NISM 5A MOCK TEST 1
NISM 5A Mock Test
Welcome to the NISM 5A Mock Test! This quiz is designed to help you evaluate your knowledge and understanding of mutual fund regulations and investment strategies.
It covers key concepts, including:
- Due diligence in fund management
- Valuation and risk assessment
- Investment performance metrics
The due diligence certificate that must be submitted to SEBI along with the draft offer document cannot be signed by
The managing director of the AMC
An executive director of the AMC
.the compliance officer
Investor relations officer
The following information about the constitution of the mutual fund is found in both the offer document and key information memorandum
Activities of the sponsor
Summary of trust deed provisions
Name and addresses of the board of trustees
All of the above
The greatest potential for growth in capital is offered by
Debt funds
Gilt funds
Growth funds
Balanced funds
The KYC documentation has to be done only with
CVL
CDSL
ONCE
POS
The minimum amount to be raised, and the maximum target amount
.are not known before the offer is concluded
Can be decided based on investor response to the offer
Are defined as per SEBI Regulations before the offer is made
Need not be disclosed in the offer document
The National Stock Exchange Index is _____.
Sensex
Bankex
Rolex
Nifty
The number of shares outstanding for a mutual fund is determined by customer demand for the shares hence, mutual funds are referred to as:
Limited partnerships
Open end
Closed end
General partnerships
The rights of investors in a mutual fund scheme are laid down in
The Offer Document of that scheme
Quarterly Reports
Annual Reports
Marketing brochures
The offer documents becomes redundent post the investment
True
False
The Strategy advisable for an investor to maximize investment return in the long run is?
Buy and hold on to investments for a long time
Liquidate poorly performing investments from time to time
Liquidate good performing investments from time to time
Switch from poor performers to good performers
Though CIO has investment right it plays limited role in investing in market
True
False
To show the performance of scheme or fund, the Mutual fund should
CAGR
Annualised Returns
Absolute Return
Simple return
Trust deed are contract between Trustee and _____
Sponsor
AMC
.SEBI
Investors
Unit-holders aggrieved by a Fund or AMC can get redressed from
Consumer Courts
SEBI
AMFI
RBI
Valuation norms for non-traded securities should be disclosed
At the end of every financial year
Every quarter
In the offer document at the time of launch of the scheme
Should not be disclosed, being confidential information
What is a measurement of the performance of a specific basket of stocks considered to represent a particular market or sector of the U.S. Stock market or the economy?
Performance Index
Stock Index
U.S. Stock Index
Market Index
What is the full form of NAV?
Net Assessment Value
National Asset Value
Net Asset Value
National Area Variation
What would be the NAV if an investor invest in a gilt fund Rs. 1 crore at 3:30 PM by a local cheque.
Same days NAV
NAV of realisation date
NAV of previous day of realisation
NAV of next days
Where can an investor find information of the constituents of the mutual fund?
Section I of the SAI
Section I, Sub-section A of SID
Section I, Sub-section B of SAI
None of the above
Which color code represents the lowest level of risk in a mutual fund scheme?
Blue
Green
Yellow
Brown
Select the incorrect statement(s) regarding equity linked saving schemes(ELSS) using the code given. 1.They are offered by mutual fund companies, but unlike the mutual funds, they do not have a lock-in period. 2. They fall under Low risk and high return category.
Only 1
Only 2
Both 1, 2
Neither 1 nor 2
Which of the following has the least risk in the Mutual Funds
Debt Fundsnbsp;
Equity fund
. Money marketfund
. All of above
Which of the following is generally true for a growth stock?
Steady capital appreciation and steady dividends yields
High capital appreciation and high dividend yields
. High capital appreciation but low dividend yields
Steady capital appreciation but high dividend yields
Which of the following is the safe investment
PPF
RBI Relief Bond
NSC
Kisan Vikas Patra
Which of the following risks do not affect a debt fund
Default by issuer on payment of interest or principal
.price fluctuations of the debt securities
Share price movements
Interest volatility
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