commission to
a)
Distributor
b)
Investor
c)
Bank
d)
IFA
26.
If you get a 50L in equity fund at 3:30 pm today,investor will get the NAV of
a)
Yesterday
b)
Today
c)
Tomorrow
d)
NAV of fund realization date
27.
Index against which performance of a fund is measured, is called
a)
Tracking Error
b)
Benchmark
c)
Investment objective
d)
Ex-mark
28.
FMP are essentially a closed ended Scheme
a)
TRUE
b)
FALSE
29.
The information regarding Which category of investors can invest in MF, is given in
a)
Offer document
b)
SAI
c)
MIN
d)
SIN
30.
Who can not be the distributor of the AMC
a)
IFA
b)
Bank
c)
Employees of AMC
d)
All of the above
31.
Asset allocation means
a)
Putting all eggs in Same basket
b)
Investing according to Market
c)
Investing in different assets
d)
investing only in Equity Gold and Silver
32.
MIP is a Debt Scheme
a)
TRUE
b)
FALSE
33.
Asset allocation should be in line with
a)
Financial Goal
b)
Age of Client
c)
Risk Appetite
d)
All of the above
34.
A young investor having objective of capital appreciation should invest in
a)
GILT
b)
Liquid
c)
Equity
d)
debt
35.
In NPS class-C predominantly invests in
a)
Equity
b)
Debt
c)
Gold
d)
Real Estate
36.
Fund's risk relative to market is measured by
a)
tracking error
b)
Sharps' Ratio
c)
Treynor
d)
Beta
37.
Which one is false about debenture
a)
Issued by PSU
b)
High credit risk
c)
It has maturity
d)
Duration is greater than 1 yr
38.
Investor has read the OD and then the invested in the fund and fund goes down, then he
a)
Gets remedy from SEBI
b)
Cant sue the AMC
c)
Gets remedy from AMC
d)
Gets remedy from NSE
39.
STT charge on
a)
equity Derivatives
b)
Equity MF
c)
Equity Schemes
d)
All of Above
40.
Which function AMC can't do in house
a)
Custodian
b)
Accounting
c)
Distribution
d)
Fund management
41.
Value of Bond goes down when
a)
Interest rate goes down
b)
Interest rate goes up
c)
IRR goes down
d)
YTM goes down
42.
Which one is not exempted in wealth tax
a)
Gold sector fund
b)
Gold deposit
c)
Gold ETF
d)
Gold
43.
Institutional distributors needs to be
a)
Registered with SEBI
b)
Registered with AMFI
c)
Listed on stock exchange
d)
All of Above
44.
Standard risk are
a)
Uncommon to all
b)
Common to all
c)
Specific to a scheme
d)
Systematic
45.
Request for purchase can be made
a)
In units and amount
b)
In units only
c)
In units or amounts
d)
In amount only
46.
In NPS investors get choice of the asset class but don't get choice of investment manager
a)
TRUE
b)
FALSE
47.
In case of online transaction, transaction time is applicable
a)
Time shown in the computer of investor
b)
Time as web per web server
c)
Mid night
d)
Next day morning
48.
If investors invest through demat can AMC asks for KYC requirement
a)
TRUE
b)
FALSE
49.
According to the asset allocation rule, equity exposure should be equal to
a)
Age
b)
100-age
c)
Age-100
d)
1
50.
Mutual fund is made up of
a)
Pool of trustees fund
b)
Pool of institutional investors
c)
Pool of investment managers
d)
Pool of investment money
51.
Who can not invest in mutual funds?
a)
Foreign companies
b)
Banks
c)
insurance companies
d)
NBFC
52.
Which is same as of OD?
a)
SID
b)
SID+SAI
c)
SAI
d)
KIM sumarry of SAI + SID.
53.
Mutual fund distributor in India are member of AMFI.
a)
TRUE
b)
FALSE
54.
Mutual fund in India is regulated by SEBI(Mutual Fund) act 1996.
a)
TRUE
b)
FALSE
55.
Which of the following is appointed by trustee?
a)
Custodian
b)
Distributor
c)
AMC
d)
R&T
56.
KIM has to be updated
a)
Twice in a year
b)
Quarterly
c)
Once in a year
d)
Once in two year
57.
Which of the following is more risky?
a)
Liquid fund
b)
Index fund
c)
growth fund
d)
gilt fund
58.
Material changes in KIM need to be updated
a)
once in a year
b)
Half yearly
c)
Whenever material changes take place
d)
Once in two year
59.
If an investor wants full exposure of gold his investment should be into
a)
Gold ETFs
b)
Physical gold
c)
Shares of gold mining company
d)
All of the above
60.
If an investor invest 1 lakh rupees in a debt fund after 365 days it's value is 107756/- what is CAGR?
a)
0.0775
b)
0.0747
c)
10% or 20% with indexation
d)
insufficient data
61.
If an investor invest Rs.100,00,000 in Equity MF Scheme at 3.30 pm through outstation cheque he will get NAV of
a)
Same day closing value
b)
When fund gets credited
c)
Previous day closing value
d)
Next day closing value
62.
Trail commission to advisor helps in --
a)
Retaining the investor for long term.
b)
Portfolio Churning
c)
New client acquisition
d)
None of the above
63.
Exit load
a)
Is ame for all schemes
b)
Is same for all amc's
c)
Varies from investor to investor
d)
Varies from scheme to scheme.
64.
Which fund is an actively managed fund?
a)
Index fund
b)
Diversified equity fund
c)
Growth fund
d)
B&C
65.
Arrange in correct sequence
a)
Risk profile, fund allocation, portfolio construction.
b)
Risk profile, portfolio construction, fund allocation.
c)
Portfolio construction,risk profile, fund allocation.
d)
Fund allocation. risk profile, portfolio construction
66.
Which of the following is against the ethics & Code of conduct guide line of AMFI
a)
Churning investor's money to get better returns
b)
All the associates of a distributor should be amfi approved.
c)
Keeping the interest of all unit holders
d)
All of the above
67.
Minimum contribution of a sponsor in an AMC should be-
a)
0.5
b)
0.6
c)
0.4
d)
0.25
68.
PAN card is not required in case of-
a)
NRI
b)
Minor & Senior Citizen
c)
Corporate institution & trust.
d)
None of the above
69.
FMP can give better interest than a Bank Deposit.
a)
TRUE
b)
FALSE
70.
The insurance associated with new pension schemes are regulated by-
a)
PFRDA + IRDA
b)
IRDA
c)
PFRDA
d)
None of the above.
71.
In India mutual funds are-
a)
Govt. institutions
b)
Company
c)
Trust
d)
NBFC
72.
Initial issue expenses in a liquid fund has to be-
a)
0
b)
1.25E-4
c)
0.25 percentage
d)
none of the above
73.
A schemes NAV value increases for the period of 2 yrs . it will show-
a)
Absolute return
b)
Simple return
c)
compounded annualized return
d)
all of the above
74.
In KIM it has been mentioned that the 65% investment will be in equity and equity related instrument. this is called-
a)
Policy of scheme
b)
Objective of scheme
c)
portfolio of scheme
d)
None of the above.
75.
KIM is attached with ?
a)
Transaction slip
b)
Application Form
c)
Both A and B
d)
Neither a nor b
76.
Which is technical analysis-
a)
Volume & price behavior
b)
Mark to market
c)
book value analysis
d)
all of the above.
77.
Who keeps detail report of transaction-
a)
Custodian
b)
AMC
c)
R & T
d)
Distributor
78.
Formula to find out the Standard Deviation in excel is
a)
stdev
b)
sd
c)
stddev
d)
stddv
79.
Time stamp machine contains-
a)
Time stamping serial no
b)
Machine identification
c)
location code
d)
all of the above
80.
The expected return & yield of the scheme is mentioned in KIM
a)
TRUE
b)
FALSE
81.
How frequently NAV of an equity scheme are calculated
a)
Daily
b)
Weekly
c)
Quarterly
d)
once in financial year.
82.
If beta of a scheme is less than one the the fund is-
a)
More risky compare to market
b)
Less risky compare to market
c)
neither risky nor profitable.
d)
beta doesn't make any impact on scheme performance
83.
What is not true objective of life insurance-
a)
Risk coverage
b)
Investment
c)
Both
d)
None of the above
84.
Unit capital is issued at-
a)
10
b)
25
c)
50
d)
100
85.
Fund management cost is more in-
a)
Passive fund
b)
Gilt fund
c)
Liquid fund
d)
Active fund.
86.
Independent trustee are appointed by-
a)
Sponsor
b)
SEBI
c)
AMFI
d)
All of the above
87.
Distributors are paid-
a)
Commission
b)
Fees
c)
Salary
d)
All of the above
88.
KYC is required for-
a)
Guardian in case of minor
b)
HUF
c)
Sole proprietorship firm
d)
All of the above.
89.
KYC is compulsory -
a)
For every investment
b)
50000
c)
50000 and above
d)
first time investment
90.
Formula for CAGR calculation is
a)
Interest * No of years
b)
(P1-P0)/PO*100
c)
((End Value/Start Value)^(1/ (Period)) -1
d)
None of above
91.
The NAV of a fund is 15 applicable exit load is 1%, purchase NAV would be-
a)
14.85
b)
15
c)
15.25
d)
15.65
92.
In case of breach of Code of conduct license is canceled by-
a)
AMFI
b)
SEBI
c)
Sponsor
d)
AMC
93.
Which is true in case of PPF?
a)
Partial withdrawal facility is available after one year
b)
Investment & return are tax free.
c)
Both
d)
None of the above
94.
A fixed term plan series is-
a)
As open ended fund
b)
A closed ended fund
c)
A fixed term bank deposit
d)
A fixed term corporate bond
95.
The P/E ratio is an important measure of a company's anticipated performance. it is calculated using.
a)
Market price and dividend
b)
Market price and earning per share
c)
Market capitalization and dividend
d)
Market price and face value
96.
Which of the following is not a function of R&T agent
a)
Creating maintaining and updating the investor record
b)
Updating unit capital of fund
c)
Processing dividends & redemption payouts to investors
d)
Settling investment transaction of the fund
97.
Prior approval of SEBI needs to be taken before a person is appointed as trustee
a)
TRUE
b)
FALSE
98.
Person, other than Indian residents, should also comply with RBI guidelines for investment in Indian mutual funds
a)
TRUE
b)
FALSE
99.
The first step of financial planning is
a)
Evaluating the various alternatives
b)
data gathering and goal setting
c)
establishing the client planner relationship
d)
Plan Review
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