NISM Series V-A Mock Test 2 (50 Questions with Answers)

NISM Series V-A Mock Test 2

Attempt NISM Series V-A Mock Test 2 with 50 exam-level questions. Covers mutual funds, risk, NAV, investor services, and regulations including case-based and concept-based questions.

No. of Questions: 50

Time: 60 Mins

No Negative Marking

1 / 50

1. An investor wants stable income with low risk. Which fund is suitable?

A. Small-cap fund

B. Sector fund

C. Debt fund

D. Thematic fund

2 / 50

2. If inflation rises sharply, real return will:

A. Increase

B. Decrease

C. Remain same

D. Become zero

3 / 50

3. Which bias leads investor to follow crowd behavior?

A. Anchoring

B. Recency

C. Herding

D. Overconfidence

4 / 50

4. A portfolio heavily invested in one stock lacks:

A. Liquidity

B. Diversification

C. Transparency

D. Return

5 / 50

5. Which factor is most important for long-term investment?

A. Short-term volatility

B. Timing market

C. Investment horizon

D. Daily NAV

6 / 50

6. A mutual fund scheme invests 80% in equity. It is:

A. Debt fund

B. Hybrid fund

C. Equity-oriented fund

D. Liquid fund

7 / 50

7. Closed-ended funds are characterized by:

A. Continuous redemption

B. Fixed maturity

C. Daily liquidity

D. No lock-in

8 / 50

8. Which document contains legal terms of scheme?

A. KYC form

B. SID

C. NAV report

D. Account statement

9 / 50

9. Which cost directly impacts NAV?

A. Exit load

B. Entry load

C. Expense ratio

D. Brokerage

10 / 50

10. A lower expense ratio generally results in:

A. Lower NAV

B. Higher investor return

C. No change

D. Higher tax

11 / 50

11. SEBI’s role is to:

A. Manage funds

B. Regulate mutual funds

C. Sell units

D. Advise investors

12 / 50

12. ARN is related to:

A. Investor

B. Fund manager

C. Distributor

D. Custodian

13 / 50

13. Which is mandatory before investing?

A. PAN only

B. KYC

C. Aadhaar only

D. Bank account only

14 / 50

14. Which plan has higher expense ratio?

A. Direct plan

B. Regular plan

C. Both same

D. None

15 / 50

15. A fund manager underperforms benchmark consistently. This indicates:

A. Good performance

B. Poor management

C. High liquidity

D. Low risk

16 / 50

16. Exit load discourages:

A. Investment

B. Early redemption

C. Long-term holding

D. Diversification

17 / 50

17. SIP works best in:

A. Stable market only

B. Volatile market

C. Falling market only

D. Rising market only

18 / 50

18. STP is useful when:

A. Investing lump sum gradually

B. Withdrawing funds

C. Avoiding tax

D. Trading stocks

19 / 50

19. SWP is suitable for:

A. Wealth creation

B. Regular income

C. Tax saving

D. Risk reduction

20 / 50

20. NAV is affected by:

A. Market movement

B. Expenses

C. Portfolio value

D. All of these

21 / 50

21. Which investor prefers equity funds?

A. Conservative

B. Moderate

C. Aggressive

D. Retired

22 / 50

22. Tax-saving mutual fund is:

A. Debt fund

B. Hybrid fund

C. ELSS

D. Liquid fund

23 / 50

23. Long-term capital gain depends on:

A. NAV

B. Holding period

C. Expense ratio

D. Benchmark

24 / 50

24. IDCW option provides:

A. Growth

B. Income distribution

C. Fixed return

D. Capital protection

25 / 50

25. Diversification reduces:

A. Systematic risk

B. Unsystematic risk

C. Inflation

D. Liquidity

26 / 50

26. Benchmark index helps in:

A. NAV calculation

B. Risk elimination

C. Performance comparison

D. Tax saving

27 / 50

27. Index funds aim to:

A. Beat market

B. Match market

C. Avoid risk

D. Guarantee returns

28 / 50

28. Tracking error measures:

A. Risk

B. Return

C. Deviation from benchmark

D. Expense

29 / 50

29. High volatility indicates:

A. Stable returns

B. Predictable returns

C. High fluctuation

D. Low risk

30 / 50

30. Investor complaint can be filed through:

A. Bank

B. Broker

C. SEBI SCORES

D. AMC only

31 / 50

31. Liquid fund maturity is:

A. Long-term

B. Medium-term

C. Short-term

D. No maturity

32 / 50

32. Asset allocation reduces:

A. Risk

B. Return

C. Tax

D. NAV

33 / 50

33. Growth option reinvests:

A. Dividend

B. Capital

C. Income

D. Interest

34 / 50

34. Direct plan is suitable for:

A. Beginners

B. Investors without advisor

C. High-risk investors

D. Short-term investors

35 / 50

35. Regular plan includes:

A. Lower expense

B. No commission

C. Distributor commission

D. Government fee

36 / 50

36. A balanced fund invests in:

A. Equity only

B. Debt only

C. Equity and debt

D. Gold only

37 / 50

37. Risk tolerance depends on:

A. Age

B. Income

C. Financial goals

D. All of these

38 / 50

38. Redemption price depends on:

A. Purchase price

B. Applicable NAV

C. Market rumor

D. Fund manager

39 / 50

39. Which fund is most risky?

A. Liquid fund

B. Debt fund

C. Large cap fund

D. Small cap fund

40 / 50

40. Investor services include:

A. Trading

B. Portfolio management

C. Account statement

D. Tax filing

41 / 50

41. A mutual fund pools money to:

A. Avoid tax

B. Invest collectively

C. Guarantee return

D. Eliminate risk

42 / 50

42. Which is NOT an advantage of Mutual Fund?

A. Diversification

B. Liquidity

C. Guaranteed return

D. Professional management

43 / 50

43. Mutual funds are suitable for:

A. Experts only

B. Beginners only

C. All investors

D. Traders only

44 / 50

44. Expense ratio includes:

A. Tax

B. Management fee

C. NAV

D. Benchmark

45 / 50

45. SIP reduces:

A. Return

B. Risk

C. Timing risk

D. Liquidity

46 / 50

46. ELSS lock-in period is:

A. 1 year

B. 2 years

C. 3 years

D. 5 years

47 / 50

47. Which is long-term investment?

A. Liquid fund

B. Equity fund

C. Overnight fund

D. Money market fund

48 / 50

48. NAV is declared:

A. Daily

B. Weekly

C. Monthly

D. Yearly

49 / 50

49. Which reduces risk?

A. Concentration

B. Diversification

C. Speculation

D. Timing

50 / 50

50. Main aim of mutual fund is:

A. Speculation

B. Wealth creation

C. Gambling

D. Trading

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