NISM Series 5D Mock Test 1: Free SIF Distributors Paper

How this mock is marked

• 50 questions, one mark each.
• 60 minutes on the clock. That is the real exam's pace: 180 minutes for 150 questions.
• A wrong answer loses one tenth of a mark. A blank loses nothing.
• You pass with 60% or more.
• Submit to see your score and the chapters to work on. Then check each right answer and why it is right.

What this paper covers

50 questions from 22 chapters. Each chapter gets a share that follows our question bank.

• The Investment Landscape: 2 questions.
• Concept & Role of a Mutual Fund: 1 question.
• Legal Structure of Mutual Funds in India: 1 question.
• Legal and Regulatory Framework: 3 questions.
• Scheme Related Information: 2 questions.
• Fund Distribution and Channel Management Practices: 2 questions.
• Net Asset Value, Total Expense Ratio and Pricing of Units: 1 question.
• Taxation: 1 question.
• Investor Services: 3 questions.
• Risk, Return and Performance of Funds: 2 questions.
• Mutual Fund Scheme Performance: 2 questions.
• Mutual Fund Scheme Selection: 3 questions.
• Basics of Derivatives: 3 questions.
• Understanding Index: 2 questions.
• Introduction to Forwards and Futures: 5 questions.
• Introduction to Options: 4 questions.
• Strategies Using Equity Futures and Equity Options: 3 questions.
• Introduction to Interest Rate, Interest Rate Instruments and Fixed Income Markets: 2 questions.
• Interest Rate Derivatives: 1 question.
• Exchange Traded Interest Rate Futures: 3 questions.
• Exchange Traded Interest Rate Options: 2 questions.
• Strategies Using Interest Rate Derivatives: 2 questions.

By level: Beginner 15 · Intermediate 25 · Advanced 10.

Chapter split of Mock 1

How Mock 1 shares its questions between chapters and levels. This split belongs to this paper. The other mocks of this exam have their own.

• The Investment Landscape: Beginner 1 · Intermediate 0 · Advanced 1.
• Concept & Role of a Mutual Fund: Beginner 0 · Intermediate 1 · Advanced 0.
• Legal Structure of Mutual Funds in India: Beginner 0 · Intermediate 1 · Advanced 0.
• Legal and Regulatory Framework: Beginner 1 · Intermediate 2 · Advanced 0.
• Scheme Related Information: Beginner 1 · Intermediate 1 · Advanced 0.
• Fund Distribution and Channel Management Practices: Beginner 1 · Intermediate 1 · Advanced 0.
• Net Asset Value, Total Expense Ratio and Pricing of Units: Beginner 0 · Intermediate 1 · Advanced 0.
• Taxation: Beginner 0 · Intermediate 1 · Advanced 0.
• Investor Services: Beginner 1 · Intermediate 1 · Advanced 1.
• Risk, Return and Performance of Funds: Beginner 0 · Intermediate 1 · Advanced 1.
• Mutual Fund Scheme Performance: Beginner 1 · Intermediate 0 · Advanced 1.
• Mutual Fund Scheme Selection: Beginner 1 · Intermediate 2 · Advanced 0.
• Basics of Derivatives: Beginner 1 · Intermediate 2 · Advanced 0.
• Understanding Index: Beginner 1 · Intermediate 0 · Advanced 1.
• Introduction to Forwards and Futures: Beginner 1 · Intermediate 3 · Advanced 1.
• Introduction to Options: Beginner 1 · Intermediate 2 · Advanced 1.
• Strategies Using Equity Futures and Equity Options: Beginner 1 · Intermediate 1 · Advanced 1.
• Introduction to Interest Rate, Interest Rate Instruments and Fixed Income Markets: Beginner 0 · Intermediate 1 · Advanced 1.
• Interest Rate Derivatives: Beginner 1 · Intermediate 0 · Advanced 0.
• Exchange Traded Interest Rate Futures: Beginner 1 · Intermediate 2 · Advanced 0.
• Exchange Traded Interest Rate Options: Beginner 1 · Intermediate 1 · Advanced 0.
• Strategies Using Interest Rate Derivatives: Beginner 0 · Intermediate 1 · Advanced 1.

3 sample questions, with answers

These 3 questions are not in Mock 1, so reading them spoils nothing here. They come from Mock 3 of this exam. Each one shows the hint, the answer and why every wrong option is wrong.

1. Q1A share costs ₹800. Use the supplied simple-interest carry model F = S × (1 + rT), where r is an annual rate and T is years. The financing rate is 8% a year, maturity is three months, and no income or other costs apply. What is the model futures price? Assumptions: Use the stated simple-interest model. No dividend, fee or other carry item applies.

   • A

     Option A. ₹816 — Correct answer

   • B

     Option B. ₹864

     Why it is wrong: This charges a full year of financing instead of three months.

   • C

     Option C. ₹806.40

     Why it is wrong: This does not apply the stated three-month fraction correctly.

   • D

     Option D. ₹784

     Why it is wrong: This subtracts positive financing cost instead of adding it.

   Answer: A. The financing addition is ₹800 × 8% × 3/12 = ₹16. The model price is ₹800 + ₹16 = ₹816. Remember: Annual carry rates must be matched to the contract’s actual time period.

   Hint, shown before you answer in practice mode: Three months is one-quarter of a year.

   V-D-092mediumnumerical

   Study this unit

2. Q2A lump-sum investment rises from ₹1,00,000 to ₹1,33,100 in exactly three years with no intermediate cash flows. What is its compound annual growth rate? Assumptions: No contributions, withdrawals or distributions occur.

   • A

     Option A. 33.10%

     Why it is wrong: This is the three-year total return, not an annual rate.

   • B

     Option B. 11.03%

     Why it is wrong: This divides the total 33.1% gain by three instead of compounding.

   • C

     Option C. 9.00%

     Why it is wrong: Compounding 9% for three years does not produce the stated ending value.

   • D

     Option D. 10% — Correct answer

   Answer: D. CAGR = (1,33,100/1,00,000)^(1/3) − 1 = 10%. A 1.10 factor applied for three years produces 1.331. Remember: CAGR converts a multi-year growth factor into an equivalent compound annual rate.

   Hint, shown before you answer in practice mode: Find the annual growth factor whose cube equals 1.331.

   V-D-050mediumnumerical

   Study this unit

3. Q3A trader buys five near-month bond futures at 98.00 and sells five far-month futures at 99.00. Each one-point change is worth ₹1,000 per contract for either maturity. Both legs are closed when the near-month price is 99.00 and the far-month price is 99.40. Ignoring costs, what is the spread’s total profit? Assumptions: The two illustrative futures contracts have identical point values and all positions are closed together.

   • A

     Option A. ₹7,000

     Why it is wrong: This adds the gain on the long leg to the price rise on the short leg instead of treating the latter as a loss.

   • B

     Option B. ₹3,000 — Correct answer

   • C

     Option C. ₹5,000

     Why it is wrong: This includes only the long near-month profit.

   • D

     Option D. A loss of ₹3,000

     Why it is wrong: This reverses the signs of the long and short positions.

   Answer: B. The long leg gains (99 − 98) × ₹1,000 × 5 = ₹5,000. The short leg loses (99.40 − 99) × ₹1,000 × 5 = ₹2,000, leaving a net profit of ₹3,000. Remember: A calendar spread depends on the relative movement of its maturities, not just their common direction.

   Hint, shown before you answer in practice mode: Calculate each leg separately before adding them.

   V-D-149mediumnumerical

   Study this unit

Then take Mock 2

Read the chapters your result names first. A new paper then shows whether those gaps have closed.