NISM V-A Investor Services — Practice Questions
The largest chapter in the V-A syllabus. Practise the operational detail a distributor is tested on: account opening and KYC, purchase and redemption mechanics, SIP, SWP and STP, nomination, transmission and statements of account.
119 questions on Investor Services in the ScoreSetu bank — each with a detailed explanation and, where useful, a memory hook.
What this topic covers
- Account opening and KYC
- Purchase, redemption and switching
- SIP, SWP and STP
- Nomination and transmission
Free sample questions
1. Which category of investors must obtain approval through a board resolution before investing in a mutual fund scheme?
- A. Non-Resident Indians (NRIs)
- B. Minors
- C. Hindu Undivided Families (HUFs)
- D. Institutional investors ✅
Answer: D — Institutional investors
Why: Institutional investors: Entities like companies, trusts, or organizations must pass a board resolution to approve investments in mutual fund schemes. This ensures accountability and compliance with corporate governance. Non-Resident Indians (NRIs): They can invest directly in Indian mutual funds, subject to FEMA guidelines, without board resolutions. Minors: Investments are made through a guardian; no board resolution is required. Hindu Undivided Family (HUF): Investments are made by the Karta (head of family) without needing a board resolution.
💡 Institutional investors need a BOARD RESOLUTION to invest; NRIs/minors/HUFs do not.
2. Which is the Source Scheme in a Systematic Transfer Plan ?
- A. It is the scheme with the lower NAV
- B. It is the scheme from which funds are transferred ✅
- C. It is the scheme to which funds are transferred
- D. It is the scheme with the higher NAV
Answer: B — It is the scheme from which funds are transferred
Why: In a Systematic Transfer Plan (STP), the amount that is withdrawn from a scheme (called the source scheme) is re-invested in some other scheme (called the target scheme) of the same mutual fund. For eg. An investor has invested Rs 50,000 in SBI Debt Fund and has a STP to transfer Rs 5000 every month into SBI Mid Cap Fund. Here SBI Debt Fund is the Source fund and SBI Mid Cap Fund is the Target fund.
💡 STP: SOURCE = scheme money moves FROM; TARGET = scheme it moves INTO.
3. The dividends is declared on units which are under a lien will be paid to _______ .
- A. the unit holder only
- B. the lien holder only
- C. the unit holder or lien holder as per the agreement ✅
- D. the unit holder or lien holder as per the terms of issue of mutual fund units
Answer: C — the unit holder or lien holder as per the agreement
Why: The dividend pay-outs declared on units under lien may be paid to the unitholder or the lender (lien holder) depending upon the agreement.
💡 Dividend on units under lien -> paid to unit-holder OR lien holder per the AGREEMENT.
Practise all 119 Investor Services questions
Plus the full 743-question NISM V-A bank and real-feel mock exams.