NISM Series V-A - Interactive Quiz (Part 3: Q101-150)

101. What is the main objective of a balanced mutual fund?

a) Capital appreciation only

b) Combination of income and growth

c) Tax saving exclusively

d) Pure debt exposure

102. What does SEBI stand for?

a) Securities and Economic Board of India

b) Securities and Exchange Board of India

c) Shareholder and Equity Board of India

d) Systematic Exchange Board of India

103. Which type of risk arises due to change in interest rates?

a) Liquidity risk

b) Market risk

c) Interest rate risk

d) Credit risk

104. Which type of fund invests mainly in equity shares?

a) Debt fund

b) Equity fund

c) Liquid fund

d) Gilt fund

105. The 'NAV' of a mutual fund is declared how often?

a) Daily on business days

b) Weekly

c) Monthly

d) Quarterly

106. Which of the following is an advantage of SIP?

a) Lump-sum investment flexibility

b) Short-term speculation

c) Rupee cost averaging and disciplined investment

d) Guaranteed returns

107. What is the role of the fund manager?

a) Maintain KYC data

b) Manage portfolio and make investment decisions

c) Distribute units

d) Maintain AMC accounts

108. 'KYC' stands for:

a) Know Your Customer

b) Know Your Commission

c) Keep Your Capital

d) Know Your Custodian

109. Mutual funds are regulated by:

a) RBI

b) IRDA

c) AMFI

d) SEBI

110. What is the primary purpose of diversification?

a) Increase market volatility

b) Maximize single-stock exposure

c) Reduce unsystematic risk

d) Increase cost

111. What type of fund invests only in government securities?

a) Gilt fund

b) Equity fund

c) Hybrid fund

d) Index fund

112. What is the maximum entry load allowed by SEBI on mutual funds?

a) 2%

b) Zero (no entry load allowed)

c) 1%

d) Variable by AMC

113. Which document gives details of a mutual fund scheme?

a) Passbook

b) Offer letter

c) Scheme Information Document (SID)

d) AMC license

114. Which entity registers mutual funds in India?

a) SEBI

b) RBI

c) IRDA

d) NSDL

115. The expense ratio in a mutual fund measures:

a) Fund return

b) Total annual expenses as % of average AUM

c) Tax impact

d) NAV

116. What does 'open-ended fund' mean?

a) Fixed maturity

b) Listed on stock exchange only

c) Investors can buy/sell units anytime

d) Only government investors allowed

117. In SIP, the investment amount is:

a) Fixed amount invested at regular intervals

b) One-time payment

c) Flexible lump sum

d) Random contributions

118. What is the lock-in period for ELSS funds?

a) 1 year

b) 2 years

c) 3 years

d) 5 years

119. What does 'Debt fund' primarily invest in?

a) Equity shares

b) Commodities

c) Fixed-income instruments

d) Real estate

120. Which of these represents 'liquidity risk'?

a) Inability to sell investment quickly

b) Fall in interest rates

c) Market index volatility

d) Inflation

121. Who is responsible for investor grievance redressal in mutual funds?

a) Custodian

b) Trustees

c) SEBI only

d) Distributors

122. What is 'expense ratio' expressed as?

a) % of total assets

b) % of NAV change

c) % of investor capital gain

d) % of redemptions

123. Which fund is best for short-term parking of surplus money?

a) Equity fund

b) Gilt fund

c) Liquid fund

d) Index fund

124. Which of these affects NAV the most?

a) Fund manager salary

b) Market value of portfolio securities

c) Distributor commission

d) AMC profit

125. What is a 'close-ended fund'?

a) Open to subscription anytime

b) Traded on stock exchange after NFO

c) Redeemable anytime

d) Allows SIP only

126. What is the minimum number of investors required for a mutual fund scheme?

a) 20

b) 50

c) 100

d) 10

127. Which authority approves new mutual fund schemes before launch?

a) AMFI

b) RBI

c) SEBI

d) IRDA

128. The process of investing at fixed intervals is called:

a) SIP

b) SWP

c) STP

d) Lump sum

129. What is the risk in equity mutual funds?

a) Credit risk

b) Interest rate risk

c) Market risk

d) Inflation only

130. Which of these is NOT a type of mutual fund?

a) Growth fund

b) Balanced fund

c) Deposit fund

d) Debt fund

131. Who audits mutual fund accounts?

a) AMC staff

b) Independent auditors

c) Distributors

d) Investors

132. Which option correctly defines 'load'?

a) Fee charged on entry or exit of investment

b) Tax by SEBI

c) AMC’s profit margin

d) Distributor’s salary

133. Which of the following represents systematic withdrawal plan (SWP)?

a) Invest periodically

b) Withdraw fixed sums regularly

c) Transfer from debt to equity funds

d) Switch to FMP

134. Which option indicates correct relationship between risk and return?

a) Higher risk generally means higher potential return

b) Higher risk means lower return

c) No relation

d) Always constant

135. What does 'AMC' stand for?

a) Asset Management Company

b) Account Monitoring Corporation

c) Annual Market Committee

d) Authorized Mutual Company

136. Mutual funds must disclose portfolio holdings:

a) Monthly

b) Quarterly

c) Annually

d) Never

137. A debt fund invests mainly in:

a) Shares

b) Bonds and money market instruments

c) Derivatives

d) Real estate

138. Mutual fund units can be held in:

a) Physical or demat form

b) Cash form

c) Only in paper certificates

d) Only through banks

139. Which of the following is an advantage of diversification?

a) Increases volatility

b) Eliminates all risk

c) Reduces impact of individual asset losses

d) Increases concentration

140. 'NAV' represents:

a) Fund’s total assets divided by number of units

b) Total fund expenses

c) Investor profit

d) AMC income

141. Which is an example of hybrid fund?

a) Equity only fund

b) Balanced advantage fund

c) Gilt fund

d) Money market fund

142. Which entity holds the securities of the mutual fund?

a) Trustee

b) Custodian

c) SEBI

d) Registrar

143. What is the role of AMFI?

a) Regulate mutual funds

b) Represent industry and promote standards

c) Register new schemes

d) Collect taxes

144. Which type of risk cannot be diversified away?

a) Unsystematic risk

b) Systematic risk

c) Business risk

d) Operational risk

145. When investor redeems mutual fund units, AMC pays:

a) At book value

b) At prevailing NAV

c) At issue price

d) At average of past NAVs

146. What is 'switch' facility in mutual funds?

a) Convert equity to bond schemes

b) Transfer investment between schemes

c) Change investor name

d) Update KYC

147. Which mutual fund type provides tax benefit?

a) Gilt fund

b) ELSS

c) Liquid fund

d) Index fund

148. Which option represents 'redemption'?

a) Buying new units

b) Selling or withdrawing units

c) Transferring units to AMC

d) Switching between funds

149. The term 'open-ended fund' means:

a) Can buy/sell units continuously

b) Closed after launch

c) Fixed maturity

d) Redeem only after 3 years

150. Which body ensures investor protection in mutual funds?

a) AMFI

b) SEBI

c) RBI

d) IRDA

NISM Series V-A – Interactive Practice (Part 3: Questions 101–150)

101. What is the main objective of a balanced mutual fund?

102. What does SEBI stand for?

103. Which type of risk arises due to change in interest rates?

104. Which type of fund invests mainly in equity shares?

105. The 'NAV' of a mutual fund is declared how often?

106. Which of the following is an advantage of SIP?

107. What is the role of the fund manager?

108. 'KYC' stands for:

109. Mutual funds are regulated by:

110. What is the primary purpose of diversification?

111. What type of fund invests only in government securities?

112. What is the maximum entry load allowed by SEBI on mutual funds?

113. Which document gives details of a mutual fund scheme?

114. Which entity registers mutual funds in India?

115. The expense ratio in a mutual fund measures:

116. What does 'open-ended fund' mean?

117. In SIP, the investment amount is:

118. What is the lock-in period for ELSS funds?

119. What does 'Debt fund' primarily invest in?

120. Which of these represents 'liquidity risk'?

121. Who is responsible for investor grievance redressal in mutual funds?

122. What is 'expense ratio' expressed as?

123. Which fund is best for short-term parking of surplus money?

124. Which of these affects NAV the most?

125. What is a 'close-ended fund'?

126. What is the minimum number of investors required for a mutual fund scheme?

127. Which authority approves new mutual fund schemes before launch?

128. The process of investing at fixed intervals is called:

129. What is the risk in equity mutual funds?

130. Which of these is NOT a type of mutual fund?

131. Who audits mutual fund accounts?

132. Which option correctly defines 'load'?

133. Which of the following represents systematic withdrawal plan (SWP)?

134. Which option indicates correct relationship between risk and return?

135. What does 'AMC' stand for?

136. Mutual funds must disclose portfolio holdings:

137. A debt fund invests mainly in:

138. Mutual fund units can be held in:

139. Which of the following is an advantage of diversification?

140. 'NAV' represents:

141. Which is an example of hybrid fund?

142. Which entity holds the securities of the mutual fund?

143. What is the role of AMFI?

144. Which type of risk cannot be diversified away?

145. When investor redeems mutual fund units, AMC pays:

146. What is 'switch' facility in mutual funds?

147. Which mutual fund type provides tax benefit?

148. Which option represents 'redemption'?

149. The term 'open-ended fund' means:

150. Which body ensures investor protection in mutual funds?