NISM 5A MOCK TEST 1

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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

25 Questions6 MinutesCreated by InvestSmart247

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

NISM 5A MOCK TEST 1

NISM 5A Mock Test

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