📊 NISM Series V-D Chapter 11 of 22 ⚖ 5 of 150 marks weightage

Ch.11: Mutual Fund Scheme Performance

Practice questions for NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination, Chapter 11: Mutual Fund Scheme Performance — covering benchmarking (selection, importance, limitations), types of returns (rolling, annualized, total return vs. NAV return), risk-adjusted measures (Jensen's Alpha, Treynor Ratio, Information Ratio, R-squared), Tracking Error, Portfolio Turnover, and qualitative factors like AUM in fund evaluation. 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

Benchmarking mutual fund performance — purpose, selection criteria, and limitations of benchmark comparisons
Types of returns — rolling returns, annualized returns, and the distinction between total return and NAV return
Risk-adjusted performance measures — Jensen's Alpha, Treynor Ratio (vs. Sharpe Ratio), Information Ratio, and R-squared
Tracking Error and Portfolio Turnover Ratio as fund manager performance indicators, and the impact of costs on performance
Interpreting factsheets, performance disclosure/presentation standards, and qualitative factors (like AUM) relevant to fund selection

Key Terms:BenchmarkingRolling ReturnsJensen's AlphaTreynor RatioInformation RatioR-squaredTracking ErrorPortfolio Turnover RatioTotal ReturnAUM

Free Sample Question

Q1MCQMediumQualitative aspects of fund selection

Which of the following is considered a qualitative factor when evaluating a mutual fund scheme?

AThe fund's Sharpe Ratio over the last five years.

✓The experience, stability, and investment philosophy of the fund management team.

CThe fund's Standard Deviation over the last three years.

DThe fund's expense ratio compared to its peers.

💡 Qualitative factors relate to aspects that are not directly quantifiable by numerical metrics but are crucial for assessing a fund's potential. The experience, stability, and investment philosophy of the fund management team are key qualitative factors that can significantly influence a fund's long-term performance and consistency.

44 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 11: Mutual Fund Scheme Performance 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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