Series V-DNew
Mutual Fund - Specialized Investment Fund Distributors
50 questionsPass mark 60%Negative marking 10% / wrong answer
NISM Series V-D practice questions
150 questions. Each answer is explained.
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Practise one unit at a time
- The Investment Landscape5 questions · 5 of 150 marks in the exam (3.3%)
- Concept & Role of a Mutual Fund4 questions · 4 of 150 marks in the exam (2.7%)
- Legal Structure of Mutual Funds in India3 questions · 3 of 150 marks in the exam (2%)
- Legal and Regulatory Framework7 questions · 7 of 150 marks in the exam (4.7%)
- Scheme Related Information7 questions · 7 of 150 marks in the exam (4.7%)
- Fund Distribution and Channel Management Practices4 questions · 4 of 150 marks in the exam (2.7%)
- Net Asset Value, Total Expense Ratio and Pricing of Units5 questions · 5 of 150 marks in the exam (3.3%)
- Taxation3 questions · 3 of 150 marks in the exam (2%)
- Investor Services10 questions · 10 of 150 marks in the exam (6.7%)
- Risk, Return and Performance of Funds5 questions · 5 of 150 marks in the exam (3.3%)
- Mutual Fund Scheme Performance5 questions · 5 of 150 marks in the exam (3.3%)
- Mutual Fund Scheme Selection10 questions · 10 of 150 marks in the exam (6.7%)
- Basics of Derivatives10 questions · 10 of 150 marks in the exam (6.7%)
- Understanding Index5 questions · 5 of 150 marks in the exam (3.3%)
- Introduction to Forwards and Futures15 questions · 15 of 150 marks in the exam (10%)
- Introduction to Options13 questions · 13 of 150 marks in the exam (8.7%)
- Strategies Using Equity Futures and Equity Options9 questions · 9 of 150 marks in the exam (6%)
- Introduction to Interest Rate, Interest Rate Instruments and Fixed Income Markets6 questions · 6 of 150 marks in the exam (4%)
- Interest Rate Derivatives2 questions · 2 of 150 marks in the exam (1.3%)
- Exchange Traded Interest Rate Futures10 questions · 10 of 150 marks in the exam (6.7%)
- Exchange Traded Interest Rate Options6 questions · 6 of 150 marks in the exam (4%)
- Strategies Using Interest Rate Derivatives6 questions · 6 of 150 marks in the exam (4%)
Exam format
| Questions | 150 · 1 mark each |
|---|---|
| Duration | 180 min · 3 hours |
| Pass mark | 60% · 90 of 150 marks |
| Negative marking | 10% · 0.1 marks off per wrong answer |
| Certificate validity | 3 years · from the date of the examination |
NISM Series V-D Mutual Fund - Specialized Investment Fund Distributors
Exam rules read on NISM's site on 30 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 30 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.
5 sample questions with answers
The other 145 are on the unit pages above, written out the same way.
Q1Dev rejects a suitable portfolio review because selling a poorly performing fund would make its loss feel “real”, even though the original investment reason no longer applies. Which behavioural bias most directly explains his response?
Option A. Herd behaviour
Why it is wrong: No decision to copy other investors is described.
Option B. Recency bias
Why it is wrong: The decisive clue is discomfort about recognising a loss, not overweighting only the most recent information.
Option C. Overconfidence
Why it is wrong: The case centres on the pain of a realised loss, not excessive confidence in forecasting skill.
Option D. Loss aversion — Correct answer
Answer: D. Dev is allowing the pain of realising a loss to dominate a fresh assessment of the investment. The decision should instead consider future suitability and alternatives. Remember: Past purchase price should not replace a current suitability assessment.
Hint, shown before you answer in practice mode: Focus on the unusually strong discomfort from recognising a loss.
V-D-003easyapplication
Q2A printed SID from an earlier date states an exit-load term. The AMC’s authenticated later addendum changes that term for investments made from a specified date. A purchase falls after that effective date. What should the distributor use? Assumptions: The later addendum is authenticated and legally applicable to the purchase described.
Option A. The SID read together with the applicable later addendum — Correct answer
Option B. Only the printed SID, because printed documents always override later updates
Why it is wrong: A valid, applicable update must be considered.
Option C. Whichever exit-load term produces the highest sales conversion
Why it is wrong: Commercial convenience does not determine the governing terms.
Option D. The load of another fund in the same category
Why it is wrong: Another scheme’s terms do not establish this scheme’s load.
Answer: A. An addendum updates the relevant part of the scheme information. Using the old statement alone would overlook the terms applicable to the stated purchase. Remember: Document version and effective date can change the answer.
Hint, shown before you answer in practice mode: Check authenticity, effective date and applicability to the transaction.
V-D-023mediumconceptual
Q3What is the central purpose of the know-your-client process when opening or maintaining a mutual-fund investment relationship?
Option A. Calculating the investor’s taxable capital gain on every redemption from the scheme
Why it is wrong: Tax calculation is distinct from establishing and verifying client identity.
Option B. Selecting the most suitable scheme for the investor’s goals and risk appetite
Why it is wrong: Suitability requires a separate assessment of goals, needs and risk. Identity verification alone does not select a scheme.
Option C. Establishing and verifying the investor’s identity and relevant required information — Correct answer
Option D. Determining the applicable NAV for each purchase and redemption in the folio
Why it is wrong: Transaction pricing depends on its applicable rules, not just the identity-verification process.
Answer: C. KYC supports identification and verification using the information and documents required for the investor category. It is distinct from selecting the appropriate investment or promising returns. Remember: Identity checks and investment suitability are complementary controls.
Hint, shown before you answer in practice mode: Identify the client before processing a relationship or transaction.
V-D-044easyconceptual
Q4An index starts a period with weights of 60% in share A and 40% in share B. A rises 10% and B falls 5%. There are no dividends, corporate actions or rebalancing. What is the index return for the period? Assumptions: Opening weights are given. No dividends, corporate actions or rebalancing occur.
Option A. 4% — Correct answer
Option B. 5%
Why it is wrong: This subtracts the two security returns without applying weights.
Option C. 8%
Why it is wrong: This adds the magnitude of B’s loss instead of subtracting its contribution.
Option D. 2.5%
Why it is wrong: This averages the two returns equally instead of using the stated weights.
Answer: A. The contribution from A is 0.60 × 10% = 6 percentage points. B contributes 0.40 × (−5%) = −2 percentage points, giving an index return of 4%. Remember: Use opening weights to compute a one-period weighted return.
Hint, shown before you answer in practice mode: Each constituent contributes its opening weight multiplied by its return.
V-D-081mediumnumerical
Q5Immediately after a coupon payment, a two-year bond has face value ₹1,000 and pays an 8% coupon once a year. It repays face value with the second coupon. If the required yield is 10% with annual compounding and default is ignored, what is its value today, rounded to two decimals? Assumptions: Annual coupon and compounding conventions are supplied. Valuation is immediately after a coupon.
Option A. ₹1,000.00
Why it is wrong: A par price would be consistent with an 8% yield under these cash flows, not 10%.
Option B. ₹965.29 — Correct answer
Option C. ₹892.56
Why it is wrong: This discounts only the final ₹1,080 and omits the first coupon.
Option D. ₹1,054.55
Why it is wrong: This discounts the total ₹1,160 cash receipts for only one year.
Answer: B. Value = ₹80/1.10 + ₹1,080/(1.10²) = ₹965.2893, rounded to ₹965.29. Because the coupon rate is below the required yield, the bond is valued below face value. Remember: Each bond cash flow must be discounted from its own payment date.
Hint, shown before you answer in practice mode: Discount the first ₹80 for one year and the final ₹1,080 for two years.
V-D-124hardnumerical
NISM Series V-D practice: common questions
Are these the real NISM Series V-D exam questions?
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.
How many practice questions are there for NISM Series V-D?
150 at the moment, across 22 practice topics, with one page per unit. It is a practice set, not a copy of the paper: the real NISM-Series-V-D: Mutual Fund - Specialized Investment Fund Distributors Certification Examination has 150 questions.
Where are all the questions and answers?
On the 22 practice topics listed above. There are 5 in full. Each unit's page has the rest, with all four options, the correct answer and why each other option is wrong.
Does negative marking apply to NISM Series V-D?
Yes. NISM takes off 10% of a question's marks for a wrong answer. On a 1-mark question that is 0.1 marks off. A blank question earns nothing and loses nothing, so a wrong guess costs marks on this paper. Timed practice here uses the same rule.
How do I book the NISM Series V-D exam?
You register and pay on NISM's own website, nism.ac.in. The steps and the fee change from time to time, so read them there on the day you book.
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.
See the exam these questions follow
The Mutual Fund - Specialized Investment Fund Distributors exam page shows the question count, the time, the pass mark and the marking rule.
Open the NISM Series V-D exam pagePaper Trading Try it on the practice trading desk