NISM Paper 1 To 7 09112011

NISM Mock Test 1
PRACTICE KIT – PAPER 1

No. QUESTION OPTION A OPTION B OPTION C OPTION D Answer
First 5 years of Investment done First 3 years of Investment done First 10 years of investment done by As long as investor held the
1 A mutual fund distributor is paid commission for.. by investor by investor investor investment
D
2 The guideline issued by AMFI for intermediaries are known as... AGNI ACE AMFI none of above A
3 The investment in MF portfolio are valued at Face value of portfolio cost of investment Market value of portfolio Book value of portfolio C
4 Exit loads are generally lower for large investors. TRUE FALSE B
Offices declared as point of

5 Time stamping arrangement is must at.. Offices of distributors AMC offices Bank distributor's branch
acceptance. D
6 SEBI has put a stop on charging ____________ to the scheme. Exit load Entry Load Recurring Expenses CDSC B
Once every six month in one

7 Unaudited accounts of the scheme must be published through monthly fact sheet Only at AMFI website
national & Regional news paper
Only on AMC's website C
Capital gain or loss from mutual fund investment are classified as a short
8 9 months 6 months 12 months 13 months C
term investment are if sold within
An investor invested Rs.100000/in a 370 day FMP and got Rs. 107750/-, 10% Plus surcharge or 20% after
9 7750 750 Insufficient details A
what is capital gain in this case? index benefit
STT is payable when investor STT is payable when investor STT is payable when investor STT is payable when investor sale
10 Which of the following is true purchase equity MF does redemption from equity MF purchase debt MF debt MF B
Liquid funds can not charge management fees of funds parked in a short
11 TRUE FALSE A
term bank deposits.
12 STT is charged on Equity share trading Derivatives trading Equity MF All of the above D
13 Which of the following is not required for KYC norms. Proof of investment Proof of Identity Proof of address All of the above A
The information on minimum investment amount, investor's service

14 Application form Nomination Form KIM None of the above C
centers, and how to make purchase is provided in.
Which of the following document is not require to be submitted by Board resolution and Memorandum
15 Trust deed List of authorized signatories certificate of registration C
charitable trust to invest in MF? and article of association
Investor gets units at a discount to It offers benefits of rupee cost

16 SIP is a good investment strategy because.. NAV averaging
It helps regular income for investor No load investment done B
Relaxation from documentation requirements for micro SIP is available

17 HUF Non Individual NRI PIO C
for..
18 NRI can not make repartition investment in MF using demand draft. TRUE FALSE B
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NISM Mock Test 1
An investor plans to invest Rs.12000 in a scheme whose NAV is 12 and
19 <1000 1000 1200 cant say B
FV is 10, how many units is he likely to be obtained.
An investor is doing a liquid investment, fund is available and time is Closing NAV of Day immediately Closing NAV of Day immediately
20 Next working day Same day C
12.30. NAV would be applicable for the ________ preceding the date of application preceding next business day
Investor invest 50 lakh in GILT at 3.30 pm with a local cheque. he gets Closing NAV of day fund are
21 Same day Next business day Next preceding day. C
NAV of available
22 Time stamping needs to start with serial no 1 on every business day. TRUE FALSE B
23 Funds pay dividend in Dividend Option Dividend Re-Investment option Both of the above Growth option C
Offering for repurchase, constant amounts worth of units at regular interval

24 SIP STP SWP Value investment C
basis is called
A company's PE ratio may be low because it is unlikely to replicate it's

25 TRUE FALSE A
past performance
26 Fundamental analysts are called "Chartists" TRUE FALSE B
If absolute return was 2.4% over 50 days, annualized return would

27 0.05 0.024 1.2 0.175 D
be____________
In case of liquid fund, investment less than 3 months old. which return
28 Total return CAGR Absolute return Simple annualized B
would be calculated?
In case of equity fund, if fund has higher allocation to cash in bullish Be comparable to that of
29 Be worse than benchmark return Better than benchmark return cant say B
market the performance is likely to.. benchmark index
30 CRISIL's indicator for highest safety in a debenture is AAA High Good P1+ A
31 During the period of turmoil, gold prices Go down Go up Remain steady Mirror equities B
32 Performance of fund must always be measured relative to the. Index Benchmark Asset Class Investment objective B
33 Difference between scheme's actual return and optimal return for it's risk is Sharpe Treynor Alpha Spread C
While evaluating return for an index fund across a peer group, which of
34 BETA Coefficient Past performance Tracking error R-squared C
the following is more important?
35 Balance funds are for Aggressive investors highly aggressive investor Moderate conservative Highly conservative C
36 The lower risk among equity fund is Index Fund Value Fund Dividend yield fund Growth fund C
Probabilities of losing money in equity is negligible if investment horizon is

37 6 months 5 years 1 years 3 years B
for at least
38 Returns in international fund is dependent on Exchange rates Asset class performance Both of the above None of the above C
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NISM Mock Test 1
39 Mutual funds in India are not permitted to invest in Gold Real estate Art Secularized debt C
40 A value fund is expected to have ________ exposure to front line stocks Entire High Half of it's Low D
41 Index funds are safer because their NAV does not go down TRUE FALSE B
42 Which of the followings are least comparable Liquid and Savings account Liquid and Current account ETF and Index fund GILT and Sector fund D
An investor seeking capital appreciation, having high risk tolerance and

43 Bonds Bank FD Real-Estate PPF C
long term horizon must invest in
Extent of securities against the

44 Credit rating enables an investors to judge the Duration of loan
borrowing
Risk of default by borrower Interest rate risk C
45 Which of the following is not government saving scheme? Infrastructure Bonds RBI Bonds POST KVP A
An investor looking for capital appreciation, having a high risk tolerance

46 Bank FD Equity Bonds Gold B
and long tem horizon must invest in
47 Which of the followings is physical asset? Securised debt Real estate Real estate fund Gold future B
In new pension scheme(NPS) Tier I account new pension scheme is

48 TRUE FALSE A
called pension account
49 Investor in MF can choose asset class but not investment manager TRUE FALSE A
Helping client to select the out Assessing the clients financial Advising client to invest only in
50 Financial Planning Involves performing stock information secured investments
None of the above B
51 Value stocks Have high current dividend Yield high growth in earning Are currently under valued None of the above C
52 A better performance than the return on index is given by Passive fund manager An active fund manager All fund managers Non fund manager B
Emerging or new channel for distributors/marketing of mutual funds in

53 Internet Stock Exchange All of the above None of the above C
India is
Part of commission up front and The entire commission after five

54 Trail commission means paying No commission at all The entire commission upfront
balance in phases years C
55 Agents are compensated by mutual funds Through salaries Through commission Through an annual fees Not in cash but in kind B
56 The fund sponsors should have a sound financial track record of 7 years 5 years 12 months 3 years B
57 Which of the following are self regulatory organization(SRO) BSE SEBI AMFI RBI A
58 Bank owned mutual fund are supervised by SEBI Jointly by SEBI & RBI RBI AMFI A
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NISM Mock Test 1
Does not have to go through the
59 A passive fund manager Researches stocks extensively Does not buy and sell stocks often
process of stock selection
Does not have to track stocks C
60 Debt securities bought at a discount to their face value are generally Interest bearing Zero coupon bonds Paying interest at a floating rate None of the above B
61 When interest rates rise, bond prices Also rise Are not affected Falls Fluctuate either up or down C
62 The maturity period of RBI relief bonds is 5 years 7 years 6 years 8 years A
The investor redeems his An agent invests his own money, not
63 A trail commission is justified when An investor cancels his investment
investment in a very short time that of client
An Agent retain the Investment D
A debt fund distributes 10% dividend . how much tax does the investor
64 10.00% 20.00% 12.00% None D
have to pay on this dividend
65 What is the current PPF rate 8.00 Percentage 8.50 Percentage 7.75 Percentage 7.50 Percentage A
66 What is the recurring expense on first 100 cr for equity schemes 2.00 Percentage 1.75 Percentage 2.25 Percentage 2.50 Percentage D
67 Risk adjusted return is measured by Sharpe ratio Standard deviation Treynor ratio A&C D
68 Intra day trading can be done on the basis of- Fundamental analysis Technical analysis Economic analysis Political analysis B
69 Mid cap stocks are risky in the time of Boom Recession/Economic turmoil Political instability All of the above B
70 Who Appoints the AMC Custodian R&T Trustee Distributors C
71 Which of the following has lowest risk Liquid fund (mmmf) Gilt funds Diversified debt fund Diversified equity fund A
72 Long term capital gains in a debt fund without indexation for an investor is 10.00% 15.00% 20.00% No tax A
What of the following is not a reason for investor to prefer mutual fund
73 Tax benefits Possibility of capital gain Deposit insurance Investment convenience C
over Bank FD
74 In the NPS each investment manager appoints own distributor TRUE FALSE A
75 Need of Life insurance in life is Must Not required can be done without None of above A
All investor have similar requirements at similar stage in the life/wealth

76 TRUE FALSE B
cycle
77 Name of asset allocation strategy if it is fixed @ 50 % Tactical Allocation Strategic Allocation A&B None of above B
Model portfolio should be determined based on commission income

78 TRUE FALSE B
possibility for distributor
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NISM Mock Test 1
79 Which of the following is true for model portfolio Stipulated by SEBI Guaranteed by AMC Decided by financial planner Common across industry C
80 As the no of earning member in a family increases risk appetite Increases Decreases Stays constant None of above A
81 Equity investment through sip can be suggested for investor looking for Long term growth Short term target Portfolio churning Tax benefit A
82 How to compare index fund performance expenses Tracking error None of above C
83 What type of bond fund carries least interest rate risk Short term bonds Long term Bonds Mid term Bonds All of above A
84 Arbitrage fund are not equity fund TRUE FALSE B
85 Which of the following is true for FMP NAV do not fluctuate Capital Guaranteed Fixed income None of above D
86 Index funds are_____________fund Passive fund Active fund Both None of above A
The role of insurance is more critical for physical assets than financial
87 TRUE FALSE A
assets
88 When price of gold goes up a buyer of gold future contract see it's value Go up Go down Retain the same value None of above A
89 The investment portfolio is created based on Market views of fund manager Investment objective of fund risk appetite of investor profile of unit holder B
90 Commodities as an asset class does not include Food crops Industrial metals Real Estate Gold C
open for purchase by existing open for purchase only for existing
91 Subsequent to NFO, open ended funds are investor & new investor investor
available on stock market None of above A
If a fund seeks to grow in value overtime it can be said that it's investment
92 capital appreciation safety of capital Capital adequacy Regular income A
objective is
93 Hybrid funds are invested in across equity market capitalization International markets both equity and debt None of above C
94 Mutual fund are constituted in India as Companies Trusts Partnerships NGO B
95 Mutual Fund sponsor can be compared to Depositor of a company Company director Promoter of Company CEO of a company C
Creating maintaining and updating Processing dividends & redemption Settling investment transaction of
96 Which of the following is not a function of R&T agent the investor record
Updating unit capital of fund
payouts to investors the fund
D
Prior approval of SEBI needs to be taken before a person is appointed as

97 TRUE FALSE A
trustee
Person, other than Indian residents, should also comply with RBI
98 TRUE FALSE A
guidelines for investment in Indian mutual funds
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NISM Mock Test 1
establishing the client planner
99 The first step of financial planning is Evaluating the various alternatives data gathering and goal setting
relationship
Plan Review C
Page 6
NISM Mock Test 2
1 In case of market correction _______ , takes more hit than _______ Fund. Growth , Value Momentum , Value Value , Growth Growth , momentum C
2 Sponsor's net worth should be positive for Last 5 years last 2 years last 3 years last year A
Memorandum and Articles of

3 At time of NFO, which document compulsorily filed with SEBI SID SAI Annual Report
Association A
4 Collection and payment of fund is a responsibility of Custodian R&T Banker AMC B
5 Other than Indian residents, rest have to also comply RBI regulations TRUE FALSE A
Expense and Load structure of

6 Which of the following not included in KIM Details of Key personal of AMC Tax benefit of MF
scheme
Due diligence certificate of AMC D
Give detailed information about

7 Function of OD is scheme to investors
Give current NAV Gives Fund suggestion None of the above A
What should be the Sector Fund Allocation for a single income family having
8 0.00% 70.00% 50.00% 30.00% A
small investable surplus
Expenses on investor General administration expense
9 Which expense can be not charged to scheme? communication
Service tax Fees of custodian
of AMC
D
10 Low PE indicates that stock is cheap and you should buy it TRUE FALSE B
Minimum investment amount and Opening and closing dates of

11 Which of the following need not be included in KIM? Detail of sponsor
cut off time
Risk profile of the scheme
NFO A
12 As per income tax act, Arbitrage Funds are taxed as per debt scheme TRUE FALSE B
13 Which is purely treated as an international asset Equity Gold Real Estate Debt B
14 Transfer of security from one scheme to another scheme is allowed in MF TRUE FALSE A
15 Calculate the sales price of a unit when NAV is 15 and exit load 1% 15 14.85 15.15 15.5 A
16 If you get a cheque of 1 cr in a Gilt Fund at 2.30 pm, NAV date will be NAV at 2.30pm NAV at 3pm Same day NAV NAV of fund realization date D
17 Who allots Amfi Registration Number? AMFI SEBI AMC none of the above A
18 Which distribution channel don't have a huge branch network? Institution Corporate distributor Bank IFA D
19 Dividends in the hands of investors are taxable at the rate of 10.00% 15.00% 33.00% Tax Free D
20 Last step in the process of designing model portfolio Sector selection Asset allocation Scheme selection Client selection C
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NISM Mock Test 2
Achievement of the goal of
21 Goal based approach of financial planning focuses on Risk profiling
investors
Tax liability of investors Investible surplus of the investor B
22 What is the rate of return of PPF 20 Percentage 8 Percentage 8.50 Percentage 9.25 Percentage B
23 What is the indicator of the risk adjusted performance ratio? Beta Standard Deviation Sharpe's Ratio Variance C
24 Interest Rate sensitivity in Bond fund depends on Credit Profile Avg Maturity YTM Current Yield B
25 SEBI doesn't allow passing of commission to Distributor Investor Bank IFA B
26 If you get a 50L in equity fund at 3:30 pm today,investor will get the NAV of Yesterday Today Tomorrow NAV of fund realization date C
27 Index against which performance of a fund is measured, is called Tracking Error Benchmark Investment objective Ex-mark B
28 FMP are essentially a closed ended Scheme TRUE FALSE A
The information regarding Which category of investors can invest in MF, is

29 Offer document SAI MIN SIN A
given in
30 Who can not be the distributor of the AMC IFA Bank Employees of AMC All of the above C
investing only in Equity Gold and

31 Asset allocation means Putting all eggs in Same basket Investing according to Market Investing in different assets
Silver C
32 MIP is a Debt Scheme TRUE FALSE A
33 Asset allocation should be in line with Financial Goal Age of Client Risk Appetite All of the above D
34 A young investor having objective of capital appreciation should invest in GILT Liquid Equity debt C
35 In NPS class-C predominantly invests in Equity Debt Gold Real Estate B
36 Fund's risk relative to market is measured by tracking error Sharps' Ratio Treynor Beta D
37 Which one is false about debenture Issued by PSU High credit risk It has maturity Duration is greater than 1 yr A
Investor has read the OD and then the invested in the fund and fund goes
38 Gets remedy from SEBI Cant sue the AMC Gets remedy from AMC Gets remedy from NSE B
down, then he
39 STT charge on equity Derivatives Equity MF Equity Schemes All of Above D
40 Which function AMC can't do in house Custodian Accounting Distribution Fund management A
41 Value of Bond goes down when Interest rate goes down Interest rate goes up IRR goes down YTM goes down B
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NISM Mock Test 2
42 Which one is not exempted in wealth tax Gold sector fund Gold deposit Gold ETF Gold D
43 Institutional distributors needs to be Registered with SEBI Registered with AMFI Listed on stock exchange All of Above B
44 Standard risk are Uncommon to all Common to all Specific to a scheme Systematic B
45 Request for purchase can be made In units and amount In units only In units or amounts In amount only D
In NPS investors get choice of the asset class but don't get choice of
46 TRUE FALSE B
investment manager
Time shown in the computer of
47 In case of online transaction, transaction time is applicable investor
Time as web per web server Mid night Next day morning B
48 If investors invest through demat can AMC asks for KYC requirement TRUE FALSE B
49 According to the asset allocation rule, equity exposure should be equal to Age 100-age Age-100 100.00% B
50 Mutual fund is made up of Pool of trustees fund Pool of institutional investors Pool of investment managers Pool of investment money D
51 Who can not invest in mutual funds? Foreign companies Banks insurance companies NBFC A
52 Which is same as of OD? SID SID+SAI SAI KIM sumarry of SAI + SID. B
53 Mutual fund distributor in India are member of AMFI. TRUE FALSE A
54 Mutual fund in India is regulated by SEBI(Mutual Fund) act 1996. TRUE FALSE A
55 Which of the following is appointed by trustee? Custodian Distributor AMC R&T C
56 KIM has to be updated Twice in a year Quarterly Once in a year Once in two year C
57 Which of the following is more risky? Liquid fund Index fund growth fund gilt fund C
Whenever material changes take

58 Material changes in KIM need to be updated once in a year Half yearly
place
Once in two year C
59 If an investor wants full exposure of gold his investment should be into Gold ETFs Physical gold Shares of gold mining company All of the above D
If an investor invest 1 lakh rupees in a debt fund after 365 days it's value is
60 7.75% 7.47% 10% or 20% with indexation insufficient data A
107756/- what is CAGR?
If an investor invest Rs.100,00,000 in Equity MF Scheme at 3.30 pm through
61 Same day closing value When fund gets credited Previous day closing value Next day closing value B
outstation cheque he will get NAV of
Retaining the investor for long
62 Trail commission to advisor helps in -- term.
Portfolio Churning New client acquisition None of the above A
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NISM Mock Test 2
63 Exit load __________ Is ame for all schemes Is same for all amc's Varies from investor to investor Varies from scheme to scheme. D
64 Which fund is an actively managed fund? Index fund Diversified equity fund Growth fund B&C D
Risk profile, fund allocation, Risk profile, portfolio construction, Portfolio construction,risk profile, Fund allocation. risk profile,
65 Arrange in correct sequence portfolio construction. fund allocation. fund allocation. portfolio construction
B
Which of the following is against the ethics & Code of conduct guide line of Churning investor's money to get All the associates of a distributor Keeping the interest of all unit
66 All of the above A
AMFI better returns should be amfi approved. holders
67 Minimum contribution of a sponsor in an AMC should be- 50.00% 60.00% 40.00% 25.00% C
68 PAN card is not required in case of- NRI Minor & Senior Citizen Corporate institution & trust. None of the above D
69 FMP can give better interest than a Bank Deposit. TRUE FALSE A
70 The insurance associated with new pension schemes are regulated by- PFRDA + IRDA IRDA PFRDA None of the above. C
71 In India mutual funds are- Govt. institutions Company Trust NBFC C
72 Initial issue expenses in a liquid fund has to be- 0 0.000125 0.25 percentage none of the above A
73 A schemes NAV value increases for the period of 2 yrs . it will show- Absolute return Simple return compounded annualized return all of the above C
In KIM it has been mentioned that the 65% investment will be in equity and
74 Policy of scheme Objective of scheme portfolio of scheme None of the above. A
equity related instrument. this is called-
75 KIM is attached with ? Transaction slip Application Form Both A and B Neither a nor b B
76 Which is technical analysis- Volume & price behavior Mark to market book value analysis all of the above. A
77 Who keeps detail report of transaction- Custodian AMC R&T Distributor C
78 Formula to find out the Standard Deviation in excel is stdev sd stddev stddv A
79 Time stamp machine contains- Time stamping serial no Machine identification location code all of the above D
80 The expected return & yield of the scheme is mentioned in KIM TRUE FALSE B
81 How frequently NAV of an equity scheme are calculated Daily Weekly Quarterly once in financial year. A
beta doesn't make any impact

82 If beta of a scheme is less than one the the fund is- More risky compare to market Less risky compare to market neither risky nor profitable.
on scheme performance
B
83 What is not true objective of life insurance- Risk coverage Investment Both None of the above B
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NISM Mock Test 2
84 Unit capital is issued at- 10 25 50 100 A
85 Fund management cost is more in- Passive fund Gilt fund Liquid fund Active fund. D
86 Independent trustee are appointed by- Sponsor SEBI AMFI All of the above A
87 Distributors are paid- Commission Fees Salary All of the above A
88 KYC is required for- Guardian in case of minor HUF Sole proprietorship firm All of the above. D
89 KYC is compulsory - For every investment 50000 50000 and above first time investment A
((End Value/Start Value)^(1/

90 Formula for CAGR calculation is Interest * No of years (P1-P0)/PO*100
(Period)) -1
None of above C
91 The NAV of a fund is 15 applicable exit load is 1%, purchase NAV would be- 14.85 15 15.25 15.65 B
92 In case of breach of Code of conduct license is canceled by- AMFI SEBI Sponsor AMC A
Partial withdrawal facility is

93 Which is true in case of PPF? available after one year
Investment & return are tax free. Both None of the above B
94 A fixed term plan series is- As open ended fund A closed ended fund A fixed term bank deposit A fixed term corporate bond B
The P/E ratio is an important measure of a company's anticipated performance.

95 Market price and dividend Market price and earning per share Market capitalization and dividend Market price and face value B
it is calculated using.
Page 11
NISM Mock Test 3

1 Which one of the following is not an eligible investor? Insurance Companies Govt Institutions Foreign Citizens Provident Fund C
For a customer holding units in demat , the AMC also requires to

2 TRUE FALSE B
do his KYC ?
3 Which investment below gives international exposure International Funds Gold Fund None Both D
4 On doing risk profiling which asset allocation does it give ? Strategic Asset Allocation Fixed Asset Allocation Flexible Asset Allocation Tactical Asset Allocation A
In a balance fund with net assets of 750 crores what is the

5 10.13 15.38 17.86 16.125 D
expenses that can be charged ?
I invest Rs 50 lacs at 2.30 pm with a local cheque for funds other Closing NAV of the day preceding
6 Next day NAV Same days closing NAV Previous day NAV B
than liquid scheme, which NAV will you get ? next business day
7 What is the DDT for an individual in liquid fund ? 0.25 0.2 0.13 0.1 A
If client invest in liquid fund at 11.30 am and the fund gets cleared Closing NAV of the day preceding next
8 Next day NAV Same days closing NAV Previous days closing NAV D
on the same day which NAV the client gets ? business day
Premium can be availed under Sec 80

9 What is true about premium paid in a life insurance company ? Customer can decide premium
c
Premium can be shown as exp Premium is volatile B
10 The person with whom the units are pledged is known as Pledger Pledgee B
11 What is the highest expense ratio in a Fund of Fund scheme ? 2.25% 1.75% 0.75% 1.50% C
12 SEBI is sole regulatory authority for MF are answerable TRUE FALSE A
13 How is company fixed deposit compare to bank fixed deposit ? Low Risk Highly Volatile Less Safe Lower Return C
Within how many days the dividend warrants to be dispatched on

14 15 7 10 30 D
declaration?
15 A distributor needs different ARN for each AMC ? TRUE FALSE B
16 A conservative investor need not be advised to invest in ? Gilt Fund Liquid Fund High Yield Bond Fund Short Term Plan C
The New Pension scheme is both regulated IRDA and PFRDA as it

17 TRUE FALSE B
has an insurance component ?
18 Which is the fastest way of remitting funds on real time basis? NEFT D/D SWIFT RTGS D
19 Which of the following is a financial asset ? Govt Security Gold Real Estate None of the above A
20 Which of the following is an SRO ? AMFI SEBI BSE RBI C
Page 12
NISM Mock Test 3
21 NFO other than ELSS can remain open for maximum _________ 7 days 15 days 21 days 30 days B
In NFO the account statement is to be dispatched within â days

22 5 days 15 days 20 days 30 days A
on closure of NFO ?
23 Companies issuing short term debt is called CD Tbills Debentures CP D
Within a category one can decide on investments based on Sharpe

24 TRUE FALSE A
Ratio
25 Which of the following exempt from DDT ? Equity Oriented Fund Liquid Fund Income Fund Gilt fund A
26 The arbitrage funds are taxed like debt funds TRUE FALSE B
27 Which of the below is not in a Transition phase ? Buying of house Providing for daughter marriage Shifting of job for higher income Providing for foreign study for son C
28 The NAV of scheme is impacted by ? No of Investors Unit Capital Market Value of Portfolio Size of Fund C
29 Technical analysis is projecting trend based on human behavior ? TRUE FALSE A
30 Sub distributors work with Online platform Banks IFA Distribution companies D
31 Initial issue expense that can be charged to fund NIL 1.00% 2.00% 1.75% A
According to Performance Advertisements the return shown for

32 Annualised Yield Simple Return Absolute return CAGR D
equity funds over 1 years are
In New Pension Scheme portfolio of Assets class E predominantly
33 Equity debt Govt. Sec. A
investment in
34 Expense ratio is most important in case of Index Fund Offshore Fund Active Fund Fund of Fund A
35 Code of ethics for employees of AMC is described by SEBI AMFI Internal Audit Team Trustee. B
36 Recurring expenses in Equity scheme has a limit up to 1.50% 0.50% 1.25% 2.50% D
In Transition phase of Wealth Cycle investor tends to increase the

37 Equity Liquid Gold None of above. B
proportion of_______ assets in his portfolio.
38 Which of the following is a Financial Asset? Gold Real State Bank deposit None of above. C
39 Index fund can give better returns from its Benchmark. TRUE FALSE B
The young BPO executives should not be advised to invest in long

40 TRUE FALSE B
term schemes because of their lavish life style ?
41 Term âStock pickingâ is used in which of the following? Bottom up approach Top down approach Both None of above. A
What is the applicable rate of STT in case of repurchase of Equity

42 0.13% 0.33% 0.02% 0.25% D
scheme?
Page 13
NISM Mock Test 3
Market value is 152 crore, Dividend accrued but not received= 8
43 crore, liabilities = 2 crore Total no of outstanding units is 75 lakhs. 200 210.67 213.33 None of above. B
What will be the NAV of the scheme?
44 Investor selects an MF based on Investment Philosophy Investment Strategy Investment Policy Investment Objective D
45 ______ has been appointed by Trustee Custodian R&T AMC Distributor C
46 Risk May be defined as Asset Allocation High Transaction Cost Financial Loss Portfolio Rebalancing C
Financial Planner defines that client does not have resources to Increase risk to generate higher
47 Inform the Client Avoid telling as client will be dishearted Avoid telling as he may lose the client
return A
meet goals. He should
48 Which of the following account in NPS is a Saving Account Tier I Tier II Tier III Tier IV B
49 Mutual Fund is exempted from Wealth Tax TRUE FALSE A
Needed for a single rupee

50 KYC is required for investment more than 20000 10000 Not required
investment D
If investor is a minor, KYC should be

KYC for Minor is needed only if KYC for Minor is needed only if KYC is not at all required for
51 If a minor Invests Rs 10,000 in MF, KYC is needed or not investment exceeds Rs 20000 investment exceeds Rs 50000
of his guardian even for a single
minors C
rupee investment
52 Since Preparation of WILL is a long process, it has to be avoided TRUE FALSE B
By allowing fixed number of Units to By selling number of units in a fixed

53 Close ended fund allows investors to sale their units sale interval
by listing MF in stock exchange C
54 ______ Allots the ARN Number AMC SEBI NISM AMFI D
55 Application for MF would be rejected if paid in Cheque DD Cash Bankers cheque C
56 Mutual Fund Investor can't pledge units TRUE FALSE B
57 Change in the value of NAV is Standard Risk Systematic Risk Unsystematic Risk A
NAV on the date when trustee NAV of the date when notice is issued
58 Which one is called cum-dividend NAV? approves dividend to meet trusteed to finalize dividend
NAV after the date of dividend None of the above A
When scheme is first launched and investor invests in MF... it is

59 NFO IPO Purchase Re-Purchase A
called
60 KIM Document is a summary of SID SAI OD SID+SAI D
If investor invests in a Guilt fund at 3:30 p.m., he would get the

61 Current NAV Previous Days NAV NAV of Next Business Day Same day NAV C
units at which NAV ?
If investor invests in a Equity fund at 3:30 p.m., he would get the
62 Same day NAV NAV of Next Business Day Previous Days NAV Current NAV B
units at which NAV ?
63 The guideline issued by AMFI for intermediaries are known as AGNI ACE AMFI None of the above A
Offices declared as point of

64 Time stamping arrangements is must for Offices of Distributors AMC Offices Bank Distributors Branch
acceptance
D
Page 14
NISM Mock Test 3
Unaudited accounts of the scheme must be published in the news
65 Every 3 months Every 6 months Every 12 months None of the above B
paper
An Investor Invests Rs 100000 in a 365 days FMP and got Rs
66 7750 750 Insufficient Data 1000 A
107750, what would be capital gain in this case ?
67 STT is charged on Equity Share Trading Derivative Trading Equity MF All of the Above D
An investor plans to invest Rs 12000 in a scheme whose NAV is

68 <1000 1000 1200 Cant Say B
Rs 12, how many units he will likely to be obtained
69 Company's Earning per share would be indicated by following P/E Ratio Current Ratio EPS Leverage Ration C
70 Beta of Index would be Less than 1 Equals to 1 more than 1 None of the above B
While evaluating return for an index fund across a peer group,

71 Beta Coefficient Past performance Tracking error R-Squared C
which of the following is more important
72 The fund sponsors should have a sound financial track record of 12 months 3 Years 5 Years 7 Years C
73 What is the current PPF Rate ? 7.50% 7.75% 8.00% 8.50% C
Father wants his son to be a doctor and study will start after 5
74 years. The current expense is 2500000. How to calculate the A = P + (1+r) ^ n -1 A = P x (1+r) ^ n A = P / (1+r) ^ (1/n) -1 A = P / (1+r) ^ n B
expense after 5 years
75 Appropriate benchmark for G-sec fund I-sec+ I -bex CRISIL liquid fund index MIBOR CRISIL - MIP bladed index A
76 Which of the following has lowest risk ? Liquid Fund GILT Fund Diversified debt fund Diversified Equity fund A
Compounding method with interest Compounding method with

77 If I require 500000 after 2 years, which method will I follow ? Discounting method with interest rate Discounting method with inflation rate
rate inflation rate C
78 Mutual Fund Sponsors can be compared to Depositor of a company Company director Promoter of a company CEO of a company C
79 Which of the following can be charged to the scheme Salary of Fund Administratives Office rent General Administration Expenses Fees of Custodian D
Low PE compared with peer group or industry standard indicates

80 TRUE FALSE A
that stock is cheap.
What would be the redemption value of a Unit if NAV is 15 and Exit
81 15 14.85 15.5 15.15 B
load is 1%
82 Last step in the process of designing model portfolio Sector Selection Asset Allocation Scheme selection Client Selection C
For a distribution channel, 60% of the employees should have

83 TRUE FALSE B
AMFI Registration Number
84 Equity Fund's Risk relative to market is measured by Tracking error Sharpe's Ratio Treynor Beta D
85 Standard Risk is Common to all Uncommon to all Systematic Specific to all A
86 Request of Purchase can be made Along with requisite form and Cheque Only With Cheque Only Purchase requisite form A
Page 15
NISM Mock Test 3
If an investor invests 1,000,000 at 3:30 p.m through outstation
87 Same day closing NAV When fund gets credited Previous day closing NAV Next Day NAV B
cheque, he will get NAV of
88 Liquidity risk is highest in Mid Cap stocks Front Line Stocks Index Stocks Gilt Security A
Mr A Holds 2000 Units, scheme declared 1:4 bonus. How many

89 400 500 8000 Depends on NAV C
units will Mr A Gets ?
90 Investor can sue the trust for breach of trust TRUE FALSE B
91 Distributors do not get commission on self business TRUE FALSE A
92 Which of the following is an SRO ? AMFI SEBI AMC None of above. D
93 What remains constant in a close ended fund ? Unit Capital NAV Both A
94 SEBI regulates Mutual Funds Depositories RTA All of the Above D
95 Unit holders can hold their units in demat form TRUE FALSE A
96 KIM needs to be updated every 3 months 6 months Once a year No need to update it C
97 Trail commission are linked to valuation of portfolio in the market TRUE FALSE A
98 Risk can be measured by Variance Standard Deviation Beta Any of the above D
According to the Certified Financial Planner - Board of Standards Establish and Define the client Analyse and Evaluate Client's
99 planner relationship
Gather client data Define client goals
Financial Status D
(USA), the third stage in Financial Planning is
Page 16
NISM Mock Test 4
1 Commodity as an asset class does not include Fiber Spices Energy Art D
Financial Planning is just a process and so Financial Planner can use

2 TRUE FALSE B
any profile found in the web
3 5 star fund indicates Lowest Expense ratio Lowest Load Highest Performance Best Portfolio C
Investor should invest in MF with few offices as office expense is

4 TRUE FALSE B
charged to the fund
Number of Units remaining
5 NAV changes with Number of investor
invested
Size of Portfolio Market value of the portfolio D
6 Investor select an MF based on matching Investment Philosophy Investment Policy Investment Objective Investment Strategy C
7 Indian investor in a US $ based fund benefit when $ becomes Weak Strong Euro Becomes Weak Steady B
8 Understanding the psychology helps in risk profiling TRUE FALSE A
9 Securities of a fund are held by Custodian AMC R&T Broker A
10 Risk may be defined as Asset Allocation High Transaction Cost Portfolio re balancing Probability financial Loss D
Financial Planner finds that client does not have resources to meet Avoid telling as client will be Increase risk to generate higher
11 Inform the Client Avoid telling as he may lose the client A
goals. He Should disheartened return and meet the goal
12 Which of the following is with drawable in NPS Tier I Tier II Tier III Tier IV B
13 Mutual fund is exempted from Wealth Tax TRUE FALSE A
14 KYC is required for investment more than 50 K 5K Any Amount 100K C
15 Which of the distribution channel does not have wide branch network Bank Distribution House Broking company IFA D
Process Dividend and

16 Which of the following is not a function of R&T redemption
Maintain the records Settling investors transaction of fund Calculation of NAV D
17 AMFI interacts with _______ on all issues related to MF industry RBI SEBI Govt All of the above B
18 CVL system generates Acknowledge along with PAN MIN KYC Folio B
19 High portfolio turnover ratio implies High Cost Low Expense High return Non Performance A
20 Since preparation of WILL is a long process, it has to be avoided TRUE FALSE B
Single contact point for change of

21 Benefit of Demat a/c is that Direct credit of bonus units
address
Single point for portfolio valuation All of the above D
22 Among equity fund , growth fund has highest risk TRUE FALSE B
Page 17
NISM Mock Test 4
23 What determines the interest rate sensitivity Credibility Quality YTM Avg Maturity D
24 Fundamental Analyst are also called " Chartist" TRUE FALSE B
25 Fundamental Analyst's decision are base on EPS in dollar Trialling EPS Historic EPS Projected EPS D
26 Debenture is physical asset because the paper has some value TRUE FALSE B
27 Investing in Gold ETF helps Guarantees high return Not permitted in India Provide risk cover Reduce storage cost and risk D
Updating the SID with NFO Approval of the features by trustee

28 Which of these activity are carried out before getting SEBI approval dates and AMC board
Dispatch product literature Printing KIM and application form B
Childhood and transition are similar stage of LIFE cycle and WEALTH
29 TRUE FALSE B
cycle stage
Investor with a long term investment horizon for growth are likely to
30 Equity Fund ST Debt Fund Income fund liquid Fund A
invest in
31 Some allocation to GOLD is likely in most model portfolio TRUE FALSE A
32 Approval of SEBI is needed to appoint a person as Trustee TRUE FALSE A
One withdrawal at the end of Interest and Withdrawals are not

33 What is the drawback of PPF Seventh Year taxable
Half yearly Compounded interest Not Guaranteed by Govt A
34 Commission paid at the time of investment are called Upfront Commission Rebate Trail AUM Retention Fee A
35 Investors in NPS can choose asset class but not fund managers TRUE FALSE B
36 Settlement responsibility in BSE / NSE Platform are with AMC Clearing House Concerned Stock Exchange Member A
37 Which of the following information does time stamp include Machine Identifier location code Serial No All of the above D
38 Comprehensive FP should be restricted to five years TRUE FALSE B
39 Closed ended fund has Fixed AUM Fixed Unit Capital Fixed NAV Assured Dividend B
40 To which of the following PAN does not apply PIO NRI Minor & Senior Citizen None of above D
41 Father wants to start his business, this is Asset Allocation Financial Goal Appreciation Financial Planning B
42 In India one can invest in MF only through distributor TRUE FALSE B
43 SIP is called RCA (Rupee Cost Averaging) TRUE FALSE A
44 Liquidity risk arises in Closed ended fund Open ended fund Gold Debt A
45 A mutual fund is A pool of trustee money A pool of investment institutions A pool of investment managers A pool of investment fund D
46 The name and background of key personnel in AMC Are not included in SID Declared on MF website Are included in SAI Are not relevant so not disclosed C
Page 18
NISM Mock Test 4
Annual report should announce the unclaimed amount and no. of
47 TRUE FALSE A
investor
48 STCG in GOLD is applicable if the holding period is less than 12 months 36 months 6 months 9 months B
49 _______ allots the ARN number AMC AMFI SEBI NISM B
50 Application for MF would be rejected if paid in Cheque DD Cash Bankers cheque C
51 Role of Credit rating agencies is highest in Debt Fund Gold Fund Real Estate Fund Equity A
52 Investors in PPF gets deduction up to 100000 10000 70000 75000 C
Agreed between AMC &

53 Cut-off time are Distributor
Different for every RTA Prescribed by SEBI Different from AMC to AMC C
54 Money market in which MF invests are regulated by AMFI SEBI RBI Stock exchange C
For with-holding tax on income earned by NRI depends on nature of

55 TRUE FALSE A
income, nature investment and investor's country of domicile
56 Gilt fund is a good alternative to Capital Appreciation TRUE FALSE B
57 Which of the following is growth asset Savings a/c Current A/c Real Estate Govt Security C
Security transaction through associated

58 Which is prohibited in AMC's Code of ethics Inter Scheme transfer Front Running
broker
Distributor of MF through AMC B
Transfer of Closed ended

59 Loads are applicable to Scheme
Redemption Purchase and redemption Purchase B
60 Bank on receipt of money from abroad issue IEC FIRC MIN + Folio B
61 Mutual Fund investor can't pledge units TRUE FALSE B
62 Standard risk factors are Not market risk Specific to scheme not relevant to investor common to all scheme D
Receive information that can protection of capital even if market Assured return even if there is no
63 Unit holders are entitled to effect their investment goes down
Sue the MF or Trust
guarantee
A
64 Appropriate benchmark to large cap BSE small cap index Sensex BSE 500 BSE Mid cap Index B
65 If market crashes after bull run which fund is more safer Growth Value Sector Theme B
66 Insurance in case of MF is Up to 1 Lac per scheme 1Lac per fund More than 1 lac None of the above D
Net Avg asset of the scheme is 300cr and Investment transaction

67 value for the same is 1000 cr in a year. What is the avg holding 0.3 0.36 Insufficient Data 3.6 D
period (months)?
Mutual Fund transaction on stock exchange are governed by stock
68 TRUE FALSE B
exchange redressal system
NAV of the date when notice is
NAV on the date when trustee
69 Which one is called Cum-Dividend-NAV? approves dividend
issued to meet the trustees to NAV after the date of dividend None of the above A
finalize the dividend
Page 19
NISM Mock Test 4
70 IF Gold price appreciates investors should invest in Gold sector fund Gold ETF Index Fund Gilt edge Security B
71 When scheme is first launched, AUM of the scheme would be nil TRUE FALSE A
An investor looking to select a hybrid fund with tax benefits must

72 Conservative MIP Balance fund Equity oriented Balance fund Debt oriented Aggressive MIP B
choose.
73 Encroachment risk is higher for Land Building Gold Art A
74 Unaudited report has to be published in newspaper every 3 months 6 months 12 months 3 financial year B
75 Tax differal is advantage Growth Dividend payout Dividend reinvest Capital gain A
76 The expense ratio is affected by Fund size Average account size Portfolio composition Stock market conditions A
77 In a mutual fund investors subscription are accounted for as Liabilities Unit capital Deposits None of the above B
A disclosure should be made in the offer document if an AMC has

78 invested more than the following percentage of its net assets in group 0.5 0.25 0.4 0.1 B
companies.
79 Open ended fund can invest in unlisted securities up to- 0.05 0.0475 0.06 0.0525 A
80 Fund of Fund scheme invest in- Mutual Fund scheme International fund Index fund Gilt fund. A
81 A scheme can distribute dividend on its- Realized profit. Profit after tax realized & non realized profit none of the above A
82 A newly married couple should invest into -- Debt fund Balance fund Equity fund Liquid Funds C
If an investor wants to invest in Mutual fund through exchange

83 Existing investor Broker AMC Distributor B
platform he can buy from
Changes from scheme to
84 Standard risk factors are scheme.
Common for all scheme Both None of above B
85 The presence of market makers provide liquidity in case of ETF TRUE FALSE A
Net asset Rs.500cr./ total transaction value is Rs. 1000 cr what is

86 0.5 2 1 data insufficient B
portfolio turnover ratio
Avg net asset of scheme is 3000,total transaction of a scheme 10,000
87 0.3 4 3.33 5 C
what is portfolio turnover ratio
88 What is an ideal sector allocation in a sectoral fund <5 >5 Not more than 2 >10 C
Some funds allow the investor the

Which of the following is true with respect to the automatic It allows the investor to reinvest It ensures that the investor reaps
89 invest the dividend in the other All of the above. D
reinvestment plan? the amount of dividend the benefit of compounding
schemes also
It offers the investors the benefit of

ETF combines the best
flexibility of holding a single share as ETFs recover heavy load from the
90 Which of the following is not true for Exchange Traded Funds (ETF)? features of open end and Its pricing is linked to the index
well as the diversification and cost investors. D
closed end.
efficiency of index
In which of the following the investor generally bears the highest

91 Exchange traded funds Balanced funds Commodity funds Fund of funds. D
expenses?
Page 20
NISM Mock Test 4
92 Which of the following is not the advantage of mutual funds? Reduction of transaction costs Convenience and flexibility Tailor made portfolio Liquidity. C
93 Investor who wants long term exposure to gold should opt for ETF Gold Gold Sector Fund Gold Future Jewellery's A
94 Which is the short term Govt Security Commercial Paper T-Bills Certificate of Deposit Gilt B
95 Which is the most Illiquid Asset? Gold Equity Debt Real state D
Page 21
NISM Mock Test 5

1 Bank lends against Pledged units Dividend Nomination Redemption A
2 SID is approved by Investor Sponsor AMC and Trustee Custodian C
3 Cut-off time for NAV decided by AMC same for all scheme by trustee Prescribed by SEBI D
4 preparation of WILL is pessimistic exercise, so it is better to avoid TRUE FALSE B
Memorandum of the articles of

5 Which document is not required for institutional investor P & L account
association
PAN card Authorized signatory list A
6 Distributors are provided commission for up to 3 yrs 5 yrs 10 yrs investors stay invested D
SEBI is responsible to develop a cadre of well trained agents and

7 TRUE FALSE B
distributors
8 High regular income yield is indicator of scheme weakness TRUE FALSE B
9 Who promotes MF Sponsor custodian AMC trustee A
10 Liquidity risk is highest in Mid cap stocks Front line stocks Index stock Gilt security A
selecting stocks in a portfolio of

11 A unit holder is not responsible for reading OD
the mutual fund scheme
regular monitoring investment awareness of risk factors B
12 Accepted standard for return calculation in financial market is abs return CAGR total return simple annualized return B
13 STT is applicable on Purchase of debt fund Redemption of debt fund Redemption of equity fund All of above C
Mr A holds 1200 units , scheme declares 1:3 bonus. How many units will
14 300 400 3600 depends on NAV C
Mr A gets
15 Corporate deposit interest rate depends on liability of borrower asset of borrower credit rating profit of borrower C
16 Commodity does not include Art Energy product spices Fibres A
Change with the value of the

17 The value of investment in mutual funds.. Increase gradually every day.
investment portfolio
Decrease gradually every day Be volatile in long-term B
18 The first ever mutual fund scheme in India was launched in 1964 1951 1970 1994 A
19 Investors buy units of open-ended funds during the continuous offer at the NFO price Market Price Both none of the above B
Page 22
NISM Mock Test 5
The investment objective of which of these funds would be to seek capital
20 Dividend yield fund Growth Fund Liquid Fund Income Fund B
appreciation?
If we have a view that gold price will appreciate, which mutual fund
21 Gold sector Gilt edged securities Index fund Gold ETF D
scheme should we invest in?
Investors can buy of sell units on
Investor can see where his These schemes can generate stock exchanges at price that
22 One of the advantage if ETF is.. money is invested higher returns than mutual fund. closely track valuation at that
ETF offer tax benefits. C
time.
23 Mutual funds are constituted in India as a.. Companies Trust Partnership firms. NGO B
24 Mutual fund sponsor can be compared to .. A depositor in company A company director Promoter of a company CEO C
25 Which of these entities enables collection and payment of fund. Broker Banker R&T Agents, Custodian C
26 The constituents of mutual fund are appointed with the approval of .. Sponsor Trustees SEBI AMC B
The applicable guidelines for mutual funds are set out in SEBI (Mutual
27 TRUE FALSE A
Fund) regulation, 1996..
28 Bank sponsored mutual funds are also regulated by AMFI Stock Exchanges, RBI SEBI C
AMFI code of ethics prescribes that mutual fund scheme portfolios should
29 Identified class of unit holder All classes of unit holders Retail individual Institutional unit holders B
be managed in interest of
Although AGNI is mandated. there are no penalties for breach of code of

30 TRUE FALSE A
conduct.
To achieve growth by investing in equity and equity related investments,

31 balanced with income generation by investing in debt and money market Equity fund Money market fund Balance fund Debt Fund C
instruments is likely to be the investment objective of ___________ .
Annual report of AMC should necessarily mention the unclaimed amount

32 TRUE FALSE A
and the number of such investors for each scheme.
According to the plan chooses by

33 Unit holders enjoy rights to the asset of the funds... them.
As per decided by trustees equally for all holders In proportion of holding D
For fund of fund NAV is to be updated on-line in the website of AMFI and
34 Before 9 pm same day Before 10 am following day after 10 pm same day Before 9 pm following day B
the mutual fund website..
Periodic disclosure of the fund's Periodic disclosure of AMC'c On-line purchase and sells of Dispatch of dividend within 30
35 Which of the following is not a mandatory services standard as per SEBI. holding accounts units days
C
36 Investors can sue trustees for breach of trust. TRUE FALSE A
To give the FM's commentary on To report the performance of To give investors information
37 Which of the following is the function of an offer document To enable comparison of MFs
market scheme about scheme D
38 NFO other than ELSS can remain open for _________ 15 days 30 days 45 days Forever A
Which of the following contain detail information on the portfolio Statement of additional
39 Key Information of Memorandum Scheme information document Addendum C
characteristics and operational features of a scheme? information.
Page 23
NISM Mock Test 5
40 Which of the following is not fundamental attribute of scheme? Investment objective Name ff Fund Manager Investment Pattern Type of risk profile B
Statement of additional
41 Which of the following is a synopsis of the offer document? Trust deed Memorandum of Association
information
Key information of memorandum D
42 The format of KIM Given by SEBI Given by AMFI Varies to fund to fund By Stock Exchange A
43 Some MF companies allow investors to transact through their website. TRUE FALSE A
44 There is no need for educational qualification to be MF advisor. TRUE FALSE B
Distributors are compensated by mutual fund companies primarily

45 Salaries Annual fees Share in AMC's profit Commission D
through..
Distributors do not get upfront Distributors do not get trail
Distributors get upfront and trail Distributors do not get upfront
46 Which of the following statement is true? commission on self business but commission on self business but
on self business and trail on self business.
D
they get trail commission get upfront commission.
47 AMFI is SRO for mutual fund and regulates all mutual Fund TRUE FALSE B
AMFI code of ethics prescribes that mutual fund schemes portfolios identified special classes of unit
48 all classes of unit holders retail individual class None of above B
should be managed in the interest of holders
49 Transfer of investment from one scheme to another is allowed TRUE FALSE A
He will need to give written he needs to give the NOC from

50 If the investor wishes to change the distributor request to the fund house previous distributor
AMC may allow or disallow All of above A
51 Investor can sue the trust for breach of trust TRUE FALSE B
Since NFO is a marketing decision ,CIO has limited role in deciding it's
52 TRUE FALSE B
structure
53 Info provided in the SAI addendum made in the scheme Updation in OD Updation in KIM None of above A
54 Which of the following form a part of fundamental attributes of a fund Fund manager Investment objective of fund Load None of above B
55 What remains constant in closed ended fund? Unit capital NAV both None of the above A
56 Where do high-yield funds invest? Junk Bonds Gilt fund Equity growth Fund Treasury bills A
57 High yield bond schemes invest in junk bonds? TRUE FALSE A
58 Which ratio measures risk-adjusted return? Sharp Ratio Treynor ratio Both None of the above C
59 Which funds have features of both open ended & close ended? Interval Fund Balance Fund Sector Fund Thematic Fund A
Which approach is used by Fund managers for picking up the Value

60 Bottom up approach Top down Both None of the above A
stocks.
Page 24
NISM Mock Test 5
61 Can liquid funds invest in short term bank fixed deposit? Yes No A
Less then direct Investment in More than direct investment in Equal to direct investment in
62 Expenses in fund of funds? scheme scheme scheme
None B
63 Which fund has highest risk? Liquid Income G-securities Liquid Plus B
64 Childhood & transition phase is common in life cycle & wealth cycle? TRUE FALSE B
65 What is not mandatory in application form? Occupation Status of Individual Mode of holding PAN A
66 Is KIM a synopsis of offer document? TRUE FALSE A
67 Absolute return is best judged if the investment horizon is <1yrs >1 yr Anytime <2Yrs A
68 Dividend distribution tax in liquid fund payable by investor? Nil 12.50% 10.38% 30.00% A
69 What is the rate of TDS in liquid mutual Fund? Nil 12.50% 10.38% 30.00% A
Equity Broker with out NISM certified & AMFI registered

70 Who can distribute mutual fund through stock exchange? certification member
Both None of the above B
71 What is the beta of index fund? 1 More than 1 Less than 1 None of the above A
When a time stamping machine is installed should it be informed to

72 TRUE FALSE A
trustees
The difference between the yield on gilt and the yield on a non
73 TRUE FALSE A
government debt security is called its yield spread.
74 Liquid schemes invest in securities Less then 91 days maturity More then 91 days maturity Less then 1 year maturity More then 1 year maturity A
75 Mutual fund is Trust Company Society None of the above A
76 Who is keeps the custody of security of Mutual Fund ? AMC R&T Custodian Sponsor C
77 AMFI is a SRO ? TRUE FALSE B
Code of Conduct For

78 AGNI is Intermediaries
Rules & Regulations Terms & Conditions Non of the above A
79 NFO opening and closing detail mention in KIM SID OD All of above D
80 KIM is to updated Once in quarter Once in month Once in year weekly C
81 Recurring expenses includes Investment advisory fee Charged by the AMC, R&T fee Marketing and selling fee All of above D
Page 25
NISM Mock Test 5
82 Offer Document of Mutual Fund is approved by SEBI TRUE FALSE B
Stock exchange brokers are permitted to distribute MF after passing the

83 TRUE FALSE A
certifying exam
If the post tax rate of return on an investment is 8% and the inflation rate
84 2.00 Percentage 1.89 Percentage 8.00 Percentage Non of the above B
is 6% the real rate of return is
NAV of the day when funds are

85 A client is investing Rs. 1 Cr. in gilt fund which day NAV he will get? Same day closing NAV Next Day NAV Previous day NAV
realized.
D
86 How many minimum client is required for a scheme to run 20 10 30 50 A
87 There is no TDS on dividend distribution and redemption TRUE FALSE A
88 Which documents are needed for KYC? PAN card Address proof Photo id proof All of above D
89 Which id proof is not valid identity proof for KYC (individual) Credit card Address proof Driving license All of the above A
Transaction slip with purchase

90 For additional purchase Only transaction slip to be filled
cheque
Only cheque None of the above B
Page 26
NISM Mock Test 6
1 Which of the following entities reaches MF product beyond geographical locations The Brokers The Custodian The Distributer R & T Agents. C
2 SEBI is sole regulatory authority for MF are answerable TRUE FALSE A
Where the investor desires to hold MF unit in DMAT form the AMC will still be required to
3 TRUE FALSE B
Perform KYC to such investors
4 Offer document enable investor to compare the of MF scheme with another MF scheme TRUE FALSE B
5 which of the following investors belong to institutional group? HUF NRI Proprietary firm FII D
shall mention the dividend

shall only advertise declared or paid in Rs per unit
compounded annualise yield along with face value of each
6 Performance advertisement Shall identify Nature of scheme
Calculated using the prescribe unit ofthat scheme and the
All of the above D
procedure prevailing NAV at the time
ofDeclaration of Dividend
7 Benefits of STP is Paper work is minimized Idle funds situation reduced Both None C
Company has issued 10 core equity shares. It earns profit of Rs. 105 core on which it has
8 10 10.5 12 11.5 A
Paid tax of Rs. 5 core and distributed dividend of Rs 20 core. What is EPS ?
9 Floating Rate Interest is ? government yield+ spread yield spread base + spread payable only on maturity C
10 Market price of which of the following investment instruments will fluctuates more ? Long Tenor debt Short tenor Debt Floating Rate Securities Debentures A
11 Asset considered for Asset Allocation ideally be Similar only Physical Only Financial Asset Mix of different kind of Asset D
Which of the following is most unlikely to have a model portfolio with 20% alloacation to Young Executive early in his Well Placed Mid Level Senior Executive with Well
12 Investor in Distribution Phase C
sector fund? career. Executive Settled Children
Such distributor and its

Such distributor is approved by Such Distributor is registered
13 A distributor can be empaneled by AMC only if representative has/have
AMFI with Stock Exchange
Approved by SEBI A
cleared certifying Exam
14 AGNI is mandated by ? AMFI AMFI and SEBI RBI SEBI A
15 Junk Bond Scheme is also be known as High Yeild Scheme ? TRUE FALSE A
According to Some studies Asset Allocations and Investment Policy can better explain the
16 TRUE FALSE A
portfolio performance as compared to Stock selection and Investment Timimg?
Protection against Insurance

Higher Money Back after 5 Company rejecting claim on
17 Which Of the following benefits of starting Health Inurance Policy early? years the ground of pre-existing
Both of the above None Of the above B
illness
18 Which of the gollowing is Government Savings Scheme? Infrastrucure Bond RBI releif Bond Post Office recurring Deposit All of the above C
Page 27
NISM Mock Test 6
19 Duration of PPF deposit is 15 years 6 years 7 years 3 years A
Only Individuals other than Individual Including NRI and Individuals Including NRI but not Individuals including PIOs
20 Relaxation from Documetation required for MICRO SIP is available for NRIs and PIOs PIOs PIOs but not NRIs
C
21 Intial Phase of Life Cycle is Accumulation? TRUE FALSE B
22 Life insurance is meant for Tax planing Risk protection Investment Savings B
Beyond means of retail Provided benefits of real estate

23 Real Estate mutual fund is investor's & MF investing
Are popular investment options Are not easy to liquidate B
24 Black swan refer to Probabilities of large losses MF ratings Kind of offer documents Incentive to distributer A
Demonstrate superior
25 A five star rating in MF schemes indicates that Lowest expense ration Lowest load
performance
Best portfolio C
26 Which of the bond fund carries least amount of interest risk Dynamic bond G-sec fund Income fund Money market fund D
27 Asset allocation must primarily based on Investment needs Insurance needs Taxation needs Financial goals D
Move to a larger house in a Husband takes additional

28 Faced with the financial difficulties a family is likely to do all this except following better locality
Economise Expenses Wifes starts working
part time job
A
Annual investment amount Parents reach towards peak Saving for retirement gets Saving for investment is not
29 Pre-retirement stage gets reduced of their earning capacity minimized required B
30 Teir I account of new pension scheme is called pension account ? TRUE FALSE A
Government is trying to convert

Investment in bank FD can be Investment share can be Investment in MF helps the
31 Which is false ? financial Asset to physical
transfered to loan translated into projects real economic
A
asset
32 Minimum Networth requirement of the AMC is Rs 10 crore Rs 5 crore Rs 4 core Rs 2 crore A
If a scheme is launched in the second six months of financial year the the 1st update of the Within 3 months of the end of With 3 months from the Within 3 months from the end of Within 6 months of the end
33 the financial Year begining of Next financial year the next financial year of the financial Year
C
SID is due within
34 Legally SAI is the part of SID TRUE FALSE A
Long term capital losses from Short term capital losses can be Long term capital losses in
Income tax allows setting of certain types of capital gain losses against certain type of Capital losses can be offset equity MF can Be offset offset against dividend income equity MF is not available
35 D
Income which of the following is true in case of such provision. again salary against long term gain from for the year In which the loss has for setting of against
property occurred business or Salary income
36 The __________ is the main driver of returns in a mutual fund scheme . Return Profit of invested company Portfolio None of the above C
37 Fundamental Analysis entails review of the company's Financial Statements Quality of Management Competitive Position All of the above D
___________________ ratio indicates how much investors in the share market are
38 prepared to pay (to become owners of the company ) , in relation to the company's earnings Earnings per Share Price to Earnings ratio Book Value Per Share Price to Book Value B
.
Page 28
NISM Mock Test 6
39 A ____________ fund maintains a portfolio that is in line with the passive fund . Active fund Index Fund Equity fund Debt fund B
Value investment style is an approach of picking up stocks which are valued __________ ,
40 Lower High Medium A&B A
based on fundamental analysis .
41 Which is approcach is also called stock picking . Top – down Approach Bottom – up Approach Either A & B None Of the above B
If the proceeds on redemption are higher than the amount invested then it is called
42 Capital Gain Capital Loss No Profit No Loss None Of the above A
__________ .
Treasury Bills are short term debt instruments issued by the ____________ on behalf of
43 SEBI Reserve Bank of India Central Government State Government B
the Goverment of India .
44 Commercial papers are short term Debt Securities issued by corporates. TRUE FALSE A
45 Credit rating companies are like _______________ . CRISIL ICRA CARE & FITCH All of the Above D
46 Higher the credit risk , lower is likely to be the yield on the debt security . TRUE FALSE B
47 Which of the following are derivative _______________ . Forwards Futures Options and swaps All of The above D
48 Every scheme should have at least __________ investors . 15 20 25 30 B
49 __________ funds take Positions that are countrary to the market . Thematic Funds Mid cap funds Contra funds Dividend yield funds C
Liquid schemes, which invest in securities of up 91 days maturity , have the _________ risk
50 Higher Lowest Zero None of the above B
amongest all kinds of schemes .
Mumbai Inter – Bank Money Inter – Bank offered Multiple Inter – bank
51 What is MIBOR ? Offered Rate Offered Rate
Mutual Inter – Bank offered rate
Offred rate A
52 To convert the demat units into physical from . This process is called re-materialisation . TRUE FALSE A
Real Technique Gross Real Technique Growth

53 RTGS refers to _______________ . Real time Growth Settlement Real Time Gross Settlement
Settlement Settlement B
Application Supported by Application Supported by Application Supported by

54 What is ASBA _____________ . Blocked Account Blocked Acknowledgement Blocked Amount
None of the Above C
55 NSE's Mutua; Fund platform is called NEAT MFSS . TRUE FALSE A
56 When a dividend is paid , the NAV of the units falls to that extent . TRUE FALSE A
57 Risk can be measured by variance Standard Deviation Beta Any of the above D
58 SEBI has Facilitated buying and selling of mutual fund units through the stock exchanges. TRUE FALSE A
Account Registration
59 ARN REFERS TO _____________ . Agent registration Number AMFI Registration Number Application Registration Number
Number B
Page 29
NISM Mock Test 6
In hoardings / posters, the statement , “ Mutual fund investments are subject to market
60 risks, read the offer document carefully before investing ” is to be displayed at least 6 9 5 8 D
_________ inches height .
If a scheme is launched in the first 6 months of the financial year then the first update of the
61 2 6 5 3 D
SID is due with in ________ months of the end of the financial year .
62 No single investor shall account for more than 20% of the corpus of the scheme/plans. TRUE FALSE B
The asset management company shall confirm that a due diligence certificate is signed by
63 Compliance officer Chif executive officer Managing Director Any of the above A
the ____________ .
In case of specifice request recived from investors, mutual funds shall provide the account
64 statement (SIP/STP) to the investor's within __________ working days from the receipt of 5 10 7 15 A
such request without any charges .
The mutual fund would update the current expense ratios on the website within _________
65 5 7 2 10 C
working days mentioning the effective date of the change .
66 Offer documents of mutual fund schemes are approved by SEBI . TRUE FALSE B
_______________ regulates mutual funds, depositories, custodians and registrars &

67 RBI SEBI AMFI All of the above B
transfer agents in the country .
To recommend and To interact with the
To represent to the Government,
68 The objectives of AMFI is/are ____________ . Promote best business securities and Exchange
Reserve bank of india
All of the above D
practices Board of India (SEBI)
“ To generate income by investing predominantly in wide range of debt and money market
69 Diversify equity Scheme Diversify Debt Scheme balanced scheme None B
securities “ is an objective of _________ .
70 Institutional Distributors Build Reach through Employees Agents Sub Brokers Any of the Above D
71 The distributor can charge fees from the Investor TRUE FALSE A
72 The difference between NAV and repurchase price is Entry Load Exit Load Expense Dividend Stripping B
73 NAV of Income Funds is to be calculated upto _______ decimals 4 3 2 1 A
74 Investments in Mutual Fund can be made using Cheque/DD Remittance ASBA Any of the Above D
75 STP is the combination of SIP and SWP TRUE FALSE A
76 In a Top Down approach, sector allocation precedes stock selection TRUE FALSE A
77 Loads and taxes may account for the difference between scheme return and investor return TRUE FALSE A
78 Mutual Fund Ranking and rating amount to same TRUE FALSE B
Which of the following aspects of portfolio would an investor in a debt scheme give more
79 Sector Selection Stock Selection Weighted Average Maturity No of Securities in portfolio C
importance
Page 30
NISM Mock Test 6
80 The comparable for a Liquid Scheme is Equity Scheme Balanced Scheme Gilt Fund Savings Bank Account D
81 Providing Funds for daughter's Marraige is an example of Goal Oriented Financial Plan Comprehensive Financial Plan Financial Goal None of the above C
82 Distribution phase of Wealth Cycle is a parallel of retirement phase of life cycle TRUE FALSE A
83 Incase of NPS investor can choose which of the asset class of the following Equity Corporate Debt government Securities All of the above D
84 New Pension Scheme is regulated by PFRDA IRDA PFRDA+IRDA None of this A
85 What % of the total wealth of Indian People is in physical asset More than 10% More than 25% More than 50% All of the above C
Private Fund Regulatory and Provident Fund Regulatory and Pension Fund Regulatory and
86 PFRDA refers to Development Authority Development Authority Development Authority
All of the above C
87 Investment in a Financial Assets can be productive for the economy TRUE FALSE A
National Conversion
88 NCDEX refers to National Contract Exchange National Currency Exchange National Commodity Exchange
Exchange C
89 In case of the buying of the Gold Future Contract, entire value of the Gold has to be paid TRUE FALSE B
90 ------exempted from the Wealth Tax Gold Deposit Scheme MF Both A and B None of this C
91 Many investors invest money in Bank FD and not in Debt market because Lack of Interest Lack of awareness Lack of Money Lack of confidence B
92 Interest earned in Bank FD is Taxable each year TRUE FALSE A
The primary objective of the Financial Planner is to make available the right amount of
93 TRUE FALSE A
money at the right time.
94 The third stage of the wealth cycle is Accumulation Transition Reaping Intergenerational Transfer D
In many health insurance policies, the customer has to bear the expenses and that can get
95 TRUE FALSE A
reimbursed from the Insurance company
96 Risk appetitte ---------- as no of dependant menber increases Decreases Increases No change Any of the above A
97 Many-------have made available the risk profiling tool on their web sites AMCs Research Houses Both None of this C
98 ------is the decision outcome based on the market behaviour Tactical Asset Allocation Strategic Asset Allocation Flexible Asset Allocation Fixed Asset Allocation A
99 Many Financial advisor work on the Model Portfolio TRUE FALSE A
100 Which are the aspects that affect the Risk profiling of the investors? Family Information Financial Information Personal Information All of the above D
Page 31
NISM Mock Test 7
We have to do the registration of the mutual fund with the SEBI.

1 Trust R&T Sponsor AMC C
Who gets registration done
Publish NAV, AUM of the fund

2 AMFI do the following activity house and maintain and publish Compute NAV Manages money under None of the above A
industry data
Closing NAV of the day Closing NAV of the day
In a liquid fund a application for repurchase comes at 3.30. Whats Closing NAV of the date of Closing NAV of the next business
3 preceeding the next business preceesing the date of B
is the NAV which would be available to it application day
day application
4 In creating of model portfolio which is the first step Deciding the Asset Allocation Identify financial Goal Selection of Sector Selection of the scheme A
Once the asset allocation is decided, sharpe ratio can help us to

5 TRUE FALSE A
select the good debt and equity Schemes
Once the asset allocation is decide, treynor ratio can help us to

6 TRUE FALSE B
select the good debt and equity schemes
With the increase in the regular income from the job risk taking
7 Remains the same Decreases Increases Insufficient data C
ability of the investor _________
Closing NAV of the day

A repurchase comes in a GILT fund at 2.30 pm. Whats would be Closing NAV of Next Business Closing NAV of the Application Closing NAV of the day
8 preceeding the next business B
the NAV available to the redemption Day Day preceeding the Application date
day
Aged couple with no immediate 40 year old man with a family with Yound couple with 2 school
9 75% investment in debt is suggested to Young call centre executive A
family support grown up children going kinds
An investor with interest to earn high return and willing to take high
10 Cautious Investor Conservative Investor Adventurous Investor Aggressive Investor D
risk are refferred to as
A person requires 1,00,000 rs for the specific goal after 3 years. If

we want to known what amount he needs to invest no to get the said
11 100000*(1+0.05)^3 100000*(1+0.05)*3 100000/(1+0.05)^3 100000/(1+0.05)*3 C
amount at rate of 5%. which of the following formula needs to be
used
For an Micro SIP which one of the following is not a valid photo ID
12 PAN proof Debit card with photo ID Credit card with Photo ID Voter ID proof C
proof
The responsiblity to manage funds in the new pension scheme is

13 PFRDA Insurance Companies AMCs PFMs D
with
Where you get the information in regards to the key personals They are not published as it is not They are published on the website Available in SAI ( Statement of
14 C
involved in an AMC very important for the investor of the mutual Fund Additonal Information )
15 Which of the following is not available in SID Type of Fund Risk Factor Due Diligence certificate None of the above D
16 Legally SAI is the part of SID TRUE FALSE A
Time at which the application is b) Scheme in which the money is The day on which the The amount which is getting
17 The date of the applicablity of the NAV is not dependent on C
submiited invested application is submiited invested
Page 32
NISM Mock Test 7
The AMFI allots unique the ARN no which is valid for the period of
18 TRUE FALSE A
three years
The following would not affect the trail commission to the advisor in Portfolio value going up with the Investor making fresh purchase Change in the unit capital of the Investor redeeming the money
19 C
mutual Fund increase in the market during the period the scheme during the period
The STT paid on the equity mutual fund sold on the stock exchange
20 0.00125 Nil 0.0025 0.00017 A
is
The STT paid on th equity mutual fund purchased on the stock

21 0.00125 Nil 0.0025 0.00017 A
exchange is
22 STT paid on the re purchase of units by the AMC 0.00125 Nil 0.0025 0.00017 C
Which of the following when transacted on the stock exchange STT

23 ELSS GOLD ETF Index ETF Diversified Equity Fund B
is not applicable
Its is advisable for an average investor to do Tactical Asset

24 TRUE FALSE B
allocation for planning his retirement
In case of sudden wealth which among the following is least Park the money in the liquid fund Invest all money into equity at one Start STP from liquid fund into
25 Review the financial plan B
advisable for a short time go Equity Funds
Tactical asset allocation is suitable for seasoned investor with large

26 TRUE FALSE A
investible surpluses
Closing NAV of the day

An application for re purchase in equity comes at 3.30. What would Closing NAV of Next Business Closing NAV of the Application Closing NAV of the day
27 preceeding the next business A
be the applicable NAV Day Day preceeding the Application date
day
In case there is a redemption from a NRI who have invested the
28 money on a non repatriable basis. The mutual would pay in dollors TRUE FALSE B
as redemption
The investment grow faster in dividend re investment options as
29 compared to the growth option because more units are added on TRUE FALSE B
dividend reinvest
30 Maximum expense that can we charged in a debt fund is 0.0175 b) 0.75% 0.025 0.0225 D
The NAV capture the full value of The number of units increases
31 In case of the growth option which of the following is not true There is no dividend declared There is a Tax Deffereal C
the porfolio gain over period
We require the board resolution from companies to invest is mutual

32 fund as it may not be specified in the Memorundum and Articale of TRUE FALSE B
Assoiation to invest in such schemes
If the company have 10 cores if Issued shares. The profit it makes
33 is 105 coree. IT pays 5 crore as tax. Also pays 20 crore as dividend 10 8 Not sufficient Data 5 A
what is the EPS
An investor in the debt scheme who completely want to eliminate
34 TRUE FALSE B
investment in equity should invest in MIP
The fund have an average asset of 300 crore. The portfolio turnover
35 for the portfolio is Rs 1000 crore. For how many months the 0.36 3.6 3 0.25 B
investment are held for
The floating rate fund hold on to there value even if the interest rate
36 TRUE FALSE A
are fluctuating
Performance of the fund is most sensitive to the expense ratio in

37 Liquid Fund Diversified Equity Fund ETF Sector Fund A
which of the following Fund
Page 33
NISM Mock Test 7
Branches of reserve bank of
38 Who among the following are not distributor for Mutual Funds National Distributors Branches of public Sector Bank Branches of Forein Banks C
India
39 Importance of credit rating agency is most important in Equity Funds Secutised Debt ETF B
AMFI gudieline and Norms for AMFI guideline and norms for AMFI guideline for Asset
40 Full form of AGNI AMFI Guideline for Non Indians A
Intermidiary Investment Management Company
Which of the following scheme is exempted from the divident

41 Debt Oriented Funds Balance Funds Liquid Funds Equity Funds D
distribution Tax
42 Sector selection is the key decision in the Bottom Up Apprach TRUE FALSE B
Fair market value as the the Price decided by the offmarket

43 Illiquid Shares would be valued at Value Decided by the broker None of the above B
guidelines of SEBI Trade
44 Tax consultant should not advice financial planning to his client TRUE FALSE B
45 Mother want to set apart Rs 25 lakhs in 3 years time Financial Goal Asset Allocation Financial Planning Financial Desire A
Dividend payout and Growth

46 Followinf is the Asset Allocation Art and Gold Fund Growth and Value Fund Active fund and Passive Fund B
Option
47 Limit of the commission to be paid to distributor is decided by SEBI TRUE FALSE B
Additional Purhase by the

Investment done by any investor in Additonal Purchase by the existing First time investment in any of
48 Whats is an NFO Investments? existing investot in another A
the new Scheme investor the mutual Fund Scheme
scheme
Returns can be reasonably

49 Whats is true about the FMP NAV dose fluctuate No defaul Involve All of the above C
predicted before the maturity
50 SAI needs to be updated every Yearly Monthly Quarterly Half Yearly C
51 Who is responsible for the information available in OD Trustee AMC Sponsor Custodian A
Which of the following government secuity have leasr maturity

52 CD CP T Bills Gilt Scheme C
period
53 Which of the following credit rating is not required Shor term debt Fund Liquid Schemes GILT Schemes FMPs C
Insurance is more important in case of Physical Asset Vis a Vis

54 TRUE FALSE A
financial Asset
55 Which of the asset have the higest risk to be stolen Real Estate GOLD Mutual Fund Bank Balance B
Most best way to decide the risk appetite of the person is to ask
56 TRUE FALSE B
client that “ how mush risk you are ready to take in the market”
Quality of the operation of the

57 Share price of the Gold Mining Company is dependent on Gold Reserve Gold Price All of the above D
company
58 Expense ration is more important in case of Offshore Fund Equity Fund Debt Fund Sector Fund C
While construction of the portfolio the relative performance is done

59 Peer Group Asset Alllocaton Model Portfolio Tracking error A
with
Page 34
NISM Mock Test 7
The balance funds based on flexible Asset Allication is lower riskier
60 FALSE TRUE A
than high yield debt fund
61 Between whom the Trustdeed is executed between Trustee and Sponsor Sponsor and Custodian Trustee and AMC AMC and Sponsor A
62 Repurchasing the predecided no unit at the regular interval is called STP SWP SIP All of the above B
Unclaimed investment amount and dividend can be demand by the

63 TRUE FALSE A
investor
Cut-Off time decided by SEBI

64 Applicable NAV for the different scheme is as per the following time Office time of AMC Office time of R&T As per the time of stock market D
for various MF scheme
Commitment to abide by Provide all information and

While empannel with the AMC, every distributor have to provide the
65 Correct and complete information instruction given as also statutory document that the AMC may All of the above D
following
codes and guideline ask for from time to time
Transaction done of MF on the NSE NEAT and BSE Start the

66 TRUE FALSE B
exchange gurantee the settlement of Funds
Low P/E ratio indicate that it is unlikely to replicate its past

67 TRUE FALSE A
performance
68 Churning of the portfolio by the Fund Manager is called Portfolio Turnover Ratio Liquidity Ratio Annual Turnover Ration All of the above A
Beyond the means of the retail Extremally Liquid and cost Offer the benefit of both real
69 Invesment in a Real Estate Mutual Fund is Highly illiquid D
investor effedctive estate and Mutual Fund
Premature withdrwal is allowable Any amount of investment in

70 Advantage of investing in PPF is Loan is available any time Tax free return every year D
after one year the scheme
All his member to the limited
71 Self Regulatory Organisation controls All his member completely All mutual fund company All share brokers B
extent
72 In case of Joint holder the pan card requriment for 1st and 2nd Holder All joint holders Only 1st Holder Any One B
73 Maximum number of nominee which can be added 5 1 3 2 C
In case New Pension scheme how many PFM( Pesion Fund

74 5 3 3 6 D
Managers) are managing the money
Diversify Debt,Gilt Fund, Liquid MIP ,Liquid Fund, Diversify

75 Which is the right Sequence Liquid Fund, MIP,Gilt Fund Gilt Fund.Liquid Fund,MIP C
Fund. Debt.
In Lower Interest Rate Senario Debt Product of MF will Generate

76 TRUE FALSE A
higher return compared to Fixed Deposit.
77 An employee of the mutual Fund can be an Agent TRUE FALSE B
Payable to Distributor whose

78 Commission on Investment done by Sponsor in a Fund is Not Payable Payable to Sponsor ARN is mentioned in the None of the above A
Application Form
Book Value of a Share is dependent on Accounting Policies of the

79 TRUE FALSE A
company
80 Code of Conduct for AMC Personnel & Trustees are mentioned in Chapter II Chapter IV Schedule II Schedule V ( 5th Schedule) D
Page 35
NISM Mock Test 7
If complaint of an investor is not solved by AMC, investor has to
81 SEBI Trustees Sponsor R&T A
complain to
Anywhere as per Investment
82 Feeder Fund can invest in International Market as Only International Equity Only International Debt All of the above A
Objective of the Fund
83 Tax Deferral is available in Growth Dividend Dividend Reinvest A
84 Benchmark of Sectoral Fund investing in Banking Sector would be BSE Bankex Nifty Junior S&P Nifty S&P 500 A
85 Before going to SEBI for approval of a Fund Launch AMC needs to Take approval from Trustees Print the application Form Finalise the Launch Date All of the above A
86 Which of the Following Fund is most Sensitive to Expense Ratio Liquid Fund Index Fund Equity Fund Off shore Fund B
87 ASBA is an Excellent Facility for Additional Purchase in a Fund TRUE FALSE B
Converting Units of a Mutual Fund from Demat Form to Physical &

88 TRUE FALSE A
Vice Versa is Possible
Finalising the benchmark for the Adjusting the Purchase Price of Considering the growth of
89 Indexation means All of the above B
fund the Fund considering the Inflation partcular asset class
90 Investor in Reaping Phase would primarily invest in Equity Securities yielding Regular Return Both None of the above B
91 Most of the AMC publish Portfolio of their scheme on their Website Daily Monthly Six Monthly Yearly A
Account statement shows

Unit certificate shows only the Unit certificate is issued at the
closing balance and unit
closing balance while account time of NFO and account
92 Difference between Unit Certificate & Account Statement There is no difference certificate shows opening A
statement shows opening balance, statement are send
balance, transactions and
transactions and closing balance consecutively
closing balance
Risk arising from the schemes Risk arising from the non- No previous experience in Movement in NAV because of
93 Which of the following is not the scheme specific risk factor? D
objective diversification managing a fund the market movements.
94 Expense Ratio of an Index Fund is 0.01 0.0125 0.025 0.015 D
A Financial Planner can use any of the Model Portfolio available on

95 TRUE FALSE B
the Web
96 In NPS Tier – I account is compulsory for opening Tier – II account TRUE FALSE A
A Retired couple with Zero income should invest all the money in
97 TRUE FALSE B
Liquid Fund
98 SIP can be done by Standing Instruction ECS PDCs All of the above D
99 Concentration risk is highest in Equity Share Bank deposit Real Estate Commodity B
A high amount of equity investment is suggested to the investor if No such relation with any phase
100 Accumulation phase Transition phase Distribution phase A
he is in which stage ? of life.
Page 36

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NISM Mock Test 1

PRACTICE KIT – PAPER 1

Offices declared as point of

Once every six month in one

The information on minimum investment amount, investor's service

Investor gets units at a discount to It offers benefits of rupee cost

Relaxation from documentation requirements for micro SIP is available

Offering for repurchase, constant amounts worth of units at regular interval

A company's PE ratio may be low because it is unlikely to replicate it's

26 Fundamental analysts are called "Chartists" TRUE FALSE B

If absolute return was 2.4% over 50 days, annualized return would

Probabilities of losing money in equity is negligible if investment horizon is

An investor seeking capital appreciation, having high risk tolerance and

Extent of securities against the

An investor looking for capital appreciation, having a high risk tolerance

In new pension scheme(NPS) Tier I account new pension scheme is

Emerging or new channel for distributors/marketing of mutual funds in

Part of commission up front and The entire commission after five

70 Who Appoints the AMC Custodian R&T Trustee Distributors C

All investor have similar requirements at similar stage in the life/wealth

Model portfolio should be determined based on commission income

84 Arbitrage fund are not equity fund TRUE FALSE B

94 Mutual fund are constituted in India as Companies Trusts Partnerships NGO B

Prior approval of SEBI needs to be taken before a person is appointed as

Memorandum and Articles of

4 Collection and payment of fund is a responsibility of Custodian R&T Banker AMC B

Expense and Load structure of

Give detailed information about

Minimum investment amount and Opening and closing dates of

25 SEBI doesn't allow passing of commission to Distributor Investor Bank IFA B

28 FMP are essentially a closed ended Scheme TRUE FALSE A

The information regarding Which category of investors can invest in MF, is

investing only in Equity Gold and

32 MIP is a Debt Scheme TRUE FALSE A

35 In NPS class-C predominantly invests in Equity Debt Gold Real Estate B

39 STT charge on equity Derivatives Equity MF Equity Schemes All of Above D

53 Mutual fund distributor in India are member of AMFI. TRUE FALSE A

55 Which of the following is appointed by trustee? Custodian Distributor AMC R&T C

Whenever material changes take

71 In India mutual funds are- Govt. institutions Company Trust NBFC C

77 Who keeps detail report of transaction- Custodian AMC R&T Distributor C

beta doesn't make any impact

84 Unit capital is issued at- 10 25 50 100 A

87 Distributors are paid- Commission Fees Salary All of the above A

((End Value/Start Value)^(1/

Partial withdrawal facility is

The P/E ratio is an important measure of a company's anticipated performance.

PRACTICE KIT – PAPER 3

For a customer holding units in demat , the AMC also requires to

In a balance fund with net assets of 750 crores what is the

Premium can be availed under Sec 80

12 SEBI is sole regulatory authority for MF are answerable TRUE FALSE A

Within how many days the dividend warrants to be dispatched on

15 A distributor needs different ARN for each AMC ? TRUE FALSE B

The New Pension scheme is both regulated IRDA and PFRDA as it

20 Which of the following is an SRO ? AMFI SEBI BSE RBI C

In NFO the account statement is to be dispatched within â days

23 Companies issuing short term debt is called CD Tbills Debentures CP D

Within a category one can decide on investments based on Sharpe

29 Technical analysis is projecting trend based on human behavior ? TRUE FALSE A

According to Performance Advertisements the return shown for

In Transition phase of Wealth Cycle investor tends to increase the

The young BPO executives should not be advised to invest in long

In NFO the account statement is to be dispatched within â days