How many questions come from Chapter 11 (Mutual Funds) in the NISM Series X-A exam?

The workbook gives marks by module; shared over the module's chapters by length, this chapter is worth about 14 of the 150 marks, across MCQs and case studies.

Is there negative marking in NISM Series X-A?

Yes — 25% of the marks of a question is deducted for a wrong answer (0.25 on a 1-mark MCQ, 0.50 on a 2-mark case question), so leave a question blank when you cannot eliminate options.

Where can I practise NISM Series X-A Chapter 11 questions for free?

Aumsetu's free X-A mock test has an untimed chapter-wise practice mode with an explanation after every question, in English and Hindi, plus ten full-length timed mock tests.

Aumsetu › NISM Study Hub › NISM Series X-A › Chapter 11

NISM Series X-A · Chapter 11: Mutual Funds

म्यूचुअल फंड · NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination

~14 of 150 marks 90 MCQs + 9 case studies · 150 marks · 3 hours · 60% to pass · −25% of a question's marks per wrong answer 56 practice questions in our bank + 2 case studies

What this chapter covers

How mutual funds work — units, net assets, NAV, cut-off timings, mark-to-market — the scheme structures (open-ended, close-ended, interval, ETF), SEBI's scheme categories with their allocation limits, life-cycle funds, SIFs, investment options and triggers, transactions (purchase, redemption, switch) and systematic plans, plus direct versus regular plans.

म्यूचुअल फंड — NAV, योजना संरचनाएँ, SEBI श्रेणियाँ, SIP/SWP/STP, और डायरेक्ट बनाम रेगुलर प्लान।

What to master before the exam

NAV = net assets ÷ units outstanding; units = amount ÷ NAV; purchases and redemptions at NAV leave NAV unchanged, and allotting units at any other price dilutes existing investors.
Equity categories: large cap (top 100, at least 80%), mid cap (101–250, 65%), small cap (251+, 65%), large & mid (35% + 35%), multi cap (75% equity, 25% each in large, mid and small), flexi cap (65%), sectoral/thematic (80%), focused (at most 30 stocks), ELSS (80%, 3-year lock-in).
Debt categories by Macaulay duration (ultra short 3–6 months, short 1–3 years, medium 3–4 years, medium-to-long 4–7 years, long > 7 years), liquid (< 91 days), corporate bond (80% in AA+ and above), credit risk (65% in AA and below), gilt and 10-year constant maturity (80%).
Hybrids: conservative (10–25% equity), balanced (40–60%), aggressive (65–80%), multi-asset (at least 10% in each of three asset classes), equity savings (65% equity, 10% debt); FoF (95% in the underlying fund), ETF (95% in index securities); interval funds open for at least 2 days with at least 15 days between windows.
Life-cycle funds run 5–30 years in multiples of 5 with exit loads of 3%, 2% and 1% in years one to three; SIFs need Rs 10 lakh minimum; instant access on liquid funds up to Rs 50,000 or 90% of the holding a day, whichever is lower; SIP rupee-cost averaging and value averaging.

Exam tip: Module 4 (Chapters 11–13) carries 23 marks and this chapter is the bulk of it. The category percentages are easy one-mark facts if memorised as a table; expect NAV and units arithmetic and a value-averaging instalment sum.

Sample questions from this chapter

Five of the 56 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

Investors withdrawing a fixed sum of money each month are using the _______.

प्रत्येक माह एक निश्चित राशि निकालने वाले निवेशक _______ का उपयोग कर रहे हैं।

Systematic Investment Planसिस्टमैटिक इन्वेस्टमेंट प्लान (SIP)
Systematic Transfer Planसिस्टमैटिक ट्रांसफर प्लान (STP)
Systematic Withdrawal Planसिस्टमैटिक विड्रॉल प्लान (SWP)
Dividend Transfer Planडिविडेंड ट्रांसफर प्लान (DTP)

Show answer & explanation

Answer: C — Systematic Withdrawal Plan
A Systematic Withdrawal Plan enables recurring redemptions from a scheme over a period of time at the applicable NAV, giving a defined pay-out to investors who need it. (Workbook sample question.)
SWP किसी स्कीम से एक अवधि तक लागू NAV पर नियमित रिडेम्प्शन की सुविधा देता है, जिससे ज़रूरतमंद निवेशकों को निश्चित भुगतान मिलता है। (वर्कबुक का नमूना प्रश्न।)

Question 2

A mutual fund is set up by its promoter, who is called the:

म्यूचुअल फंड की स्थापना उसके प्रवर्तक (promoter) द्वारा की जाती है, जिसे कहते हैं:

Trusteeट्रस्टी
Asset Management Companyएसेट मैनेजमेंट कंपनी (AMC)
Sponsorस्पॉन्सर (Sponsor)
Custodianकस्टोडियन

Show answer & explanation

Answer: C — Sponsor
The workbook states that a mutual fund is set up by a sponsor, who is its promoter.
वर्कबुक के अनुसार म्यूचुअल फंड की स्थापना स्पॉन्सर करता है, जो उसका प्रवर्तक होता है।

Question 3

Who is appointed to take care of the interests of the investors in the various schemes launched by a mutual fund?

म्यूचुअल फंड द्वारा शुरू की गई विभिन्न स्कीमों में निवेशकों के हितों की देखभाल के लिए किसे नियुक्त किया जाता है?

Trusteesट्रस्टी
The sponsorस्पॉन्सर
The R&T agentR&T एजेंट
Stock brokersस्टॉक ब्रोकर

Show answer & explanation

Answer: A — Trustees
Trustees are appointed to take care of the interests of the investors in the schemes launched by the mutual fund.
म्यूचुअल फंड की स्कीमों में निवेशकों के हितों की देखभाल के लिए ट्रस्टी नियुक्त किए जाते हैं।

Question 4

The abridged offer document that accompanies the mutual fund application form is called the:

म्यूचुअल फंड आवेदन पत्र के साथ उपलब्ध संक्षिप्त ऑफर दस्तावेज़ को कहते हैं:

Scheme Information Document (SID)स्कीम इन्फॉर्मेशन डॉक्यूमेंट (SID)
Account statementअकाउंट स्टेटमेंट
Transaction slipट्रांज़ैक्शन स्लिप
Key Information Memorandum (KIM)की इन्फॉर्मेशन मेमोरेंडम (KIM)

Show answer & explanation

Answer: D — Key Information Memorandum (KIM)
The application form comes with the abridged offer document called the Key Information Memorandum (KIM); both SID and KIM are available on the AMC website.
आवेदन पत्र के साथ संक्षिप्त ऑफर दस्तावेज़ Key Information Memorandum (KIM) मिलता है; SID और KIM दोनों AMC की वेबसाइट पर उपलब्ध हैं।

Question 5

Which entity carries out the activities of maintaining investor records and investment details and communicating with investors of a scheme?

स्कीम के निवेशकों का रिकॉर्ड और निवेश विवरण रखने तथा निवेशकों से संवाद करने का कार्य कौन करता है?

The custodianकस्टोडियन
The R&T agentR&T एजेंट
The sponsorस्पॉन्सर
SEBISEBI (नियामक)

Show answer & explanation

Answer: B — The R&T agent
Maintaining investor records and investment details and communicating with investors is done by the R&T (registrar and transfer) agent of the scheme.
निवेशक रिकॉर्ड, निवेश विवरण रखना और निवेशकों से संवाद करना स्कीम के R&T (रजिस्ट्रार एवं ट्रांसफर) एजेंट का कार्य है।

Practise all 56 questions of this chapter → Take a full mock test Formula & revision sheet 30-day study planner

All X-A chapters

1. Introduction to Personal Financial Planning · 7 marks 2. Time Value of Money · 7 marks 3. Evaluating the Financial Position of Clients · 10 marks 4. Debt Management and Loans · 13 marks 5. Introduction to the Indian Financial Markets · 4 marks 6. Securities Market Segments · 6 marks 7. Introduction to Investment · 3 marks 8. Investing in Stocks · 8 marks 9. Investing in Fixed Income Securities · 13 marks 10. Understanding Derivatives · 6 marks 11. Mutual Funds · 14 marks 12. Portfolio Manager · 4 marks 13. Overview of Alternative Investment Funds (AIFs) · 5 marks 14. Introduction to Modern Portfolio Theory · 3 marks 15. Portfolio Construction Process · 7 marks 16. Portfolio Performance Measurement and Evaluation · 10 marks 17. Operational Aspects of Investment Management · 13 marks 18. Key Regulations · 10 marks 19. Ethical Issues · 3 marks 20. Grievance Redress Mechanism · 4 marks

← Chapter 10: Understanding Derivatives Chapter 12: Portfolio Manager →

See the NISM Study Hub for X-B (Investment Adviser Level 2) and the mutual fund distributor exams (V-A, V-D) too.

Aumsetu — free tools for Mutual Fund Distributors. 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.