NISM Series 5D Mock Test 2: Free SIF Distributors Paper
Free NISM Series 5D mock test 2 for the Mutual Fund - Specialized Investment Fund Distributors exam (NISM Series V-D). 50 questions. You have 60 minutes. The pass mark and negative marking match the exam.
The clock starts when you press Start. Answers and explanations open after you submit.
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: 2 questions.
- Scheme Related Information: 3 questions.
- Fund Distribution and Channel Management Practices: 1 question.
- Net Asset Value, Total Expense Ratio and Pricing of Units: 2 questions.
- Taxation: 1 question.
- Investor Services: 3 questions.
- Risk, Return and Performance of Funds: 1 question.
- Mutual Fund Scheme Performance: 2 questions.
- Mutual Fund Scheme Selection: 4 questions.
- Basics of Derivatives: 3 questions.
- Understanding Index: 1 question.
- Introduction to Forwards and Futures: 5 questions.
- Introduction to Options: 5 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 2
How Mock 2 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 1 · Advanced 0.
- Concept & Role of a Mutual Fund: Beginner 1 · Intermediate 0 · Advanced 0.
- Legal Structure of Mutual Funds in India: Beginner 1 · Intermediate 0 · Advanced 0.
- Legal and Regulatory Framework: Beginner 0 · Intermediate 1 · Advanced 1.
- Scheme Related Information: Beginner 1 · Intermediate 2 · Advanced 0.
- Fund Distribution and Channel Management Practices: Beginner 0 · Intermediate 1 · Advanced 0.
- Net Asset Value, Total Expense Ratio and Pricing of Units: Beginner 1 · Intermediate 0 · Advanced 1.
- Taxation: Beginner 0 · Intermediate 1 · Advanced 0.
- Investor Services: Beginner 1 · Intermediate 2 · Advanced 0.
- Risk, Return and Performance of Funds: Beginner 0 · Intermediate 1 · Advanced 0.
- Mutual Fund Scheme Performance: Beginner 0 · Intermediate 1 · Advanced 1.
- Mutual Fund Scheme Selection: Beginner 2 · Intermediate 1 · Advanced 1.
- Basics of Derivatives: Beginner 1 · Intermediate 2 · Advanced 0.
- Understanding Index: Beginner 0 · Intermediate 1 · Advanced 0.
- Introduction to Forwards and Futures: Beginner 1 · Intermediate 2 · Advanced 2.
- Introduction to Options: Beginner 2 · Intermediate 2 · Advanced 1.
- Strategies Using Equity Futures and Equity Options: Beginner 0 · Intermediate 2 · Advanced 1.
- Introduction to Interest Rate, Interest Rate Instruments and Fixed Income Markets: Beginner 1 · Intermediate 1 · Advanced 0.
- Interest Rate Derivatives: Beginner 1 · Intermediate 0 · Advanced 0.
- Exchange Traded Interest Rate Futures: Beginner 1 · Intermediate 1 · Advanced 1.
- Exchange Traded Interest Rate Options: Beginner 0 · Intermediate 2 · Advanced 0.
- Strategies Using Interest Rate Derivatives: Beginner 0 · Intermediate 1 · Advanced 1.
The written-out answers on this page are hidden while your timed set runs.
3 sample questions, with answers
These 3 questions are not in Mock 2, so reading them spoils nothing here. They come from Mock 1 of this exam. Each one shows the hint, the answer and why every wrong option is wrong.
Q1An investor redeems 2,000 units at an applicable NAV of ₹30. The stated scheme terms charge an exit load of 1% of the gross redemption amount for these units. Ignore taxes and other charges. What cash is paid? Assumptions: The 1% exit load is an explicitly supplied scheme term. No tax or other deduction applies.
Option A. ₹60,600
Why it is wrong: This adds the load rather than deducting it.
Option B. ₹59,980
Why it is wrong: This treats the 1% load as ₹0.01 per unit instead of 1% of value.
Option C. ₹60,000
Why it is wrong: This is the gross value before the exit load.
Option D. ₹59,400 — Correct answer
Answer: D. Gross proceeds are 2,000 × ₹30 = ₹60,000. The ₹600 exit load leaves ₹59,400. Remember: A transaction price or net payout can differ from the quoted NAV.
Hint, shown before you answer in practice mode: Calculate gross proceeds and deduct 1% of that amount.
V-D-032mediumnumerical
Q2A trader buys a call with strike ₹100 for ₹8 and sells a call with strike ₹110 for ₹3. Both have the same underlying, quantity and expiry. Ignoring costs, what is the maximum net profit per underlying unit? Assumptions: The legs have matching underlying, quantity and expiry. Fees are excluded.
Option A. ₹15
Why it is wrong: This adds the net premium outflow rather than subtracting it.
Option B. ₹8
Why it is wrong: This is the purchased call’s premium, not the strategy profit.
Option C. ₹10
Why it is wrong: This is the maximum gross expiry payoff before deducting the net premium.
Option D. ₹5 — Correct answer
Answer: D. The net premium paid is ₹8 − ₹3 = ₹5. The maximum expiry payoff is the ₹10 strike width, so maximum net profit is ₹10 − ₹5 = ₹5. Remember: A debit spread’s maximum profit is its capped payoff less its initial net cost.
Hint, shown before you answer in practice mode: Subtract the net debit from the strike width.
V-D-114mediumnumerical
Q3A trader writes a put covering 100 units, with strike ₹200, and receives ₹7 per unit. The underlying settles at ₹180 at expiry. Assume cash settlement and no charges. What is the writer’s net result? Assumptions: The position is cash-settled. The 100-unit quantity is hypothetical. Costs are excluded.
Option A. A loss of ₹2,000.
Why it is wrong: This reports the exercise liability before crediting premium.
Option B. A profit of ₹700.
Why it is wrong: This counts premium but ignores the put’s exercise liability.
Option C. A profit of ₹1,300.
Why it is wrong: This reverses the writer’s net result.
Option D. A loss of ₹1,300. — Correct answer
Answer: D. The writer receives ₹700 premium but owes (₹200 − ₹180) × 100 = ₹2,000. Net result = ₹700 − ₹2,000 = −₹1,300. Remember: Premium received does not cap the option writer’s potential loss.
Hint, shown before you answer in practice mode: For the writer, subtract the put payoff from premium received.
V-D-103mediumnumerical
Then take Mock 3
Read the chapters your result names first. A new paper then shows whether those gaps have closed.
Open Mock 3Paper Trading Try it on the practice trading desk