NISM Mock Test For Mutual Fund – Part 6 | NISM V A

Here the word Trust is refer to Mutual fund.

As we all know that  Mutual Fund is Trust not a company.

So as per rules, Investors have right to sue Trustees but not Trust.

All Mutual fund  are exempt for wealth tax, no exceptions.

Small cap and mid cap funds turns risker during recession and Market turmoil because market fall and rapid fluctuations affects Small and Mid cap funds more than Large cap funds as Large cap have relatively strong Fundamentals.

And in case of Low interest rate, almost all funds gets benefit from it. As companies have to pay less interest on their Debt which means more profitability of companies.

One ARN number is enough for Mutual fund Distributor to empanelled with any AMC.  

For instance: In India there are total 44 AMCs.

An Mutual fund Distributor  in India can empanelled with any of them with one ARN number.

 It doesn’t matter whether AMC is Sundaram Mutual Fund or L&T Mutual Fund.

SEBI have no control in movement in security prices. As SEBI has no control on demand and supply so automatically have no control in fluctuations in shares.

SID contained Scheme specific information

while SAI contained General

information about the Mutual fund.

Gold sector funds are active funds which invest in a company who works in sector of gold.

while Gold ETF are passive funds which invest in gold itself.

While in case of De materialization

units in physical form are converted into electronic form.

Exchange traded funds have no lock-in period as they are traded in exchange.

Mutual Fund is a Trust not a company. And AMC is managing investor’s money not their own. So they are exempt from tax.