NISM V-B Scheme Related Information — Practice Questions

Questions on the scheme documents an investor relies on — Scheme Information Document, Statement of Additional Information, Key Information Memorandum and the fund factsheet — and what each must disclose.

36 questions on Scheme Related Information in the ScoreSetu bank — each with a detailed explanation and, where useful, a memory hook.

What this topic covers

Free sample questions

1. The investment objective, policy and strategy of the Mutual Fund scheme are mentioned in the Scheme Information Document (SID) - State True or False ?
Answer: ATrue
Why: True. Each scheme starts with an investment objective, and the investment policy (asset allocation and investment style) framed to achieve that objective is disclosed in the Scheme Information Document (SID). The SID is the primary scheme-related document containing the objective, policy and strategy of the scheme.
💡 SID states the scheme's investment OBJECTIVE, policy & strategy.
2. Open-end schemes have to re-open for sale / re-purchase within ____ business days of the allotment.
Answer: B5
Why: As per SEBI guidelines, NFOs [other than ELSS and RGESS] can remain open for a maximum of 15 days. Allotment of units or refund of moneys, should be done within 5 business days of closure of the scheme and Open-Ended schemes have to re-open for sale / re-purchase within 5 business days of the allotment.
💡 Open-end schemes must RE-OPEN for sale/repurchase within 5 business days of allotment.
3. ________ is essentially a summary of the SID and SAI.
Answer: BKey Information Memorandum - KIM
Why: KIM is essentially a summary of the SID and SAI. It is more easily and widely distributed in the market. As per SEBI regulations, every application form is to be accompanied by the KIM.
💡 KIM = short SUMMARY of SID + SAI; must accompany every application form.
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Other NISM V-B topics

Investment LandscapeConcept & Role of Mutual FundsLegal StructureProducts for the New CadreDistribution & ChannelsPerformance of Mutual FundsTaxationInvestor ServicesLegal & Regulatory