NISM VA Mutual Fund Mock Test 5 (Advanced and Case-Based)

1. An investor reallocates funds from fixed deposits to long-duration debt funds when interest rates are expected to fall. What is the primary rationale behind this strategy?

2. True or False: Real return considers both inflation and taxes while evaluating investment performance.

3. An investor wants diversification across equity, debt, and gold through a single investment product with professional management. Which option best suits this requirement?

4. A mutual fund sponsor sets up a trust and appoints trustees and an AMC. Who is responsible for ensuring regulatory compliance and safeguarding investor interests?

5. True or False: AMC can invest outside the stated investment objective if market conditions change.

6. An investor reviews a scheme document that highlights asset allocation, risk factors, and investment strategy in detail. Which document is being referred to?

7. An investor buys units of an open-ended scheme and later redeems them directly from AMC at NAV-based price. Which feature is being utilized?

8. An investor purchases a close-ended scheme and wants to exit before maturity. What is the most likely option available?

9. True or False: Expense ratio is charged separately to investors in addition to NAV.

10. A scheme has assets of ₹500 crore, liabilities of ₹20 crore, and 20 crore units outstanding. What is the NAV?

11. A distributor recommends a sector fund to a conservative investor seeking capital protection. What does this indicate?

12. True or False: Higher expense ratio reduces long-term compounding returns.

13. An equity mutual fund must maintain minimum equity exposure of:

14. An investor sells equity mutual fund units after 10 months. Gains are classified as:

15. True or False: SIP helps reduce impact of market volatility through averaging.

16. An investor sees “Very High Risk” on riskometer. What should be inferred?

17. A young investor with long-term horizon prefers aggressive growth. Which is most suitable?

18. Standard deviation measures:

19. True or False: Beta equal to 1 indicates same volatility as market.

20. A fund has higher alpha compared to peers. What does it indicate?

21. Sharpe ratio is used to evaluate:

22. A fund shows frequent portfolio changes leading to higher transaction cost. Which ratio reflects this?

23. True or False: Diversification eliminates unsystematic risk.

24. An investor wants tax saving along with equity exposure. Best option:

25. Lock-in period of ELSS is:

26. An investor redeems units and receives money through bank transfer. This ensures:

27. True or False: KYC is mandatory before investing in mutual funds.

28. FATCA compliance relates to:

29. An investor transfers funds regularly from debt to equity. This is:

30. True or False: SWP is useful for generating periodic income.

31. A fund replicates Nifty 50 index. It is:

32. Passive funds generally have:

33. An investor holds 200 units at NAV ₹40. Investment value =?

34. Dividend option provides:

35. Growth option implies:

36. True or False: Higher return always means lower risk.

37. An investor selects fund only based on past returns. This is:

38. AMC earns revenue through:

39. Trustees ensure:

40. True or False: Mutual funds guarantee returns.

41. An investor wants low risk and high liquidity. Best option:

42. Benchmark helps in:

43. True or False: Exit load is charged during purchase.

44. If expense ratio increases, investor return will:

45. An investor evaluates fund based on goals, risk, and consistency. This is:

46. True or False: Portfolio turnover ratio indicates trading activity.

47. A conservative investor prefers stable returns over high growth. Best choice:

48. An investor compares two funds: one stable, one volatile. Risk-averse investor should choose:

49. True or False: NAV alone is sufficient to judge fund performance.

50. Best factor for selecting mutual fund is: