NISM V-D Investor Services — Practice Questions
One of the two heaviest Module 1 chapters: KYC, the application form, cut-off times and applicable NAV, SIP, SWP and STP, account statements, nomination, transmission and investor complaints.
60 questions on Investor Services in the ScoreSetu bank — each with a detailed explanation and, where useful, a memory hook.
What this topic covers
- KYC and the application form
- Cut-off times and applicable NAV
- SIP, SWP and STP
- Nomination, transmission and complaints
Free sample questions
1. A Systematic Transfer Plan (STP) is essentially a combination of which of the following ?
- A. A one-time investment followed by a one-time redemption between two mutual fund schemes
- B. Multiple purchases followed by multiple redemptions within the same mutual fund scheme
- C. A lump sum investment followed by periodic redemptions between two mutual fund schemes
- D. A Systematic Withdrawal Plan (SWP) and a Systematic Investment Plan (SIP) occurring simultaneously between two mutual fund schemes ✅
Answer: D — A Systematic Withdrawal Plan (SWP) and a Systematic Investment Plan (SIP) occurring simultaneously between two mutual fund schemes
Why: A Systematic Transfer Plan (STP) allows investors to move money at regular intervals from one mutual fund scheme (usually a debt or liquid fund) to another (often an equity fund). It works like a Systematic Withdrawal Plan (SWP) from the source scheme and a Systematic Investment Plan (SIP) into the target scheme, happening together. Both these actions happen simultaneously and automatically, making STP essentially a SWP + SIP combo running together between two schemes.
💡 STP = SWP (out of source) + SIP (into target) running simultaneously between two schemes.
2. Identify the TRUE statement with respect to Systematic Investment Plan (SIP) ?
- A. A SIP cannot be done in an New Fund Offer (NFO)
- B. A SIP can be done only in an existing folio
- C. A SIP can be done in a Close-end fund
- D. A SIP can be used to initiate a fresh purchase of mutual funds ✅
Answer: D — A SIP can be used to initiate a fresh purchase of mutual funds
Why: A SIP can be used to initiate a fresh purchase of mutual funds is correct. You do not need to make a large "lump sum" payment to start your journey with a mutual fund. An investor can open a new account (folio) and begin their investment immediately using the SIP route. Why others are not correct : 1. A SIP cannot be done in an New Fund Offer (NFO) - This is wrong as you can actually start a SIP during an NFO period. Many Asset Management Companies (AMCs) allow investors to register a SIP while the fund is being launched 2. A SIP can be done only in an existing folio - This is wrong as a SIP can be started with a new folio; an existing folio is not mandatory. 3. A SIP can be done in a Close-end fund - This is wrong as generally, SIPs are not available for Close-end funds.
💡 SIP can initiate a fresh purchase in a new folio (even during an NFO); not for close-end funds.
3. ______ is NOT accepted as a photo identity documentation for Micro SIP.
- A. Debit card with a photo
- B. Permanent Retirement Account Number (PRAN) card issued to National Pension System (NPS)
- C. Employee ID cards issued by companies registered with the Registrar of Companies
- D. Credit card ✅
Answer: D — Credit card
Why: Credit card is not accepted because it may not be backed up by a bank account.
💡 Micro SIP photo-ID: credit card NOT accepted (not backed by a bank account).
Practise all 60 Investor Services questions
Plus the full 853-question NISM V-D bank and real-feel mock exams.
Other NISM V-D topics
Investment LandscapeConcept & Role of Mutual FundsLegal StructureLegal & RegulatoryScheme Related InformationDistribution & ChannelsNAV, TER & PricingTaxationRisk, Return & PerformanceScheme PerformanceScheme SelectionBasics of DerivativesUnderstanding the IndexForwards & FuturesOptionsEquity Derivative StrategiesInterest Rates & Fixed IncomeInterest Rate DerivativesInterest Rate FuturesInterest Rate OptionsInterest Rate Strategies