Quick and Easy Guides

Mutual Fund Distributors (MFD) Certification (NISM)
Concept & Role of Mutual Funds
Q1.
When the investments owned by the scheme are quoted higher than the cost paid in the market, such gains in value on securities held are known as.
Q2.
What is the change in true worth of a unit when the investment activity is profitable?
Q3.
The true worth of a unit of a scheme is also known as
Q4.
Post NFO the investors have the following options
Q5.
When a scheme is first launched the assets under management would be
Q6.
When the mutual fund scheme pays any money to the investors, either as dividend or consideration for buying back the units of investors, the AUM increases
Q7.
That which captures the impact of profitability metric and the flow of unit holder money to and from the scheme is known as
Q8.
Mutual funds also act as market stabilizers in countering large inflow and out flows from foreign investors.
Q9.
Every mutual fund mobilizes different pools of money. Each such pool of money is called.
Q10.
Every mutual fund scheme does not have a pre-announced investment objective.
Q11.
Diversification does not mitigate risk in investments
Q12.
The advantages of mutual funds are
Q13.
Mutual funds are liable to pay tax on the income they earn
Q14.
The dividend the investor receives from an equity oriented scheme is tax-free for the investor
Q15.
The systematic approaches offered by mutual funds to promote an investment discipline for long term wealth creation are
Q16.
The unit holder has influence over what securities or investments the scheme would buy
Q17.
The unit capital in an open ended fund keeps changing on a regular basis
Q18.
In which kind of funds can the investors enter and exit at any time even after the NFO
Q19.
What is the sale price of the additional units bought by an investor of an open ended scheme?
Q20.
An open ended scheme continues operations even though some of the unit holders may exit from the scheme wholly or partially
Q21.
The characteristic of interval fund is
Q22.
The minimum duration of an interval period in an interval scheme/plan is
Q23.
As per the revised SEBI regulations the specified transaction period for an interval fund is
Q24.
The role of the fund manager is increased in deciding on the investments in index schemes
Q25.
Which of the given statements below aptly fit the description of actively managed funds?
Q26.
The performance of passive funds tend to mirror the concerned index
Q27.
Mutual funds that invest on the basis of a specified index, whose performance it seeks to track are called
Q28.
That mutual fund which has an investment charter that provides for a reasonable level of investment in both equity and debt
Q29.
Those funds that invest only in only treasury bills and government securities
Q30.
In which kind of debt fund is the investment portfolio closely aligned to the maturity of the scheme
Q31.
The mutual fund scheme that operates on the premise that the attractive returns offered by the investee companies makes up for the losses arising out of a few defaulting companies
Q32.
Gilt funds are those funds that which do not have credit risk
Q33.
The funds that invest in debt securities where the interest rate payable by the issuer changes in line with market
Q34.
Liquid schemes or money market scheme are a variant of debt schemes that invest only in debt securities where the money will be repaid within 100 days.
Q35.
Thematic funds are those funds that invest in line with an investment theme
Q36.
Dividends represent a larger proportion of the returns on these funds
Q37.
Liquid schemes are most widely recognized to be the lowest in risk among all kinds of mutual fund schemes
Q38.
Which of the below statements is the best representative of sector funds
Q39.
The fund that takes contrary positions in different markets/securities such that the risk is neutralized and return is earned are called
Q40.
Capital protected schemes are close ended schemes which are structured to ensure that the investor gets the principal back irrespective of what happens to the market
Q41.
Zero coupon securities pay regular interest
Q42.
The mutual fund that invests in shares of companies engaged in gold mining and processing
Q43.
The mutual fund currently not operating in the Indian market
Q44.
In India mutual fund schemes are not permitted to invest in commodities
Q45.
Exchange Traded funds (ETF) are close-ended index funds that are traded in a stock exchange.
Q46.
Feeder fund is an example of
Q47.
Zero coupon securities are securities that do not pay a regular interest, but accumulate the interest, and pay it along with the principal when the security matures
Q48.
Under the Indian law every unit of a mutual fund has a face value of
Q49.
Public sector bank sponsored mutual funds first came in during
Q50.
Investors can buy and sell their units in the stock exchange, at various prices during the day that closely track the market at that time. This statement is true in case of which type of fund?
Q51.
The primary objective of mutual fund is:
Q52.
The AUM captures the impact of the profitability metric and the flow of unit-holder money to or from the scheme.
Q53.
Some of the benefits of mutual funds that investors enjoy are
Q54.
Some of the limitations of mutual funds
Q55.
Monthly income plan seeks to declare a dividend every month

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