NISM Series V-A | Mock Test 5 | Solved MCQs 201 to 300

  • After closure of the initial offer an open-ended scheme, ongoing sales and repurchases must start within: A) One week B) 30 days C) 45 days D) 180 days Answer: A) One week

  • For a scheme to be able to change its fundamental attributes, it must obtain the consent of: A) 50% of the unit holders B) 50% of the trustees C) 75% of the unit holders D) None of the above Answer: C) 75% of the unit holders

  • The prospectus or Offer Document containing the details of a new scheme is first registered with the: A) AMFI B) SEBI C) Bombay Stock Exchange D) Ministry of Finance Answer: B) SEBI

  • The offer document issued by mutual funds does NOT serve the purpose of: A) Announcing the scheme B) Giving detailed information about the scheme C) Inviting the investors D) Giving the fund manager's investment outlook for the next quarter Answer: D) Giving the fund manager's investment outlook for the next quarter

  • The prospectus of a close-ended fund is issued: A) Every year B) Only once at the time of issue C) Every quarter D) Every six months Answer: B) Only once at the time of issue

  • Fundamental attributes of a scheme: A) Do not include the objective of the scheme B) Can be changed without the investor's approval C) Include the terms of the scheme D) Are not necessary for deciding whether to invest Answer: C) Include the terms of the scheme

  • The offer document: A) Contains the terms of issue B) Gives no information relevant for making an investment decision C) Is not the operating document describing the scheme D) Cannot be called a reference document Answer: A) Contains the terms of issue

  • SEBI does NOT require the following to be included in the offer document: A) Details of the Sponsor and the AMC B) Description of the Scheme & investment objective C) Investors' Rights and Services D) Performance of other mutual funds Answer: D) Performance of other mutual funds

  • 'Key Information Memorandum' is: A) An abridged version of the offer document B) The Memorandum & Articles of Association of the AMC C) A sheet containing historical NAVs of other fund schemes D) Annual Report of the AMC Answer: A) An abridged version of the offer document

  • The offer document for a scheme remains valid even if: A) The AMC is reconstituted B) Entry or exit load are changed C) The scheme's NAV changes D) New plans are added to existing schemes Answer: C) The scheme's NAV changes

  • The offer document has to be fully revised and updated: A) Every six months B) Once in two years C) Every quarter D) Every month Answer: B) Once in two years

  • An addendum giving details of material change in the offer document should be circulated to: A) Distributors/brokers B) Unit holders C) SEBI D) All of the above Answer: D) All of the above

  • Which of the following is NOT true for offer documents of open-ended schemes: A) It is first issued at the time the scheme is launched B) It is registered with SEBI C) It has to be revised periodically D) It need not be revised at all Answer: D) It need not be revised at all

  • All important disclosures that the mutual fund is required to make, by regulation, are contained in the offer document: A) True B) False Answer: A) True

  • The offer document issued when an open-ended scheme is launched is valid for all times, until amended: A) True B) False Answer: A) True

  • The most important source of information for a prospective investor is: A) Offer document B) Annual Report of the AMC C) Economic Times D) AMFI Newsletter Answer: A) Offer document

  • The offer document need not be studied by an investor before investing in a scheme: A) True B) False Answer: B) False

  • The offer document is not a legal document: A) True B) False Answer: B) False

  • Initial issue expenses are charged to a scheme in the first year itself: A) True B) False Answer: A) True

  • Scheme-wise annual report of a mutual fund need NOT be: A) Sent to all unit-holders B) Forwarded to SEBI C) Published as an advertisement D) Sent to stock exchanges Answer: D) Sent to stock exchanges

  • Mutual funds value their investments: A) At purchase price B) On a mark-to-market basis C) At par D) At book value Answer: B) On a mark-to-market basis

  • Investors are totally exempt from paying any tax on the dividend income they receive from mutual funds: A) True B) False Answer: B) False (Note: Dividends are now taxed in the hands of the investor as per their slab).

  • Income distributed to unit-holders by a debt fund is liable to dividend distribution tax: A) True B) False Answer: A) True (Note: Historical context, DDT has since been abolished in favor of taxing investors).

  • A close-ended fund has average weekly net assets of Rs 200 crore. Max investment and advisory fees allowed: A) Rs 2.25 crore B) Rs 2.00 crore C) Rs 2.50 crore D) Rs 3.00 crore Answer: C) Rs 2.50 crore

  • A passive fund manager: A) Researches stocks extensively B) Does not buy and sell stocks often C) Does not have to go through the process of stock selection D) Does not have to track stocks Answer: C) Does not have to go through the process of stock selection

  • A fund manager managing an index fund: A) Has to keep fund expenses low B) Does not have to research stocks C) Does not have to balance his portfolio D) None of the above Answer: A) Has to keep fund expenses low

  • A growth manager looks for: A) High current income B) Undervalued stocks C) Above average earnings growth D) None of the above Answer: C) Above average earnings growth

  • A value manager does NOT look for: A) Stocks currently undervalued B) Stocks whose worth will be recognized in the long term C) High current yield D) Long term capital appreciation Answer: C) High current yield

  • From an investor's viewpoint, the most important is: A) A fund's investment style B) Performance of the fund C) The fund manager's judgement D) None of the above Answer: B) Performance of the fund

  • Fundamental analysis involves: A) Checking factory foundations B) Research into the operations and finances of the company C) Studying the company's share prices D) None of the above Answer: B) Research into operations and finances

  • Which of the following is NOT considered for technical analysis: A) Historical data on share price B) Trading volume C) Current market sentiment D) The company's regulatory environment Answer: D) The company's regulatory environment

  • Quantitative analysis is more likely to be done to evaluate a sector rather than a specific stock: A) True B) False Answer: A) True

  • Fundamental analysis forms the basis to decide: A) When to buy a given share B) Whether to buy a given share or not C) Whether to use technical or quantitative analysis D) Seismic strength of factory Answer: B) Whether to buy a given share or not

  • Technical analysis guides the decision on: A) Whether to buy or sell B) The right time to buy or sell C) Technical personnel qualifications D) None of the above Answer: B) The right time to buy or sell

  • Which of the following is NOT an investment philosophy: A) Capitalising on economic cycles B) Focusing on growth sectors C) Capitalisation D) Finding value stocks Answer: C) Capitalisation

  • When expecting a fall in market price, fund managers can reduce loss by: A) Speculating B) Halting trading C) Using equity derivatives D) TV interviews Answer: C) Using equity derivatives

  • Equity derivative instruments are: A) Shares B) Bonds C) Contracts D) Notes Answer: C) Contracts

  • A futures contract allows one to buy or sell shares but need NOT result in delivery: A) True B) False Answer: A) True

  • Derivatives cannot be based on market indices: A) True B) False Answer: B) False

  • In a mutual fund, overall decisions on allocating money to particular industries/sectors are taken by: A) Equity analysts B) Fund managers C) Security dealers D) Trustees Answer: B) Fund managers

  • Continuous tracking of companies in which a mutual fund has invested is done by: A) Continuous tracking systems B) Equity analysts C) Trustees D) Security dealers Answer: B) Equity analysts

  • Security dealers of a mutual fund: A) Guard the manager's cabin B) Execute buy and sell orders for the fund C) Decide which shares to buy D) None of the above Answer: B) Execute buy and sell orders for the fund

  • As per SEBI, each scheme should have a different fund manager: A) True B) False Answer: B) False

  • Debt securities bought at a discount to their face value are generally: A) Interest bearing B) Zero coupon bonds C) Floating rate D) None of the above Answer: B) Zero coupon bonds

  • In India, a large part of debt securities pay interest on: A) A floating rate basis B) Fixed rate plus variable C) A fixed rate D) Zero coupon basis Answer: C) A fixed rate

  • The Indian debt market is largely wholesale in nature: A) True B) False Answer: A) True

  • In the wholesale debt market, the largest proportion of trading is seen in: A) Government Securities B) Corporate Bonds C) T-Bills D) PSU Bonds Answer: A) Government Securities

  • The largest proportion of trades in the wholesale debt market is accounted by: A) Mutual funds B) Foreign banks C) Indian banks D) Financial institutions Answer: C) Indian banks

  • Certificates of Deposits (CDs) are issued by: A) Regional Rural Banks B) Corporates C) Scheduled commercial banks D) None of the above Answer: C) Scheduled commercial banks

  • Commercial Paper is issued by Corporate bodies: A) To meet short-term working capital requirements B) To finance long term capital assets C) To retire long term debt D) To pay dividend Answer: A) To meet short-term working capital requirements

  • Government securities are issued through the RBI: A) True B) False Answer: A) True

  • The yield on Treasury Bill (T-Bill) is determined by: A) The Government of India B) Auction C) State Governments D) Floating rate method Answer: B) Auction

  • Which of the following are NOT normally found in the portfolio of a debt fund: A) Long-dated Government Securities B) Corporate debentures C) Bonds issued by financial institutions D) Equity warrants Answer: D) Equity warrants

  • Which of the following do NOT represent the amount an investor of a debt security will be paid upon maturity: A) Par value B) Face value C) Fair value D) Redemption value Answer: C) Fair value

  • Coupon of a debt security refers to: A) A piece of paper B) The return an investor would earn C) The rate of interest paid on par value D) None of the above Answer: C) The rate of interest paid on par value

  • Which of the following do NOT apply to the term 'maturity' of a debt security? A) Date on which certificates become old B) The term of the bond C) The date of redemption D) Date issuer has to repay amount Answer: A) Date on which certificates become old

  • Call or put provisions are used to modify the fixed maturity of debt securities: A) True B) False Answer: A) True

  • A call provision in a debt issue allows the issuer to: A) Call out names of investors B) Redeem the debt on maturity C) Extend the tenure D) Redeem the debt before maturity Answer: D) Redeem the debt before maturity

  • A put provision in a debt issue allows: A) Safekeeping of certificates B) Investors to redeem debt prior to maturity C) Issuers to redeem debt prior to maturity D) Investors to extend tenure Answer: B) Investors to redeem debt prior to maturity

  • Current yield relates interest on a security to: A) Its current market price B) Its face value C) Its fair value D) Price of T-Bills Answer: A) Its current market price

  • To compare bonds with different coupons, maturities and prices, investors use: A) Current yield B) Technical analysis C) Yield to maturity (YTM) D) Fundamental analysis Answer: C) Yield to maturity (YTM)

  • When interest rates rise, bond prices: A) Also rise B) Fall C) Are not affected D) Fluctuate either way Answer: B) Fall

  • Yield curve is also known as: A) Curve of Interest B) Term Structure of Interest Rates C) Curve that yields D) None of the above Answer: B) Term Structure of Interest Rates

  • An important indicator of expected trends in interest rates is: A) The Economic Times B) The Sensex C) The Yield Curve D) Chief Minister's Speech Answer: C) The Yield Curve

  • It may not be possible to reinvest interest at the same rate as principal. This is: A) Reinvestment risk B) Inflation risk C) Interest-rate risk D) Call risk Answer: A) Reinvestment risk

  • A bond's rating indicates its: A) Reinvestment risk B) Default risk C) Inflation risk D) Interest-rate risk Answer: B) Default risk

  • If a bond cannot be sold at a price near its value, it has: A) High liquidity risk B) High default risk C) Low liquidity risk D) Inflation risk Answer: A) High liquidity risk

  • The additional yield required for the risk of default is known as: A) Yield plus B) Yield spread C) Yield extra D) Yield premium Answer: B) Yield spread

  • A high credit rating does NOT mean: A) High yield spread B) High perceived safety C) Low yield spread D) Low risk premium Answer: A) High yield spread

  • If G-Sec yields 10% and a company FD yields 12%, the yield spread is: A) 12% B) 22% C) 10% D) 2% Answer: D) 2%

  • The "duration" of an interest-bearing bond is: A) Longer than its maturity B) Less than its maturity C) Equal to its maturity D) Paper quality Answer: B) Less than its maturity

  • A bond with a coupon of 9% when similar maturities yield 11% will sell: A) Above par B) Below par C) At par D) Unrelated price Answer: B) Below par

  • Changes in foreign exchange rates have no bearing on interest rates: A) True B) False Answer: B) False

  • Inflation and interest rates are inversely proportional: A) True B) False Answer: B) False

  • Investment policies of a mutual fund are determined by: A) The fund manager B) The AMC management C) Marketing department D) The investors Answer: B) The AMC management

  • Which measure is NOT taken by SEBI for protecting investors: A) Mandating diversification levels B) Preventing favoritism to companies C) Tracking every security investment daily D) Investing in approved securities only Answer: C) Tracking every security daily

  • A fund's investments in the equity shares of any ONE company are restricted to: A) 25% of NAV B) 10% of NAV C) 50% of NAV D) 100% of NAV Answer: B) 10% of NAV

  • A mutual fund manager is not allowed to sell short when he expects a crash: A) True B) False Answer: A) True

  • In a mutual fund, securities can be transferred later to various schemes to attain profit objectives: A) True B) False Answer: B) False

  • A mutual fund may invest in short-term deposits of scheduled commercial banks: A) True B) False Answer: A) True

  • Mutual funds are allowed to lend: A) Loans B) Securities C) Physical assets D) None of the above Answer: B) Securities

  • Mutual fund is NOT allowed to invest in sponsor group companies above: A) 25% of its net assets B) 10% of its net assets C) At all D) 5% of net assets Answer: A) 25% of its net assets

  • A mutual fund may transfer investments from one scheme to another: A) Not at all B) At current market rates C) At cost price D) At fixed premium Answer: B) At current market rates

  • Interest Rate Risk for an Indian debt fund can be reduced by using: A) Futures B) Options C) Interest Rate Swaps D) None of the above Answer: C) Interest Rate Swaps

  • The Interest Rate Forecasting Unit of a debt fund is generally manned by: A) Technicians B) Statisticians C) Economists & econometricians D) Accountants Answer: C) Economists & econometricians

  • AMCs need not maintain records in support of each investment decision: A) True B) False Answer: B) False

  • When interest rates for similar maturities are 11%, a 9% coupon bond sells: A) Above par B) Below par C) At par D) Unrelated price Answer: B) Below par

  • The most suitable measure for a fund's performance does NOT depend on: A) Type of fund B) Investment objective C) Market conditions D) Amount invested by investor Answer: D) Amount invested by investor

  • NAV Rs.16 at start, Rs.22 after 13 months. Annualised change: A) 6.0% B) 34.6% C) 40.6% D) 37.5% Answer: B) 34.6%

  • Change in NAV as a performance measure is more suitable for: A) Growth funds B) Income funds C) Funds with withdrawal plans D) None of the above Answer: A) Growth funds

  • Difference between NAV change and total return: A) None B) Total return takes dividend into account C) Total return ignores NAVs D) Total return ignores time Answer: B) Total return takes dividend into account

  • Most suitable measure of fund performance for all fund types is: A) NAV Change B) Total Return C) Total Return with reinvestment D) None of the above Answer: C) Total Return with reinvestment

  • Expense ratio is an indicator of: A) Product market condition B) Growth in economy C) Prevalent market practices D) The fund's efficiency Answer: D) The fund's efficiency

  • Expense Ratio is defined by: A) Total expenses and average net assets B) Total expenses and total assets C) Average expenses and average net assets D) None of the above Answer: A) Total expenses and average net assets

  • Brokerage commissions are NOT included in fund expenses for Expense Ratio: A) True B) False Answer: A) True

  • Expense Ratio is NOT of utmost importance in case of: A) Debt fund B) Index fund C) Equity fund D) Bond fund Answer: C) Equity fund

  • Expense Ratio is NOT affected by: A) Fund size B) Average account size C) Portfolio composition D) Stock market conditions Answer: D) Stock market conditions

  • Income Ratio is defined by: A) Total income and total assets B) Net investment income and net assets C) Total income and net assets D) None of the above Answer: B) Net investment income and net assets

  • Income Ratio is more suitable for evaluating: A) Equity Funds B) Growth Funds C) Regular Income Funds D) Index Funds Answer: C) Regular Income Funds

  • Portfolio turnover rate measures: A) Size of portfolio B) Amount of buying and selling C) Average units sold daily D) None of the above Answer: B) Amount of buying and selling

    • Dhaval Visariya

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

    Connect with me:
    LinkedIn | Telegram | YouTube | GitHub | Medium

    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

    Comments

    Post a Comment

    Popular posts from this blog

    Nifty 30,000: The JP Morgan Blueprint for the Indo-US "Trade Bull Run" 🚀🇮🇳🇺🇸

    The world’s largest democracies have just "re-indexed" their relationship, and the "Engineering Logic" is clear: India is the primary beneficiary of a massive global trade shift. JP Morgan has reiterated its Nifty target of 30,000 by end-2026 , signaling that the "Hanging Sword" of trade uncertainty has been replaced by a "Booster Shot" for earnings. Key Takeaways The 30,000 Target: JP Morgan projects a 15% upside for Nifty 50, driven by supportive policies and the landmark trade deal. Tariff Relief: Reciprocal tariffs have been slashed to 18% from 25% (and up to 50% on some goods), significantly boosting export competitiveness. Sectoral Explosions: Nifty IT and Auto indices surged over 5-6% immediately following the announcement. FII Homecoming: Analysts expect the deal to reverse record foreign outflows and strengthen the Rupee toward the 90.30 level. Auto Market Opening: The deal addresses Washington’s demand to lower high Indian tar...
    Read more

    NISM Series XV Research Analyst: Complete Study Material & Notes by Dhaval Visariya

    Image
    NISM Series XV Research Analyst: The Ultimate Study Vault (2026 Updated) Hi, I'm Dhaval Visariya . I recently cleared the NISM Series XV Research Analyst examination. To help fellow aspirants navigate the new 2026 syllabus changes—including the new Case Study requirements and Technical Analysis chapter—I am sharing my entire preparation kit. Below you will find my handwritten notes , chapter-wise digital summaries , 600+ MCQs , and solved case studies . My Passing Proof:Dhaval Visariya NISM 15 XV Research Analyst Certificate Updated Exam Structure & Weightage (2026) The exam has shifted towards a more practical approach. Here is the latest weightage for the 100-mark paper: Note: The exam now includes 5 Case Studies (20 marks total). Do not skip the practical examples in Chapters 8 and 10! 1. Chapter-Wise Short Notes I have summarized all 15 chapters into high-yield "cheat sheets" for last-minute revision. 2. 600+ Most Important MCQs I have compiled these questions ...
    Read more

    NISM 15 Research Analyst Mock Test 1: 600 MCQ Series (2026 Updated)

    NISM Series XV: Mock Test 1 (Set 1 of 24) Dhaval’s Personal Advice for Aspirants: Practice and understand these 25 questions. If you can't understand the theory or the logic, just mug it up (memorize it) because these are very important and sure-shot questions that will appear in the exam! Q 1. As per the SEBI (Research analyst) Regulations, who is qualified to be registered as a research analyst? Options: A. Only Graduates B. Only Post-Graduates C. Only Chartered Accountants D. All of the above are qualified View Correct Answer & Detailed Explanation Correct Answer: All of the above are qualified Explanation: As per the SEBI (Research Analysts) Regulations, 2014, amended up to 2024, all of the above are eligible to be registered as a research analyst. Prior to the amendment in 2024, graduates were not eligible for this. Q 2. Efficient Market Hypothesis proclaims...
    Read more