Aumsetu
🎓 Free V-D Mock Test
Aumsetu › NISM Study Hub › NISM Series V-D › Chapter 10

NISM Series V-D · Chapter 10: Risk, Return and Performance of Funds

फंड का जोखिम, प्रतिफल एवं प्रदर्शन · NISM-Series-V-D: Mutual Fund – Specialized Investment Fund (SIF) Distributors Certification Examination

5% weightage · ~8 questions 150 questions · 180 minutes · 60% to pass · −0.10 per wrong answer 22 practice questions in our bank

What this chapter covers

The measurement chapter: kinds of risk (market, credit, interest-rate, liquidity, concentration), return measures (simple, CAGR, XIRR, rolling), the risk-return trade-off and the statistics used to compare — standard deviation, beta, Sharpe, alpha.

जोखिम के प्रकार, रिटर्न की माप (CAGR, XIRR), और तुलना के सांख्यिकीय उपाय।

What to master before the exam

Exam tip: Expect CAGR and beta arithmetic, and definitional questions on which ratio measures which thing. Doubling rules (Rule of 72) show up disguised as word problems.

Sample questions from this chapter

Five of the 22 questions in our free bank. Open the answer to see the explanation — every question in the mock test has one, in English and Hindi.

Question 1
Unsystematic risk can be reduced through diversification.
अव्यवस्थित (unsystematic) जोखिम को विविधीकरण से कम किया जा सकता है।
  1. Trueसत्य
  2. Falseअसत्य
  3. Only for debt fundsकेवल डेट फंडों के लिए
  4. Only for gold fundsकेवल गोल्ड फंडों के लिए
Show answer & explanation
Answer: A — True
Unsystematic (company-specific) risk is diversifiable — spreading across many securities reduces it. Systematic (market) risk cannot be diversified away.
अव्यवस्थित (कंपनी-विशिष्ट) जोखिम विविधीकरण-योग्य है — कई प्रतिभूतियों में फैलाने से यह घटता है। व्यवस्थित (बाज़ार) जोखिम विविधीकरण से नहीं हटता।
Question 2
Systematic (market) risk is also known as:
व्यवस्थित (बाज़ार) जोखिम को और किस नाम से जाना जाता है?
  1. Non-diversifiable riskगैर-विविधीकरण-योग्य जोखिम
  2. Diversifiable riskविविधीकरण-योग्य जोखिम
  3. Credit riskक्रेडिट जोखिम
  4. Liquidity riskतरलता जोखिम
Show answer & explanation
Answer: A — Non-diversifiable risk
Systematic risk affects the whole market and cannot be removed by diversification, so it is called non-diversifiable risk; a manager can only reduce it by moving to cash.
व्यवस्थित जोखिम पूरे बाज़ार को प्रभावित करता है और विविधीकरण से नहीं हटता, इसलिए इसे गैर-विविधीकरण-योग्य जोखिम कहते हैं; मैनेजर इसे केवल नकदी में जाकर घटा सकता है।
Question 3
Which type of analysis tracks the price and volume data of trading in a security?
किस प्रकार का विश्लेषण किसी प्रतिभूति के ट्रेडिंग के मूल्य व वॉल्यूम आँकड़ों को ट्रैक करता है?
  1. Technical analysisतकनीकी विश्लेषण
  2. Fundamental analysisमौलिक विश्लेषण
  3. Quantitative analysisमात्रात्मक विश्लेषण
  4. Situation analysisपरिस्थिति विश्लेषण
Show answer & explanation
Answer: A — Technical analysis
Technical analysis studies past price and volume (trading) data to predict future movements; fundamental analysis studies the business and financials.
तकनीकी विश्लेषण भविष्य की चाल का अनुमान लगाने हेतु पिछले मूल्य व वॉल्यूम (ट्रेडिंग) आँकड़ों का अध्ययन करता है; मौलिक विश्लेषण व्यवसाय व वित्तीय स्थिति का।
Question 4
An investor buys at NAV ₹120 and redeems at NAV ₹135. The simple return is:
निवेशक ₹120 NAV पर खरीदता है और ₹135 NAV पर रिडीम करता है। सरल प्रतिफल क्या है?
  1. 12.50%12.50%
  2. 10.00%10.00%
  3. 15.00%15.00%
  4. 11.11%11.11%
Show answer & explanation
Answer: A — 12.50%
Simple return = (135 − 120) ÷ 120 = 15 ÷ 120 = 12.5%.
सरल प्रतिफल = (135 − 120) ÷ 120 = 15 ÷ 120 = 12.5%।
Question 5
Which of the following is a measure of the fluctuation in periodic returns of an equity mutual fund scheme?
निम्नलिखित में से कौन-सा किसी इक्विटी म्यूचुअल फंड योजना के आवधिक प्रतिफल में उतार-चढ़ाव का माप है?
  1. Variance (standard deviation)प्रसरण (मानक विचलन)
  2. Sharpe ratioशार्प अनुपात
  3. Alphaअल्फा
  4. Expense ratioव्यय अनुपात
Show answer & explanation
Answer: A — Variance (standard deviation)
Variance and its square root, standard deviation, measure how much periodic returns fluctuate around the average — a measure of total risk.
प्रसरण और इसका वर्गमूल, मानक विचलन, मापते हैं कि आवधिक प्रतिफल औसत के इर्द-गिर्द कितना उतार-चढ़ाव करते हैं — कुल जोखिम का माप।
Practise all 22 questions of this chapter → Take a full mock test Formula & revision sheet 30-day study planner

All V-D chapters

1. Investment Landscape · 5%2. Concept and Role of a Mutual Fund · 4%3. Legal Structure of Mutual Funds in India · 3%4. Legal and Regulatory Framework · 7%5. Scheme Related Information · 7%6. Fund Distribution and Channel Management · 4%7. NAV, Total Expense Ratio and Pricing of Units · 5%8. Taxation · 3%9. Investor Services · 10%10. Risk, Return and Performance of Funds · 5%11. Mutual Fund Scheme Performance · 5%12. Mutual Fund Scheme Selection · 10%13. Basics of Derivatives · 10%14. Understanding the Index · 5%15. Introduction to Forwards and Futures · 15%16. Introduction to Options · 13%17. Strategies using Equity Futures and Options · 9%18. Interest Rate, Instruments and Fixed Income · 6%19. Interest Rate Derivatives · 2%20. Exchange Traded Interest Rate Futures · 10%21. Exchange Traded Interest Rate Options · 6%22. Strategies using Interest Rate Derivatives · 6%
← Chapter 9: Investor Services Chapter 11: Mutual Fund Scheme Performance →

Preparing for the exam? Read how to get your ARN after passing NISM, and see the NISM Study Hub for the other exam.

Aumsetu — free tools for Mutual Fund Distributors, built by an MFD. This study material is an independent, unofficial aid prepared from the publicly available NISM workbook syllabus; it is not affiliated with, endorsed by, or a product of NISM or SEBI. Verify exam rules, fees and dates on the official NISM website before you register. Nothing here is investment advice.