This is the Premium NISM Mock test for NISM V A: Mutual Fund Distributors Certification Examination. This NISM mock test consist of 100+ questions. Each question carries one mark. There is no negative marking. This Mock test is set for 2 hours just like an actual examination.
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#1. Which of the following are passive funds?
Exchange Traded Funds are passive funds. It was made only once by the Fund Manager then they repeat the same strategy again and again.
#2. Which of the following Funds are safest?
Fund Manager will invest your money in such a way that you got your invested returns in less than 91 days in Liquid Funds.
So safest fund is Liquid fund.
While sector funds only focus on particular sector and thematic funds only focus on one theme so they are relatively risky.
#3. What is Fund of Fund scheme in Mutual Funds?
As name suggests , Fund of Fund schemes only invest in other schemes of same Mutual Fund company.
#4. High Yield bond schemes invest in
They invest in Junk Bonds because their main objective is to yield higer returns, risk and safety is not their main concern.
#5. TDS on Mutual Funds are charge to
Indian Residents are not subjected to TDS. but NRIs have to pay TDS on Mutual Funds.
#6. STT is not charged to
STT is not applicable to debt or debt-oriented Mutual funds like Liquid funds
#7. In NPS, Tier 1 account have
Tier 2 account have unlimited withdrawal facility as it is basically savings account. While Tier 1 account have partial withdrawal facility
#8. Indexation facility is only available for
As per rules, Indexation benefits are applicable only for long terms capital gains in Debt funds.
Investment period of 3 years is considered as long term investment in debt funds.
If holding period is less than 3 years then debt funds are considered as short term.
#9. SEBI created due diligence criteria for
SEBI created due diligence criteria for big distributors to check their records on which basis they give advise to investors.
As per SEBI, Due diligence criteria are only applicable for distributors who:
- Have point of presence in more than 20 locations.
- Have received commission of over Rs.50 lakh from one AMC.
- Have received commission of over Rs. 1 crore p.a. across industry , not just one AMC.
- Have received AUM over Rs. 100 crore in non-institutional category.
#10. Which of the following Fund have lock-in period?
Exchange Traded Funds and Liquid Funds have no lock-in period while ELSS have lock-in period of 3 years. Liquid funds mostly invest in fixed income securities so they are very safe.
#11. SEBI regulates banks
SEBI regulates Stock market while RBI regulates banks in India.
Questions here are very simple and beginner friendly compare to our other NISM Certifications quizzes. There is no negative marking. There are options out of which one or more can be correct. Anyone who will solve this quiz will get very basic knowledge about financial investments.
This questions are designed in such a way that even a kid can get benefit from it. For beginners, it is recommended to solve it again and again to get all the concepts thoroughly.