Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
RIFM
Practice Book
NISM-SERIES-V-A
MUTUAL FUND DISTRIBUTORS CERTIFICATION EXAMINATION
Welcome to RIFM
Thanks for choosing RIFM as your guide to help you in CFP Certification.
Roots Institute of Financial Markets is an advanced research institute Promoted by Mrs. Deep
Shikha CFPCM. RIFM specializes in Financial Market Education and Services. RIFM is introducing
preparatory classes and study material for Stock Market Courses of NSE , NISM and CFP
certification. RIFM train personals like FMM Students, Dealers/Arbitrageurs, and Financial
market Traders, Marketing personals, Research Analysts and Managers.
Kavita Malhotra
B.Com.
AMFI Certified for Mutual Funds
IRDA Certified for Life Insurance
Certification in following Modules of CFPCM Curriculum (FPSB India)
Risk Analysis & Insurance Planning
Retirement Planning & Employees Benefits
Investment Planning
Tax Planning & Estate Planning
Advanced Financial Planning
SAMPLE PAPER 1
57-71
SAMPLE PAPER 2
72-86
A. Diversified portfolio
B. Careful research and monitoring of the market
C. Substantial capital
D. Expertise in stock market
3. UTI was the only capital market intermediary for the period :
A. 1964 to 1987
B. 1963 to 1988
C. 1964 to 1992
D. None of the above
A. Board of Trustees
B. Sponsor
C. AMC
D. Unit-holders
A. AMC
B. Board of Trustees
C. Investment objectives
D. Unit-holders
A. Trust
B. Investment company
Roots Institute of Financial Markets
1197 NHBC Mahavir Dal Road. Panipat. 132103 Haryana.
Ph.99961-55000, 0180-2663049 email: info@rifmindia.com
Web: www.rifmindia.com and www.rifm.in
C. Company
D. None of the above
A. Trust
B. Investment company
C. Company
D. None of the above
36. Mutual funds are described as _____ in the SEBI Regulations, 1996
A. Companies
B. AMCs
C. Trusts
D. Agencies
A. TRUE
B. FALSE
39. . Fixed Term Plan series are (as per AMFI Workbook)
A. Close ended
B. Generally short term in nature
C. Not Listed On stock exchange
D. All of the above
40. To create investor awareness about mutual funds, a booklet titled “Making Mutual Fund
A. SEBI
B. AMFI
C. Unit Trust of India
D. Investor Education and Protection fund
41. Which among the following replicate the returns of the specific index?
A. Income Funds
B. Sector Funds
C. Index Funds
D. Balanced Funds
E. All of above
21. A change in key personnel especially the fund manager of an AMC does not
necessitate a revision of the offer document
A. True
B. False
22. As per Second Schedule of SEBI (Mutual Fund Regulations, 1996) „Filing Fees for
Offer Document‟ is
A. Rs: 10,000
B. Rs: 15,000
C. Rs: 25,000
D. Rs: 50,000
23. An offer document contains an AMCs investor grievances history for the past
A. 1 fiscal year
B. 2 fiscal year
C. 3 fiscal year
D. Six months
24 SEBI does not require the following to be included in the offer document issued by a
mutual fund ;
A. Consumer Courts
B. SEBI
C. AMFI
D. RBI
1 C 16 C
2 D 17 A
3 A 18 D
4 B 19 D
5 C 20 C
6 B 21 B
7 A 22 C
8 E 23 C
9 D 24 D
10 C 25 B
11 D 26 B
12 D 27 D
13 E 28 B
14 D 29 D
15 D
A. Face value
B. YTM basis
C. Accrual basis
D. Duration basis
10. A Systematic Withdrawal Plan, allows investors to get back the principal amounts
invested in addition to the income on investment
A. True
B. False
A. Account balance should not fall below the minimum capital required
B. Checks issued must be for at least the minimum amount specified
C. Number of checks per month must not exceed a specified number
D. Both a & b above
A. The plan allows for automatic reinvestment of all income and capital gains
B. Automatic reinvestment allows for accumulation of additional units of the fund
C. The major benefit of automatic reinvestment is compounding
D. The benefit of automatic reinvestment is often lost on account of the heavy load
charge on the reinvestment
A. SEBI does not allow the investor to pledge his mutual fund units on favour of
financial institutions
B. An investor cannot redeem his mutual fund holding in part
C. the frequency of investment offered for SIP varies from one fund to another
Roots Institute of Financial Markets
1197 NHBC Mahavir Dal Road. Panipat. 132103 Haryana.
Ph.99961-55000, 0180-2663049 email: info@rifmindia.com
Web: www.rifmindia.com and www.rifm.in
D. All of the above
15. An investor buys units in a fund that has given excellent returns in the past, but his
expectations are not met, as the fund does not perform well this year. The investor can .
A. Loans
B. Promissory notes
C. Securities
D. None of the above
1 D 12 D
2 B 13 C
3 B 14 C
4 C 15 C
5 C 16 C
6 B 17 C
7 B 18 C
8 D 19 D
9 C 20 B
10 A 21 D
11 D 22 B
23 A
2. When comparing a fund's performance with that of its peer group, the following cannot be
compared?
A. UTI
B. Banks
C. Mutual Funds
D. None of the above
A. Liquidity
B. High perceived safety
C. Low entry price
D. High yield after tax
A. PPF
B. NSC
C. Post office deposits
D. Units of mutual funds
A. 5 years
B. 6 years
C. 7 years
D. 8 years
10. The most important factor look for when investing in a corporate fixed deposit is the
A. Yield
B. Rate of interest
C. Credit rating of the deposit
D. None of the above
A. Equity securities
B. Debt funds and fixed income securities
C. Money market
D. Real estate
4. Who is responsible for filing details of the fund‟s portfolio with SEBI
A. Registrar of the fund
B. Fund trustee
C. Custodian
D. The Fund manager
7. The NAV of XYZ equity scheme is Rs. 10.50 on 3rd September 2002, if the fund charges
0.25% as the exit load, what would be the repurchase price for the investor ?
A. 7.8750
B. 13.1250
C. 10.000
D. 10.4737
82. In case of AMC fails to resolve a complaint, a mutual fund investor can address his
complain
A. RBI
B. The Consumer Court
C. SEBI
D. None of the above
84. An investors wants to invest in a particular mutual fund. He has the right
A. To ask the AMC for a detailed Offer Document or Key Information Memorandum
before investments
B. To ask the AMFI for a detailed Offer document
C. To ask SEBI for a detailed Offer Document
D. To ask the Custodian for Key information Memorandum
86. Which classes of investors are NOT allowed to invest in mutual funds in India ?
A. Non-Resident Indians
B. Foreign Institutional Investors
C. Trusts and Charitable Institutions
D. Foreign Citizens
89. In case of open ended schemes, initial issue expenses are written off over a period not
exceeding
A. 10 years
B. 20 years
C. 15 years
D. 3 years
12. As a general rule, the longer the duration of a debt fund portfolio, the greater the risk of
fluctuations in the portfolio value
13. In developing a fund portfolio for any investor, the following steps are involved. The
order in which these steps are to be followed is
14. As per you if you were to follow benjamin graham‟s advice, which of the following asset
allocations will you recommend to a 25 year old mba, recently recruited by Hindustan
Roots Institute of Financial Markets
1197 NHBC Mahavir Dal Road. Panipat. 132103 Haryana.
Ph.99961-55000, 0180-2663049 email: info@rifmindia.com
Web: www.rifmindia.com and www.rifm.in
lever?
15. A retired executive with a moderate risk appetite should be advised to invest in
16. An investor wants to invest for a period of one year. Which of the following debt funds
will you recommend as the best investment?
17. calculate the NAV of a mutual fund scheme given the following :
A. Rs. 36
B. Rs. 10.00
C. Rs. 15.00
D. Insufficient data
18. An investor purchased units in an approved mutual fund on January 01, 1998, for rs. 4,
00,000.00 he sold the units on December 15, 1999 for rs. 6,00,000.00 calculate the
capital gain taxes paid by him without the benefit of indexation (ignore taxation)
A. Rs. 20000.00
B. Rs. 40000.00
Roots Institute of Financial Markets
1197 NHBC Mahavir Dal Road. Panipat. 132103 Haryana.
Ph.99961-55000, 0180-2663049 email: info@rifmindia.com
Web: www.rifmindia.com and www.rifm.in
C. Zero
D. Depends on the investors tax bracket
19. Calculate the current yield on a gsec with a par value of rs. 1000/- coupon of 10% and
market price of rs. 1010/-
A. 10%
B. 9.9%
C. 10.1%
D. 11%
20. An open end fund was purchased when the NAV was rs. 21. 12 months later, its NAV
was rs. 23/- the annualized percent NAV change is
A. 6.96%
B. 9.52%
C. 7.62%
D. Insufficient data
A. Every type of mutual fund has a unique risk profile that is determined by
its portfolio
B. An open end fund is one that units available for sale or repurchase at
nav
C. An open end fund is not obliged to keep selling/issuing new units at all
times
D. An open-end fund may have a lock in period
23. The jurisdiction for resolving legal disputes concerning mutual funds is
90. Beta of an equity fund measured the market risk of the fund. The equity of this number
is indicated by
A. Trey nor Ratio
B. ExMarks (R-Squared)
C. Standard Deviation
D. Sharpe Ratio
92. NAV ( Net Asset Value ) of a mutual fund schemes, given the following
Size of the Scheme Rs. 100 Crore
Face Value of the unit Rs 10 per Unit
Number of outstanding units Rs. 10 Crore
Market value of the investments Rs. 180 Crore
A. Rs. 18
B. Rs. 10
C. Rs. 100
D. Insufficient Data
93. An investor purchases units in an approved mutual fund on January 1, 1998 for Rs.
5,00,000. He sold the units on December 15, 1999 for Rs. 7,50,000. Calculate the
capital gain taxes paid by him without the benefit of indexation ( ignore surcharges )
A. Rs. 25,000/-
B. Rs. 50,000/-
C. Zero
D. Depends on the investor‟s tax bracket
94. Calculate the current yield on a G-sec with a par value of Rs. 1000, coupon of 10% and
market price of Rs. 1020.
A. 0%
B. 8%
C. 10.2%
D. 11%
“Every effort has been made to avoid any errors or omission in this book. In spite of this error may creep in.
Any mistake, error or discrepancy noted may be brought to our notice, which, shall be taken care of in the
next printing. It is notified that neither the publisher nor the author or seller will be responsible for any
damage or loss of action to anyone of any kind, in any manner, therefrom.
ROOTS Institute of Financial Markets, its directors, author(s), or any other persons involved in the preparation
of this publication expressly disclaim all and any contractual, tortuous, or other form of liability to any person
(purchaser of this publication or not) in respect of the publication and any consequences arising from its use,
including any omission made, by any person in reliance upon the whole or any part of the contents of this
publication.
No person should act on the basis of the material contained in the publication without considering and taking
professional advice.
CFP Certification Modules ---Study Notes (Detailed Study notes as per FPSB
syllabus) Cost Rs. 1000 Per Module
1. INTRODUCTION TO FINANCIAL PLANNING
2. INVESTMENT PLANNING
3. RISK ANALYSIS OF FINANCIAL PLANNING
4. RETIREMENT PLANNING
5. TAX PLANNING
CFP Certification Modules ---Practice Books (about 800 Questions per Module)
Cost Rs. 1000 Per Module
1. INTRODUCTION TO FINANCIAL PLANNING
2. INVESTMENT PLANNING
3. RISK ANALYSIS OF FINANCIAL PLANNING
4. RETIREMENT PLANNING
5. TAX PLANNING
Roots (RIFM)
Roots Institute of Financial Markets Institute of Financial Markets
1197 NHBC Mahavir1197 NHBCPanipat.
Dal Road. Mahavir132103
Dal Road. Panipat. 132103 Haryana.
Haryana.
Ph.99961-55000, 0180-2663049 email: info@rifmindia.cominfo@rifmindia.com
Ph.99961-55000, 0180-2663049 email:
Web:
Web: www.rifmindia.com and www.rifmindia.com and www.rifm.in
www.rifm.in