NISM Series V-A | Mock Test 1 | 60+ Most Important Solved MCQs

NISM Series V-A: The Mega Mock Test (63 Solved MCQs)

🚀 EXAM PASS GUARANTEE:

I cleared my NISM 5A with a 71% score by mastering these exact concepts. This list covers over 60% of the actual exam syllabus. If you can answer these correctly, you are ready to get your ARN!

Q1. Capital gain/loss from Equity Mutual Funds are classified as short-term if sold within:
A) 6 months | B) 12 months (Correct) | C) 9 months | D) 1 month
Note: Holding >1 year makes it Long-Term.

Q2. Capital gain/loss from Debt Mutual Funds are classified as short-term if sold within:
A) 6 months | B) 9 months | C) 12 months | D) 36 months (Correct)
Note: For debt, the threshold is 3 years.

Q3. Exit load:
A) Is same for all schemes | B) Varies by investor | C) Varies from scheme to scheme (Correct) | D) Is same for all AMCs

Q4. If a second violation is proved by distributors, the ARN is:
A) Cancelled (Correct) | B) Suspended | C) Kept on hold | D) No action

Q5. Which statement is TRUE regarding nomination?
A) Only individuals can nominate | B) Minors can't have nomination | C) PoA holders can't nominate | D) All are true (Correct)

Q6. Investor holds 500 units; 1:2 bonus declared. Total bonus units allotted?
A) 100 | B) 200 | C) 250 (Correct) | D) 1000
Calculation: 500 / 2 = 250.

Q7. The minimum application amount is decided by:
A) SEBI | B) AMFI | C) AMC (Correct) | D) Distributors

Q8. The NAV of debt funds would increase if:
A) Interest rates rise | B) Interest rates fall (Correct) | C) Rates unchanged | D) None
Reason: Inverse relationship between interest rates and bond prices.

Q9. The NAV of an equity fund increases if:
A) Markets fall | B) Stock markets rise (Correct) | C) Markets unchanged

Q10. The regulator for mutual funds in India is:
A) RBI | B) AMFI | C) SEBI (Correct) | D) IRDAI

Q11. Who is the sponsor of a mutual fund?
A) Promoter of the company (Correct) | B) Trustee | C) AMC | D) Investor

Q12. Issuing and redeeming units is the role of:
A) Bankers | B) Trustees | C) Transfer agent (Correct) | D) Custodian

Q13. Sponsor should have a sound track record for minimum:
A) 3 years (Correct) | B) 5 years | C) 7 years | D) 12 months

Q14. True for both Mutual Funds and ETFs?
A) Both trade throughout the day on exchanges (Correct) | B) Actively managed | C) Performance fees

Q15. Correct regarding pricing of units?
A) Entry load added to NAV | B) Exit load added to NAV | D) NAV is adjusted for expense ratio (Correct)

Q16. Correct regarding index funds?
A) Higher expense ratio | B) Aim to beat market | C) Track a specific market index (Correct)

Q17. Beta of an equity fund measures its:
A) Risk (Correct) | B) Performance | C) Both | D) None

Q18. Which fund types are comparable?
A) Equity and Debt | B) Diversified equity and Debt (Correct) | C) Value and Govt securities

Q19. Choose a fund based on its:
A) Past performance | B) Future potential | C) Investment objective (Correct) | D) Reputation

Q20. Limitation of Standard Deviation?
A) Measures only market risk | B) Independent number | C) Based on past returns (Correct)

Q21. Financial planning is only for HNI (True/False)?
A) True | B) False (Correct)

Q22. Benchmarking is possible only when:
A) Investment objective of fund is same as index (Correct) | B) Style is same | C) Securities same

Q23. Which is NOT a factor to evaluate MF investment?
A) Replicability (Correct) | B) Liquidity | C) Safety | D) Return

Q24. Money needed after 5 years for goods costing ₹10,000 today (8% inflation)?
A) ₹12,000 | B) ₹13,605 | C) ₹14,693 (Correct) | D) ₹15,868

Q25. Risk that returns won't match benchmark index?
A) Tracking error (Correct) | B) Specific risk | C) Market risk

Q26. Diversification reduces company-specific risk but not market risk (True/False)?
A) True (Correct) | B) False

Q27. Maximum total expense ratio (TER) for an index fund?
A) 1% of daily net assets (Correct) | B) 1.5% | C) Size-based | D) Any

Q28. Unit capital is derived by multiplying units by:
A) NAV | B) Market value | C) Face value (Correct) | D) Book value

Q29. Equity fund invests heavily in equity, usually exceeding:
A) 50% | B) 55% | C) 65% (Correct) | D) 70%

Q30. Non-profits can invest in mutual funds (True/False)?
A) True (Correct) | B) False

Q31. AMFI is an SRO (True/False)?
A) True (Correct) | B) False
Note: SRO = Self-Regulatory Organization.

Q32. ELSS deduction limit under section 80C?
A) ₹2,50,000 | B) ₹1,00,000 | C) ₹2,00,000 | D) ₹1,50,000 (Correct)

Q33. Can short-term loss be set off against long-term gain (True/False)?
A) True (Correct) | B) False

Q34. Form of revenue for MF distributors?
A) Commission from MFs (Correct) | B) Fees from AMC | C) Fees from investors

Q35. Analysis tracking price and volume data?
A) Fundamental | B) Quantitative | C) Technical (Correct) | D) Situational

Q36. Measure of fluctuation of periodic return?
A) Sharpe | B) Alpha | C) Modified duration | D) Variance (Correct)

Q37. Biggest advantage of gold investment?
A) Hedge against inflation (Correct) | B) High return | C) High appreciation

Q38. A bond rating indicates its:
A) Interest risk | B) Default risk (Correct) | C) Reinvestment risk

Q39. Govt securities issued through RBI (True/False)?
A) True (Correct) | B) False

Q40. Full form of AGNI?
A) Norms for Investors | B) Nomination for Investors | D) AMFI Guidelines and Norms for Intermediaries (Correct)

Q41. Gilt fund invests in:
A) Sound companies | B) Short-term only | C) Government securities only (Correct)

Q42. The NAV of a mutual fund:
A) Always constant | B) Fluctuates with markets (Correct) | C) Steady up

Q43. Open-ended fund has:
A) Fixed size | B) NAV limit | D) Units for sale and repurchase at all times (Correct)

Q44. Financial planner is responsible for client's financial health (True/False)?
A) True (Correct) | B) False

Q45. Least risk in hierarchy?
A) Large-cap fund (Correct) | B) Small-cap | C) Mid-cap | D) Multi-cap

Q46. Close-ended funds aiming for appreciation within fixed period?
A) Arbitrage | B) Fixed maturity plans (Correct) | C) Index | D) ETF

Q47. Exit load is NOT applicable in?
A) Direct plan (Correct) | B) Regular | C) All | D) None

Q48. Entry load is banned by SEBI (True/False)?
A) True (Correct) | B) False

Q49. First SAI update for scheme launched in first 6 months of FY?
A) 1 month | B) 3 months (Correct) | C) 6 months | D) 12 months

Q50. AMC appointment terminated by majority Trustees and ____ unit holders?
A) 75% (Correct) | B) 50% | C) 66% | D) 100%

Q51. Correct regarding celebrity endorsement?
D) SEBI permitted at industry level only for awareness (Correct)

Q52. Non-mandatory disclosure?
A) Fund fact sheet (Correct) | B) SAI | C) SID | D) KIM

Q53. "Please read scheme-related document carefully" refers to?
A) SAI and Fact Sheet | B) SID and SAI (Correct) | C) Trust Deed

Q54. Trail commission for the day formula?
C) AUM × rate per annum ÷ 365 (Correct)

Q55. NOT a principle of valuation?
A) Relative valuation regarding NAV (Correct) | B) Approved by AMC | C) SAI disclosure

Q56. Trust Deed for a mutual fund is appointed by:
A) SEBI (Correct) | B) RBI | C) IRDAI | D) Ministry

Q57. Structure required to be followed by MFs laid down by:
A) AMFI | B) SEBI (Correct) | C) Sponsor | D) Ministry

Q58. Higher appreciation in portfolio = higher NAV (True/False)?
A) True (Correct) | B) False

Q59. Higher expenses = higher NAV (True/False)?
A) True | B) False (Correct)
Reason: Expenses reduce assets and NAV.

Q60. Valuation gains ignored, but losses adjusted against profit (True/False)?
A) True (Correct) | B) False

Q61. Short-term tax rate for equity-oriented MF?
A) 20% | B) 15% (Correct) | C) 30% | D) 10%

Q62. NOT true regarding STT?
A) STT of 0.05% is levied to investors (Correct) | B) Not on purchase | C) Only redemptions

Q63. Which MF plan attracts a high expense ratio?
A) Direct plan | B) Regular plan (Correct)

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Dhaval Visariya

AMFI Registered Distributor (ARN-327925) | Software Developer & Finance Enthusiast

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Disclaimer: I am an AMFI Registered Mutual Fund Distributor. Views expressed here are for educational purposes. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
📧 Contact: info.apollofinancialservices@gmail.com