1 NISM Mock Test 2
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Last updated 3:09 PM on 7/17/24
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80 Terms
1
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Which type of mutual fund scheme is known for providing tax benefits under Section 80C?
ELSS
2
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What does SIP stand for?
Systematic Investment Plan
3
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What is the primary objective of a liquid fund?
Short-term liquidity
4
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Which type of mutual fund is considered low risk and invests in government securities?
Gilt fund
5
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What is the main objective of an equity fund?
Capital appreciation
6
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What is the expense ratio of a mutual fund?
The ratio of the fund's expenses to its total assets
7
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Which regulatory body oversees mutual funds in India?
SEBI
8
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What is the primary advantage of an ETF over a mutual fund?
Lower costs
9
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Which type of mutual fund is suitable for long-term investors?
Equity fund
10
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What is the significance of NAV in mutual funds?
Indicates the per-unit value of the fund
11
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What does AUM stand for in mutual funds?
Assets Under Management
12
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What is a diversified fund?
A mutual fund that invests in various sectors to reduce risk
13
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What is the primary role of a custodian in mutual funds?
Safeguard the fund's assets
14
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What type of mutual fund is known for its high risk and high return potential?
Sector fund
15
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What is the difference between an open-ended and a closed-ended mutual fund?
Open-ended funds can issue and redeem units at any time
16
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What is the Sharpe ratio used to measure in mutual funds?
Risk-adjusted return
17
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What is the lock-in period for ELSS?
3 years
18
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Which type of fund invests primarily in corporate bonds?
Debt fund
19
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What is the key feature of a closed-ended mutual fund?
Fixed number of units
20
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What is the primary function of an AMC (Asset Management Company)?
Manage mutual funds
21
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What is the role of SEBI in mutual funds?
Regulate and oversee mutual funds
22
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What is the primary advantage of diversification in mutual funds?
Reduce risk
23
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What is the role of a fund manager in a mutual fund?
Make investment decisions and manage the portfolio
24
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What is a balanced fund?
A mutual fund that invests in both equities and debt instruments
25
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What is the significance of the expense ratio in mutual funds?
Indicates the cost of managing the fund
26
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What is the primary risk associated with debt funds?
Credit risk
27
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What does ETF stand for?
Exchange Traded Fund
28
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What is the main objective of a gilt fund?
Invest in government securities
29
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What is the lock-in period for tax-saving mutual funds?
3 years
30
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What is the primary advantage of investing in a mutual fund?
Diversification
31
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What is a liquid fund?
A mutual fund that invests in short-term securities for liquidity
32
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What is the main benefit of SIP in mutual funds?
Regular investment and rupee cost averaging
33
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What type of mutual fund is considered low risk and invests in government securities?
Gilt fund
34
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What is the primary objective of an index fund?
Match the performance of the market index
35
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Which type of mutual fund provides regular income through dividends?
Dividend yield fund
36
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What is the primary benefit of diversification in a mutual fund?
Reduce risk
37
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What is the role of a custodian in mutual funds?
Safeguard the fund's assets
38
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What is the primary advantage of diversification in mutual funds?
Reduce risk
39
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What is the main objective of a growth fund?
Capital appreciation
40
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What is the primary role of SEBI in mutual funds?
Regulate and oversee mutual funds
41
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What is the primary function of an AMC (Asset Management Company)?
Manage mutual funds
42
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What is the main objective of an index fund?
Match the performance of the market index
43
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Which type of mutual fund provides regular income through dividends?
Dividend yield fund
44
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What is the main objective of a liquid fund?
Short-term liquidity
45
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What is the primary benefit of SIP in mutual funds?
Regular investment and rupee cost averaging
46
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What is the main objective of a balanced fund?
Provide a mix of equity and debt investment
47
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What is the primary risk associated with debt funds?
Credit risk
48
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What does SIP stand for?
Systematic Investment Plan
49
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Which type of mutual fund is designed to provide tax benefits?
ELSS
50
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What is the significance of NAV in mutual funds?
Indicates the per-unit value of the fund
51
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What is a diversified fund?
A mutual fund that invests in various sectors to reduce risk
52
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What is the expense ratio of a mutual fund?
The ratio of the fund's expenses to its total assets
53
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Which regulatory body oversees mutual funds in India?
SEBI
54
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What is the main objective of a gilt fund?
Invest in government securities
55
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What is the lock-in period for ELSS?
3 years
56
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What type of mutual fund is known for its high risk and high return potential?
Sector fund
57
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What is the primary role of a custodian in mutual funds?
Safeguard the fund's assets
58
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What is the difference between an ETF and a mutual fund?
ETFs trade on stock exchanges, mutual funds do not
59
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What is the primary advantage of diversification in mutual funds?
Reduce risk
60
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What is the role of a fund manager in a mutual fund?
Make investment decisions and manage the portfolio
61
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What is the primary function of an AMC (Asset Management Company)?
Manage mutual funds
62
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What is the main objective of an index fund?
Match the performance of the market index
63
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Which type of mutual fund provides regular income through dividends?
Dividend yield fund
64
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What does AUM stand for in mutual funds?
Assets Under Management
65
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What type of mutual fund is considered low risk and invests in government securities?
Gilt fund
66
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What is the primary benefit of diversification in a mutual fund?
Reduce risk
67
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What is the primary role of SEBI in mutual funds?
Regulate and oversee mutual funds
68
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What is the difference between an open-ended and a closed-ended mutual fund?
Open-ended funds can issue and redeem units at any time
69
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What is the main objective of a balanced fund?
Provide a mix of equity and debt investment
70
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What is the significance of the expense ratio in mutual funds?
Indicates the cost of managing the fund
71
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Which type of fund invests primarily in corporate bonds?
Debt fund
72
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What is the key feature of a closed-ended mutual fund?
Fixed number of units
73
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What does ETF stand for?
Exchange Traded Fund
74
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What is the lock-in period for tax-saving mutual funds?
3 years
75
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What is the primary advantage of investing in a mutual fund?
Diversification
76
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What is a liquid fund?
A mutual fund that invests in short-term securities for liquidity
77
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What is the main benefit of SIP in mutual funds?
Regular investment and rupee cost averaging
78
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What type of mutual fund is considered low risk and invests in government securities?
Gilt fund
79
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What is the primary objective of an index fund?
Match the performance of the market index
80
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Which type of mutual fund provides regular income through dividends?
Dividend yield fun
Note 
Flashcards (20)