NISM VA Revision - Test 3 PDF

Performance Categories
Based on the performance of the students, we have framed the following categories to place you in accordance with
your performance
Performance Category Definitions
Excellent
Outstanding level of performance indicates that the candidate has done excellent work and mastered the
concepts.
High
High level of performance indicates that the candidate has done above average work and mastered almost all the
concepts.
Moderate
Acceptable level of performance indicates that the candidate has done average work and has mastered many of
the concepts.
Low
Needs improvement in performance indicates that the candidate has done and mastered very few or none of the
concepts.
Performance Criteria
PERFORMANCE CATEGORY Excellent
RANGE 91% to 100% of Max Marks
PERFORMANCE CATEGORY High
PERFORMANCE CATEGORY Moderate
PERFORMANCE CATEGORY Low
RANGE Below 60% of Max Marks
Performance Category based on student marks
/
SECTION (GROUP) NISM VA Revision -Test 3 (NISM VA Revision -Test 3)
EXCELLENT 91.00 and above

STUDENTS WHO BELONG TO 91 TO 100 PERCENTAGE
GROUP
HIGH 81.00 to 90.00

STUDENTS WHO BELONG TO 81 TO 90 PERCENTAGE GROUP
MODERATE 61.00 to 80.00

LOW Below 60.00

STUDENTS WHO BELONG TO BELOW 60 PERCENTAGE
GROUP
ASSESSMENT Overall Score
EXCELLENT 91.00 and above

STUDENTS WHO BELONG TO 91 TO 100 PERCENTAGE
GROUP
HIGH 81.00 to 90.00

MODERATE 61.00 to 80.00

LOW Below and equal to 60.00

STUDENTS WHO BELONG TO BELOW 60 PERCENTAGE
GROUP
Where do you stand?
SECTION NAME NISM VA Revision -Test 3 (NISM VA Revision -Test 3)
SECTION SCORE 41.00 / 100.00
CATEGORY L
OVERALL Overall Score
OVERALL SCORE 41.00 / 100.00
PEFORMANCE CATEGORY L
Recommendations and Suggestions

1. Based on your overall scores:
Your overall score falls in the L category. Please attain more knowledge and practice more number of questions.
2. Based on your section-wise performance:
You seem to be inadequate in all sections. Please attain more knowledge and practice more number of
questions.
3. Some general suggestions to optimize your score: /
The best performers plan and allocate equal time to each section.
Overall Performance Analysis

The below table shows section-wise analysis of marks scored by you, time spent by you, your percentage, your accuracy
and number of correct, incorrect, unanswered and marked for review questions.
MARKS SCORED BY YOU 41.00
TIME SPENT BY YOU (IN MINS) 15.05
YOUR SECTION PERCENTAGE 41.00%
YOUR SECTION ACCURACY 41.00%
TOTAL QUESTIONS 100
MAX NO OF QUESTIONS - TO ATTEMPT 100
QUESTIONS ATTEMPTED 99
CORRECT 41
INCORRECT 58
UNANSWERED 1
MARKED FOR REVIEW 0
SECTION (GROUP) OVERALL Total
MARKS SCORED BY YOU MARKS SCORED BY YOU 41.00
TIME SPENT BY YOU (IN MINS) TIME SPENT BY YOU (IN 15.05
MINS)
YOUR SECTION PERCENTAGE YOUR OVERALL 41.00%

PERCENTAGE
YOUR SECTION ACCURACY YOUR OVERALL 41.00%

ACCURACY
TOTAL QUESTIONS TOTAL QUESTIONS 100
MAX NO OF QUESTIONS - TO ATTEMPT MAX NO OF QUESTIONS - 100

TO ATTEMPT
QUESTIONS ATTEMPTED QUESTIONS ATTEMPTED 99
CORRECT CORRECT 41
INCORRECT INCORRECT 58
UNANSWERED UNANSWERED 1
/
MARKED FOR REVIEW MARKED FOR REVIEW 0
Note:The percentage (%) and accuracy below the prescribed values (60 %) are shown in red color
Below pie-chart shows section-wise percentage of marks scored.
Section-wise marks
NISM VA Revision -Test 3, 41
NISM VA Revision -Test 3
Impact of Incorrect Responses

Below table provides the marks lost due to incorrect responses.
NUMBER OF INCORRECT RESPONSES 58
MARKS LOST DUE TO INCORRECT RESPONSES 0
TOTAL SCORE IF INCORRECT RESPONSES 41

WERE NOT MARKED
In order to attempt more accurately, consider the following suggestions while attempting the questions:
1. If you are not able to solve a question correctly or have doubts in your approach towards the solution, skip it for
later.
2. Quickly revise the steps for avoiding calculation or casual mistakes.
3. Avoid guesswork.
Overall Preparedness Analysis

The below table represents the percentage of correct questions achieved at the analysis level.
Conceptual errors, for which you would require more reading and understanding of concepts.
Minor or careless mistakes, for which you would require a more composed and calm approach towards solving the
question paper.
/
Time Management
Below table shows the time you spent in each section.
TIME SPENT (IN MINS) 15.05
OVERALL Total time spent
TOTAL TIME SPENT 15.05
Recommendations
1. It is essential for each aspirant to plan and schedule time for each section diligently. This is important to score well
in each section and ultimately meet the cut-off.
2. This will also help you in attempting all the questions in each section and hence not missing the opportunity to
score more.
Response Change Pattern

Below table provides the number of times you have changed your responses while answering the test and also the
nature of those response changes.
CORRECT TO INCORRECT 0
INCORRECT TO CORRECT 0
INCORRECT TO INCORRECT 0
CORRECT TO UNANSWERED 0
INCORRECT TO UNANSWERED 0
It is suggested that guesswork should be avoided for any type of response changes. It has been observed that more often
than not, guesswork leads to an incorrect response thereby inviting negative marks which in turn has an adverse effect
on the overall rank.
You must use your knowledge, observation and elimination skills to arrive at the correct answer.
Interpretation and Suggestions

1. Incorrect to incorrect response change:
You may need to work more on the concept level, in order to gain confidence.
2. Incorrect to correct response change:
At the first glance you were not very sure about the solution. /
You must spend at least 1 minute per question and if you are not able to reach to the solution, you must revisit the
question to enhance your score.
Perform this response change only when you are confident or have spotted a mistake in the solution of your first
response.
3. Correct to incorrect response change:
You are not sure of the solution and have either applied a wrong concept or made a calculation mistake.
You need to practice more questions on the same concept.
4. Correct to unanswered response change:
You are not sure of the solution
You need to practice more questions on the same concept.
Perform this response change only when you are not confident of your solution.
You must try to spend at least 1 min before leaving it unanswered.
5. Incorrect to unanswered response change:
Your judgment of avoiding negative marks is right.
You must try to spend at least 1 min before leaving it unanswered.
Overview: NISM VA Revision -Test 3

The below table provides your marks in NISM VA Revision -Test 3 along with the average marks scored by the others
(students who cleared this assessment) and the marks scored by the topper.
MARKS SCORED BY YOU 41.00 / 100.00
YOUR SECTION PERCENTAGE 41.00%
YOUR SECTION ACCURACY 41.00%
TIME SPENT BY YOU (IN MINS) 15.05
Note:The percentage (%) and accuracy below the prescribed values (60%) are shown in red color
/
Question wise Analysis
Correct, 41
Marked for Review, 0

UnAnswered, 1
InCorrect, 58
Correct InCorrect UnAnswered Marked for Review
Performance Analysis: NISM VA Revision -Test 3

1. The below table analyzes your performance at question level
2. It highlights conceptually strong and improvement areas within the section and areas that require reinforcement of
concepts.
3. The accuracy of the response to each question and time spent are correlated and interpreted in terms of expert advice
on preparedness level.
Question wise details

Please click on question to view detailed analysis
= Not Evaluated = Evaluated = Correct = Incorrect

= Not Attempted = Marked for Review = Answered = Correct Option
= Your Option
Question Details
/
Q1. The Mutual Fund application form is attached to the …………
How to solve : KIM is a summary of the SID and SAI. It is more easily and widely distributed in the market.As per SEBI
regulations, every application form is to be accompanied by the
KIM.
Response : 3 Status : Incorrect
Options :
1. KIM
2. SAI
3. SID
4. AMC Memorandum
Timespent (in sec): 51 Correct to Incorrect: 0 Incorrect to Correct: 0 Incorrect to Incorrect: 0

Correct to unanswered: 0 Incorrect to unanswered: 0
Comments: You have most probably committed a numerical or conceptual mistake or you would have guessed the answer.
Q2. Where the scheme has been in existence for less than ---year, past performance shall not
be provided or advertised.
Options :
1. Half
2. one
3. two
4. three

Q3. For life-long investment in gold one should prefer Gold Futures as against Gold ETF - True
or False ?
How to solve : Gold futures contracts are traded in commodity exchanges and have an expiry date.Gold ETF's on the other
hand have no expiry date. They can be bought and the delivery takes place in Demat Form which can be held as long as you
want.
Options :
1. TRUE
2. FALSE

/
Q4. ……………are largely close-ended, but become open ended at pre- specified intervals.
How to solve : Interval Funds are largely close-ended, but become open ended at pre- specified intervals. For instance, an
interval scheme might become open- ended between January 1 to 15, and July 1 to 15, each year.
Minimum duration of an interval period in an interval scheme/plan is 15 days. No redemption/repurchase of units are allowed
except during the specified transaction period (the period during which both subscription and redemption may be made to
and from the scheme).
Options :
1. ELSS Funds
2. Sectoral Funds
3. Interval Funds
4. Close Ended Funds

Q5. NAV of income funds is to be calculated upto…….decimals.
How to solve : NAV is to be calculated upto 4 decimal places in the case of index funds, liquid funds and other debt funds.NAV
for equity and balanced funds is to be calculated upto at least 2 decimal places.
Response : 4 Status : Correct
Options :
1. 1
2. 2
3. 3
4. 4

Correct to unanswered: 0 Incorrect to unanswered: 0 Comments: You are on the right preparation track on this topic.
Q6. In mutual funds, the assets are held by ….
How to solve : The custodian has custody of the assets of the fund.Also as a part of this role, the custodian needs to accept and
give delivery of securities of the various schemes of the fund.
Options :
1. Fund Manager of that scheme

2. Registrar and Transfer Agents
3. Custodian
4. Trustees

/
Q7. The interest received from a Bank Fixed Deposit is fully taxable - True or False ?
How to solve : Bank FD interest is fully taxable.However if the investor does not fall in the tax bracket then its not taxed.
Options :
1. TRUE
2. FALSE

Q8. Cut-off timing guidelines are not applicable for
How to solve : The cut-off timing is not applicable for NFOs and International Schemes
Options :
1. International Funds
2. New Fund Offer (NFO)
3. Both of the above
4. None of the above

Q9. Past Performance is not indicative of future performance' - This statement…………...
How to solve : Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the scheme is a
standard risk factor
Options :
1. should be a standard risk factor for all schemes

2. should be present in all performance related advertisement of Mutual Fund
3. should be only for some specific schemes where this statement is valid
4. both 1 and 2

/
Q10. STT is not charged on---------- .
Options :
1. ELSS Funds
2. Arbitrage Funds
3. Gold ETF
4. Diversified Equity Fund

Q11. ---------------is a short term Government Security.
How to solve : Treasury Bills are short term debt instruments issued by the Reserve Bank of India on behalf of the Government
of India.Certificates of Deposit are issued by Banks Commercial Papers issued by Companies
Options :
1. Certificates of Deposit
2. Treasury Bills
3. Commercial Papers
4. All of the above

Q12. While calculating profits, all the expenses that relate to a period need to be considered,
irrespective of whether or not the expense has been paid. This principal is referred to as?
Options :
1. Accrual system
2. Legal entity system
3. Double entry system

/
Q13. Today’s costs can be translated into future requirement of funds using the formula:
Options :
1. A = P / (1 + i)^n
2. A = P X (1 + i)^n
3. P = A^n X (1 + i)
4. P = A^n X (1 + i)^n

Q14. The dividend the investor receives from an equity oriented scheme is tax- free for the
investor - True or False ?
Options :
1. TRUE
2. FALSE

Q15. The portfolio composition and operational features of a scheme are mentioned in the
Options :
1. SAI
2. SID
3. Addendum

Q16. The main objective of asset allocation is risk management - True or False
How to solve : The distribution of an investor’s portfolio between different asset classes like Equity, Debt, Gold etc is called
asset allocation.Asset Allocation is basically using the old proverb - ‘Don’t put all your eggs in one basket’ to guide investments
and managing the risks.
Options :
1. TRUE
2. FALSE

/
Q17. What is the amount required to buy 500 units at NAV Rs 46 if the entry load is 1%.
How to solve : 500 units X Rs 46 = Rs 23000/Rs 23000 + 1% = Rs 23230.

Options :
1. Rs 23000
2. Rs 23230
3. Rs 23330
4. Rs 23385

Q18. As per SEBI rules an AMC can manage the schemes of more than one Mutual Fund -
True or False ?
Options :
1. TRUE
2. FALSE

Q19. An investor buys a Mutual Fund scheme at NAV Rs 20 in Jan 2012. The scheme declares
a dividend of Rs 2. In May 2012, the investor sells all the units at NAV Rs 15. What is the capital
loss available for exemption ?
How to solve : Buying Price Rs 20/ Less Dividend Received Rs 2 /So net buying cost Rs 18 /Sold at Rs 15/So net loss (18-15) = Rs
3
Options :
1. Rs 2
2. Rs 3
3. No capital loss available for exemption as its a short term loss

/
Q20. The mechanism used to ensure that the cutoff timing is strictly followed is called ………
Options :
1. Stamp time
2. Time verification
3. Time stamping
4. Auditing

Q21. If the fund manager of a debt fund is expecting the interest rates to rise, he will ……..
How to solve : When interest rates rise, the current debt instruments become less valuable.So by buying Floating Rate
instruments ( floating rate i.e. a rate linked to some other rate that may be prevailing in the market ) he can be relatively safer.
Options :
1. increase the exposure to longer term fixed rate debt securities
2. switch the portfolio towards a higher proportion of floating rate instruments
3. The fund Manager cannot do much as all his money is generally fully invested

Q22. Mutual Funds can use Derivatives for
How to solve : Mutual funds are permitted to use derivatives for hedging against risk or re- balancing the portfolio, but not for
leveraging.Investment in derivatives would have to be specifically permitted in the Offer Document. If not already provided for
in the offer document, approval of investors would need to be taken, before the scheme can invest in derivatives.
Mutual Funds are barred from writing options. They can buy options.
Options :
1. Re-Balancing the portfolio
2. Hedging against risk
3. Leveraging
4. Both 1 and 2

/
Q23. Which of the following details is not required to be mentioned in the KIM?
How to solve : Key Information Memorandum (KIM) is essentially a summary of the SID and SAI and contains mostly the
information of the scheme.
Options :
1. Benchmark for the scheme

2. Financial summary of the sponsor
3. Composition of the portfolio
4. Risk profile

Q24. The principle of caveat emptor (let the buyer beware) applies to mutual fund
investments - True or False ?
Options :
1. TRUE
2. FALSE

Q25. The specialty of a Sector Fund is that it invests in various economic sectors - True or
False ?
How to solve : Sector Funds are sector specific and invest in various companies of a specific sector - for eg. Banking Sector
Fund will invest in shares of various Banks.
Options :
1. FALSE
2. TRUE

/
Q26. Arbitrage Funds have BASIS risks - True or False ?
How to solve : Arbitrage fund have basis risk ie. the risk that both cash and F&O position on a company cannot be reversed at
the same time. During the time gap between unwinding of the two positions, the market can move adverse to the scheme.
Options :
1. TRUE
2. FALSE

Q27. The true worth of a unit of a scheme is also known as .
Options :
1. Unit capital
2. NAV
3. NFO
4. Mutual fund scheme

Q28. According to the Certified Financial Planner “ Board of Standards (USA), the first stage in
financial planning is
How to solve : The steps in creating a comprehensive financial plan, as proposed by the Certified Financial Planner – Board of
Standards (USA) are as follows:• Establish and Define the Client-Planner Relationship/• Gather Client Data, Define Client Goals/•
Analyse and Evaluate Client’s Financial Status/• Develop and Present Financial Planning Recommendations and / or Options/•
Implement the Financial Planning Recommendations/• Monitor the Financial Planning Recommendations
Options :
1. Gather Client Data, Define Client Goals
2. Develop and Present Financial Planning Recommendations and / or Options
3. Analyse and Evaluate Client’s Financial Status
4. Establish and Define the Client-Planner Relationship

/
Q29. Liquid schemes invest in securities of upto days maturity,
Options :
1. 31
2. 61
3. 91
4. 181

Q30. SEBI approval is required for an AMC to appoint a distributor - True orFalse ?
How to solve : No SEBI approval is required. A person has to clear the exam and get an AMFInumber. Based on this number
AMC signs an agreement with the individulas / companies and appoint them distributors.
Options :
1. TRUE
2. FALSE

Q31. Investors generally bear higher fund management expenses in
How to solve : A Fund of Funds invest in other funds. So it has to bear two costs - its own fund management expenses and the
fund management expenses of the funds in which it invests
Options :

2. Sectoral Equity Fund
3. Fund of Funds
4. ELSS Funds

/
Q32. Mr and Mrs Gupta wants to make their son a pilot. This is an example of………..
How to solve : Parents wants their son to become a Pilot is an aspiration.In order to realize this, formal education expenses,
training expenses and various other expenses need to be incurred over a number of years. The estimated financial
commitments towards these expenses become financial goals.
Options :
1. Financial Planning
2. Asset Allocation
3. Aspiration
4. Setting Financial Goals

Q33. The last stage in developing a model portfolio is Fund selection - True orFalse ?
Options :
1. TRUE
2. FALSE

Q34. Variance as a measure of risk is relevant for .
How to solve : Variance as a measure of risk is relevant for both debt and equity schemes. Standard deviation is equal to the
square root of variance.
Options :
1. Equity Schemes
2. Debt Schemes
3. both debt and equity schemes
4. FMP's

Q35. The prices of ETF varies during the day - True or False ?
How to solve : ETF or Exchange Traded Funds are listed on the Stock Exchanges and are bought and sold during trading
hours.The prices fluctuate as per the demand Supply and other factors. For eg -Gold ETF.
Options :
1. TRUE
2. FALSE

/
Q36. Which of the following is a truly international asset class?
Options :
1. Gold
2. Equity Share
3. Real Estate
4. Debt

Q37. PAN No. and KYC documentation is compulsory for mutual fund investments with the
only exception of
How to solve : Micro-SIPs - SIPs where annual investment (12 month rolling or April-March financial year) does not exceed Rs
50,000
Options :
1. ELSS Funds
2. Micro SIPs
3. Gilt Funds
4. Government Mutual Funds

Q38. Investment objective is closely linked to .
How to solve : Every scheme has a pre-announced investment objective.When investors invest in a mutual fund scheme, they
are effectively buying into its investment objective.
Options :
1. Plan
2. Scheme
3. Option
4. Maturity

/
Q39. Tactical Asset Allocation is the decision that comes out of calls on the likely behaviour of
the market - True or False ?
How to solve : Tactical Asset Allocation is the decision that comes out of calls on the likely behaviour of the market.An investor
who decides to go overweight on equities because of expectations of a rise in share markets, is taking a tactical asset allocation
call.
Response : NA Status : Unanswered
Options :
1. FALSE
2. TRUE

Correct to unanswered: 0 Incorrect to unanswered: 0 Comments: You need to do more practise on this topic.
Q40. Liquid schemes are a variant of debt schemes that invest only in debt securities of upto
60-days maturity - True or False ?
How to solve : Liquid schemes are a variant of debt schemes that invest only in short term debt securities. They can invest in
debt securities of upto 91 days maturity.
Options :
1. TRUE
2. FALSE

Q41. Investors can choose to change their distributor or go direct and AMCs will need to
comply after getting a 'No Objection Certificate' from the existing distributor - True or False ?
How to solve : Investors can choose to change their distributor or go direct.In such cases, AMCs will need to comply, without
insisting on No Objection Certificate from the existing distributor.
Options :
1. TRUE
2. FALSE

/
Q42. STP is a combination of SIP and SWP - True or False ?
How to solve : In a STP ( Systematic Transfer Plan ), the amount that is withdrawn from a scheme is re-invested in some other
scheme of the same mutual fund.Thus, it operates as a SWP ( Systematic Withdrawal Plan ) from the first scheme, and a SIP (
Systematic Investment Plan ) into the second scheme.
Options :
1. TRUE
2. FALSE

Q43. Beta as a risk measure is relevant for
How to solve : Beta as a measure of risk is relevant only for equity schemes.The diversified stock index, by definition, has a
Beta of 1. Companies or schemes, whose beta is more than 1, are seen as more risky than the market. Beta less than 1 is
indicative of a company or scheme that is less risky than the
market
Options :
1. Only Equity Schemes

2. Only Debt Schemes
3. Both Equity and Debt schemes
4. FMP's

Q44. Of the following attributes, which one you cannot consider while investing in Mutual
Funds ?
Options :
1. Guaranteed Return
2. Professional Management
3. Low Transaction Cost
4. Diversification

/
Q45. ………….is a basis to select the better scheme in Index Funds.
How to solve : The difference between an index fund’s return and the market return is the tracking error.An index fund
manager would seek to minimize the tracking error. Because of the tracking error, the scheme performance could be higher or
lower than that
of the benchmark.
Options :
1. Tracking Error
2. Beta
3. 5 year performance
4. Fund Managers past record

Q46. In a MF scheme, loads for big investors and small investors are different - True or False ?
Options :
1. TRUE
2. FALSE

Q47. FMP's are usually offered as
Options :
1. Close Ended Funds

2. Interval Funds
3. Open Ended Funds

/
Q48. The most appropriate measure of returns for a scheme in existence for several years is
Options :
1. CAGR
2. Annualised Return
3. Dividend Return
4. Simple Return

Q49. AMC directors are appointed with the permission of SEBI - True orFalse?
How to solve : AMC directors are appointed with the permission of Trustees
Options :
1. FALSE
2. TRUE

Q50. An investor is interested in high liquidity. Which fund will he NOT choose ?
How to solve : Equity Linked Saving Schemes - ELSS ie Tax Saving Schemes have a lockinperiod of 3 years. So they will not be
preferred by an investor seeking high liquidity.
Options :

2. ELSS Fund
3. Debt Fund
4. Open ended funds

/
Q51. In the top-down approach, sector allocation precedes stock selection - True or False ?
How to solve : In a top down approach, the portfolio manager decides how to distribute the investible corpus between
countries and sectors. Thereafter, the good stocks within the identified sectors are selected for investment. Thus sector
allocation is a key decision.In a bottom-up approach, not much importance is given to the country-
allocation and sector-allocation. If a stock is good, it is picked for investment.
Options :
1. TRUE
2. FALSE

Q52. Fundamental analysis is evaluation of the strength of the companys price- volume
charts - True or False ?
How to solve : Technical analysis is evaluation of the strength of the company’s price- volume charts.Fundamental Analysis is
the study of the company’s fundamentals - financial statements, quality of management, competitive position in its product /
service market etc.
Options :
1. TRUE
2. FALSE

Q53. An interval fund is
How to solve : Interval funds combine features of both open-ended and close ended schemes. They are largely close-ended,
but become open ended at pre-specified intervals.The benefit for investors is that, unlike in a purely close-ended scheme, they
are not completely dependent on the stock exchange to be able to buy or sell units of the interval fund
Options :
1. It is largely open ended and becomes close ended at pre-specified intervals

2. It is largely close ended and becomes open ended at pre-specified intervals

/
Q54. The reduced NAV value after dividend payout is called
Options :
1. Cum dividend NAV

2. Ex dividend NAV
3. Dividend payout
4. Dividend NAV

Q55. The details of the names and their background of key personnel of an AMC is found in
……..
How to solve : SAI - Statement of Additional Information contains - Information about Sponsors, AMC and Trustee Company
(includes contact information, shareholding pattern, responsibilities, names of directors and their contact information, profiles
of key personnel, and contact information of service providers and Collecting Bankers}
Options :
1. SID
2. SAI
3. AMFI Guide
4. MF Advertisements

Q56. The difference between the NAV and the repurchase price is known as?
Options :
1. Entry load
2. Exit load
3. Load

/
Q57. …. have to make additional disclosures related to credit evaluation policy, sectors and
types of investments in the offer document.
Options :
1. ELSS Funds
2. Debt Funds
3. Sectoral Funds
4. Equity Funds

Q58. Financial Planning involves ………
Options :
1. Assessing the clients financial details

2. Investing clients money in high growth stocks
3. Investing clients money in 100% secured investments
4. Helping clients to evade taxes

Q59. is considered as a safe heaven among all asset classes.
How to solve : Gold is seen as a safe haven asset class. Therefore, whenever there is political or economic turmoil, gold prices
shoot up.
Options :
1. Debt
2. Equity
3. Gold
4. Real Estate

/
Q60. Applications in NFO made using ASBA have to pay the money…………..
How to solve : Application Supported by Blocked Amount (ASBA) is a facility where the investment application is accompanied
by an authorization to the bank to block the amount in the investor’s bank account.The money goes out of the investor’s bank
account only on allotment
Options :
1. 50% in advance and balance on allotment of units

4. Only on allotment of units

Q61. NFO's for ELSS schemes can remain open for………. days
How to solve : In the case of ELSS / RGESS schemes, the offering period shall be not be more than 30 days.
Schemes other than ELSS and RGESS (Rajiv Gandhi Equity Saving Scheme) can remain open for subscription for a maximum of
15 days.
Options :
1. 10
2. 15
3. 20
4. 30

Q62. To meet the needs of of regular income, one can use the -----facility of a Mutual Fund.
How to solve : SWP - Systematic Withdrawal Plan gives the investor an option to sell units at a regular intervals to meet his
liquidity need etc.
Options :
1. SIP
2. STP
3. SWP
4. FMP

/
Q63. In case of joint holding under the 'either or survivor' option, only the first holder has to
be KYC compliant - True or False ?
How to solve : Any new investor, Joint holders, Power of Attorney holders, Donors and Guardian (in case of minors) have to
comply with the KYC formalities.
Options :
1. TRUE
2. FALSE

Q64. The benchmark for a Gilt fund investing in Government Securities with maturities
ranging from 3 to 7 years is ……
How to solve : ICICI Securities and Finance Company Limited (Isec) has been maintaining ICICI Securities Sovereign Bond Index
(i-BEX) since 1994 representing gilts market.In order to meet specific needs of market participants, it has also been maintaining
short-maturity index (Si-BEX) comprising securities maturing in one to three years,medium maturity index (Mi-BEX) comprising
securities maturing in three to seven years, and long-maturity index (Li-BEX) comprising securities maturing later,than seven
years since March 1996.These three new indices along with a composite index, which is an average of Si-BEX, Mi-BEX and Li-
BEX were chosen by AMFI as benchmark gilt indices for mutual fund
schemes.
Options :
1. Si-Bex
2. Mi-Bex
3. Li-Bex

Q65. Technical analysts study the price- volume charts of a company because
Options :
1. Is based on investor sentiment

2. It predicts future share price
3. To decide support levels, resistance levels, breakouts
4. All of the above

/
Q66. As per SEBI rules, SAI will contain the information regarding the Fund and SID will
contain information specific to the scheme - True or False ?
Options :
1. TRUE
2. FALSE

Q67. Dividend warrants have to be sent to investors within 30 days of dividend declaration -
True or False ?
Options :
1. TRUE
2. FALSE

Q68. Every trust has beneficiaries and the beneficiaries, in the case of a mutual fund trust,
are …………
How to solve : Every trust has beneficiaries. The beneficiaries, in the case of a mutual fund trust, are the investors who invest in
various schemes of the mutual fund.
Options :
1. the Trustees of the AMC

2. the investors who invest in various schemes of the mutual fund
3. the Employees of the Mutual Fund Company
4. the Chairperson and Managing Director of the AMC

Q69. Stock selection is important in bottom-up approach - True or False ?
How to solve : Stock selection is important in bottom-up approach.In a top-down approach, sector allocation is the key
decision.
Options :
1. TRUE
2. FALSE

/
Q70. Legally SAI is part of the SID - True or False ?
How to solve : In practice, SID and SAI are two separate documents, though the legal technicality is that SAI is part of the SID.
Options :
1. TRUE
2. FALSE

Q71. Value stocks are those stocks which are valued at a higher price based on fundamental
analysis - True or False ?
How to solve : Value investment style is an approach of picking up stocks, which are valued lower, based on fundamental
analysis.The belief is that the market has not appreciated some aspect of the value in a company’s share – and hence it is
cheap.When the market recognizes the intrinsic value, then the price would shoot up. Such stocks are called value stocks
Options :
1. FALSE
2. TRUE

Q72. What refers to the cost of acquisition that is adjusted upwards to reflect the impact of
inflation?
How to solve : Indexation means that the cost of acquisition is adjusted upwards to reflect the impact of inflation.The
government comes out with an index number for every financial year to
facilitate this calculation. Indexation benefit is available only in case of long term capital gains and not short term capital gains.
Options :
1. Indexation
2. Marginal rate of tax
3. Education cess

/
Q73. An investor has 1000 units of a scheme which declares a 1: 2 bonus. The NAV Ex Bonus
becomes Rs 30. How much does the investor has to pay to get the additional units as per the
allotment due to him?
How to solve : NIL as Bonus units are allotted free of cost.

Options :
1. Rs 30,000
2. Rs 15,000
3. Rs 5,000
4. NIL

Q74. Mutual funds in India are governed by SEBI (Mutual Fund) Regulations, 1996 - True or
False ?
Options :
1. TRUE
2. FALSE

Q75. The Fund Manager of a ' Fund of Fund ' has to select the---------------- .
Options :
1. Right Stocks
2. Sectors
3. Funds
4. All of the above

/
Q76. In case of Money Market schemes or cash and liquid plans, wherein investors have very
short investment horizon, the performance can be advertised by simple annualisation of
yields - True or False ?
Options :
1. TRUE
2. FALSE

Q77. The asset allocation that is worked out for an investor based on risk profiling is called
How to solve : Risk profiling is key to deciding on the strategic asset allocation.For eg - If the investor is an retired/old person
he should have more debt in his portfolio.
Options :
1. Strategic Asset Allocation
2. Fixed Asset Allocation
3. Tactical Asset Allocation
4. Flexible Asset Allocation

Q78. Investors in the ………should allot a higher proportion to Income Funds.
How to solve : Reaping / Distribution the stage when the investor needs regular money. Hence, investors in this stage need to
have higher allocation to income generating assets.It is the parallel of retirement phase in the Life Cycle.
Options :
1. Accumulation Phase
2. Distribution Phase
3. Inter generational transfer phase
4. Sudden Wealth category

/
Q79. Open-ended schemes generally offer exit option to investors through a stock exchange.
Options :
1. TRUE
2. FALSE

Q80. The maximum commission payable to a Mutual Fund distributor for his own investment
is …………..
How to solve : Commission is payable to the distributors to mobilise money from their clients.No commission – neither upfront
nor trail – is payable to the distributor for
their own investments (self business).
Options :
1. 0.01
2. 0.015
3. 0.025
4. NIL

Q81. Accumulation is the phase applicable to
How to solve : Accumulation is the stage when the investor gets to build his wealth.It covers the earning years of the investor
i.e. the phases of the life cycle from Young Unmarried to Pre-Retirement
Options :
1. Young Unemployed
2. Young Unmarried
3. 10th Pass
4. Retired Manager

/
Q82. When a person wins a big lottery (sudden wealth) he should .
Options :
1. He should take riskier bets on Stock Markets so that he can grow his money faster
2. He should not at all invest in Equity
3. He should look into the taxation aspect
4. No need to look into taxation as sudden wealth is not his regular income

Q83. What is a process whereby an investors holding of investments in physical form (paper)
is converted into a digital record?
Options :
1. Re-materialization
2. Dematerialization
3. KYC

Q84. Risk Profile of an investor is affected by …………
Options :
1. the nature of job

2. the regularity of his income
3. Psyche of the investor
4. All of the above

/
Q85. ………….. style is an approach of picking up stocks, which are valued lower, based on
fundamental analysis.
Options :
1. Dividend Yield
2. Value Investing
3. Growth Investing
4. Top Down Approach

Q86. Which of the below option is true wrt. PPF ?
Options :
1. There is no upper limit of investments in PPF

2. PPF interest is Tax free
3. One can withdraw money after one of starting a PPF Account
4. Minors cannot open PPF Account

Q87. The systematic approaches offered by mutual funds to promote an investment

discipline for long term wealth creation are………….. .
How to solve : Systematic Investment Plan, Systematic Transfer Plan and Systematic Withdrawal Plan.
Options :
1. SIP, SWP
2. SIP, STP
3. SIP, STP, SWP

/
Q88. …..invest on the basis of a specified index, whose performance it seeks to track.
Options :
1. Arbitrage Funds
2. Active Funds
3. Passive Funds
4. ELSS Funds

Q89. As per SEBI regulations, a Mutual Fund can leverage / borrow money under which of the
foll condition(s) ?
Options :
1. A mutual fund scheme cannot borrow more than 20% of its net assets
2. The borrowing cannot be for more than 6 months
3. The borrowing is permitted only to meet the cash flow needs of investor servicing
4. All of the above

Q90. The NAV of a Mutual Fund Scheme is Rs. 20 and the Exit Load is 1%. What will be the
sale price of this scheme ?
How to solve : There is no entry load so the sale price will be the same as NAV price ie. Rs 20.In the above question, the
Repurchase price / Redemption price will be lower due to the exit load.
Options :
1. Rs 19.80
2. Rs 20
3. Rs 20.20
4. Rs 22

/
Q91. Asset allocation means investing in ………….
How to solve : Asset Allocation can be both in Financial Assets like Equity, Debt etc and Physical Assets like Gold, Real Estate
etc.
Options :
1. Financial Assets
2. Physical Assets
3. Both Financial and Physical Assets
4. Either Financial or Physical Asset

Q92. The investor cannot pledge the units of a Mutual Fund as a security to a financer - True
or False ?
How to solve : The investor can pledge the units as a security to a financier
Options :
1. TRUE
2. FALSE

Q93. Which of the below investments can be used for tax benefits ?
How to solve : PPF Deposits can be used for Tax Savings under Section 80C of the Income Tax Act.
Options :
1. Fixed Deposits in Nationalised Banks

2. PPF
3. Post Office Deposits
4. Investments in Balanced Funds

/
Q94. Commodity Sector funds are also a kind of Equity Funds - True or False?
How to solve : Commodity Sector funds invest in Equity Shares of various companies associated with the Commodity Sector.
For eg- Oil Companies, Farming Companies etc.
Options :
1. TRUE
2. FALSE

Q95. Trail commissions are linked to valuation of portfolio in the market - True or False ?
How to solve : Trail Commission is calculated on net assets so the distributors benefit from increase in net assets arising out of
valuation gains in the market.If the value of portfolio rises the trail commission also rises.
Options :
1. TRUE
2. FALSE

Q96. Mutual funds are liable to pay tax on the income they earn - True or False
How to solve : Mutual funds are not liable to pay tax on the income they earn.
Options :
1. TRUE
2. FALSE

Q97. The Risk Free Return of a scheme is 7% , the beta is 1.6 and the actual return earned is 9
%. What is the Treynor Ratio of this scheme?
How to solve : Treynor Ratio = Return Earned - Risk Free Return / Beta/= 9 - 7 / 1.6/= 2 / 1.6/= 1.25-Treynor Ratio is a risk
premium per unit of risk. Higher the Treynor Ratio, better the scheme is considered to be.
Options :
1. 1.25
2. 2.5
3. 1.00074
4. 2

/
Q98. ………..system helps the investors book profit in rising markets and increase holdings in
a falling market.
How to solve : Fixed Asset Allocation for eg. are used by Balance Funds (say) 65 : 35 ratio in Equity and Debt.If Equity market
rises, the fund manager sells equity and buys debt to maintain the fixed ratio and vice versa.
Options :
1. Strategic Asset Allocation

2. Fixed Asset Allocation
3. Flexible Asset Allocation
4. Tactical Asset Allocation

Q99. New Application Form has to be filled in by the existing investor having a folio no. for
fresh investment in the same Mutual Fund - True or False ?
How to solve : Once an investor has a folio with a mutual fund, subsequent investments with the same mutual fund do not call
for the full application form and documentation.Only transaction slip needs to be filled, and submitted with the requisite
payment.
Options :
1. TRUE
2. FALSE

Q100. Risk appetite of investors is assessed through
How to solve : Risk Profilers usually revolve around investors answering a few questions, based on which the risk appetite
score gets generated.
Options :
1. Asset Allocators
2. Financial Plan
3. Risk Profilers
4. Risk Appetizers

Your Response Change Pattern: NISM VA Revision -

Test 3
/
The below table provides the number of times you have changed your responses to the NISM VA Revision -Test 3
questions and also the nature of those response changes.
CORRECT TO INCORRECT 0
INCORRECT TO CORRECT 0
INCORRECT TO INCORRECT 0
CORRECT TO UNANSWERED 0
INCORRECT TO UNANSWERED 0
© 2019 Tata Consultancy ServicesTerms of Service | Privacy Policy

NISM VA Revision - Test 3 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

NISM VA Revision - Test 3 PDF

Uploaded by

Copyright:

Available Formats

Performance Categories

Performance Category Deﬁnitions

PERFORMANCE CATEGORY Excellent

RANGE 91% to 100% of Max Marks

PERFORMANCE CATEGORY High

RANGE 81% to 90% of Max Marks

PERFORMANCE CATEGORY Moderate

RANGE 61% to 80% of Max Marks

PERFORMANCE CATEGORY Low

RANGE Below 60% of Max Marks

Performance Category based on student marks

EXCELLENT 91.00 and above

HIGH 81.00 to 90.00

MODERATE 61.00 to 80.00

LOW Below 60.00

ASSESSMENT Overall Score

EXCELLENT 91.00 and above

HIGH 81.00 to 90.00

MODERATE 61.00 to 80.00

LOW Below and equal to 60.00

Where do you stand?

SECTION NAME NISM VA Revision -Test 3 (NISM VA Revision -Test 3)

SECTION SCORE 41.00 / 100.00

OVERALL Overall Score

OVERALL SCORE 41.00 / 100.00

Recommendations and Suggestions

Overall Performance Analysis

SECTION (GROUP) NISM VA Revision -Test 3 (NISM VA Revision -Test 3)

MARKS SCORED BY YOU 41.00

TIME SPENT BY YOU (IN MINS) 15.05

YOUR SECTION PERCENTAGE 41.00%

YOUR SECTION ACCURACY 41.00%

TOTAL QUESTIONS 100

MAX NO OF QUESTIONS - TO ATTEMPT 100

MARKED FOR REVIEW 0

SECTION (GROUP) OVERALL Total

MARKS SCORED BY YOU MARKS SCORED BY YOU 41.00

YOUR SECTION PERCENTAGE YOUR OVERALL 41.00%

YOUR SECTION ACCURACY YOUR OVERALL 41.00%

TOTAL QUESTIONS TOTAL QUESTIONS 100

MAX NO OF QUESTIONS - TO ATTEMPT MAX NO OF QUESTIONS - 100

QUESTIONS ATTEMPTED QUESTIONS ATTEMPTED 99

Below pie-chart shows section-wise percentage of marks scored.

NISM VA Revision -Test 3, 41