Quick and Easy Guides

Mutual Fund Distributors (MFD) Certification (NISM)
Recommending model portfolios and financial plans
Q1.
Risk appetite is the level of risk that the investor
Q2.
Advise to an investor is based on the information that gives a picture of the risk
Q3.
Risk appetite can be judged by the advisor which is based on
Q4.
The risk appetite will increase if there is one earning member with dependents in the family.
Q5.
Out of the following which factors will decrease risk appetite
Q6.
People who are better able to take the downside that comes with risk are those who have a
Q7.
Risk profiling questionnaires may not really be able to evaluate the correct risk appetite because
Q8.
Advanced Risk profilers are built according to
Q9.
Profiling tools on websites need to be used judiciously because they
Q10.
Asset allocation means distribution of an investor’s portfolio
Q11.
Strategic Asset Allocation is formulated after doing
Q12.
The debt component of the portfolio usually increases when age of the investor
Q13.
Only a seasoned and experienced investor can make frequent calls on equity according
Q14.
An investor with a large investible surplus need not worry about limiting the size of the portfolio on which they take frequent tactical asset allocation calls
Q15.
Financial planners work with only a single portfolio because single portfolio can work for all investors
Q16.
A young employed unmarried investor should have more portfolio allocation in
Q17.
Liquid schemes should form a bigger allocation in the portfolio for
Q18.
Gilt funds and diversified debt funds should figure prominently in the portfolio of
Q19.
It is possible for a financial planner to have a different portfolio for each and every client
Q20.
The portfolios can be made different by selecting
Q21.
Spreading exposure across asset classes
Q22.
Tactical Asset Allocation decisions come out of calls according to
Q23.
The financial planner should have a model portfolio for

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