Sample Questions
NISM-Series-5A: Mutual Fund Distributor Mock Tests — 5 random MCQs with answers & explanations
← Back to NISM-Series-5A: Mutual Fund Distributor Mock TestsThese 5 questions are randomly selected (standard MCQs only, not case-based).
Q1 Every individual Asset Management Company (AMC) issues a unique ARN code to its distributors. State True or False.
Explanation:
The ARN (AMFI Registration Number) is issued centrally by the Association of Mutual Funds in India (AMFI), not by individual AMCs.
Marks: 1
Q2 What is the best financial option for someone seeking long-term life risk protection?
Explanation:
Life insurance is specifically designed to provide financial protection for dependents in case of the policyholder's death.
Marks: 1
Q3 Whose job is it to track the various corporate actions like a bonus, dividend, or rights issues in companies where the mutual fund scheme has invested? (NISM workbook)
Explanation:
The custodian tracks corporate benefits and settles transactions on behalf of the mutual fund schemes.
Marks: 1
Q4 Which statement correctly compares a "Sponsor" to a corporate role?
Explanation:
The Sponsor is the promoter who starts the mutual fund trust and provides the initial capital to set up the business.
Marks: 1
Q5 Mutual fund distributors can only earn upfront commission from the mutual funds. State whether True or False. (NISM workbook)
Explanation:
Distributors primarily earn trail commission, and upfront commission is allowed only for specific SIP inflows by new investors.
Marks: 1
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