» at) Tracking error is a measure of porfomance in an Index fund. fn) TRUE rie ic on mnttnenne b) FALSE ‘An index tr witrorsthe index. Therefore, the index fun and itis to ear the same return as the mart. The ifornce between an index fund’ return ae the market return dex flu) isthe tecking err {G2} Postdemise transmission of units is facilitated through 8) Nomination cme ete Ratna by Pledge ©) ABSA @) Demat " Q3)NFOs other than ELSS can be open fora maximum of a) Todays b} 10days ©) 13 days (mens memignarsen, 9) sO0ays Gi) fan investor wants to changp his distributor then he has to get NOC from his previous distributor. a) TRUE bb) FALSE cmisiame menezeswer 125) A greater allocation to equity can be recommended toan investor in a) Trarsiton phase b) Reaping phase ¢) Accumulation phase ("weet Rip aneser )_Distoution phase oa (05) the Investor with along torm perspective fools that Prices of Gold wil ncreass in future, thon its advisable to invest in 8) GOLD ETE cmiste meni snevan b) Gold Sector Furs (9) snared Gold mining companies ) Gold Futuresty QT) Inthe context of NPS Tier laccount is a prerequi a) FALSE b) TRUE (rhists tre right Answerd onto 19 Tier Il account "aay Estloads have tobe credited back tothe schome immediately and are not avalable forthe AMC fo bear soling xponses. 8) TRUE rrsteneRgnnaneneg by FALSE: a9)ifan 2) 16 cays bb) 10 days cries tne Rantansner ) Tavs 8) 30 cays westor redeems units from a fund, he likly to receive an updated statement of account within: G10) Which ofthe following contain datalad information onthe portfolio characteristics ard operational festures ofa scheme? 9) Koy information Memoransi b). Siatementot ationa informatio, } Scheme infocmstion document cmsethe Rie Anse ) Addendum it) Profiling is done to ensure that investment options are chosen according tothe ability ofthe investor to: (2) Beer risks cmisie te mntanaven >) Expect returns ) save ) Accumulate 12) Not more than 20% of Net Assets will be Invested in Derivatives. The statement best describes a) Investne Policy mus sme RigntAnsie7 b) Investment Strategy ©) Investment Objective 4) Investor interest 213) AMC directors are appointed with the permission of Trustees a) Thue Imhis 6 the Right Answert b) Falseata) a) a standard risk factor b) common toalll schemes isk arising from a schemes investment objective and proposed asset alloc c) scheme specific risk factor [rhs isthe R ght Answer] d) _allof the above asus » Q18)In case of Closed end schemes (i) Market price will converge to NAV upon maturity (ii) not compulsory to list in a stock exchange (ii) Trades at discount to NAV 2) (i)and (i) are correct b) (i) and (iii) are correct [tris is the Right Anewer] ©) (il) and (ii) are correct 4d) (i) (i) and (i) are correct Q16) KIM has to be updated every 6 months a) True b) False this is the Right Answer] ot 68 17) Before maturity, closed-end units tend to quete in the stock exchange below their NAV 8) TRUE (ris ene Rin Arewers b) FALSE Closed End Schemes generally rade ata Discount o NAV. * ata) Identity the correct stetoment (i) Those with stesdy jobs ae better postion to tke risk (i) Daring and adventurous paople are batter positioned mentally, o accept he downsides tht come with risk (i) Higher the capital base, batter the abilty to financial take the downsides thet come with risk {iv) People earning regular income can take mere risk than those with unpredictable income streamsa} ti and (ii) are correct } (i) and (iii) are correct os ;) (ii) and (iv) are correct d) ii) and (ili) are correct e) (i) Gi) (i 1) In the mutual funds space, Tracking Error is a metric most often used in the context of and (iv) are correct [This is the Right Answer] 2) Intemational funds bb) Index functs rhs iste Right Answer] ) Fund-oFfunds, ) Feeder funds {@2)) Which of the following lets an investor book profits inrising market and increase holdings in a falling market a) Fined Asset Allocation mis ira mint Arse, b) Flextle Ratio cf Asset Allecation ©) Buyand hold Srategy Q21) The structure which is required to be followed by mutual funds in India is laid down by a) Financial Ministry % b) Securities & Exchange Board of Incia (SEB!) {This isthe Right Answer] ©) Fund Sponsor 4d) Association of Mutual Funds of India (AMF) Q22) Who aims to deliver a better performance than the benchmark? a) passive fund manager b) an active fund manager [This is the Right Answer! ©) _allfund managers d) AMI oid 4467 23) Mutual funds are permitted to use derivatives for hb a) hedging against risk b) _re-balancing the portfolio ©) Leveraging d) Only f and 2 [rhie's the Right Answer)Q24) The difference betwoen a scheme's actual return and its optimal is called as a) Beta b) Holding period retum. cc) Alpha [this is the Right Answar} d) ~Compounded annualised retum ot e99 (+ @25) Physical Health Influences Ideal Asset Allocation of an Investor? a) True [This is the Right Answer] b}) False bi 4206