Professional Documents
Culture Documents
1.A Debt Fund that invests in all available types of debt securities issued by entities across all industries & se
:
1Focused debt fund
2 Diversified debt fund
3 Assured return fund
4 High yield debt fund
2.Some close - end funds sell at a discount to their NAV because
1The repurchase price fixed by the fund is lower than its NAV.
2 Of the inherent risk prevalent in close - end funds.
3 Investors expect their future potential to be unable to sustain their current NAV
4 Of high expense ratio.
3.The AMC is required to be approved & registered with SEBI with a net worth of:
Rs. 20 Crores
Rs. 100 Crores
Rs. 50 Crores
Rs. 10 Crores
4.The sponsor of a mutual fund may be compared to:
An equity shareholder in a company
The Chief Executive of a company
The promoter of a company
A director in a company
5. Money Market Funds are regulated by:
Trustee
AMC
SEBI
RBI
6.An investor in need of regular income should invest:
A Debt (Income) fund
PPF
Bank Fixed Deposit
Equity growth fund
7.Which is the High Risk Fund from the following?
Index Fund
Short-term Bond Fund
Intermediate Bond Fund
International Fund
8. The scheme wise Annual Report of a Mutual Fund shall be published or mailed to unit holders not later the
3 Months
6 Months
12 Months
None of the above
9. The trustees appoint AMC with the prior approval of:
SEBI
Stock Exchange
AMFI
None of the above
10. Which is the self-regulatory authority from the following:
AMFI
RBI
SEBI
Bombay Stock Exchange
Sponsor
AMC
Unit-Holders
Board of Trustee
17.What is the criticism of the Rupee Average costing?
It has no shortcomings
Investment is for the same amount every month
It does not guide you when to buy, sell or switch from one scheme to another
In the long run, the average per share price will be more than guessing the highs & lows
18.On which of the following incomes investor can't claim rebate U/s 88?
Winning from state lotteries
Long-term capital gains
Speculation business
Income from house property
19.What is the feature of the Passive Fund:
A passive fund matches the performance of the index
A passive fund tracks the index
A passive fund selects the stocks that are present in the index
All of the above
20.The AMFI objectives does not include the following:
To emphasize on ethical & moral trade practices
To create awareness about mutual funds
To regulate the stock markets along with SEBI in tandem
To improve the standards of mutual fund industry
21. NAV is
Asset value divided by all shares sold since the fund was initiated
Total number of shares divided by asset value
Total value of assets held by the fund divided by the number of outstanding units
Total value of assests held by the annual revenue
22. The Mutual Fund in India is constituted as:
Investment Company
Trust
Company
None of the above
23. A mutual fund is owned by
SEBI
Investors
Govt. of India
AMFI
38.Maximum permissible investment by a mutual fund in money market securities during the first 6 months f
allotment of units in an IPO is 100 per cent
60 per cent
50 per cent
Depends on whether it is an equity scheme or a debt scheme
39.Which of the following statements is true?
Aggressive
Very Aggressive
47.Distributors can be appointed by
AMC
Trustee
Sponsor
Custodian
48.Of the following types of equity funds, the highest potential risk is with
diversified funds
sector funds
growth funds
index funds
49.NAV of a scheme has gone up from Rs.10 to Rs.11.50 in 15 months. The CAGR is 12 per cent
(11.5 / 10)^(12/15) -1
(11.5 / 10)^(15/12) -1
(10 / 11.5)^(15/12) -1
(10 / 11.5)^(12/15) -1
50.The position on tax benefit under section 88 for investment in units of pension scheme floated by a mutua
benefit not available
available upto a cap of Rs.10,000, but within overall limit of Rs.60,000 for all section 88 investments
available without cap, but within overall limit of Rs.60,000 for all section 88 investments
available upto Rs.80,000
51.Mutual funds in India can invest in (a) Transferable securities in the capital and money markets
(b) Gold
(c) Real-estate
(d) Only (a) and (c)
(e) (a), (b) and (c)
52.The unit capital of a mutual fund scheme is Rs.20 million. The market value of investments is Rs.55 millio
number of units outstanding is 1 million, what is the NAV per unit?
Rs. 20
Rs. 75
Rs. 55
Cannot be determined
53.A scheme can be launched by
The trustees
The sponsor
The AMC
AMC on behalf of the trustees
54.The most significant risk in a well-diversified debt scheme is Re-investment risk
Credit risk
Interest rate risk
Liquidity risk
55.A Systematic Investment Plan is the best example of
Rupee Cost Averaging
Value averaging
Buy & Hold
none of the above
56.Indira Vikas Patra is liked because of Good returns
Tax-free returns
No record of identity of investors
All of the above
57.The Statutory auditor of the mutaul fund should not be associated with the auditor of
The trustee Company
The Asset management Company
The Sponsor
All of the Above
58.What does AMFI stands for?
Association of Mutual Funds in India
Association of Market Federation of India
Association of Money Funds in India
Association of Money Federation of India
59.The concept of Distribution companies has been accepted internationally to (a) avoid administartive costs
get more sophisticated distributors (c) to get institutional money (d) to get niche marketing
A only
b only
c only
d only
All of the above .
None of the above .
60.The appointment of AMC of the Mutual Fund can be terminated by
Managing Director
Chairman
60% of the Unitholders
Correct Answer
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Q29
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1
5
5
2
2
3
b. FALSE
41 . Are Overseas Corporate Bodies allowed to invest in Mutual Funds
a. No
b. Yes
c. If Ministry of Finance approves
d. If AMFI approves
42 . It is compulsory to use fund agents/intermediaries for investing MFs
a. TRUE
b. FALSE
43 . Most eligible investors of Mutual Funds can broadly be grouped into either individual
or institutional investors
a. TRUE
b. FALSE
44 . What document Mutual Fund distributors need to refer for finding out eligible
category of investors in a particular Mutual Funds Scheme
a. SEBI Regulations Manual
b. AMFI booklet
c. Offer document
d. RBI Guidelines
45 . Which Mutual Fund has majority of the agents selling its Mutual Fund units in India
a. LIC Mutual Fund
b. UTI Mutual Fund
c. SBI Mutual Fund
d. None of the above
46 . Is Mutual Fund agents/distributors in India required to pass any examination to
qualify to sell Mutual Fund Units
a. Yes, a test conducted by AMFI
b. Yes, a test conducted by SEBI
c. No
d. A postgraduate university course
47 . The offer document is not a legal document
a. TRUE
b. FALSE
48 . The legal responsibility for the accuracy of the statements made in the offer document
lies with
a. SEBI
b. The AMC
c. AMFI
d. The Company Law Board
49 . The following need not be covered in a Key Information Memorandum
a. Risk Factors
b. Opening, Closing and earliest Closing Date of the offer
c. Disclaimer Clause
d. Functions and responsibilities of the sponsor, trustees, AMC and custodian responsibilities
50 . A "glossary" of Defined Terms must be included in the offer document
a. TRUE
b. FALSE
51 . The risk of a scheme's NAV moving up or down on the basis of capital market
movements is a standard risk factor
a. TRUE
b. FALSE
52 . Risk arising from a scheme's investment objective/strategy and proposed asset
allocation is
a. Not present
b. Common to all schemes
c. Specific to that scheme
58 . Sales practices are never mandated by regulators, but arise from convention only
a. TRUE
b. FALSE
59 . In India the minimum or maximum commissions payable to distributors are not
prescribed by law, but are decided using the fund's own discretion
a. TRUE
b. FALSE
60 . Excess distribution expenses are to be borne by the
a. AMC
b. Unit holders
c. SEBI
d. AMFI
61 . Trail commission means paying
a. No commission at all
b. The entire commission up-front
c. Part of the commission up-front and the balance in phases
d. The entire commission after five years
62 . In India, Mutual fund agent's rate and services are at present defined by
a. SEBI rules
b. Stock exchange bye-laws
c. AMFI rules
d. Convention
63 . To sell funds effectively, an agent need not
a. Be fully aware of the important characteristics of the scheme
b. Know his/her client's risk profile
c. Give after sales service
d. Offer large investment rebates
Correct Answer
Q35
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Q63
d
b
d
a
a
a
b
b
a
c
b
a
b
b
d
a
a
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d
b
b
d
b
a
a
c
d
d
Q64a
Q65a