Q&A Chapter 4

Q.1 What is Key Information Memorandum

1.
2.
3.
4.
Q.2

is
is
is
is

an abridged version of the Offer Document and is provided with application form
a document that provides historical information about the fund
issued only by Private Sector mutual funds
a document that contains key disclosures which are not found in the Offer Document

One of the following is NOT required to be disclosed in the offer document. Which one?
1.
2.
3.
4.

Q.3

Details of Sponsor/Trustees
Investors rights and services
Performance of the other Mutual Funds
Description of the scheme and investment objective
The key information of memorandum of a mutual fund is available.

1.
2.
3.
4.
Q.4

Q.5

It
It
It
It

At the AMCs office

At the offices of authorized gents
At the branches of all banks
(1) And (2) only
The application form for investing in a mutual fund is normally found in....

1.
2.
3.
4.

The key information memorandum

With SEBI
Leading national newspapers
The funds financial statements
Offer Documents is updated every

1.
2.
3.
4.

Every 2 years.
Every year
Varies from scheme to scheme
Never updated

Q.6

A Charitable Trust wants to invest in Mutual Funds. What would you do?
1.
2.
3.
4.

Q.7

Accept the application from with the cheque

Refuse to accept the application
Refer to the Offer document of the scheme to confirm that a charitable trust is allowed to invest
Accept the application form, without the cheque, and forward it for final acceptance by the fund /
AMC
Regular tracking of mutual funds performance can be done by

1.
2.
3.
4.
Q.8

Newspapers, business periodicals, annual half-yearly and quarterly reports of the funds
Key information memorandum
The funds offer document
None of these.
The ideal source of information on investment plans and investor services offered by
the fund is...

1.
2.
3.
4.

Offer document
Advertisements about the scheme
Financial journals
The schemes annual report
The investor cannot plead ignorance of the procedures while investing in a mutual
fund because

1.
2.
3.

Mutual fund is a risky investment

The law does not permit the investor to sue the trust
While applying the investors signs an agreement stating they have read and understood the
terms and conditions
An investor is expected to be careful while investing
Mutual fund is based upon trust

Q.9

4.
5.
Q.10

As per SEBI guidelines, a due diligence certificate is not

1.

Signed by a Compliance Officer of the mutual fund

2.

A certificate that all legal formalities of a scheme are completed

3.

Attached to Annual report

4.

A part of offer document

Q.11

An offer document contains an AMCs investor grievances history for the past

1.

1 fiscal year

2.

2 fiscal year

3.

3 fiscal year

4.

Six months

Q.12

Along with the application, it is mandatory to distribute

1.

Offer document

2.

Key information memorandum

3.

Prospectus

4.
Q.13

None of the above

An offer document contains the summary of expenses history of all schemes for the
past

1.

1 fiscal year

2.

2 fiscal year

3.

3 fiscal year

4.
Q.14

Six months
Procedure for redemption or repurchase need not

1.

Be described in the offer document

2.

Include how redemption or repurchase price of units would be determined

3.

Include names of centers where redemption can be effected

4.

Indicate the redemption or repurchase price as at the end of the current fiscal year