1 NISM Mock Test 1

What is the primary objective of an index fund?

Match the performance of the market index

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

What does AUM stand for in mutual funds?

Assets Under Management

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

Sector fund

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

Fixed number of units

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

Make investment decisions and manage the portfolio

What is a balanced fund?

A mutual fund that invests in both equities and debt instruments

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

Indicates the cost of managing the fund

What is the primary risk associated with debt funds?

Credit risk

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

ELSS

What does ETF stand for?

Exchange Traded Fund

What is the main objective of a gilt fund?

Invest in government securities

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

3 years

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

Diversification

What is a liquid fund?

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

What is the role of SEBI in mutual funds?

Regulate and oversee mutual funds

What is the main objective of an equity fund?

Capital appreciation

What is the significance of NAV in mutual funds?

Indicates the per-unit value of the fund

What is a sector fund?

A mutual fund that invests in a specific industry sector

What is the primary benefit of SIP in mutual funds?

Regular investment and rupee cost averagin

Which type of fund invests primarily in corporate bonds?

Debt fund

What is the main objective of a growth fund?

Capital appreciation

What is the role of a custodian in mutual funds?

Safeguard the fund's assets

What is a gilt fund?

A mutual fund that invests in government securities

What is the primary advantage of diversification in mutual funds?

Reduce risk

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

ETFs trade on stock exchanges, mutual funds do not

What does SIP stand for in mutual funds?

Systematic Investment Plan

What is the lock-in period for ELSS?

3 years

What is the main objective of a liquid fund?

Short-term liquidity

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

ELSS

What is a diversified fund?

A mutual fund that invests in various sectors to reduce risk

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

Safeguard the fund's assets

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

Gilt fund

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

Reduce risk

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

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

Risk-adjusted return

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

Balanced fund

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

Manage mutual funds

What is the primary objective of an index fund?

Match the performance of the market index

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

What does AUM stand for in mutual funds?

Assets Under Management

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

Sector fund

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

Fixed number of units

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

Make investment decisions and manage the portfolio

What is a balanced fund?

A mutual fund that invests in both equities and debt instruments

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

Indicates the cost of managing the fund

What is the primary risk associated with debt funds?

Credit risk

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

ELSS

What does ETF stand for?

Exchange Traded Fund

What is the main objective of a gilt fund?

Invest in government securities

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

3 years

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

Diversification

What is a liquid fund?

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

What is the role of SEBI in mutual funds?

Regulate and oversee mutual funds

What is the main objective of an equity fund?

Capital appreciation

What is the significance of NAV in mutual funds?

Indicates the per-unit value of the fund

What is a sector fund?

A mutual fund that invests in a specific industry sector

What is the primary benefit of SIP in mutual funds?

Regular investment and rupee cost averaging

Which type of fund invests primarily in corporate bonds?

Debt fund

What is the main objective of a growth fund?

Capital appreciation

What is the role of a custodian in mutual funds?

Safeguard the fund's assets

What is a gilt fund?

A mutual fund that invests in government securities

What is the primary advantage of diversification in mutual funds?

Reduce risk

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

ETFs trade on stock exchanges, mutual funds do not

What does SIP stand for in mutual funds?

Systematic Investment Plan

What is the lock-in period for ELSS?

3 years

What is the main objective of a liquid fund?

Short-term liquidity

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

ELSS

What is a diversified fund?

A mutual fund that invests in various sectors to reduce risk

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

Safeguard the fund's assets

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

Gilt fund

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

Reduce risk

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

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

Risk-adjusted return

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

Balanced fund

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

Manage mutual funds

What is the primary objective of an index fund?

Match the performance of the market index

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

What does AUM stand for in mutual funds?

Assets Under Management

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

Sector fund

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

Fixed number of units

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

Make investment decisions and manage the portfolio

What is a balanced fund?

A mutual fund that invests in both equities and debt instruments

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

Indicates the cost of managing the fund

What is the primary risk associated with debt funds?

Credit risk

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

ELSS

What does ETF stand for?

Exchange Traded Fund

What is the main objective of a gilt fund?

Invest in government securities

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

3 years

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

Diversification

What is a liquid fund?

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

What is the role of SEBI in mutual funds?

Regulate and oversee mutual funds

What is the main objective of an equity fund?

Capital appreciation

What is the significance of NAV in mutual funds?

Indicates the per-unit value of the fund

What is a sector fund?

A mutual fund that invests in a specific industry sector

What is the primary benefit of SIP in mutual funds?

Regular investment and rupee cost averaging

Which type of fund invests primarily in corporate bonds?

Debt fund

What is the main objective of a growth fund?

Capital appreciation

What is the role of a custodian in mutual funds?

Safeguard the fund's assets

What is a gilt fund?

A mutual fund that invests in government securitie