Welcome to your AMFI Mock Test: NISM Mutual Fund Distributor Certification Exam

What is mutual fund ?

Its an vehicle to mobilize money from investors

It’s a investment mandate to invest anywhere

Mutual funds is fund of funds

None of the above

Which type of mutual fund units are listed on stock exchange ?

Open ended funds

Gilt Funds

Liquid Funds

Close ended funds

Which of the following is not a Mutual Fund Scheme type ?

Debt Fund

Balanced Fund

Equity Fund

Venture Fund

What is ETF ?

Exchange Traded Fund

Exchange Traded Finance

Exchange Traffic Fund

None of the above

An investor wish to switch his equity funds to money market, what would be your advice to him ?

He should switch to money market when stock market is at its peak and reinvest in equity funds at lower levels.

He should not switch his portfolio and wait for better time

He should liquidate his portfolio and invest after one year

He should only start investing in money market funds

High portfolio turnover of the fund result in

Higher growth

Less returns

Higher transaction costs

All of the above

Money Market Mutual Fund invests in ?

Government Securities with maturity less than 1 year

Equity options

Corporate bonds

Preference shares

Running a equity mutual fund requires

Trading skills

Money market skills

GoI Securities skills

Equity analysis skills

Yield-to-maturity of a debt fund's portfolio is more important when the investment objective is

Income level

Liquidity

Yield

Final return

10.

A fund's declared NAV does not include loads

True

False

11.

Who is best placed to advise investor on his overall financial situation

Financial Advisor

Stock broker

Insurance Advisor

Mutual Fund Advisor

12.

Mutual Fund objective is determined by ?

Scheme

Option

Amount

Market Price

13.

What is legal structure of Mutual Fund

It is established as a trust

The schemes invest in securities (including money market instruments) or gold or gold-related instruments or real estate assets.

The units are sold under one or more schemes

All of the above

14.

Assets of Mutual Funds are held by ?

Stock Market

Trust

Custodian

AMC

15.

What should be the minimum net worth required to form AMC ?

Rs 100 Crore

Rs 50 Crore

Rs 25 Crore

Rs 150 Crore

16.

Within how many days of dividend declaration, warrants will have to be sent to investors

17.

SEBI Regulates which of the following

Mutual Funds

Depository

Stock Exchanges

All of the above

18.

Which is not a type of Scheme

Open Ended Scheme

Growth Scheme

Close Ended Scheme

None of the above

19.

Which type of fund has moderate risk

Equity fund

Money Market Fund

Short Term Income Fund

Equity Focussed Fund

20.

Key items of KIM

Risk Profile of Scheme

Name of the AMC

Loads and expenses

Fund Manager and scheme

All of the above

21.

Dividend warrants shall be despatched within

30 days of the declaration of the dividend

15 days of the declaration of the dividend

7 days of the declaration of the dividend

21 days of the declaration of the dividend

22.

How many Unit holders of a Scheme can pass a resolution to wind- up a Scheme.

50%

70%

80%

75%

23.

What is the benchmark for Long Term Debt Schemes

7 year dated GoI Security

10 year dated GoI security

Stock Exchange

None of the above

24.

Trail commission is linked to NAV based portfolio value

True

False

25.

Institutional Distributors reach includes

Stock Brokers

Employees

Agents

All of the above

26.

Amit has 2500 Units of a scheme which is valued at 5 lakhs: Calculate NAV

Rs 250

Rs 200

Rs 150

Rs 2000

27.

Dividend per share to current market price is ?

Market yield

Investment criteria

Dividend yield

Coupon Rate

28.

How is PE ratio (Price to Earnings is calculated) ?

Market Price / EPS

Earnings per share / Outstanding shares

Market price /Total Outstanding shares

None of the above

29.

What are called as liquid stocks

Regularly Traded

Highly priced

Less Traded

Penny stocks

30.

The accounting policies of a fund should be in accordance with

GAAP

IFRS

SEBI Guidelines

ICAI Guidelines

31.

It is compulsory to use fund agents/intermediaries for investing MFs

True

False

32.

Which section of the society need more advice on investing in Mutual Funds

Pvt Ltd Companies

Agents

Individuals

Large Corporates

33.

How fund distribution expenses are covered

Agent fees

Reserves & Surplus

Portfolio returns

Entry and Exit load

34.

Trail commission means paying

Commission at the end of the tenure

Up front commission

Part of the commission up-front and the balance in phases

Equall commission for three years

35.

Fund Sponsor's share of contribution is

50% or more

40% of AMC networth or more

Doesn't have to contribute

None of the above

36.

What indicates the expected trends in interest rates ?

Economic survey

Annual Budget

Stock market

Yield Curve

37.

If 10-year government securities Yield 9% and a 10-Year fixed deposit in a company yields 11%, the yield spread is

2.1%

2.5%

38.

Bond with a coupon of 10% when interest rates for similar maturities are 13% will sell at

At par

Above par

Below par

As per prevailing rate

39.

Foreign exchange rate fluctuations have no impact on Interest rates

True

False

40.

If the NAV of an open-ended fund was Rs.8 at the beginning of the year and Rs.15 after 13 months, the annualised change in NAV is

65.9%

80.5%

77.51%

80.77%

41.

Fund expense ratio depends on

Stock market variations

Interest rates

Fund size

All of the above

42.

Calculate NAV : Value of stocks is Rs 200 Cr and Fees Payable is Rs 2 Cr with Number of Units Outstanding are 5.15 Cr.

Rs 39.80

Rs 37.00

Rs 42.50

Rs 37.86

43.

Income funds NAV is calculated upto how many decimals

44.

Providing Funds for Son's new Motor Bike is

Strategic financial Plan

Financial Goal

10 Year investment Plan

All of the above

45.

How much you need to buy 500 units of a scheme having an entry load of 1% and NAV of Rs.14 ?

Rs 7550

Rs 8150

Rs 7060

Rs 7070

46.

Gilt Fund Invests only in ?

Equities

Money Market Securities

Mutual Funds

GoI Securities

47.

Which of the following is true in automatic reinvestment plan?

Compounding is the major benefit of automatic reinvestment

Automatic reinvestment of all income and capital gains

In reinvestment accumulation of additional units happen automatically

All of the Above

48.

NAVs of equity funds are affected by

Stock Market movements

Stock prices of the invested companies

Real Estate prices

A and B

49.

Which of the following is an equity instrument

Preference shares

Non-Convertible Debentures

Debt from banks

None of the above

50.

Market capitalisation of a company is calculated by multiplying the number of outstanding shares by

Sector average price

Current market value of each share

Goodwill of the company

Dividend declared

Recommended for you: Finance Quiz:

NISM Series : Mutual Fund Distributors Certification Examination: Mock Test

Dear Candidate,

1. This is a Mock Help prepare for Examination of NISM-Series:Mutual Fund Distributors Certification Examination.

2. This mock test has 50 questions of 1 marks each to be completed in 60 minutes.

3. There is no negative marking in this mock test

4. The passing score on the examination is 50% which is a good sign

5. This mock examination is only to give the candidates an experience of NISM testing system and does not claim to be 100% correct.

6. Please note that passing this mock test would not make you eligible for claiming a certificate for NISM-Series: Mutual Fund Distributor Certification Examination, this test however is to help you prepare well and test your knowledge on NISM Mutual Fund Distribution Exam.

We wish you all the best for your examination!

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