NISM Series V-A – Mutual Fund Distributor Exam Practice (Part 1B: Questions 26–50)
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26. Which type of fund is suitable for investors with a low-risk appetite?
a) Equity fund
b) Sectoral fund
c) Mid-cap fund
d) Liquid fund
27. The sponsor of a mutual fund is required to contribute at least what percentage to the net worth of the AMC?
a) 25%
b) 40%
c) 50%
d) 60%
28. Expense ratio in a mutual fund refers to:
a) Brokerage paid to distributors
b) NAV movement per day
c) Annual fund operating expenses as % of average AUM
d) Lock-in period percentage
29. Which type of fund invests in both equity and debt instruments?
a) Equity fund
b) Debt fund
c) ELSS fund
d) Hybrid fund
30. What does a fund fact sheet provide?
a) Performance, portfolio and expense ratio details
b) Tax return forms
c) Bank account details
d) Distributor commissions
31. Which of these is a growth option in a mutual fund?
a) Payout of income
b) Reinvesting profits into NAV
c) Dividend reinvestment
d) Tax-saving plan
32. What is the full form of AUM?
a) Assets Under Management
b) Average Unit Margin
c) Annual Utility Measurement
d) Asset Utilization Model
33. Which authority registers mutual funds in India?
a) RBI
b) SEBI
c) AMFI
d) MCA
34. ELSS schemes have a lock-in period of:
a) 1 year
b) 2 years
c) 4 years
d) 3 years
35. Which is NOT a money market instrument?
a) Treasury bill
b) Commercial paper
c) Equity share
d) Certificate of Deposit
36. Mutual fund redemptions are processed at which price?
a) Applicable NAV on the day of transaction before cutoff time
b) Previous day's NAV
c) Next week’s NAV
d) Average NAV of the month
37. The offer document of a mutual fund must be approved by:
a) AMC Board
b) Trustee
c) AMFI
d) SEBI
38. Which type of scheme is closed-ended?
a) ELSS fund
b) Index fund
c) Fixed Maturity Plan
d) Open-ended equity fund
39. Riskometer in mutual funds indicates:
a) The level of risk associated with a scheme
b) Historical returns
c) Expense ratio
d) Distributor rating
40. Mutual fund units are held in demat form through:
a) AMC
b) Depository Participant
c) SEBI
d) AMFI
41. Which of these indicates short-term investment?
a) Liquid fund
b) Balanced fund
c) Midcap fund
d) Equity fund
42. The maximum entry load allowed by SEBI is:
a) 1%
b) 2%
c) 3%
d) Nil
43. The benchmark for a large-cap equity fund is usually:
a) Nifty Next 50
b) Nifty 50
c) Nifty Smallcap 100
d) Sensex Midcap
44. The key role of mutual fund trustees is to:
a) Protect investor interests
b) Manage day-to-day operations
c) Handle accounting
d) Promote new products
45. Index funds are:
a) Actively managed
b) Short-term schemes
c) Passively managed
d) Guaranteed return products
46. What is the minimum investment in an ELSS scheme?
a) ₹100
b) ₹500
c) ₹1,000
d) ₹5,000
47. Which of the following shows a fund’s volatility?
a) Beta
b) Sharpe ratio
c) Alpha
d) Expense ratio
48. SEBI regulates mutual funds under which regulation?
a) Companies Act
b) Banking Regulation Act
c) Insurance Act
d) SEBI (Mutual Funds) Regulations, 1996
49. What is the lock-in period for tax-saving ELSS funds?
a) 1 year
b) 2 years
c) 3 years
d) 5 years
50. Fund of Funds scheme invests in:
a) Direct equities
b) Bonds
c) Other mutual fund schemes
d) Real estate