1 NISM Mock Test 1

studied byStudied by 1 person
0.0(0)
Get a hint
Hint

What is the primary objective of an index fund?

1 / 99

flashcard set

Earn XP

Description and Tags

Accounting

100 Terms

1

What is the primary objective of an index fund?

Match the performance of the market index

New cards
2

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

New cards
3

What does AUM stand for in mutual funds?

Assets Under Management

New cards
4

Which type of fund is known for its high risk and high return potential?

Sector fund

New cards
5

What is the key feature of a closed-ended mutual fund?

Fixed number of units

New cards
6

What is the role of a fund manager in a mutual fund?

Make investment decisions and manage the portfolio

New cards
7

What is a balanced fund?

A mutual fund that invests in both equities and debt instruments

New cards
8

What is the significance of the expense ratio in mutual funds?

Indicates the cost of managing the fund

New cards
9

What is the primary risk associated with debt funds?

Credit risk

New cards
10

Which type of mutual fund is designed to provide tax benefits?

ELSS

New cards
11

What does ETF stand for?

Exchange Traded Fund

New cards
12

What is the main objective of a gilt fund?

Invest in government securities

New cards
13

What is the lock-in period for tax-saving mutual funds?

3 years

New cards
14

What is the primary advantage of investing in a mutual fund?

Diversification

New cards
15

What is a liquid fund?

A mutual fund that invests in short-term securities for liquidity

New cards
16

What is the role of SEBI in mutual funds?

Regulate and oversee mutual funds

New cards
17

What is the main objective of an equity fund?

Capital appreciation

New cards
18

What is the significance of NAV in mutual funds?

Indicates the per-unit value of the fund

New cards
19

What is a sector fund?

A mutual fund that invests in a specific industry sector

New cards
20

What is the primary benefit of SIP in mutual funds?

Regular investment and rupee cost averagin

New cards
21

Which type of fund invests primarily in corporate bonds?

Debt fund

New cards
22

What is the main objective of a growth fund?

Capital appreciation

New cards
23

What is the role of a custodian in mutual funds?

Safeguard the fund's assets

New cards
24

What is a gilt fund?

A mutual fund that invests in government securities

New cards
25

What is the primary advantage of diversification in mutual funds?

Reduce risk

New cards
26

What is the difference between an ETF and a mutual fund?

ETFs trade on stock exchanges, mutual funds do not

New cards
27

What does SIP stand for in mutual funds?

Systematic Investment Plan

New cards
28

What is the lock-in period for ELSS?

3 years

New cards
29

What is the main objective of a liquid fund?

Short-term liquidity

New cards
30

Which mutual fund scheme provides tax benefits under Section 80C?

ELSS

New cards
31

What is a diversified fund?

A mutual fund that invests in various sectors to reduce risk

New cards
32

What is the primary role of a custodian in mutual funds?

Safeguard the fund's assets

New cards
33

What type of mutual fund is considered low risk and invests in government securities?

Gilt fund

New cards
34

What is the main benefit of diversification in a mutual fund?

Reduce risk

New cards
35

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

New cards
36

What is the Sharpe ratio used to measure in mutual funds?

Risk-adjusted return

New cards
37

Which type of mutual fund invests in a mix of equity and debt securities?

Balanced fund

New cards
38

What is the primary function of an AMC (Asset Management Company)?

Manage mutual funds

New cards
39

What is the primary objective of an index fund?

Match the performance of the market index

New cards
40

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

New cards
41

What does AUM stand for in mutual funds?

Assets Under Management

New cards
42

Which type of fund is known for its high risk and high return potential?

Sector fund

New cards
43

What is the key feature of a closed-ended mutual fund?

Fixed number of units

New cards
44

What is the role of a fund manager in a mutual fund?

Make investment decisions and manage the portfolio

New cards
45

What is a balanced fund?

A mutual fund that invests in both equities and debt instruments

New cards
46

What is the significance of the expense ratio in mutual funds?

Indicates the cost of managing the fund

New cards
47

What is the primary risk associated with debt funds?

Credit risk

New cards
48

Which type of mutual fund is designed to provide tax benefits?

ELSS

New cards
49

What does ETF stand for?

Exchange Traded Fund

New cards
50

What is the main objective of a gilt fund?

Invest in government securities

New cards
51

What is the lock-in period for tax-saving mutual funds?

3 years

New cards
52

What is the primary advantage of investing in a mutual fund?

Diversification

New cards
53

What is a liquid fund?

A mutual fund that invests in short-term securities for liquidity

New cards
54

What is the role of SEBI in mutual funds?

Regulate and oversee mutual funds

New cards
55

What is the main objective of an equity fund?

Capital appreciation

New cards
56

What is the significance of NAV in mutual funds?

Indicates the per-unit value of the fund

New cards
57

What is a sector fund?

A mutual fund that invests in a specific industry sector

New cards
58

What is the primary benefit of SIP in mutual funds?

Regular investment and rupee cost averaging

New cards
59

Which type of fund invests primarily in corporate bonds?

Debt fund

New cards
60

What is the main objective of a growth fund?

Capital appreciation

New cards
61

What is the role of a custodian in mutual funds?

Safeguard the fund's assets

New cards
62

What is a gilt fund?

A mutual fund that invests in government securities

New cards
63

What is the primary advantage of diversification in mutual funds?

Reduce risk

New cards
64

What is the difference between an ETF and a mutual fund?

ETFs trade on stock exchanges, mutual funds do not

New cards
65

What does SIP stand for in mutual funds?

Systematic Investment Plan

New cards
66

What is the lock-in period for ELSS?

3 years

New cards
67

What is the main objective of a liquid fund?

Short-term liquidity

New cards
68

Which mutual fund scheme provides tax benefits under Section 80C?

ELSS

New cards
69

What is a diversified fund?

A mutual fund that invests in various sectors to reduce risk

New cards
70

What is the primary role of a custodian in mutual funds?

Safeguard the fund's assets

New cards
71

What type of mutual fund is considered low risk and invests in government securities?

Gilt fund

New cards
72

What is the main benefit of diversification in a mutual fund?

Reduce risk

New cards
73

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

New cards
74

What is the Sharpe ratio used to measure in mutual funds?

Risk-adjusted return

New cards
75

Which type of mutual fund invests in a mix of equity and debt securities?

Balanced fund

New cards
76

What is the primary function of an AMC (Asset Management Company)?

Manage mutual funds

New cards
77

What is the primary objective of an index fund?

Match the performance of the market index

New cards
78

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

New cards
79

What does AUM stand for in mutual funds?

Assets Under Management

New cards
80

Which type of fund is known for its high risk and high return potential?

Sector fund

New cards
81

What is the key feature of a closed-ended mutual fund?

Fixed number of units

New cards
82

What is the role of a fund manager in a mutual fund?

Make investment decisions and manage the portfolio

New cards
83

What is a balanced fund?

A mutual fund that invests in both equities and debt instruments

New cards
84

What is the significance of the expense ratio in mutual funds?

Indicates the cost of managing the fund

New cards
85

What is the primary risk associated with debt funds?

Credit risk

New cards
86

Which type of mutual fund is designed to provide tax benefits?

ELSS

New cards
87

What does ETF stand for?

Exchange Traded Fund

New cards
88

What is the main objective of a gilt fund?

Invest in government securities

New cards
89

What is the lock-in period for tax-saving mutual funds?

3 years

New cards
90

What is the primary advantage of investing in a mutual fund?

Diversification

New cards
91

What is a liquid fund?

A mutual fund that invests in short-term securities for liquidity

New cards
92

What is the role of SEBI in mutual funds?

Regulate and oversee mutual funds

New cards
93

What is the main objective of an equity fund?

Capital appreciation

New cards
94

What is the significance of NAV in mutual funds?

Indicates the per-unit value of the fund

New cards
95

What is a sector fund?

A mutual fund that invests in a specific industry sector

New cards
96

What is the primary benefit of SIP in mutual funds?

Regular investment and rupee cost averaging

New cards
97

Which type of fund invests primarily in corporate bonds?

Debt fund

New cards
98

What is the main objective of a growth fund?

Capital appreciation

New cards
99

What is the role of a custodian in mutual funds?

Safeguard the fund's assets

New cards
100

What is a gilt fund?

A mutual fund that invests in government securitie

New cards

Explore top notes

note Note
studied byStudied by 6 people
... ago
5.0(1)
note Note
studied byStudied by 12 people
... ago
5.0(1)
note Note
studied byStudied by 15 people
... ago
5.0(1)
note Note
studied byStudied by 78 people
... ago
5.0(3)
note Note
studied byStudied by 26 people
... ago
5.0(1)
note Note
studied byStudied by 7 people
... ago
5.0(1)
note Note
studied byStudied by 17 people
... ago
5.0(1)
note Note
studied byStudied by 13 people
... ago
5.0(1)

Explore top flashcards

flashcards Flashcard (60)
studied byStudied by 453 people
... ago
5.0(1)
flashcards Flashcard (85)
studied byStudied by 7 people
... ago
5.0(2)
flashcards Flashcard (54)
studied byStudied by 159 people
... ago
4.8(4)
flashcards Flashcard (41)
studied byStudied by 4 people
... ago
5.0(1)
flashcards Flashcard (205)
studied byStudied by 18 people
... ago
5.0(1)
flashcards Flashcard (49)
studied byStudied by 11 people
... ago
5.0(1)
flashcards Flashcard (280)
studied byStudied by 4 people
... ago
5.0(1)
flashcards Flashcard (144)
studied byStudied by 3 people
... ago
5.0(1)
robot