NISM Series V-A The Mutual Fund Distributor Certification Exam Quiz 1
To become a mutual fund advisor in India, one must pass the NISM Series V-A, the Mutual Fund Distributor Certification Exam, which is conducted by NISM-approved test centres.
Mutual Funds Quiz
1. ___________ funds are available throughout the year for subscription.
a) Open-Ended Funds
b) Close-Ended Funds
c) Interval Funds
d) Gold Funds
Answer: a) Open-Ended Funds
2. _______________ are available only during specified days for subscription.
a) Open-Ended Funds
b) Close-Ended Funds
c) Interval Funds
d) Gold Funds
Answer: b) Close-Ended Funds
3. _____________ funds can be understood as the schemes that offer new units to the investors continuously.
a) Open-Ended Funds
b) Close-Ended Funds
c) Interval Funds
d) Gold Funds
Answer: a) Open-Ended Funds
4. ____________ issued by the Government of India to raise money for a short-term of up to 365 days.
a) Treasury Bills
b) Call money
c) Commercial paper
d) Kisan Vikas Patra
Answer: a) Treasury Bills
5. Which of the following is a limitation of investing in Liquid funds?
a) Convenience to Park Surplus Money
b) Safe Investment Option
c) Better Returns on Idle Money
d) No Lock in period
Answer: d) No Lock in period
6. Which of the following is a risk associated with debt funds?
a) Less volatile
b) Unsafe Investment
c) Fixed Return
d) Tax Efficient
Answer: c) Fixed Return
7. Gold ETFs are popular because of:
a) Transparency and Real-time gold prices
b) Non-Liquid
c) Security Transaction tax
d) Entry and Exit load
Answer: a) Transparency and Real-time gold prices
8. The most important advantage of a money market mutual fund is ____________.
a) Quick capital appreciation
b) High regular income
c) Safety principle
d) No loads
Answer: c) Safety principle
9. Which of the following is not true for Index funds?
a) These funds invest in the shares that constitute a specific index
b) The investment in shares is in the same proportion as in the index
c) These funds take only the overall market risk
d) These funds are not diversified
Answer: c) These funds take only the overall market risk
10. Which of the following risks do not affect a debt fund?
a) Default by the issuer on payment of interest or principal
b) Price fluctuations of the debt securities
c) Share price movements
d) Interest volatility
Answer: c) Share price movements
11. Which type of mutual fund primarily focuses on capital appreciation?
a) Income funds
b) Growth funds
c) Balanced funds
d) Liquid funds
Answer: b) Growth funds
12. Which type of funds are suitable for investors looking for low risk and stable income?
a) Low risk and stable income funds
b) Balanced funds
c) Growth funds
d) Equity funds
Answer: a) Low risk and stable income
13. Private equity investments primarily deal with?
a) Government bonds
b) Public company shares
c) Debt securities
d) Equity of private companies
Answer: d) Equity of private companies
14. Large-cap funds primarily invest in?
a) Large-cap companies
b) Mid-cap companies
c) Small-cap companies
d) Startups
Answer: a) Large-cap funds
15. Balanced or Hybrid funds invest in?
a) Only equities
b) Only debt securities
c) Only commodities
d) A mix of equity and debt securities
Answer: d) Balanced or Hybrid Funds
16. Mid-cap funds invest in companies categorized as?
a) Large-cap companies
b) Mid-cap companies
c) Small-cap companies
d) Blue-chip companies
Answer: b) Mid-cap funds
17. Small-cap funds invest in companies with?
a) Large market capitalization
b) Mid-range market capitalization
c) Small market capitalization
d) Established business models
Answer: c) Small-cap companies
18. Feeder funds are also known as?
a) Parent funds
b) Feeder Investments
c) Principal funds
d) Domestic funds
Answer: b) Feeder Investments
19. Hybrid funds that invest in both domestic and international markets are called?
a) Domestic-International Hybrid funds
b) Foreign Equity Funds
c) Large-cap funds
d) Debt-Equity funds
Answer: a) Domestic-International Hybrid
20. International mutual funds primarily invest in?
a) Domestic markets
b) Foreign markets
c) Real estate
d) Only government securities
Answer: d) International Mutual funds
21. Which type of mutual fund invests in bonds of companies with a high rating?
a) Low-Risk Bond Funds
b) Those investing in bonds of companies with a high rating
c) Junk Bond Funds
d) Corporate Bond Funds
Answer: b) Those investing in bonds of companies with a high rating
22. Which of the following is a common alternative investment?
a) Stocks
b) Mutual Funds
c) Real estate
d) Fixed Deposits
Answer: c) Real estate
23. Long-duration funds invest in bonds with?
a) Short maturities
b) Mid-term maturities
c) High-yield bonds
d) Long-term maturities
Answer: d) Long duration funds
24. A New Fund Offer (NFO) is?
a) An existing fund offer
b) A new scheme launched by a mutual fund
c) A secondary market offering
d) A stock market IPO
Answer: b) New Fund Offer
25. The slowdown in foreign economies can impact?
a) Domestic equity funds
b) Real estate funds
c) Commodity ETFs
d) International funds
Answer: d) International funds
26. Gold ETFs invest in?
a) Gold ETF
b) Silver futures
c) Cryptocurrency
d) Government bonds
Answer: a) Gold ETF
27. Which external factor can negatively impact mutual fund performance?
a) Economic growth
b) The slowdown in foreign economies
c) Rising stock prices
d) Increased dividends
Answer: b) The slowdown in foreign economies
28. Commodity ETFs invest in?
a) Stocks
b) Commodities like gold and oil
c) Mutual funds
d) Government bonds
Answer: b) Commodity ETF
29. Growth funds are known for?
a) High market risks
b) Steady income
c) Tax savings
d) Low volatility
Answer: a) High market risks
30. Which fund aims for capital appreciation rather than stable income?
a) Income funds
b) Growth funds
c) Balanced funds
d) Liquid funds
Answer: b) Growth funds
31. Equity funds are preferred for?
a) Potential for high returns
b) Low-risk investments
c) Fixed income
d) Liquidity
Answer: a) Potential for high returns
32. Investors with a low-risk appetite should invest in?
a) Large-cap funds
b) Mid-cap funds
c) Small-cap funds
d) International funds
Answer: a) Large-cap funds
33. Which category of funds primarily invests in large-cap companies?
a) Equity Funds
b) Debt Funds
c) Index Funds
d) Hybrid Funds
Answer: a) Equity Funds
34. Which category of mutual funds carries the highest risk?
a) Debt funds
b) Balanced funds
c) Hybrid funds
d) Equity funds
Answer: d) Equity funds
35. Mid-cap funds invest in?
a) Large-cap stocks
b) Mid-cap stocks
c) Small-cap stocks
d) Government bonds
Answer: b) Mid-cap funds
36. Small-cap funds invest in?
a) Blue-chip stocks
b) Mid-cap stocks
c) Small-cap stocks
d) Corporate bonds
Answer: c) Small-cap funds
37. Large-cap funds invest in?
a) Large-cap companies
b) Mid-cap companies
c) Small-cap companies
d) Startups
Answer: a) Large-cap funds
38. Where can investors find official mutual fund-related information?
a) Stockbrokers
b) Financial news websites
c) Newspapers
d) Mutual fund website only
Answer: d) Mutual fund website only
39. What is the process of converting electronic investment holdings into a physical format called?
a) Physical dematerialization
b) Investors holding of investment in electronic form is converted into a physical format
c) Mutual fund redemption
d) Electronic withdrawal
Answer: b) Investors holding of investment in electronic form is converted into a physical format
40. Who distributes mutual fund units to investors based on demand?
a) Mutual fund companies
b) Banks
c) Brokers
d) Distribution agents based on the demand of the fund
Answer: d) Distribution agents based on the demand of the fund
How to Use This Quiz?
- Read each question carefully and select the best answer.
- Test your mutual fund knowledge and see how well you understand investment options!