📊 NISM Series V-D Chapter 7 of 22 ⚖ 5 of 150 marks weightage

Ch.7: Net Asset Value, Total Expense Ratio and Pricing of Units

Practice questions for NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination, Chapter 7: Net Asset Value, Total Expense Ratio and Pricing of Units — covering NAV definition and calculation, applicable NAV and cut-off timings, Total Expense Ratio components and SEBI limits (including B-30 incentives), entry/exit loads, Securities Transaction Tax (STT), Swing Pricing, and Segregated Portfolios (side pocketing). Carries 5 out of 150 marks. The exam has 150 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

Definition, calculation and components of Net Asset Value (NAV), and factors affecting it (dividends, expenses)
Applicable NAV rules and cut-off timings across different scheme types (equity, debt, liquid funds)
Total Expense Ratio (TER) components, SEBI's AUM-slab based TER limits, and additional B-30 city incentive expenses
Entry/exit loads, transaction charges, Securities Transaction Tax (STT), and Stamp Duty on mutual fund units
Advanced pricing mechanisms — Swing Pricing for market dislocation events, and Segregated Portfolios (side pocketing) for credit events

Key Terms:Net Asset Value (NAV)Applicable NAVCut-off TimingTotal Expense Ratio (TER)Exit LoadSecurities Transaction Tax (STT)Swing PricingSegregated Portfolio (Side Pocketing)B-30 CitiesDirect Plan TER

Free Sample Question

Q1MCQEasyPricing: Exit Load

What is the primary purpose of an 'Exit Load' in a mutual fund scheme?

ATo increase the fund's assets under management (AUM).

✓To deter short-term redemptions and protect long-term investors.

CTo compensate the distributor for their services.

DTo cover the fund's annual operating expenses.

💡 Exit loads are charges levied when an investor redeems units within a specified short period (e.g., 1 year). Their primary purpose is to discourage frequent redemptions, reduce portfolio churning, and thereby protect the interests of long-term investors by maintaining fund stability.

49 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 7: Net Asset Value, Total Expense Ratio and Pricing of Units 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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