📊 NISM Series V-D Chapter 12 of 22 ⚖ 10 of 150 marks weightage

Ch.12: Mutual Fund Scheme Selection

Q: Which benchmark is most appropriate for a Gilt mutual fund scheme?

Indices based on Government Securities Gilt funds invest only in Government securities, therefore, indices based on Government Securities are appropriate. (Source: PDF content 'Gilt funds invest only in Government securities. Therefore, indices based on Government Securities are appropriate.')

Practice questions for NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination, Chapter 12: Mutual Fund Scheme Selection — covering SEBI's two-tiered benchmarking structure for equity, debt, hybrid and other scheme categories, the principles concerning benchmarks, the effective date and implementation of SEBI's uniformity-in-benchmarks circular, quantitative measures of fund manager performance, and choice of investment universe. Carries 10 out of 150 marks — tied for the heaviest-weighted Module 1 chapter. The exam has 150 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

SEBI's two-tiered benchmarking structure — Tier-1 (broad market/category index) and Tier-2 (style/strategy-specific index) — for equity and other scheme categories
Principles concerning benchmarks of mutual fund schemes, and standard benchmark disclosure requirements
Effective date and implementation timeline of SEBI's 'Guiding principles for bringing uniformity in benchmarks' circular
Benchmarks applicable to hybrid funds, Fund of Funds, and other specialized categories like Real Estate Funds
Quantitative measures of fund manager performance, relative return comparison against benchmarks, and choice of investment universe in scheme selection

Key Terms:Two-Tiered Benchmark StructureTier-1 BenchmarkTier-2 BenchmarkTotal Return Index (TRI)SEBI Uniformity in Benchmarks CircularFund of FundsHybrid Fund BenchmarksInvestment UniverseRelative ReturnFund Manager Performance

Free Sample Question

Q1MCQEasyChoice of Investment Universe

Which benchmark is most appropriate for a Gilt mutual fund scheme?

AIndices based on corporate bonds

✓Indices based on Government Securities

CEquity market indices

DMoney market indices

💡 Gilt funds invest only in Government securities, therefore, indices based on Government Securities are appropriate.

24 more questions in this chapter

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About this content: These practice questions are based on the NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination Workbook published by the National Institute of Securities Markets (NISM), Mumbai (March 2026 edition). NISM is a SEBI-established institution. Questions cover Chapter 12: Mutual Fund Scheme Selection with verified answers and explanations. BullWiser is an independent exam preparation platform — not affiliated with NISM, SEBI or AMFI. Last updated: July 24, 2026.

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← Ch.11: Mutual Fund Scheme Performance Ch.13: Basics of Derivatives →