Investment Landscape
16 questions. Each answer is explained.
Question 1 of 10Practice · Series V-A — Mutual Fund Distributors
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More units in NISM Series V-A
Exam format
| Questions | 100 · 1 mark each |
|---|---|
| Duration | 120 min · 2 hours |
| Pass mark | 50% · 50 of 100 marks |
| Negative marking | None · a wrong answer costs nothing beyond the mark |
| Certificate validity | 3 years · from the date of the examination |
| Marks for this unit | Not published by NISM |
NISM Series V-A Mutual Fund Distributors
Exam rules read on NISM's site on 3 October 2026. Check the current rules on NISM's site (opens in a new tab)
What these answers assume, and when it was last checked
Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.
- NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
- The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
- The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
- Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
- Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
- F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
- The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
- Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
- On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
- Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
- This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
- The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
- Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
- The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
- The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
- Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
- Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
- Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
- A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
- SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
- At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
- A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
- The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
- Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
- The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
- Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
- Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
- Daily settlement is on T+1 and final settlement is on T+2.
- NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
- A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
- A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
- The currency segment has no Securities Transaction Tax.
The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 3 October 2026. Timed practice uses the same figures. Study with the official workbook as well.
The written-out answers on this page are hidden while your timed set runs.
All 16 questions on Investment Landscape, with answers
Q1Which statement best distinguishes saving from investing?
Option A. Saving sets aside income, while investing puts money into assets for income or growth. — Correct answer
Option B. Saving produces interest, while investing produces only capital gains.
Why it is wrong: Investments can generate interest or other income as well as capital gains.
Option C. Saving is used for short goals, while investing is used only after retirement.
Why it is wrong: Investing can serve goals at different life stages, not only retirement.
Option D. Saving requires a regular deposit, while investing requires a single payment.
Why it is wrong: Both saving and investing can involve regular or one-time amounts.
Answer: A. This answer distinguishes setting money aside from deploying it toward a return. A person can first save part of their income and then invest those savings. The distinction is not the payment frequency or a rule that only one kind of return is possible. An investment may provide income, growth or both. Remember: Identify the action: setting money aside is saving, and deploying money toward a return is investing.
Hint, shown before you answer in practice mode: Common mistake: Using the payment schedule or type of return as the definition.
VA-056easyconceptual
Q2Why may a diversified equity allocation be relevant to a financial goal that is 15 years away?
Option A. It matches a fixed redemption amount to the exact date on which the goal money is needed.
Why it is wrong: Matching a fixed maturity payment is not a defining feature of equity.
Option B. It offers participation in business growth that may increase purchasing power over time. — Correct answer
Option C. Its return comes mainly from lending money to borrowers at an agreed rate of interest.
Why it is wrong: Lending at a contracted rate describes debt rather than equity ownership.
Option D. It pays contractual interest at a rate that automatically rises with inflation each year.
Why it is wrong: Equity does not promise an inflation-linked interest payment.
Answer: B. Growth participation is the relevant reason, with uncertainty and suitability still considered. Businesses may grow their earnings and value over time. An equity investor participates in those uncertain outcomes. A longer horizon can support an allocation intended for growth, provided the investor can bear the risk. It does not make losses impossible or establish a suitable allocation by itself. Remember: A long horizon can support growth-oriented exposure, but it does not turn an expected return into a promise.
Hint, shown before you answer in practice mode: Common mistake: Treating a long holding period as protection against every loss.
VA-057mediumapplication
Q3An investor says that losing ₹5,000 would upset her much more than gaining ₹5,000 would please her. Which bias is most directly illustrated?
Option A. Recency bias
Why it is wrong: Recency bias gives too much weight to recent observations, which are not mentioned.
Option B. Loss aversion — Correct answer
Option C. Confirmation bias
Why it is wrong: Confirmation bias concerns favouring evidence that supports an existing belief.
Option D. Overconfidence
Why it is wrong: Overconfidence concerns excessive belief in knowledge, forecasts or investment ability.
Answer: B. The disproportionate weight on a loss compared with an equal gain is the stated feature. The amounts are equal, but the investor describes a stronger emotional response to the loss. The stem does not say that she relies on recent events, filters evidence to support a view, or overestimates her skill. Remember: Look for unequal reactions to equal gains and losses when identifying loss aversion.
Hint, shown before you answer in practice mode: Common mistake: Calling every reluctance to take investment risk loss aversion without evidence of gain-loss asymmetry.
VA-058mediumapplication
Q4An investor sets a long-term equity-debt mix based on her goal and risk profile. After a market rally, she rebalances toward that mix without changing her goals. This is primarily:
Option A. Maintenance of a strategic asset allocation. — Correct answer
Option B. Sector rotation based on expected industry performance.
Why it is wrong: Sector rotation concerns changing industry exposure, not restoring an equity-debt policy.
Option C. Tactical allocation based on a short-term market forecast.
Why it is wrong: A temporary deviation based on a short-term forecast would be tactical, which the stem does not describe.
Option D. Momentum allocation toward the strongest recent asset class.
Why it is wrong: Momentum would increase exposure to recent strength rather than necessarily restore the policy mix.
Answer: A. The transaction brings the portfolio back toward its long-term allocation. The allocation was selected using the goal and risk profile, rather than a short-term prediction. Rebalancing toward the existing policy maintains the strategy. It is not automatically a tactical bet merely because a transaction occurs. Remember: Classify an allocation decision by its purpose, not simply by whether the portfolio was traded.
Hint, shown before you answer in practice mode: Common mistake: Assuming that every rebalance is a change in investment strategy.
VA-059mediumapplication
Q5Which resource is most appropriate to plan for an unexpected essential expense that may have to be paid immediately?
Option A. A readily accessible emergency reserve. — Correct answer
Option B. An equity investment earmarked for retirement.
Why it is wrong: A forced sale could occur at an unfavourable price and disrupt the retirement goal.
Option C. A bonus expected at the end of the year.
Why it is wrong: A future bonus may not arrive before the expense is due.
Option D. A long-term investment with a withdrawal lock-in.
Why it is wrong: A withdrawal restriction conflicts with an immediate liquidity need.
Answer: A. The reserve is set aside for this purpose and is accessible when needed. The essential requirement is timely access to money when the expense arises. Money that is locked in, has an uncertain future arrival, or is exposed to a forced-sale risk does not meet that requirement as directly. Remember: Match emergency needs to accessibility and capital stability rather than to the highest expected return.
Hint, shown before you answer in practice mode: Common mistake: Counting all investments as equally available cash.
VA-060easyapplication
Q6Over one year an investment grows by 8% while the price of the investor’s unchanged consumption basket rises by 6%. Ignoring taxes and costs, what is the exact real return, rounded to two decimal places?
Option A. 1.89% — Correct answer
Option B. 2.00%
Why it is wrong: Subtracting 6% from 8% is a useful approximation, but it is not the exact purchasing-power return requested.
Option C. −1.85%
Why it is wrong: This reverses the growth factors, using 1.06 / 1.08 − 1 instead of investment growth divided by price growth.
Option D. 7.55%
Why it is wrong: This divides the nominal gain of 8% by 1.06 without adjusting the original purchasing-power base. The whole wealth growth factor must be deflated.
Answer: A. The purchasing-power growth factor is 1.08 / 1.06. Subtracting 1 and converting to a percentage gives approximately 1.89%. Take an initial investment of ₹100 and a consumption basket initially costing ₹100. After one year they become ₹108 and ₹106 respectively. The investment can now buy 108 / 106 = 1.0188679 of the original basket quantity. Exact real return = [(1 + nominal return) / (1 + inflation)] − 1 = 1.08 / 1.06 − 1 = 0.0188679. Multiply by 100 and round to two decimal places to obtain 1.89%. The 2% difference is only the simple approximation. Remember: For an exact real return, divide the investment growth factor by the price growth factor and subtract one.
Hint, shown before you answer in practice mode: Common mistake: Subtracting inflation when the question specifically asks for exact purchasing-power growth.
VA-065mediumnumerical
Q7A goal costs ₹5,00,000 today and is due in three years. Assume its cost rises 6% a year. An existing ₹4,00,000 corpus grows 8% a year, with no further contributions. With annual compounding and no tax or costs, what shortfall remains at the goal date, rounded to the nearest rupee?
Option A. ₹1,95,508
Why it is wrong: This grows the goal cost but leaves the existing corpus at ₹4,00,000, ignoring its three years of assumed growth.
Option B. ₹0
Why it is wrong: This compares the projected corpus only with today’s ₹5,00,000 cost. The required amount must also be advanced to the goal date.
Option C. ₹91,623 — Correct answer
Option D. ₹94,000
Why it is wrong: This uses simple growth: goal ₹5,90,000 and corpus ₹4,96,000. The question requires annual compounding for both.
Answer: C. The goal becomes ₹5,00,000 × 1.06³ = ₹5,95,508. The corpus becomes ₹4,00,000 × 1.08³ = ₹5,03,884.80. The shortfall is ₹91,623.20, rounded to ₹91,623. Project the goal cost: ₹5,00,000 × (1.06)³ = ₹5,95,508. Project the existing corpus: ₹4,00,000 × (1.08)³ = ₹5,03,884.80. Compare the values at the same three-year date: ₹5,95,508 − ₹5,03,884.80 = ₹91,623.20. Round only the final shortfall to the nearest rupee: ₹91,623. These projections use stated hypothetical growth assumptions. They do not promise that an actual investment will earn 8% or that actual inflation will remain 6%. Remember: Bring both the goal cost and the funding corpus to the same date before calculating a gap.
Hint, shown before you answer in practice mode: Common mistake: Inflating only the goal, growing only the corpus, or using simple growth when compounding is specified.
VA-066hardnumerical
Q8A portfolio has ₹7.2 lakh in equity and ₹4.8 lakh in debt. The approved target is now 50% in each. The investor adds ₹3 lakh and wants to reach that target without selling anything. With unchanged values and no costs, how should the new money be split between equity and debt?
Option A. ₹1.5 lakh to equity and ₹1.5 lakh to debt
Why it is wrong: Splitting only the new cash equally leaves the existing imbalance in place. The final holdings would be ₹8.7 lakh and ₹6.3 lakh.
Option B. ₹1.8 lakh to equity and ₹1.2 lakh to debt
Why it is wrong: This follows the old 60:40 allocation and preserves it, instead of reaching the stated new 50:50 target.
Option C. ₹0.3 lakh to equity and ₹2.7 lakh to debt — Correct answer
Option D. ₹0 lakh to equity and ₹3 lakh to debt
Why it is wrong: This moves toward the target but overshoots the debt allocation. The final holdings would be ₹7.2 lakh and ₹7.8 lakh, not equal.
Answer: C. Final total value is ₹15 lakh, so each asset class should hold ₹7.5 lakh. Equity needs ₹0.3 lakh and debt needs ₹2.7 lakh. Existing total = ₹7.2 lakh + ₹4.8 lakh = ₹12 lakh. After the contribution it becomes ₹15 lakh. At the given 50:50 target, each asset class should hold 50% × ₹15 lakh = ₹7.5 lakh. Equity needs ₹7.5 lakh − ₹7.2 lakh = ₹0.3 lakh. Debt needs ₹7.5 lakh − ₹4.8 lakh = ₹2.7 lakh. The additions sum to ₹3 lakh and are both non-negative, so the target can be reached without a sale. The 50:50 target is supplied by the question. This calculation does not recommend that allocation for every investor. Remember: Work backwards from the required final holdings when using a contribution to rebalance.
Hint, shown before you answer in practice mode: Common mistake: Applying the target ratio only to fresh money while ignoring the portfolio already held.
VA-074mediumnumerical
Q9An investor selects a fund solely because most colleagues have bought it. He has not examined its portfolio, risk or fit with his goal. Which behavioural bias is most directly illustrated?
Option A. Anchoring on an earlier purchase price.
Why it is wrong: No initial price or other numerical anchor is influencing the choice in the stated facts.
Option B. Herding by following the group’s investment choice. — Correct answer
Option C. Confirmation bias when filtering research reports.
Why it is wrong: The stem does not describe accepting favourable research while rejecting contrary evidence.
Option D. Recency bias when overemphasising the latest return.
Why it is wrong: The stem does not say that the latest return is driving the choice. It says the colleagues’ purchases are.
Answer: B. The investor is copying the group’s decision without evaluating the fund for his own needs. The deciding fact is that other people have bought the fund. The stem does not identify an earlier reference price, selective use of research or disproportionate reliance on recent performance. Following the group is therefore the most direct explanation among the four alternatives. The scenario does not prove that the chosen fund will perform badly. Remember: Identify the actual decision trigger before assigning a behavioural-bias label.
Hint, shown before you answer in practice mode: Common mistake: Calling every poorly researched investment decision recency bias.
VA-097easyapplication
Q10An investor favours a sector fund. While reviewing it, she reads only reports supporting her view and dismisses contrary evidence without checking it. Which bias is most directly illustrated?
Option A. Herding bias
Why it is wrong: Herding concerns following other people. No crowd or peer decision drives the behaviour in this case.
Option B. Confirmation bias — Correct answer
Option C. Loss aversion
Why it is wrong: Loss aversion concerns the unequal emotional impact of losses and comparable gains. That comparison is absent here.
Option D. Anchoring bias
Why it is wrong: Anchoring involves relying too heavily on an initial reference point, such as a price. The stem instead focuses on filtering evidence.
Answer: B. Selecting supporting reports while dismissing contrary evidence reinforces the investor’s existing view. The investor already favours the fund before reviewing the evidence. She accepts supporting information but does not fairly examine conflicting information. That selective review is the defining feature being tested. The question does not describe following a crowd, feeling losses more strongly than equal gains, or relying on one reference number. Remember: Identify the behaviour causing the decision, rather than choosing a bias merely because the investment looks risky.
Hint, shown before you answer in practice mode: Common mistake: Calling every poor investment decision herding without checking whether other people actually influenced it.
VA-101easyapplication
Q11An investor needs to raise only ₹50,000. One asset is a ₹30 lakh property that cannot be sold in parts. Another is a unit holding that permits redemption of just ₹50,000. Before comparing payment time or sale price, which characteristic gives the unit holding an advantage?
Option A. A higher expected return
Why it is wrong: The stem provides no expected-return comparison, and earning a higher return is not the same as selling a smaller portion.
Option B. A lower fluctuation in value
Why it is wrong: No volatility figures are given. A divisible holding can still fluctuate materially in value.
Option C. A lower cost of purchase
Why it is wrong: The original purchase costs are not stated and do not determine whether a partial disposal is possible.
Option D. Greater divisibility — Correct answer
Answer: D. The unit holding can be reduced by the required amount without disposing of the entire investment. The investor needs a small amount relative to the value of the property. The property cannot be divided for sale under the stated facts. The unit holding permits a partial redemption matching the amount needed. This identifies divisibility. It does not establish the speed, price or risk of either transaction. Remember: Distinguish the ability to sell part of an asset from the time and price at which a sale can be completed.
Hint, shown before you answer in practice mode: Common mistake: Assuming that a divisible investment must also be instantly liquid or stable in value.
VA-102easyapplication
Q12A goal requires ₹6,05,000 exactly two years from today. For this calculation, assume an investment earns 10% a year compounded annually, with no charges or taxes. What single amount invested today would meet the goal?
Option A. ₹5,00,000 — Correct answer
Option B. ₹5,04,166.67
Why it is wrong: This divides ₹6,05,000 by 1.20. It treats two years of 10% growth as simple growth rather than compound growth.
Option C. ₹5,50,000
Why it is wrong: This discounts for only one year by dividing by 1.10. The money must be invested for two years.
Option D. ₹6,65,500
Why it is wrong: This multiplies the future amount by 1.10. Discounting a positive-return future amount should reduce it, not increase it.
Answer: A. Discounting the specified future amount for both annual compounding periods gives ₹5,00,000. Use present value = future value ÷ (1 + annual return)^number of years. The two-year growth factor is 1.10² = 1.21. Required investment = ₹6,05,000 ÷ 1.21 = ₹5,00,000. As a check, ₹5,00,000 grows to ₹5,50,000 after year one and ₹6,05,000 after year two. The future goal amount already includes everything required for the goal. Remember: When the future goal amount is already given, discount it to today rather than inflating it again.
Hint, shown before you answer in practice mode: Common mistake: Using a simple-interest factor or counting one compounding period when the stem specifies two.
VA-103mediumnumerical
Q13An investor receives ₹80,000 a month after tax. Monthly living costs are ₹42,000 and loan instalments are ₹18,000. She also reserves ₹24,000 a year for insurance and ₹5,000 a month for an emergency fund. With no other commitments, what monthly amount remains for a new SIP?
Option A. ₹15,000
Why it is wrong: ₹15,000 results from forgetting the ₹2,000 monthly insurance provision.
Option B. ₹20,000
Why it is wrong: ₹20,000 subtracts living costs and loan instalments only. It leaves out both reserves.
Option C. ₹13,000 — Correct answer
Option D. ₹11,000
Why it is wrong: ₹11,000 deducts the ₹2,000 insurance provision twice.
Answer: C. ₹13,000 is the balance after all four commitments are included. Convert the annual insurance amount into a monthly provision: ₹24,000 ÷ 12 = ₹2,000. Total monthly commitments are ₹42,000 + ₹18,000 + ₹2,000 + ₹5,000 = ₹67,000. The remaining monthly surplus is ₹80,000 − ₹67,000 = ₹13,000. This is a budget result, not a recommended scheme or promised return. Remember: Convert irregular bills to the same time period as income before fixing a systematic contribution.
Hint, shown before you answer in practice mode: Common mistake: Calling the balance after routine bills investible without allowing for known annual expenses.
VA-126mediumnumerical
Q14An investor estimates a security’s fair value by starting with its old issue price. Even after its business prospects change substantially, he makes only a small adjustment to that price. Which bias is most directly illustrated?
Option A. Anchoring — Correct answer
Option B. Herding
Why it is wrong: Herding would involve copying the choices of other investors. No crowd behaviour is described.
Option C. Confirmation bias
Why it is wrong: Confirmation bias would involve favouring evidence that supports an existing belief. Selective evidence gathering is not the stated feature.
Option D. Recency bias
Why it is wrong: Recency bias gives excessive weight to recent events. Here the investor clings to an old reference.
Answer: A. The estimate remains tied to the initial issue-price reference despite materially changed circumstances. The old issue price is the reference around which the investor continues to make his estimate. The key clue is insufficient adjustment after new information. The scenario does not describe following a crowd or selectively searching for supporting reports. Remember: Identify the influential reference point when distinguishing anchoring from other behavioural biases.
Hint, shown before you answer in practice mode: Common mistake: Treating every persistent investment opinion as confirmation bias.
VA-127easyapplication
Q15Which holding does NOT itself generate contractual interest or rent merely from being held, assuming no separate lending, leasing or income arrangement?
Option A. A fixed deposit paying interest
Why it is wrong: The deposit has an interest-paying contract, so it does generate the type of income named.
Option B. A bond paying a fixed coupon
Why it is wrong: The stated bond pays a coupon. That contractual income differs from any change in its market price.
Option C. A property under a rent-paying lease
Why it is wrong: The stated lease creates rent payments. The question is not about vacant, unlet property.
Option D. Physical gold bars kept in a locker — Correct answer
Answer: D. Simply storing the gold creates no interest or rent payment. This is separate from possible capital appreciation. Interest on a deposit or coupon-paying bond arises from a payment obligation. Rent arises from the stated lease. Gold bars in storage have no such payment arrangement in this scenario. Their market value may rise or fall, and storage can itself involve a cost. Remember: Distinguish income generated by an asset from a gain in its resale value.
Hint, shown before you answer in practice mode: Common mistake: Assuming that every asset expected to appreciate also produces periodic income.
VA-128easyconceptual
Q16An investor contributes ₹50,000 at the END of each of the next three years. Assume a constant 10% annual return, annual compounding and no taxes or charges. What amount is available immediately after the third contribution?
Option A. ₹1,81,500
Why it is wrong: ₹1,81,500 incorrectly compounds all three contributions for two years.
Option B. ₹1,65,500 — Correct answer
Option C. ₹1,50,000
Why it is wrong: ₹1,50,000 totals the deposits but ignores all investment growth.
Option D. ₹1,99,650
Why it is wrong: ₹1,99,650 incorrectly assumes the full ₹1,50,000 was invested at the beginning for three years.
Answer: B. ₹1,65,500 gives each contribution only the earning periods actually available. The first end-of-year contribution earns for two years: ₹50,000 × 1.10² = ₹60,500. The second earns for one year: ₹50,000 × 1.10 = ₹55,000. The third is just deposited, so its value is ₹50,000. Total = ₹60,500 + ₹55,000 + ₹50,000 = ₹1,65,500. Equivalently, the ordinary-annuity future-value factor is [(1.10³ − 1) ÷ 0.10] = 3.31. Multiplying by ₹50,000 gives the same result. Remember: Draw a contribution timeline before applying an annuity or compounding formula.
Hint, shown before you answer in practice mode: Common mistake: Giving every instalment the same investment period or treating end-period payments as beginning-period payments.
VA-129hardnumerical
Investment Landscape: common questions
How many practice questions are there on Investment Landscape?
16 questions, all written out on this page with the correct answer and why each other option is wrong. This unit is one of the 8 practice topics for NISM Series V-A, which has 150 questions in total.
Are these real NISM Series V-A questions on Investment Landscape?
No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.
Does negative marking apply to NISM Series V-A?
No. NISM applies no negative marking to Series V-A. A wrong answer costs nothing beyond the mark you did not earn, so a blank is never better than an attempt. Timed practice here uses the same rule.
Are these practice questions kept up to date?
Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.
Structure of Mutual Funds
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