1 NISM Mock Test 1

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What is the primary objective of an index fund?

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Accounting

100 Terms

1

What is the primary objective of an index fund?

Match the performance of the market index

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2

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

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3

What does AUM stand for in mutual funds?

Assets Under Management

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4

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

Sector fund

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5

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

Fixed number of units

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6

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

Make investment decisions and manage the portfolio

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7

What is a balanced fund?

A mutual fund that invests in both equities and debt instruments

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8

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

Indicates the cost of managing the fund

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9

What is the primary risk associated with debt funds?

Credit risk

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10

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

ELSS

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11

What does ETF stand for?

Exchange Traded Fund

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12

What is the main objective of a gilt fund?

Invest in government securities

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13

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

3 years

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14

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

Diversification

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15

What is a liquid fund?

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

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16

What is the role of SEBI in mutual funds?

Regulate and oversee mutual funds

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17

What is the main objective of an equity fund?

Capital appreciation

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18

What is the significance of NAV in mutual funds?

Indicates the per-unit value of the fund

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19

What is a sector fund?

A mutual fund that invests in a specific industry sector

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20

What is the primary benefit of SIP in mutual funds?

Regular investment and rupee cost averagin

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21

Which type of fund invests primarily in corporate bonds?

Debt fund

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22

What is the main objective of a growth fund?

Capital appreciation

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23

What is the role of a custodian in mutual funds?

Safeguard the fund's assets

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24

What is a gilt fund?

A mutual fund that invests in government securities

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25

What is the primary advantage of diversification in mutual funds?

Reduce risk

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26

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

ETFs trade on stock exchanges, mutual funds do not

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27

What does SIP stand for in mutual funds?

Systematic Investment Plan

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28

What is the lock-in period for ELSS?

3 years

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29

What is the main objective of a liquid fund?

Short-term liquidity

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30

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

ELSS

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31

What is a diversified fund?

A mutual fund that invests in various sectors to reduce risk

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32

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

Safeguard the fund's assets

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33

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

Gilt fund

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34

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

Reduce risk

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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

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36

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

Risk-adjusted return

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37

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

Balanced fund

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38

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

Manage mutual funds

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39

What is the primary objective of an index fund?

Match the performance of the market index

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40

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

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41

What does AUM stand for in mutual funds?

Assets Under Management

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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

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48

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

ELSS

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49

What does ETF stand for?

Exchange Traded Fund

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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

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52

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

Diversification

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53

What is a liquid fund?

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

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54

What is the role of SEBI in mutual funds?

Regulate and oversee mutual funds

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55

What is the main objective of an equity fund?

Capital appreciation

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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

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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

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64

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

ETFs trade on stock exchanges, mutual funds do not

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65

What does SIP stand for in mutual funds?

Systematic Investment Plan

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66

What is the lock-in period for ELSS?

3 years

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67

What is the main objective of a liquid fund?

Short-term liquidity

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68

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

ELSS

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69

What is a diversified fund?

A mutual fund that invests in various sectors to reduce risk

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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

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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

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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

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86

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

ELSS

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87

What does ETF stand for?

Exchange Traded Fund

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88

What is the main objective of a gilt fund?

Invest in government securities

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89

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

3 years

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90

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

Diversification

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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

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94

What is the significance of NAV in mutual funds?

Indicates the per-unit value of the fund

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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

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99

What is the role of a custodian in mutual funds?

Safeguard the fund's assets

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100

What is a gilt fund?

A mutual fund that invests in government securitie

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