Practice

Quesitons

NISM VA
Examination
 Practice Questions for AMFI Test
1. A close-ended Mutual Fund has A fixed :
a. NAV c. Rate of return
b. Fund Size d. Number of distributors

2.The maximum load that a fund can charge is determined by the :

a. AMC c. AMFI
b. SEBI d. Distribution agents based on demand
for the fund

3. A gilt fund is a special type of fund that invests :

a. In very high quality equity only c. In short-term securities
b. In instruments issued by companies d. In government securities only
with a sound track record

4. Of the following fund types, the highest risk is associated with

a. Balanced fund c. Equity growth funds
b. Gilt funds d. Debt funds

5. The NAV of a mutual fund:

a. Is always constant c. Fluctuates with market price movements
b. Keeps going up at a steady rate d. Cannot go down at all

6. An Open-ended Mutual fund is one that has:

a. An option to invest in any kind of security c. An upper limit on its nav
b. Units available for sale and repurchase d. A fixed fund size
at all times

7. An investor in a close-ended mutual fund can get his/her money back by

selling his/her units:
a. Back to the fund c. On a stock exchange where the fund is listed
b.To a special trust at nav d. To the agent through which he/she subscribed
to the units of the fund
 8. The "load" charged to an Investor in a Mutual fund is
a. Entry fee c. The fee the agent charges to the investor
b. Cost of the paper on which the d. The expenses incurred by fund managers
unit certificates are printed for marketing a mutual fund scheme

9. A Mutual fund is Owned by

a. The govt. Of india c. All its investors
b. SEBI d. AMFI

10. Units from an open-ended mutual fund are bought

a. On a stock exchange c. From amfi
b. From the fund itself d. From a stock broker

11. A Mutual fund is not

a. Owned jointly by all investors c. A pool of funds used to purchase
Securities on behalf of investors

b. A company that manages investment d. A collective investment vehicle

Portfolios of high networth individuals

12. "Load" cannot be recovered

a. At the time of the investor's c. At the time the investor exits the fund
Entry into the fund
b. As a fixed amount each year d. From the fund's distribution agent

13. The Most important Advantage of a Money market Mutual fund is

a. Quick capital appreciation c. Safety of principal
b. High regular income d. No loads

14. Some Close-ended funds are quoted at a Discount to their NAV because
a. Of high expense ratios c. The repurchase price fixed by the
fund in lower than the nav
b. Investors do not expect the current d. Of the inherent risk involved in
Nav to be sustained in future investing in such type of funds
15. The NAV of each scheme should be updated on AMFI's website
a. Every quarter c. Every hour
b. Every month d. Every day

16. Debt funds target

a. Low risk and stable income c. High growth with risk
b. Protection of principal d. Long term capital appreciation

17. In which of the following do Debt funds not invest

a. Government debt instruments c. Financial institutions' bonds
b. Corporate paper d. Equity of private companies

18. Which of the following risks do not affect a Debt fund

a. Default by issuer on payment of c. Share price movements
Interest or principal
b. Price fluctuations of the debt securities d. Interest volatility

19. Assured Return Or Guaranteed Monthly Income Plans Are Essentially

a. Hybrid funds c. Debt/income funds
b. Growth funds d. Sector funds

20. A Fixed Term Plan Series is

a. An open-ended fund c. A fixed term bank deposit
b. A close-ended fund d. A fixed term corporate bond

21. The greatest Potential for Growth in Capital is offered by

a. Debt funds c. Growth funds
b. Gilt funds d. Balanced funds

22. A Systematic Withdrawal Plan, allows investors to get back the principal
amounts invested in addition to the income on investment
a. True b. False
23. Which of the following is untrue of an Automatic Reinvestment Plan?
a. The plan allows for automatic reinvestment c. The major benefit of automatic reinvestment is
of all income and capital gains compounding
b. Automatic reinvestment allows for d. The benefit of automatic reinvestment is
accumulation of additional units of the fund often lost on account of the heavy load
charge on the reinvestment

24. The Performance of a fund is largely measured by the Success of

a. The marketing function c. The portfolio market function
b. The operations function d. None of the above

25. Which of the following is not an Equity Instrument

a. Preference shares c. Ordinary debentures
b. Equity warrants d. Convertible debentures

26. The Drawback of an Ordinary share is

a. Possibility of capital appreciation c. Guaranteed dividend income
b. Ownership privilege of the company d. No guaranteed income or security

27. An owner of preference shares is given which of the following rights

a. Voting rights c. Voting rights and unlimited dividend
Income
b. Fixed dividend income from d. No guaranteed rights
post-tax profits

28. Market capitalization of a company is calculated by multiplying the number

of outstanding shares by
a. R.10 c. Current market value of each share
b. Face value of each share d. Dividend yield

29. The Price/Earnings (P/E) Ratio is an important measure of a company's

anticipated performance. It is calculated using:
a. Market price and dividend c. Market capitalization and dividend
b. Market price and earning per share d. Market price and face value
30. A company whose earnings are strongly related to the state of economy is
known as
a. Economy stocks c. Value stocks
b. Cyclical stocks d. Growth stocks

31. A Growth stock refers to shares of a company whose earnings are projected to
grow at the normal market rates
a. True b. False

32. Which of the following is generally true for a growth stock?

a. Steady capita appreciation and steady c. High capital appreciation but low
dividends yields dividend yields
b. High capital appreciation and high d. Steady capital appreciation but high
dividend yields dividend yields

33. Shares of companies with large capital market capitalization

a. Have greater growth potential c. Are not available
b. Are more liquid d. None of the above

34. Dividend yield for a Stock is

a. Dividend per share c. Dividend per share to current market price
b. Dividend per face value d. None of the above

35. Value Stocks

a. Have high current dividend yield c. Are currently under valued
b. Yield high growth in earnings d. None of the above

36. A better performance than the return on index is given by

a. Passive fund manager c. All fund managers
b. An active fund manager d. Non fund manager

37. A change in key personnel especially the fund manager of an AMC does not
necessitate a revision of the offer document
a. True b. False
38. If fresh litigation cases or adjudication proceedings are referred by SEBI
against the fund sponsors or a company associated with the sponsors, then the
offer document needs to be revised
a. True b. False

39. The offer document need not be revised if the management or the controlling
interest in the AMC change
a. True b. False

40. An AMC cannot explain adverse variations between expense estimates for
the scheme on offer and actual expenses for past schemes in
a. Financial newspapers c. The offer document
b. Business channels on tv d. AMFI newsletter

41. Information on estimated expenses to be incurred by a scheme is not found in

the offer document, but in brochures of the fund
a. True b. False

42. When comparing a fund's performance with that of its peer group, the
following cannot be compared
a. Two debt funds with 5-year maturities c. A bond fund with a bond
b. A broad-based equity fund with an d. A government securities fund with
it sector fund a government security

43. An AMC must explain adverse variation between expense estimates for the
scheme on offer and actual
a. Expenses for past schemes in d. Offer document
b. Financial newspapers e. AMFI newsletter
c. Business channels on tv

44. Information on estimated expenses to be incurred by a scheme is not found

in the offer document, but in brochures of the fund
a. True b. False
45. The offer document and key information memorandum contain financial
information for
a. All schemes of all mutual funds c. None of the schemes
in the capital market
b. All schemes launched by the particular fund d. Companies in which investment
during the last 3 fiscal years is proposed

46. The functions and responsibilities of the sponsor, AMC, trustees and custodian
of the mutual fund are listed in
a. Offer document only c. Both offer document and key information
memorandum
b. Key information memorandum d. None of the above

47. Information about trusteeship fees is included in the offer document but not
in the key information memorandum
a. True b. False

48. The following information about the constitution of the mutual fund is found
in both the offer document and key information memorandum
a. Activities of the sponsor c. Name and addresses of the board of
trustees
b. Summary of trust deed provisions d. None of the above

49. The investment objectives of the fund an investor selects for investment
a. Are of no relevance c. Change with market movements
b. Should be the same as his own d. Change with change in the AMC's key
investment objectives personnel

50. The investment policies listed out in the offer document of a fund do not
include
a. The type of securities in which the c. Policy of diversification
scheme will invest principally
b. Asset allocation pattern d. The specific securities in which the
fund will invest
51. If a scheme's name implies that it will invest primarily in a particular type of
security or in certain industry/sector, then it should invest at least the following
percentage of its total assets in the indicated type of security/industry/sector
a. 100% c. 65%
b. 80% d. 40%

52. For assured return schemes, information about the guarantor's net worth
which justifies the guarantor's ability to meet any shortfalls in the returns
assured under the scheme can be found in
a. The offer document c. Both (a) and (b)
b. The key information memorandum d. None of the above

53. The names and background of key personnel of the AMC

a. Need not be disclosed to investors c. Are disclosed in the offer document
b. Are of no relevance as they may change d. Are declared in newspaper advertisements

54. The minimum amount to be raised, and the maximum target amount
a. Are not known before the offer is concluded c. Are defined as per SEBI Regulations before
the offer is made
b. Can be decided based on investor response d. Are declared in newspaper advertisements
to the offer

55. The circumstances for refund of investment in the initial offer and period
within which refund must be carried out are not specified in the offer
document, but only on the application
a. True b. False

56. Offer related information required to be listed in the offer document and key
information memorandum includes
a. Dates of opening, closing, earliest closing, c. Both the above
allotment and despatch of certificates
b. Procedure for transfer and transmission d. Neither of the above
of units
57. In the offer document, funds are required to make disclosures summarizing
associate transactions and their impact on the performance of the scheme for
the last
a. One fiscal year c. 3 fiscal years
b. 2 fiscal years d. 5 fiscal years

58. The circumstances under which a scheme shall be wound up are to be described in
the offer document at the time of the initial launch of the scheme itself
a. True b. False

59. The following do not form a part of the investment procedure described in an
offer document
a. Various plans under the scheme c. Details of who can invest
(e.g. dividend reinvestment plant)
b. Minimum initial (and subsequent) investment d. Details of other competing mutual funds

60. A scheme's policy on dividends and distribution

a. Is decided by the fund manager as per is c. Need not be consistent
market outlook
b. Can be changed to suit the requirements d. Should be disclosed at the time of
of the AMC initial launch

61. SEBI restricts mutual fund investments in companies forming part of the same
group as the AMC. This is:
a. Not true c. Applied only to some mutual funds, not all
b. In the interest of investor protection d. Not favourable to investors at all

62. Mutual funds are allowed to borrow

a. Freely to meet their requirements c. Only to meet redemption demands
b. For investment purposes d. Not allowed at all

63. As a part of borrowing policy, the following need not be disclosed in an offer
document
a. Purpose and circumstances of borrowing c. Potential risk to AMC and unit-holders
b. Regulatory limits on borrowing d. Names of lenders
64. Mutual funds are allowed to borrow
a. Freely to meet their requirements c. Only to meet redemption demands
b. For investment purposes d. Not allowed at all

65. As a part of borrowing policy, the following need not be disclosed in an offer
document
a. Purpose and circumstances of borrowing c. Potential risk to AMC and unit-holders
b. Regulatory limits on borrowing d. Names of lenders

66. Valuation norms for non-traded securities should be disclosed

a. At the end of every financial year c. In the offer document at the time of launch
of the scheme
b. Every quarter d. Should not be disclosed, being confidential
information

67. Procedure for redemption or repurchase need not

a. Be described in the offer document c. Include names of center where redemption
can be effected
b. Include how redemption or repurchase d. Indicate the redemption or repurchase price
price of units would be determined as at the end of the current fiscal year

68. The fund need not describe its accounting policies in the offer document as
these are of no use to an investor
a. True b. False

69. The accounting policies of a fund should be in accordance with

a. GAAP c. ICAI Guidelines
b. SEBI regulations d. American GAAP

70. Tax treatment of investments does not

a. Form a section in the offer document c. Form a section in the key information
memorandum
b. Describe the tax elements applicable to d. Offer tax advice to investors
investors who invest in the fund
71. Documents available to investors for inspection do not include
a. Memorandum and Articles of Association c. Investment management reports
of AMC
b. Consent of auditors and legal advisors d. Reports based on which actual
investments are made

72. Investors' rights under a scheme are

a. Uniform for all schemes of all funds c. Listed in the offer document
b. Not defined d. Available with stock exchanges

73. The offer document for a scheme should describe how the NAV of the scheme
is to be computed
a. True b. False

74. An offer document contains an AMC's investor grievance's history for the past
a. One fiscal year c. 3 fiscal years
b. 2 fiscal years d. Six months

75. Any pending cases or penalties levied on the sponsors or AMC should be
disclosed in the offer document
a. True b. False

76. Who among the following are not eligible to invest in MF?
a. Indian companies c. Non-banking finance companies
b. Banks d. Foreign citizens

77. NRIs are eligible to invest in Mutual Funds

a. True b. False

78. The most important link between Mutual Fund and Investors is
a. Government c. Fund distributors
b. SEBI d. AMFI
79. Are Overseas Corporate Bodies allowed to invest in Mutual Funds
a. No c. If Ministry of Finance approves
b. Yes d. If AMFI approves

80. Who among the following are not Institutional Investors

a. Banks c. Provident Funds
b. Resident Individuals d. Non Banking Finance Companies

81. It is compulsory to use fund agents/intermediaries for investing MFs

a. True b. False

82. Generally, which category of investors need advice for Investing in Mutual
Funds
a. Non Banking Finance Companies c. Foreign Institutional Investors
b. Insurance Companies d. Individuals

83. Most eligible investors of Mutual Funds can broadly be grouped into either
individual or institutional investors
a. True b. False

84. What document Mutual Fund distributors need to refer for finding out eligible
category of investors in a particular Mutual Fund Scheme
a. SEBI Regulations Manual c. Offer document
b. AMFI booklet d. RBI Guidelines

85. Mutual Fund agents/distributors are not allowed to sell Financial Products
other than Mutual Funds
a. True b. False

86. Are 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 c. No
b. Yes, a test conducted by SEBI d. A Post Graduate university course
87. The offer document is not a legal document
a. True b. False

88. A copy of all changes in the offer document has to be filed with SEBI
a. True b. False

89. The legal responsibility for the accuracy of the statements made in the offer
document lies with
a. SEBI c. AMFI
b. The AMC d. The company law board

90. Though the offer document of a scheme is prepared as per SEBI Regulations
and is filed with SEBI, SEBI does not certify the accuracy or adequacy of the
document
a. True d. False

91. The following need not be covered in a Key Information Memorandum

a. Risk Factors c. Disclaimer clause
b. Opening, Closing and earliest closing d. Functions and responsibilities of the sponsor,
date of the offer trustees, AMC and Custodian responsibilities

92. The front page of an offer document need not cover

a. Opening, closing and earliest closing date c. legal and regulatory compliance
of the offer
b. Disclaimer clause d. Price of units

93. A "glossary" of Defined Terms must be included in the offer document

a. True b. False

94. Standard risk factors are not

a. Market driven c. Of relevance to novice investors
b. Common to all schemes d. New to a regular investor
95. 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

96. Past performance of a sponsor/AMC mutual fund is not indicative of the

future performance of the scheme. This is
a. Not true c. A scheme-specific risk factor
b. A standard risk factor for all schemes d. Applicable only to gilt funds

97. Risk arising from a scheme's investment objective/strategy and proposed asset
allocation is
a. Not present c. Specific to that scheme
b. Common to all schemes d. Not applicable to debt funds

98. In an assured returns scheme, if assurance is only for a limited period, it must
be stated in the offer document that there is no guarantee for sustaining the
assured return for the remaining duration of the scheme
a.True b. False

99. If the AMC is managing a fund for the first time, this information can be
found in
a. Newspapers c. AMFI Newsletter
b. SEBI d. Offer document

100. A compliance officers

a. Stands guarantee to the information c. Cannot certify that the AMC's legal and
contained in the offer document procedural obligations are fulfilled
b. Belongs to SEBI d. Cannot be appointed by the AMC

101. The due diligence certificate that must be submitted to SEBI along with the
draft offer document cannot be signed by
a. The managing director of the AMC c. The compliance officer
b. An executive director of the AMC d. Investor relations officer
102. A due diligence certificate does not certify that
a. The draft offer document forwarded to
SEBI is in accordance with SEBI regulations
b. All legal requirements connected with
launching of the scheme have been complied with
c. Disclosures made in the offer document are
true, fair and adequate
d. The amc guarantees a good performance

103. Mutual Funds often use their own employees to mobilize funds from
a. Retail investors c. All investors
b. High Net worth individuals/institutional d. Foreign investors
investors

104. Retail distribution channels are a critical element in the distribution of

mutual funds in India
a. True b. False

105. "Sales Practices" cover the following areas

a. Desirable marketing practices c. Ethical code of conduct
b. Agents' responsibilities to the investor d. All of the above

106. The following are not termed as "sales practices"

a. Agents commission c. Advertising of schemes
b. Before-and after-sales service to investors d. Stock broking

107. Sales practices are never mandated by regulators, but arise from convention
only
a. True b. False

108. Agents are compensated by mutual funds

a. Through salaries c. Through an annual fee
b. Through commissions d. Not in cash but in kind

109. 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
110. Lowest commissions are paid on
a. Equity funds c. Debt funds
b. Tax benefit schemes of mutual funds d. Long-term investments in mutual funds

111. Excess distribution expenses are to be borne by the

a. AMC c. SEBI
b. Unit holders d. AMFI

112. Sub-brokers serve as agents of the principal broker and a mutual fund is not
answerable for their activities
a. True b. False

113. In India, Mutual fund agents' rate and services are at present defined by
a. SEBI rules c. AMFI rules
b. Stock exchange bye-laws d. Convention

114. Along with the application, it is mandatory to distribute

a. Investment rebate c. Key information memorandum
b. Offer document d. None of the above

115. To sell funds effectively, an agent need not

a. Be fully aware of the important c. Give after sales service
characteristics of the scheme
b. Know his/her client's risk profile d. Offer large investment rebates

116. For investors to correctly compare performance of different funds SEBI's

advertising codes include
a. Uniform computation of yields c. Identical time periods
b. Uniform presentations of dividends d. All of the above

117. SEBI's advertising code mandate that all performance calculations in a

fund's advertisement should be based
a. NAV c. The BSE sensex
b. The NSE fifty index d. None of the above
118. An agent's appointment by a fund
a. Requires sebi's approval c. Is mandatorily preceded by an amfi test
b. Is a lengthy and cumbersome process d. Does not require any approval

119. An investor does not have recourse to his agent in case of errors, problems
or the quality of the investment
a. True b. False

120. An agent can offer and sell a fund's units at

a. Any price he chooses c. A price based on demand for that fund's units
b. A price determined by competition d. The public offering price currently in effect
among agents

121. All buy orders through an agent do not become valid till the fund accepts and
confirms the orders
a. True b. False

122.When an agent purchases, offers or sells units, ensuring compliance with

applicable regulations is the responsibility of
a. The fund c. AMFI
b. The agent d. SEBI

123. The code of ethics for mutual funds published by AMFI

a. Is mandatory c. Is unfavorable to investors
b. Is in the form of recommended practices d. Does not cover distribution and selling
practices

124. The AMFI code of ethics does not cover the following prescriptions
a. Adequate disclosures should be made c. Conflict of interest should be avoided in
to the investors dealings with directors or employees
b. Funds should be managed in accordance d. Each investment decision should be
with stated investment objectives approved by investors
125. Distribution and sales practices are only partly regulated by SEBI at present
a. True b. False

126. Which of the following sales practices is prescribed by regulation?

a. AMFI Code of Ethics c. AMFI's Code for Agents
b. SEBI Advertising d. None of the above

127. In a mutual fund investors' subscriptions are accounted for as

a. Liabilities c. Unit capital
b. Deposits d. None of the above

128. Investments made by a mutual fund on behalf of investors are accounted as

a. Assets c. Capital
b. Liabilities d. None of the above

129. Liabilities in the balance sheet of a mutual fund are

a. In the form of long-term loans c. Combination of long term and short term
b. Strictly short term in nature d. Not allowed as per regulations

130. Net Asset Value (NAV) of a mutual fund scheme is defined as the schemes
a. Assets minus liabilities c. Assets minus liabilities per unit
b. Assets per unit d. None of the above

131. The day on which NAV is calculated by a fund is known as

a. Computation date c. Record date
b. Valuation date d. Book closure date

132. A funds NAV is affected by

a. Purchase and sale of investment securities c. Units sold or redeemed
b. Valuation of all investment securities held d. All of the above
133. When computing NAV of fund SEBI requires accrual of major expenses to
be accounted
a. Quarterly c. On a day to day basis
b. Annually d. When actually paid

134. If a fund calculates NAV daily, it will include all the transaction concluded
up to
a. Last week c. Previous day
b. Last two days d. Today

135. For a open-ended fund,the repurchase price should not be lower than
a. NAV c. 93% of NAV
b. 95% of NAV d. 97% of NAV

136. For a close-ended fund, the repurchase price should not be lower than
a. NAV c. 93% of NAV
b. 95% of NAV d. 97% of NAV

137. Which of the following expenses cannot be charged to the scheme

a. Audit fees c. Winding costs for terminating the scheme
b. Costs related to investor communication d. Penalties and fines for infraction of laws

138. Which of the following are not true for Equity Linked Savings Schemes?
a. Investors can claim an income tax rebate c. There are not specific restrictions on investment
objectives for the fund managers
b. There is a lock-in period before investment d. These funds cannot invest in equity
can be withdrawn

139. Which of the following is not true for Index Funds

a. These funds invests in the shares that constitute c. These funds take only the overall market risk
a specific index
b. The investment in shares is in the same d. These funds are not diversified
proportion as in the index
140. The structure which is required to be followed by mutual funds in India is
laid down by
a. Financial Ministry c. Fund Sponsor
b. Securities & Exchange Board of India d. Association of Mutual Funds of India
(SEBI) (AMFI)

141. The Board of Trustees of a mutual fund:

a. Act as a protector of investors' interests c. Do not have the right to dismiss the amc
b. Directly manage the portfolio of securities d. Cannot supervise and direct the working of
the amc

142. The AMC of a mutual fund cannot

a. Undertake advisory services or financial c. Act as a trustee of more than one mutual
consulting fund
b. Cannot invest the funds in government d. Cannot invest the funds in securities
paper

143. The trust that manages a mutual fund is appointed by

a. The Finance Ministry c. SEBI
b. R.B.I d. The sponsor of that mutual fund

144. The custodian of a mutual fund:

a. Is appointed for safekeeping of securities c. Not required to be registered with SEBI
b. Need not be an entity independent of the d. Does not give or receive deliveries of physical
sponsors securities

145. Transfer Agents of a mutual fund are not responsible for

a. Issuing and redeeming units of the mutual fund c. Preparing transfer documents
b. Updating investor records d. Investing the funds in securities markets

146. Distributors or agents

a. Can distribute several mutual funds c. Should be only individuals not companies or
simultaneously banks
b. Cannot appoint sub-agents or sub-brokers d. Should not be an employee or associate of the
amc
147. A transfer in the management of a close-ended scheme does not require the
consent of
a. Unit holders with 75% voting rights c. Trustees
b. SEBI d. AMC

148. The fund sponsor has to contribute

a. Nothing to the amc c. Atleast 40% of the amc's networth
b. The total networth of the amc d. Exactly 50%

149. The sponsor of a mutual fund may be compared to

a. A director in a company c. Promoter of a Company
b. The chief executive of a company d. An equity shareholder in a company

150. Issuing and redeeming units of a mutual fund is the role

a. The custodian c. The trustees
b. The transfer agent d. The bankers

151. The fund sponsors should have a sound financial track record of
a. 7 years c. 5 years
b. 12 months d. 3 years

152. The AMC and directors are answerable to

a. Stock Exchanges c. Agents and distributors
b. The Board of Trustees d. Stock Brokers

153. The role of an AMC is to act as

a. Promoters c. Distribution agents
b. Investment managers d. Regulators

154. A change in the following key people does materially impact the performance
of the fund
a. Fund sponsors c. Fund Manager
b. Trustees of the fund d. Members of the AMFI Committee
155. To transfer the management of a scheme from one AMC to another, the
consent of the following is required
a. SEBI c. Both sebi and unit holders
b. Unit holders d. None of the above

156. As per SEBI's principles, the AMC and the Board of Trustees of a fund
should belong to the same sponsors
a. True b. False

157. After UTI, the first mutual funds were started by

a. Private sector banks c. Financial institutions
b. Public sector banks d. Non-banking finance companies

158. The highest authority among the following is the

a. SEBI c. RBI
b. Company Law Board d. Ministry of Finance

159. The entity that SEBI does not regulate is

a. Share registrars c. Stock exchanges
b. Mutual funds d. Non-banking finance companies

160. The accounts and all other records of an AMC are filed with
a. AMFI c. Agents' Association
b. Registrar of Companies d. UTI

161. A close-ended scheme of a mutual fund is not governed by

a. Exchange Rules of the stock exchange c. Guidelines issued by the
where it is listed Ministry of Commerce
b. Listing Agreement between the fund d. Companies Act provisions relating to
and the stock exchange transactions in securities
162. The entry of mutual funds in India was initiated by mutual funds set up by
a. Public Sector Banks c. Unit Trust of India
b. Private Sector mutual funds d. Mutual funds set up by insurance companies

163. For a close-ended scheme to change its fundamental attributes, it must

obtain the consent of
a. 50% of unit holders c. 75% of unit holders
b. 50% of trustees d. None of the above

164. The "Capital" of a scheme does not include

a. Unit capital c. Borrowing
b. Reserves d. Networth of the amc

165. Which of the following are Self Regulatory Organisations

a. Bombay Stock Exchange c. AMFI
b. SEBI d. RBI

166. A Self Regulatory Organisation can regulate

a. All entities in the market c. Its own members with total jurisdiction
b. Only its own members in a d. No entity at all
limited way

167. The role of AMFI in the mutual funds industry is not to

a. Promote the interests of the unit holders c. Regulate mutual funds in
b. Set a code of ethics d. Crease public awareness of mutual funds
in the country

168. The rights of investors in a mutual fund scheme are laid down in
a. The offer document of that scheme c. Annual Reports
b. Quarterly Reports d. Marketing brochures
169. Unit holders of a mutual fund scheme do not have a right to
a. Proportionate ownership of the c. Dividend declared for other schemes
scheme's assets of the mutual funds
b. Dividend declared for that scheme d. Income declared under that scheme

170. Unit holders' right to information does not include

a. Obtaining from the trustees any information c. Receiving of a copy of the annual financial
having an adverse effect on their investments statements of that fund
b. Inspecting major documents of a fund d. Approving investment decisions of the fund

171. Unit-holders aggrieved by a Fund or AMC can get redressed from

a. Consumer Courts c. AMFI
b. SEBI d. RBI

172. If the Directors of an AMC commit fraud, Unit- holders investments' cannot
be protected by the Department of Company Affairs and the Company
Law Board
a. True b. False

173. The responsibilities of a unit-holder do not include:

a. Monitor his investments carefully c. Carefully studying the offer document
b. Being aware of information that affects d. Taking decisions about where the fund
his investment in a major way managers should invest

174. Investor does not have the right to receive any interest from an AMC
if his redemption proceeds are not despatched within 10 working days
a. True b. False

175. If an investor failed to claim his redemption proceeds within 3 years, he

can claim the proceeds at
a. Par c. The on the date he has applied for
redemption
b. Prevailing NAV d. 15% below the prevailing NAV
176. For scheme to be able to change its fundamental attributes, it must obtain
the consent of
a. 50% of the unit holders c. 75% of the unit holders
b. 50% of the trustees d. None of the above

177. The prospectus or Offer Document containing the details of new scheme
is first registered with the
a. AMFI c. Bombay Stock Exchange
b. SEBI d. Ministry of Finance

178. The offer document issued by mutual funds does not serve the purpose of
a. Announcing the scheme c. Inviting the the investors
b. Giving detailed information d. Giving the fund manager's investment
about the scheme outlook for the next quarter

179. Fundamental attributes of scheme

a. Do not include the objective of the scheme c. Include the terms of the scheme
b. Can be changed without the investor's d. Are not necessary for deciding whether to
approval or knowledge invest in the scheme or not

180. The offer document

a. Contains the terms of issue c. Is not the operating document describing
the scheme
b. Gives no information relevant d. Cannot be called a reference document
for making an investment decision

181. SEBI does not require the following to be included in the offer document
issued by a mutual fund
a. Details of the sponsor and the amc c. Investors' Rights and Services
b. Description of the Scheme & investment d. Performance of other mutual funds
objective/strategy
182. 'Key Information Memorandum' is
a. An abridged version of the offer
document
b. The memorandum & articles of
association of the amc
c. A sheet containing historical navs of other
fund schemes
d. Annual Report of the AMC

183. The offer document for a scheme remains valid even if

a. The amc is reconstituted c. The scheme's nav changes
b. Entry or exit load are changed d. New plans are added to existing schemes

184. An addendum giving details of material change in the offer document

should be circulated
a. Distributors/brokers c. SEBI
b. Unit holders d. All of the above

185. Which of the following is not true for offer documents of

open-ended schemes
a. It is first issued at the time the c. It has to be revised periodically
scheme is launched
b. It is registered with SEBI d. It need not be revised at all

186. All-important disclosures that the mutual fund is required to make, by

regulation, are contained in the offer document
a. True b. False

187. The offer document issued when an open-ended scheme is launched is valid
for all times, until amended
a. True b. False

188. The most important source of information for a prospective investor is

a. Offer document c. Economic Times
b. Annual Report of the AMC d. AMFI Newsletter
189. The offer document need not be studied by an investor before investing
in a scheme
a. True b. False

190. The offer document is not a legal document

a. True b. False

191. Mutual funds value their investments

a. At purchase price c. At par
b. On a mark-to-market basis d. At book value

192. A passive fund manager

a. Researches stocks extensively c. Does not have to go through the process
of stock selection
b. Does not buy and sell stocks often d. Does not have to track stocks

193. A fund manager managing an index fund

a. Has to keep fund expenses low c. Does not have to balance his portfolio
b. Does not have to research stocks d. None of the above

194. A growth manager looks for

a. High current income c. Above average earnings growth
b. Undervalued stocks d. None of the above

195. From an investor's viewpoint, the most important is

a. A fund's investment style c. The fund manager's judgement
b. Performance of the fund d. None of the above

196. Fundamental analysis involves

a. Checking the foundations of the c. Studying the company's share prices
company's factory building
b. Research into the operations d. None of the above
and finances of the company
197. Which of the following is not considered for technical analysis
a. Historical data on the company's share price c. Current market sentiment
b. The company shares' trading volume d. The company's regulatory environment

198. Quantitative analysis is more likely to be done to evaluate a particular

sector or industry rather than any specific stock
a. True b. False

199. Fundamental analysis forms the basis to decide

a. When to buy a given share c. Whether to use technical analysis or
quantitative analysis
b. Whether to buy a given share or not d. Whether the company's factory can
withstand earthquakes

200. Technical analysis guides the decision on

a. Whether to buy or sell c. Whether company's technical personnel
are adequately qualified
b. The right time to buy or sell d. None of the above

201. Which of the following is not an investment philosophy?

a. Capitalizing on economic cycles c. Capitalization
b. Focusing on growth sectors d. Finding value stocks

202. When expecting a fall in market price, fund managers can reduce the loss
in portfolio value by
a. Speculating c. Using equity derivatives
b. Not buying and selling shares d. Giving TV interviews to improve sentiment
at all for some days

203. Equity derivative instruments are

a. Shares c. Contracts
b. Bonds d. Notes
204. A futures contract allows one to buy or sell the underlying shares, but need
not result in delivery
a. True b. False

205. Derivatives cannot be based on market indices

a. True b. False

206. In a mutual fund, the overall decisions on allocating money to particular

industries/sectors are taken by
a. Equity analysts c. Security dealers
b. Fund managers d. Trustees

207. Continuous tracking of the companies in which a mutual fund has

invested is done by
a. Continuous tracking systems c. Trustees
b. Equity analysts d. Security dealers

208. Security dealers of a mutual fund

a. Guard the cabin of the fund manager c. Decide which shares to buy or sell
b. Execute buy and sell orders for the fund d. None of the above

209. As per SEBI's requirements each scheme of a mutual fund should have a
different fund manager
a. True b. False

210. Debt securities bought at a discount to their face value are generally
a. Interest bearing c. Paying interest at a floating rate
b. Zero coupon bonds d. None of the above

211. In India, a large part of debt securities pay interest on

a. A floating rate basis c. A fixed rate
b. A fixed rate plus a variable portion d. Zero coupon basis
212. The Indian debt market is largely wholesale in nature
a. True b. False

213. In the wholesale debt market, the largest proportion of trading is seen in
a. Government Securities c. T-Bills
b. Corporate Bonds d. PSU Bonds

214. The largest proportion of trades done in the wholesale debt market is
accounted by
a. Mutual funds c. Indian banks
b. Foreign banks d. Financial institutions

215. Certificates of Deposits (CDs) are issued by

a. Regional Rural Banks c. Scheduled commercial banks
b. Corporates d. None of the above

216. Commercial Paper is issued by Corporate bodies

a. To meet short-term working capital c. To retire long term debt
requirements
b. To finance the acquisition of long term d. To pay dividend
capital assets

217. Government securities are issued through the RBI

a. True b. False

218. The yield on Treasury Bill (T-Bill) us determined by

a. The government of india c. The state governments
b. Auction d. Floating rate method

219. Which of the following are not normally found in the portfolio
of a debt fund
a. Long-dated government securities c. Bonds issued by financial institutions
b. Corporate debentures d. Certificates of deposit issued by banks
220. Which of the following do not represent the amount an investor of a debt
security will be paid upon maturity?
a. Par value c. Fair value
b. Face value d. Redemption value

221. Coupon of a debt security refers to

a. A piece of paper attached to the certificate c. The amount rate of interest paid on
par value of the bond
b. The return on investor would earn d. None of the above

222. Which of the following do not apply to the term 'maturity' of a debt
security?
a. The date on which the certificates c. The date of redemption
becomes old
b. The term of the bond d. The date on which the issuer has to
repay the amount

223. Call or put provisions are used to modify the fixed maturity of
debt securities
a. True b. False

224. A call provision in a debt issue allows the issuer to

a. Call out the names of the investors c. Extend the tenure of the debt
b. Redeem the debt on maturity d. Redeem the debt before maturity

225. A put provision in a debt issue allows

a. Investor to put away the certificates c. Issuers to redeem debt prior to maturity
in safe deposit vaults
b. Investors to redeem debt prior d. Investors to extend the tenure of debt
to maturity

226. Current yield relates interest on a security to

a. Its current market price c. Its fair value
b. Its face values d. The current price of t-bills
227. To compare bonds with different coupon rates, maturities and prices,
investors would use:
a. Current yield c. Yield to maturity
b. Technical analysis d. Fundamental analysis

228. When interest rates rise, bond prices

a. Also rise c. Are not affected
b. Fall d. Fluctuate either up or down

229. Yield curve is also known as

a. Curve of Interest c. Curve that yields
b. Term Structure of Interest Rates d. None of the above

230. An important indicator of expected trends in interest rates is

a. The Economic Times c. The yield curve
b. The sensex d. The chief minister's speech

231. It may not be possible to reinvest interest received at the same rate as
principal. This is known as
a. Reinvestment risk c. Interest-rate risk
b. Inflation risk d. Call risk

232. A bond's rating indicates its

a. Reinvestment risk c. Inflation risk
b. Default risk d. Interest-rate risk

233. If a bond cannot be sold at a price near its value, it means that investment
in this bond has
a. High liquidity risk c. Low liquidity risk
b. High default risk d. Inflation risk
234. The additional yield required to account for the risk of default by the
borrower is known as
a. Yield plus c. Yield extra
b. Yield spread d. Yield premium

235. A high credit rating does not mean

a. High yield spread c. Low yield spread
b. High perceived safety d. Low risk premium

236. If 10-year government securities Neil 10% and a 10-Year fixed deposit in
a company yields 12%, the yield spread is
a. 12% c. 10%
b. 22% d. 2%

237. The "duration" of an interest-bearing bond is

a. Longer than its maturity c. Equal to its maturity
b. Less than its maturity d. The quality of paper used for the
certificate

238. A bond with a coupon of 9% when interest rates for similar maturities are
11% will sell
a. Above par c. At par
b. Below par d. At a price unrelated to the prevailing
interest rate

239. Changes in foreign exchange rates have no bearing on interest rates

a. True b. False

240. Inflation and interest rates are inversely proportional

a. True b. False
241. Investment policies of a mutual fund are determined by
a. The fund manager c. The marketing department based on what
b. The amc management distributors want
d. The investors

242. Which of the following measures are not taken by SEBI for protecting
investors of mutual funds
a. Mandating minimum levels of c. Tracking the securities that each fund
diversification for mutual funds has invested in
b. Ensuring that the funds are not d. Ensuring that the funds are invested
used to favour a few companies in approved securities only

243. As per SEBI norms, a fund's investments, in the equity shares of any one
company are restricted to
a. 25% of NAV c. 50% of NAV
b. 10% of NAV d. 100% of NAV

244. A mutual fund manager is not allowed to sell short when he expects a
crash in the market
a. True b. False

245. In a mutual fund, having many schemes, al securities bought can be held
in a general account and transferred later to various schemes to attain
certain profit or loss objectives
a. True b. False

246. A mutual fund may invest in short-term deposits of scheduled

commercial banks
a. True b. False

247. Mutual funds are allowed to lend

a. Loans c. Physical assets
b. Securities d. None of the above
248. In case of listed securities of group companies of the sponsor, mutual fund
is not allowed to invest
a. 25% of its net assets c. At all
b. 10% of its net assets d. >5% of net assets

249. A mutual fund may transfer investments from one scheme to another
a. Not at all c. At cost price
b. At current market rates d. At a fixed premium over market rate

250. The Interest Rate Forecasting Unit of a debt fund is generally manned by
a. Technicians c. Economists & econometricians
b. Statisticians d. Accountants

251. AMCs need not maintain records in support of each investment decision
a. True b. False

252. When interest rates for similar maturities' bonds are 11%, bond with a 9%
coupon rate will sell
a. Above par c. At par
b. Below par d. At a price unrelated to the interest rates
for similar securities

253. The most suitable measure for a fund's performance does not depend
on the
a. Type of fund c. Financial market conditions
b. Investment objective of the fund d. Amount invested by investor

254. If the NAV of an open-ended fund was Rs.16 at the beginning of the year
and Rs.22 after 13 months, the annualized change in NAV is
a. 6.0% c. 40.6%
b. 34.6% d. 37.5%
255. Change in NAV as a measure of fund performance is more suitable for
a. Growth funds c. Funds with withdrawal plans
b. Income funds d. None of the above

256. The difference between NAV change and total return as measures of
fund performance is
a. None c. Total return does not take navs
into account
b. Total return takes dividend into d. Total return does not take the time
account while nav change does not period into account

257. The most suitable measure of fund performance for all fund types is
a. NAV Change c. Total Return with reinvestment
b. Total Return d. None of the above

258. The expense ratio used for measuring fund performance is an

indicator of
a. Product market condition c. Prevalent market practices
b. Growth in the economy d. The fund's efficiency

259. The Expense Ratio as a measure of a fund's performance is defined

by a fund's
a. Total expenses and average net assets c. Average expenses and average net assets
b. Total expenses and total assets d. None of the above

260. While computing the Expense Ratio for a fund, brokerage commissions
on the fund's transactions are not included in the fund expenses
a. True b. False

261. The Expense Ratio is not of utmost importance in case of

a. Debt fund c. Equity fund
b. Index fund d. Bond fund
262. The Expense Ratio is not affected by
a. Fund size c. Portfolio composition
b. Average account size d. Stock market conditions

263. Portfolio turnover rate of a fund measure the

a. Size of the fund's portfolio c. The average number of units sold
by the fund in one day
b. Amount of buying and selling d. None of the above
done by the fund

264. A high turnover rate for a fund indicates

a. High transaction costs c. High returns to the investor
b. Greater efficiency d. A rising market

265. Turnover rates would be most relevant to analyse the performance of

a. Equity funds c. Debt funds
b. Growth funds d. Value funds

266. The size of a fund has no bearing on its performance

a. True b. False

267. Which of the following is of no relevance in evaluating a fund's performance

a. The performance of the stock c. The returns given by other comparable
market as a whole financial products
b. The performance of other d. The change in wholesale price index
mutual funds

268. The choice of an appropriate benchmark for evaluating a fund's

performance depends on
a. The fund manager c. SEBI
b. The investment objective of d. AMFI
the fund
269. An actively managed equity fund expects to
a. Be able to beat the benchmarks c. Have no benchmarks
b. Earn the same returns as the benchmark d. Underperform when compared with
the benchmark

270. The basis of genuine investment advice should be

a. The current market situation c. Financial planning to suit the
investor's situation
b. The agent commissions paid by d. Planning to complete the agent's
different funds annual targets

271. Financial goals do not include

a. Buying a home c. Planning for retirement
b. Winning a sports gold medal d. Saving for child's education

272. Financial planning allows a person

a. To become a billionaire c. To invest in foreign countries
b. To achieve financial goals through d. None of the above
proper management of finances

273. Financial plans do not alter in any way the amount of tax an investor
pays as the tax is on his income
a. True b. False

274. Which of the following works with an investor on his overall financial
situation
a. Tax Advisor c. Insurance Agent
b. Financial Planner d. Financial Advisor

275. A financial planner takes responsibility for the financial well-being of

his/her clients
a. True b. False
276. Financial planners and their clients should focus on
a. Allocating funds to asset classes c. Tracking stocks which they feel
(e.g. Debt, equity etc.) have potential
b. Allocating funds to individual securities d. None of the above

277. Within an asset class, which individual security to invest in should

be decided by
a. The financial planner c. A professional fund manager
b. The investor himself d. An objective advisor

278. Financial Planning comprises

a. Defining a client's profile and goals c. Monitoring financial planning
recommendations
b. Recommending appropriate asset d. All of the above
allocation

279. Financial planning is relevant only for high networth individuals

a. True b. False

280. Financial planning does work for older clients

a. True b. False

281. Financial planning is primarily tax planning

a. True b. False

282. In financial planning, all responsibility ends with the financial planner
and the client has no responsibilities
a. True b. False

283. The constraint on financial planning due to insufficient investable resources

can be remedied to some extent by
a. Decreasing the standard of living c. Disciplined monthly budgeting
b. Disciplining children d. None of the above
284. In the growth option offered by mutual funds, the number of units held by
an investor increases because of
a. Growth in net asset value i.e. c. Interest received on the fund's assets
Capital appreciation
b. Reinvestment of dividend which d. None of the above
is like compounding

285. To maximise returns on investment, once an investor buys into a fund,

he/she should hold on to it no matter what happens
a. True b. False

286. If an investor keeps investing a fixed amount at regular intervals, the

average cost of his purchases will always be less than if he makes investment
at irregular periods
a. True b. False

287. Which of the following lets an investor book profits in a rising market and
increase holdings in a falling market
a. Fixed Rates of Asset Allocation c. Investment without any asset allocation
plan
b. Flexible Ratio of Asset Allocation d. Buy and Hold Strategy

288. A Flexible Ratio of Asset Allocation means

a. Continuously changing the ratio of c. Active switching
various assets in the portfolio
b. Not doing any re-balancing and d. None of the above
letting the profits run

289. The strategy advisable for an investor to maximise investment return

in the long run is
a. Buy and hold on to investments c. Liquidate good performing investments from
for a long time time to time
b. Liquidate poorly performing investments d. Switch from poor performers to
from time to time good performers
290. A criticism of rupee-cost averaging is
a. Investment is for the same amount at c. It does not tell you when to buy, sell or
regular intervals switch from one scheme to another
b. Over a period of time, the average d. Rupee cost averaging has no serious
purchase price will work out higher shortcomings
than if one tries to guess the market
highs and lows

291. Which of the following entities can given loans against securities
a. UTI c. Mutual funds
b. Banks d. None of the above

292. Which of the following investment products do not give guarantee for
return or capital
a. Bank deposits c. National Savings Certificates (NSC)
b. Public provident fund (PPF) d. Units of a mutual fund

293. The biggest advantage of investment in gold is

a. High returns c. Low Purchase price
b. High appreciation in value d. Hedge against inflation

294. The biggest disadvantage of investment in real estate is

a. Less potential for capital appreciation c. Depreciation in value as time passes
b. High purchase price d. Value gets eroded due to inflation

295. Which of the following is not an advantage of bank deposits?

a. Liquidity c. Low entry price
b. High perceived safety d. High yield after tax

296. Listing of shares at a stock exchange ensures

a. Guaranteed returns c. Low risk
b. Long term capital appreciation d. High liquidity
297. The rate of interest paid by a company on debentures issued by it
depends on
a. The stock market situation c. The company's credit rating
b. SEBI guidelines d. The amount of money being raised

298. Which of the following is not a characteristic of company fixed deposits

a. A higher rate of interest c. Unfavourable effect of tax
b. Higher risk d. Very high liquidity

299. Which of the following is untrue for Public Provident Fund Schemes
a. The interest is tax-free c. Liquidity is rather low
b. Post-tax returns are attractive d. None of the above

300. Most individuals invest in life insurance policies for

a. Risk protection c. Easy liquidity
b. Tax benefits d. High returns

301. Investing through mutual fund is a better option than investing directly
in the stock market because
a. Identifying stocks is a difficult c. Returned are guaranteed by
process mutual funds
b. Agents get commissions on mutual d. All of the above
fund investment

302. A small investor can build a diversified portfolio by

a. Buying one share each of all listed c. Borrowing enough money to buy shares
companies of well-managed companies
b. Investing in a mutual fund d. None of the above

303. Which of the following is not an advantage of mutual fund investment

over direct investment
a. Higher liquidity c. Greater convenience
b. Lower transaction costs d. Guaranteed returns
304. There is no contractual guarantee for repayment of principal or interest
to an investor in
a. Bank deposit c. Secured debentures
b. Debt fund d. all of the above

305. Which of the following debt investments is not rated

a. Corporate Bonds c. Company Deposit
b. Commercial Paper d. Debt Fund

306. Gold and real estate are attractive investment options only in high
inflation economies
a. True b. False

307. Direct investment in stock market can be a better option than investing
through mutual funds if the investor
a. Wants better returns than those offered c. Has identified a bullish phase in the
by mutual funds stock market
b. Has large capital, knowledge and d. Wants to invest for the long term
resources for research

308. Deciding on strategies such as long-term compounding, cost averaging,

value averaging, active switching, all depend on the
a. Stock market situation on date c. Investor's risk tolerance
b. Amount of money to be invested d. Phase through which the economy
is passing

309. Financial Planning involves

a. Studying financial management c. Financing the client's investments
b. Managing the risks of investing d. None of the above

310. Greater returns come only from assuring higher risks, and a higher risk
portfolio guarantees higher returns
a. True b. False
311. The risk tolerance of an investors is independent of
a. His age c. The stock market movements
b. His income d. His job security

312. A sector fund is a

a. Low risk fund c. High risk fund
b. Regulatory limits on borrowing d. Low-to-moderate risk fund

313. International funds invest in various and so are low risk funds
a. True b. False

314. Investment in gold is a hedge against inflation but investment in a precious

metal fund falls in the high-risk category
a. True b. False

315. By their very nature, growth funds are considered as high-risk funds
a. True b. False

316. Short Term bond funds are

a. Low risk funds c. High risk
b. Moderate risk funds d. Of the above depending
on the market

317. The risk level of commodity funds is

a. High risk category c. Cannot be specified
b. Determined by the commodity d. Low risk category
price movements

318. As compared to a fund with fluctuating total returns, a fund with stable
positive earnings
a. Gives higher returns c. Gives lower returns
b. Is less risky d. Is more risky
319. "Risk" is equated with
a. Volatility of earnings c. The number of investors in a fund
b. Level of earnings d. The number of schemes of a fund family

320. Volatility of an equity fund portfolio is independent of the

a. Kind of stocks in the portfolio c. Fund manager's success at market
timing
b. Degree of diversification of the d. Number of investors in the scheme
portfolio

321. Equity price risks are

a. Company specific c. Sector specific
b. Market level d. All of the above

322. Diversification reduces

a. Company specific risk c. Both of the above
b. Market level risk d. None of the above

323. Which of the following is most risky?

a. Investing in a money market c. Short term investment in an
mutual fund equity fund
b. Investing in an index fund d. Long term investment in an
equity fund

324. A fund with a high beta coefficient gives greater returns in a rising market,
and is more risky in a falling market
a. True b. False

325. Which of the following is a disadvantage of Standard Deviation as a

measure of risk
a. Standard Deviation measures c. It is an independent number
total risk, not just market risk
b. It is based on past returns, d. All types of funds can be measured
which does not necessarily indicate with standard deviation
further performance
326. The role of an agent is to
a. Point out the features and benefits
of various investments options
b. Help the investor develop the right
approach to investing
c. Recommend some investment
option available
d. Offer ad hoc advise whenever the investor
has surplus money available

327. One of the most effective ways to invest through mutual funds is to
a. Develop a model portfolio c. Invest all the money in one
fund scheme
b. Buy a few units of every mutual d. Invest all the money in different
fund scheme available schemes of the same fund family

328. Mutual fund should be advised to expect

a. Low post tax returns c. Better returns than every other available
option
b. Dramatic results d. Only realistic wealth accumulation
goals

329. Asset Allocation is

a. Keeping certificates of the
physical securities in proper places
b. Allocation the available money to
all the securities available
c. Allocating the right proportion
of funds to equity, debt and money
market securities
d. None of the above

330. Once a financial advisor works out ideal Asset Allocation, it can be used
for all investors whom he/she advises
a. True b. False

331. Asset distribution among equity, debt and money market securities should
correspond to the investors' need for capital growth, income and liquidity
a. True b. False

332. The liquidity needs of an investor are met through

a. Equity Funds c. Money Market Funds
b. Index Funds d. Sector Funds
333. A retired person generally needs a greater proportion of
a. Debt funds c. Money Market funds
b. Equity funds d. All of the above

334. To satisfy a young investor's need for growth, a greater proportion

of investment should be advised in
a. Gilt funds c. Equity Growth funds
b. Income Funds d. Liquid funds

335. A very high proportion of investment in all types of equity funds is

advisable for investors
a. In distribution phase c. In transition phase
b. In accumulation phase d. Who are wealth preserving affluent
individuals

336. The transition phase of an investor's wealth cycle is when

a. The financial goals have been c. Financial goals are approaching
already met
b. The investor has retired d. Investor suddenly gets a windfall

337. A high proportion of investment in income funds is required by

a. Accumulating investors c. Investors in the inter-generational
transfer phase
b. Affluent investors d. Investors in the distribution phase

338. Retired investors should

a. Not draw down on their capital c. Continue holding a major portion of
their holding in equity growth funds
b. Not invest in securities which d. Never invest in equity
bear risk of capital erosion
339. For older investors who want to transfer their wealth
a. No financial planning is required c. The right investment strategy depends
upon the state of the stock market
b. The right investment strategy depends d. All the funds can be invested in aggressive
upon who the beneficiaries are equity funds

340. Investors who acquire sudden wealth

a. Can speculate with all the acquired
money in the stock markets
b. Should not use any of the
new wealth to invest in equity
c. Should take the effect of taxes into
account
d. Need not pay any taxes on the newly
acquired wealth as it is not a part of
their regular income

341. Only if a specialty offshore fund has consistently given very good
performance, it can be considered for investment by a retiree
a. True b. False

342. Past performance should not be solely relied on for selecting a fund
a. True b. False

343. Between the past performance of a fund and its suitability for an investor,
past performance is more important
a. True b. False

344. A mutual fund distributor is paid commission for..

a. First 5 years of Investment done c. First 10 years of investment done
by investor by investor
b. First 3 years of Investment done d. As long as investor held the
by investor investment

345. The guideline issued by AMFI for intermediaries are known as...
a. AGNI c. AMFI
b. ACE d. None of above
346. The investment in MF portfolio are valued at
a. Face value of portfolio c. Market value of portfolio
b. Cost of investment d. Book value of portfolio

347. Exit loads are generally lower for large investors.

a. True b. False

348. Time stamping arrangement is must at..

a. Offices of distributors c. Bank distributor's branch
b. AMC offices d. Offices declared as point
of acceptance.

349. SEBI has put a stop on charging ____________ to the scheme.

a. Exit load c. Recurring Expenses
b. Entry Load d. CDSC

350. Unaudited accounts of the scheme must be published

a. Through monthly fact sheet c. Once every six month in one
national & Regional news paper
b. Only at AMFI website d. Only on AMC's website

351. An investor invested Rs.100000/in a 370 day FMP and got Rs. 107750/-, what
is capital gain in this case?
a. 7750 c. Insufficient details
b. 750 d. 10% Plus surcharge or 20% after
index benefit

352. Which of the following is true

a. STT is payable when investor c. STT is payable when investor purchase
purchase equity MF debt MF
b. STT is payable when investor d. STT is payable when investor sale
does redemption from equity MF debt MF
353. Liquid funds can not charge management fees of funds parked in a short
term bank deposits.
a. True b. False

354. STT is charged on

a. Equity share trading c. Equity MF
b. Derivatives trading d. All of the above

355. Which of the following is not required for KYC norms.

a. Proof of investment c. Proof of address
b. Proof of Identity d. All of the above

356. The information on minimum investment amount, investor's service centers,

and how to make purchase is provided in.
a. Application form c. KIM
b. Nomination Form d. None of the above

357. Which of the following document is not require to be submitted by charitable

trust to invest in MF?
a. Trust deed c. Board resolution and Memorandum
and article of association
b. List of authorized signatories d. Certificate of registration

358. SIP is a good investment strategy because..

a. Investor gets units at a c. It helps regular income for investor
discount to NAV
b. It offers benefits of rupee d. It helps regular income for investor
cost averaging

359. An investor plans to invest Rs.12000 in a scheme whose NAV is 12 and FV

is 10, how many units is he likely to be obtained.
a. <1000 c. 1200
b. 1000 d. Cant say
360. An investor is doing a liquid investment, fund is available and time is 12.30.
NAV would be applicable for the ________
a. Next working day c. Closing NAV of Day immediately
preceding the date of application
b. Same day d. Closing NAV of Day immediately
preceding next business day

361. Investor invest 50 lakh in GILT at 3.30 pm with a local cheque. he

gets NAV of
a. Closing NAV of day fund c. Next business day
are available
b. Same day d. Next preceding day.

362. Time stamping needs to start with serial no 1 on every business day.
a. True b. False

363. Funds pay dividend in

a. Dividend Option c. Both of the above
b. Dividend Re-Investment option d. Growth option

364. Offering for repurchase, constant amounts worth of units at regular

interval basis is called
a. SIP c. SWP
b. STP d. Value investment

365. A company's PE ratio may be low because it is unlikely to replicate it's

past performance
a. True b. False

366. Fundamental analysts are called "Chartists”

a. True b. False
367. In case of liquid fund, investment less than 3 months old. which return
would be calculated?
a. Total return c. Absolute return
b. CAGR d. Simple annualized

368. In case of equity fund, if fund has higher allocation to cash in bullish
market the performance is likely to..
a. Be comparable to that of benchmark c. Better than benchmark return
index
b. Be worse than benchmark return d. cant say

369. CRISIL's indicator for highest safety in a debenture is

a. AAA c. Good
b. High d. P1+

370. During the period of turmoil, gold prices

a. Go down c. Remain steady
b. Go up d. Mirror equities

371. Performance of fund must always be measured relative to the.

a. Index c. Asset Class

b. Benchmark d. Investment objective

372. While evaluating return for an index fund across a peer group, which of the
following is more important?
a. BETA Coefficient c. Tracking error
b. Past performance d. R-squared

373. Balance funds are for

a. Aggressive investors c. Moderate conservative
b. Highly aggressive investor d. Highly conservative
374. The lower risk among equity fund is
a. Index Fund c. Dividend yield fund
b. Value Fund d. Growth fund

375. Returns in international fund is dependent on

a. Exchange rates c. Both of the above
b. Asset class performance d. None of the above

376. Mutual funds in India are not permitted to invest in

a. Gold c. Art
b. Real estate d. Secularized debt

377. A value fund is expected to have ________ exposure to front line stocks
a. Entire c. Half of it's
b. High d. Low

378. Index funds are safer because their NAV does not go down
a. True b. False

379. Which of the followings are least comparable

a. Liquid and Savings account c. ETF and Index fund
b. Liquid and Current account d. Gilt and sector fund

380. An investor seeking capital appreciation, having high risk tolerance and
long term horizon must invest in
a. Bonds c. Real-Estate
b. Bank FD d. PPF

381. Credit rating enables an investors to judge the

a. Duration of loan c. Risk of default by borrower
b. Extent of securities against d. Interest rate risk
the borrowing
382. Which of the following is not government saving scheme?
a. Infrastructure Bonds c. POST
b. RBI Bonds d. KVP

383. An investor looking for capital appreciation, having a high risk tolerance
and long tem horizon must invest in
a. Bank FD c. Bonds
b. Equity d. Gold

384. Which of the followings is physical asset?

a. Securised debt c. Real estate fund
b. Real estate d. Gold future

385. In new pension scheme(NPS) Tier I account new pension scheme is called
pension account
a. True b. False

386. Financial Planning Involves

a. Helping client to select the out c. Advising client to invest only
performing stock in secured investments
b. Assessing the clients financial d. None of the above
information

387. Value stocks

a. Have high current dividend c. Are currently under valued
b. Yield high growth in earning d. None of the above

388. A better performance than the return on index is given by

a. Passive fund manager c. All fund managers
b. An active fund manager d. Non fund manager
389. Emerging or new channel for distributors/marketing of mutual funds in
India is
a. Internet c. All of the above
b. Stock Exchange d. None of the above

390. Trail commission means paying

a. No commission at all c. Part of commission up front and
balance in phases
b. The entire commission upfront d. The entire commission after
five years

391. Agents are compensated by mutual funds

a. Through salaries c. Through an annual fees
b. Through commission d. Not in cash but in kind

392. The fund sponsors should have a sound financial track record of
a. 7 years c. 12 months
b. 5 years d. 3 years

393. Which of the following are self regulatory organization(SRO)

a. BSE c. AMFI
b. SEBI d. RBI

394. Bank owned mutual fund are supervised by

a. SEBI c. RBI
b. Jointly by SEBI & RBI d. AMFI

395. A passive fund manager

a. Researches stocks extensively c. Does not have to go through the
process of stock selection
b. Does not buy and sell stocks often d. Does not have to track stocks
396. Debt securities bought at a discount to their face value are generally
a. Interest bearing c. Paying interest at a floating rate
b. Zero coupon bonds d. None of the above

397. When interest rates rise, bond prices

a. Also rise c. Falls
b. Are not affected d. Fluctuate either up or down

398. A trail commission is justified when

a. An investor cancels his investment c. An agent invests his own money,
not that of client
b. The investor redeems his investment d. An Agent retain the Investment
in a very short time

399. Risk adjusted return is measured by

a. Sharpe ratio c. Treynor ratio
b. Standard deviation d. A & C

400. Intra day trading can be done on the basis of-

a. Fundamental analysis c. Economic analysis
b. Technical analysis d. Political analysis

401. Mid cap stocks are risky in the time of

a. Boom c. Political instability
b. Recession/Economic turmoil d. All of the above

402. Who Appoints the AMC

a. Custodian c. Trustee
b. R&T d. Distributors

403. Which of the following has lowest risk

a. Liquid fund (mmmf) c. Diversified debt fund
b. Gilt funds d. Diversified equity fund
404. Long term capital gains in a debt fund without indexation for an investor is
a. 10% c. 20%
b. 15% d. No tax

405. What of the following is not a reason for investor to prefer mutual fund
over Bank FD
a. Tax benefits c. Deposit insurance
b. Possibility of capital gain d. Investment convenience

406. In the NPS each investment manager appoints own distributor

a. True c. False

407. Need of Life insurance in life is

a. Must c. Can be done without
b. Not required d. None of above

408. All investor have similar requirements at similar stage in the life/wealth
cycle
a. True b. False

409. Name of asset allocation strategy if it is fixed @ 50 %

a. Tactical allocation c. A & B
b. Strategic allocation d. None of above

410. Model portfolio should be determined based on commission income

possibility for distributor
a. True b. False

411. Which of the following is true for model portfolio

a. Stipulated by SEBI c. Decided by financial planner
b. Guaranteed by AMC d. Common across industry
412. As the no of earning member in a family increases risk appetite
a. Increases c. Stays constant
b. Decreases d. None of above

413. Equity investment through sip can be suggested for investor looking for
a. Long term growth c. Portfolio churning
b. Short term target d. Tax benefit

414. How to compare index fund

a. Performance c. Tracking error
b. Expenses d. None of above

415. What type of bond fund carries least interest rate risk
a. Short term bonds c. Mid term Bonds
b. Long term Bonds d. All of above

416. Arbitrage fund are not equity fund

a. True b. False

417. Which of the following is true for FMP

a. NAV do not fluctuate c. Fixed income
b. Capital Guaranteed d. None of above

418. Index funds are_____________fund

a. Passive fund c. Both
b. Active fund d. None of above

419. The role of insurance is more critical for physical assets than financial assets
a. True b. False
420. When price of gold goes up a buyer of gold future contract see it's value
a. Go up c. Retain the same value
b. Go down d. None of above

421. The investment portfolio is created based on

a. Market views of fund manager c. Risk appetite of investor
b. Investment objective of fund d. Profile of unit holder

422. Commodities as an asset class does not include

a. Food crops c. Real Estate
b. Industrial metals d. Gold

423. Subsequent to NFO, open ended funds are

a. Open for purchase by existing c. Available on stock market
investor & new investor
b. Open for purchase only for b. None of above
existing investor

424. If a fund seeks to grow in value overtime it can be said that it's investment
objective is
a. Capital appreciation c. Capital adequacy
b. Safety of capital d. Regular income

425. Hybrid funds are invested in

a. Across equity market capitalization c. Both equity and debt
b. International markets d. None of above

426. Mutual fund are constituted in India as

a. Companies c. Partnerships
b. Trusts d. NGO
427. Mutual Fund sponsor can be compared to
a. Depositor of a company c. Promoter of Company
b. Company director d. CEO of a company

428. Which of the following is not a function of R&T agent

a. Creating maintaining and updating c. Processing dividends & redemption
the investor record payouts to investors
b. Updating unit capital of funds d. Settling investment transaction of
the fund

429. Prior approval of SEBI needs to be taken before a person is appointed

as trustee
a. True b. False

430. Person, other than Indian residents, should also comply with RBI guidelines
for investment in Indian mutual funds
a. True b. False

431. The first step of financial planning is

a. Evaluating the various alternatives c. Establishing the client planner
relationship
b. Data gathering and goal setting d. Plan Review

432. Sponsor's net worth should be positive for

a. Last 5 years c. Last 3 years
b. Last 2 years d. Last year

433. At time of NFO, which document compulsorily filed with SEBI

a. SID c. Annual Report
b. SAI d. Memorandum and Articles
of Association
434. Collection and payment of fund is a responsibility of
a. Custodian c. Banker
b. R&T d. AMC

435. Other than Indian residents, rest have to also comply RBI regulations
a. True b. False

436. Which of the following not included in KIM

a. Details of Key personal of AMC c. Expense and Load structure
of scheme
b. Tax benefit of MF d. Due diligence certificate of
AMC

437. Function of OD is
a. Give detailed information about c. Gives Fund suggestion
scheme to investors
b. Give current NAV d. None of the above

438. What should be the Sector Fund Allocation for a single income family having
small investable surplus
a. 0% c. 50%
b. 70% d. 30%

439. Which expense can be not charged to scheme?

a. Expenses on investor c. Fees of custodian
communication
b. Service tax d. General administration expense
of AMC

440. Which of the following need not be included in KIM?

a. Detail of sponsor c. Risk profile of the scheme
b. Minimum investment amount d. Opening and closing dates
and cut off time of NFO
441. As per income tax act, Arbitrage Funds are taxed as per debt scheme
a. True b. False

442. Which is purely treated as an international asset

a. Equity c. Real Estate
b. Gold d. Debt

443. Transfer of security from one scheme to another scheme is allowed in MF

a. True c. False

444. Calculate the sales price of a unit when NAV is 15 and exit load 1%
a. 15 c. 15.15
b. 14.85 d. 15.5

445. If you get a cheque of 1 cr in a Gilt Fund at 2.30 pm, NAV date will be
a. NAV at 2.30pm c. Same day NAV
b. NAV at 3pm d. NAV of fund realization date

446. Who allots Amfi Registration Number?

a. AMFI c. AMC
b. SEBI d. None of the above

447. Which distribution channel don't have a huge branch network?

a. Institution c. Bank
b. Corporate distributor d. IFA

448. Dividends in the hands of investors are taxable at the rate of

a. 10% c. 33%
b. 15% d. Tax Free
449. Last step in the process of designing model portfolio
a. Sector selection c. Scheme selection
b. Asset allocation d. Client selection

450. Goal based approach of financial planning focuses on

a. Risk profiling c. Tax liability of investors
b. Achievement of the goal d. Investible surplus of the investor
of investors

451. What is the indicator of the risk adjusted performance ratio?

a. Beta c. Sharpe's Ratio
b. Standard Deviation c. Variance

452. Interest Rate sensitivity in Bond fund depends on

a. Credit Profile c. YTM
b. Avg Maturity d. Current Yield

453. SEBI doesn't allow passing of commission to

a. Distributor c. Bank
b. Investor d. IFA

454. Index against which performance of a fund is measured, is called

a. Tracking Error c. Investment objective
b. Benchmark d. Ex-mark

455. FMP are essentially a closed ended Scheme

a. True b. False

456. The information regarding Which category of investors can invest in MF,
is given in
a. Offer document c. MIN
b. SAI d. SIN
457. Who can not be the distributor of the AMC
a. IFA c. Employees of AMC
b. Bank d. All of the above

458. Asset allocation means

a. Putting all eggs in Same basket c. Investing in different assets
b. Investing according to Market d. Investing only in Equity Gold
and Silver

459. MIP is a Debt Scheme

a. True b. False

460. Asset allocation should be in line with

a. Financial Goal c. Risk Appetite
b. Age of Client d. All of the above

461. A young investor having objective of capital appreciation should invest in

a. GILT c. Equity
b. Liquid d. Debt

462. In NPS class-C predominantly invests in

a. Equity c. Gold
b. Debt d. Real Estate

463. Fund's risk relative to market is measured by

a. Tracking error c. Treynor
b. Sharps' Ratio d. Beta

464. Which one is false about debenture

a. Issued by PSU c. It has maturity
b. High credit risk d. Duration is greater than 1 yr
465. Investor has read the OD and then the invested in the fund and fund goes
down, then he
a. Gets remedy from SEBI c. Gets remedy from AMC
b. Cant sue the AMC d. Gets remedy from NSE

466. STT charge on

a. Equity derivatives c. Equity Schemes
b. Equity MF d. All of Above

467. Which function AMC can't do in house

a. Custodian c. Distribution
b. Accounting d. Fund management

468. Value of Bond goes down when

a. Interest rate goes down c. IRR goes down
b. Interest rate goes up d. YTM goes down

469. Institutional distributors needs to be

a. Registered with SEBI c. Listed on stock exchange
b. Registered with AMFI d. All of Above

470. Standard risk are

a. Uncommon to all c. Specific to a scheme
b. Common to all d. Systematic

471. Request for purchase can be made

a. In units and amount c. In units or amounts
b. In units only d. In amount only

472. In NPS investors get choice of the asset class but don't get choice of
investment manager
a. True b. False
473. In case of online transaction, transaction time is applicable
a. Time shown in the computer c. Mid night
of investor
b. Time as web per web server d. Next day morning

474. If investors invest through demat can AMC asks for KYC requirement
a. True b. False

475. According to the asset allocation rule, equity exposure should be equal to
a. Age c. Age-100
b. 100-age d. 100%

476. Mutual fund is made up of

a. Pool of trustees fund c. Pool of investment managers
b. Pool of institutional investors d. Pool of investment money

477. Which is same as of OD?

a. SID c. SAI
b. SID+SAI d. KIM sumarry of SAI + SID.

478. Mutual fund distributor in India are member of AMFI.

a. True b. False

479. Mutual fund in India is regulated by SEBI(Mutual Fund) act 1996.

a. True c. False

480. KIM has to be updated

a. Twice in a year c. Once in a year
b. Quarterly d. Once in two year
481. Which of the following is more risky?
a. Liquid fund c. Growth fund
b. Index fund d. Gilt fund

482. Material changes in KIM need to be updated

a. Once in a year c. Whenever material changes
take place
b. Half yearly d. Once in two year

483. If an investor wants full exposure of gold his investment should be into
a. Gold ETFs c. Shares of gold mining company
b. Physical gold d. All of the above

484. 107756/- what is CAGR?

a. 7.75% c. 10% or 20% with indexation
b. 7.47% d. Insufficient data

485. If an investor invest Rs.100,00,000 in Equity MF Scheme at 3.30 pm through

outstation cheque he will get NAV of
a. Same day closing value c. Previous day closing value
b. When fund gets credited d. Next day closing value

486. Trail commission to advisor helps in –

a. Retaining the investor for long term. c. New client acquisition
b. Portfolio Churning d. None of the above

487. Exit load __________

a. Is ame for all schemes c. Varies from investor to investor
b. Is same for all amc's d. Varies from scheme to scheme
488. Which fund is an actively managed fund?
a. Index fund c. Growth fund
b. Diversified equity fund d. B&C

489. Arrange in correct sequence

a. Risk profile, fund allocation, c. Portfolio construction,risk profile,
portfolio construction. fund allocation.
b. Risk profile, portfolio d. Fund allocation. risk profile,
construction, fund allocation. portfolio construction

490. Which of the following is against the ethics & Code of conduct guide line
of AMFI
a. Churning investor's money c. Keeping the interest of all
to get better returns unit holders
b. All the associates of a distributor d. All of the above
should be amfi approved.

491. Minimum contribution of a sponsor in an AMC should be-

a. 50% c. 40%
b. 60% d. 25%

492. PAN card is not required in case of-

a. NRI c. Corporate institution & trust.
b. Minor & Senior Citizen d. None of the above

493. FMP can give better interest than a Bank Deposit.

a. True b. False

494. The insurance associated with new pension schemes are regulated by-
a. PFRDA + IRDA c. PFRDA
b. IRDA d. None of the above.
495. In India mutual funds are-
a. Govt. institutions c. Trust
b. Company d. NBFC

496. Initial issue expenses in a liquid fund has to be-

a. 0 c. 0.25 percentage
b. 0.000125 d. None of the above

497. A schemes NAV value increases for the period of 2 yrs . it will show-
a. Absolute return c. Compounded annualized return
b. Simple return d. All of the above

498. In KIM it has been mentioned that the 65% investment will be in equity and
equity related instrument. this is called-
a. Policy of scheme c. Portfolio of scheme
b. Objective of scheme d. None of the above.

499. KIM is attached with ?

a. Transaction slip c. Both A and B
b. Application Form d. Neither a nor b

500. Which is technical analysis-

a. Volume & price behavior c. Book value analysis
b. Mark to market d. All of the above.

501. Who keeps detail report of transaction-

a. Custodian c. R & T
b. AMC d. Distributor

502. Formula to find out the Standard Deviation in excel is

a. Stdev c. Stddev
b. Sd d. Stddv
503. Time stamp machine contains-
a. Time stamping serial no c. Location code
b. Machine identification d. All of the above

504. The expected return & yield of the scheme is mentioned in KIM
a. True b. False

505. How frequently NAV of an equity scheme are calculated

a. Daily c. Quarterly
b. Weekly d. Once in financial year

506. If beta of a scheme is less than one the the fund is-
a. More risky compare to market c. Neither risky nor profitable.
b. Less risky compare to market d. Beta doesn't make any impact on
scheme performance

507. What is not true objective of life insurance-

a. Risk coverage c. Both
b. Investment d. None of the above

508. Which is technical analysis-

a. 10 c. 50
b. 25 d. 100

509. Fund management cost is more in-

a. Passive fund c. Liquid fund
b. Gilt fund d. Active fund

510. Independent trustee are appointed by-

a. Sponsor c. AMFI
b. SEBI d. All of the above
511. Distributors are paid-
a. Commission c. Salary
b. Fees d. All of the above

512. KYC is required for-

a. Guardian in case of minor c. Sole proprietorship firm
b. HUF d. All of the above

513. KYC is compulsory -

a. For every investment c. 50000 and above
b. 50000 d. First time investment

514. Formula for CAGR calculation is

a. Interest * No of years c. ((End Value/Start Value)^(1/(Period)) -1
b. (P1-P0)/PO*100 d. None of above

515. The NAV of a fund is 15 applicable exit load is 1%, purchase NAV would be-
a. 14.85 c. 15.25
b. 15 d. 15.65

516. In case of breach of Code of conduct license is canceled by-

a. AMFI c. Sponsor
b. SEBI d. AMC

517. Which is true in case of PPF?

a. Partial withdrawal facility is c. Both
available after one year
b. Investment & return are tax d. None of the above
free

518. A fixed term plan series is-

a. As open ended fund c. A fixed term bank deposit
b. A closed ended fund d. A fixed term corporate bond
519. The P/E ratio is an important measure of a company's anticipated
performance it is calculated using.
a. Market price and dividend c. Market capitalization and
dividend
b. Market price and earning d. Market price and face value
per share

520. Which one of the following is not an eligible investor?

a. Insurance Companies c. Foreign Citizens
b. Govt Institutions d. Provident Fund

521. For a customer holding units in demat , the AMC also requires to do his
KYC ?
a. True b. False

522. Which investment below gives international exposure

a. International Funds c. None
b. Gold Fund d. Both

523. If client invest in liquid fund at 11.30 am and the fund gets cleared on the
same day which NAV the client gets ?
a. Next day NAV c. Same days closing NAV
b. Closing NAV of the day preceding d. Previous days closing NAV
next business day

524. What is true about premium paid in a life insurance company ?

a. Customer can decide premium c. Premium can be shown as exp
b. Premium can be availed under d. Premium is volatile
Sec 80 c

525. The person with whom the units are pledged is known as
a. Pledger b. Pledgee
526. SEBI is sole regulatory authority for MF are answerable
a. True b. False

527. How is company fixed deposit compare to bank fixed deposit ?

a. Low Risk c. Less Safe
b. Highly Volatile d. Lower Return

528 declaration?
a. 15 c. 10
b. 7 d. 30

529. A distributor needs different ARN for each AMC ?

a. True b. False

530. A conservative investor need not be advised to invest in ?

a. Gilt Fund c. High Yield Bond Fund
b. Liquid Fund d. Short Term Plan

531. The New Pension scheme is both regulated IRDA and PFRDA as it has an
insurance component ?
a. True b. False

532. Which is the fastest way of remitting funds on real time basis?
a. NEFT c. SWIFT
b. D/D d. RTGS

533. Which of the following is a financial asset ?

a. Govt Security c. Real Estate
b. Gold d. None of the above
534. Which of the following is an SRO ?
a. AMFI c. BSE
b. SEBI d. RBI

535. NFO other than ELSS can remain open for maximum _________
a. 7 days c. 21 days
b. 15 days d. 30 days

536. In NFO the account statement is to be dispatched within a days on

closure of NFO ?
a. 5 days c. 20 days
b. 15 days d. 30 days

537. Companies issuing short term debt is called

a. CD c. Debentures
b. Tbills d. CP

538. Within a category one can decide on investments based on Sharpe Ratio
a. True b. False

539. The arbitrage funds are taxed like debt funds

a. True b. False

540. Which of the below is not in a Transition phase ?

a. Buying of house c. Shifting of job for higher
income
b. Providing for daughter d. Providing for foreign study
marriage for son

541. The NAV of scheme is impacted by ?

a. No of Investors c. Market Value of Portfolio
b. Unit Capital d. Size of Fund
542. Technical analysis is projecting trend based on human behavior ?
a. True b. False

543. Sub distributors work with

a. Online platform c. IFA
b. Banks d. Distribution companies

544. Initial issue expense that can be charged to fund

a. NIL c. 2%
b. 1% d. 1.75%

545. According to Performance Advertisements the return shown for equity

funds over 1 years are
a. Annualised Yield c. Absolute return
b. Simple Return d. CAGR

546. In New Pension Scheme portfolio of Assets class E predominantly

investment in
a. Equity c. Govt. Sec.
b. Debt

547. Code of ethics for employees of AMC is described by

a. SEBI c. AMFI
b. Internal Audit Team d. Trustee

548. In Transition phase of Wealth Cycle investor tends to increase the

proportion of_______ assets in his portfolio.
a. Equity c. Gold
b. Liquid d. None of above

549. Which of the following is a Financial Asset?

a. Gold c. Bank deposit
b. Real State d. None of above
550. Index fund can give better returns from its Benchmark.
a. True b. False

551. The young BPO executives should not be advised to invest in long term
schemes because of their lavish life style ?
a. True b. False

552. Term a Stock pickinga is used in which of the following?

a. Bottom up approach c.Both
b. Top down approach d. None of above

553. What is the applicable rate of STT in case of repurchase of Equity scheme?
a. 0.13% c. 0.02%
b. 0.33% d. 0.25%

554. Market value is 152 crore, Dividend accrued but not received= 8 crore,
liabilities = 2 crore Total no of outstanding units is 75 lakhs. What will be
the NAV of the scheme?
a. 200 c. 213.33
b. 210.67 d. None of above

555. Investor selects an MF based on

a. Investment Philosophy c. Investment Policy
b. Investment Strategy d. Investment Objective

556. Risk May be defined as

a. Asset Allocation c. Financial Loss
b. High Transaction Cost d. Portfolio Rebalancing

557. Which of the following account in NPS is a Saving Account

a. Tier I c. Tier III
b. Tier II d. Tier IV
558. Financial Planner defines that client does not have resources to meet goals.
He should
a. Inform the Client c. Avoid telling as he may lose
the client
b. Avoid telling as client will d. Increase risk to generate
be dishearted higher return

559. Mutual Fund is exempted from Wealth Tax

a. True b. False

560. KYC is required for investment more than

a. 20000 c. Not required
b. 10000 d. Needed for a single rupee
investment

561. If a minor Invests Rs 10,000 in MF, KYC is needed or not

a. KYC for Minor is needed only
if investment exceeds Rs 20000
b. KYC for Minor is needed only
if investment exceeds Rs 50000
c. If investor is a minor, KYC should
be of his guardian even for a single
rupee investment
d. KYC is not at all required
for minors

562. Since Preparation of WILL is a long process, it has to be avoided

a. True b. False

563. Close ended fund allows investors to sale their units

a. By allowing fixed number of c. By listing mf in stock
Units to sale exchange
b. By selling number of units
in a fixed interval

564. ______ Allots the ARN Number

a. AMC c. NISM
b. SEBI d. AMFI
565. Mutual Fund Investor can't pledge units
a. True b. False

566. Change in the value of NAV is

a. Standard Risk c. Unsystematic Risk
b. Systematic Risk

567. When scheme is first launched and investor invests in MF... it is called
a. NFO c. Purchase
b. IPO d. Re-Purchase

568. KIM Document is a summary of

a. SID c. OD
b. SAI d. SID+SAI

569. The guideline issued by AMFI for intermediaries are known as

a. AGNI c. AMFI
b. ACE d. None of the above

570. Time stamping arrangements is must for

a. Offices of Distributors c. Bank Distributors Branch
b. AMC Offices b. Offices declared as point
of acceptance

571. Unaudited accounts of the scheme must be published in the news paper
a. Every 3 months c. Every 12 months
b. Every 6 months d. None of the above

572. An Investor Invests Rs 100000 in a 365 days FMP and got Rs 107750,
what would be capital gain in this case ?
a. 7750 c. Insufficient Data
b. 750 d. 1000
573. STT is charged on
a. Equity Share Trading c. Equity MF
b. Derivative Trading d. All of the Above

574. An investor plans to invest Rs 12000 in a scheme whose NAV is Rs 12,

how many units he will likely to be obtained
a. <1000 c. 1200
b. 1000 d. Cant Say

575. Company's Earning per share would be indicated by following

a. P/E Ratio c. EPS
b. Current Ratio d. Leverage Ration

576. Beta of Index would be

a. Less than 1 c. More than 1
b. Equals to 1 d. None of the above

577. While evaluating return for an index fund across a peer group, which of
the following is more important
a. Beta Coefficient c. Tracking error
b. Past performance d. R-Squared

578. The fund sponsors should have a sound financial track record of
a. 12 months c. 5 Years
b. 3 Years d. 7 Years

579. Father wants his son to be a doctor and study will start after 5 years.
The current expense is 2500000. How to calculate the expense after 5 years
a. A = P + (1+r) ^ n -1 c. A = P / (1+r) ^ (1/n) -1
b. A = P x (1+r) ^ n d. A = P / (1+r) ^ n
580. Appropriate benchmark for G-sec fund
a. I-sec+ I -bex c. MIBOR
b. CRISIL liquid fund index d. CRISIL - MIP bladed index

581. Which of the following has lowest risk ?

a. Liquid Fund c. Diversified debt fund
b. GILT Fund d. Diversified Equity fund

582. Mutual Fund Sponsors can be compared to

a. Depositor of a company c. Promoter of a company
b. Company director d. CEO of a company

583. Which of the following can be charged to the scheme

a. Salary of Fund Administratives c. General Administration
Expenses
b. Office rent d. Fees of Custodian

584. Low PE compared with peer group or industry standard indicates that stock
is cheap.
a. True b. False

585. What would be the redemption value of a Unit if NAV is 15 and Exit load
is 1%
a. 15 c. 15.5
b. 14.85 d. 15.15

586. Last step in the process of designing model portfolio

a. Sector Selection c. Scheme selection
b. Asset Allocation d. Client Selection

587. For a distribution channel, 60% of the employees should have AMFI
Registration Number
a. True b. False
588. Equity Fund's Risk relative to market is measured by
a. Tracking error c. Treynor
b. Sharpe's Ratio d. Beta

589. Standard Risk is

a. Common to all c. Systematic
b. Uncommon to all d. Specific to all

590. Request of Purchase can be made

a. Along with requisite form c. Only Purchase requisite form
and Cheque
b. Only With Cheque

591. If an investor invests 1,000,000 at 3:30 p.m through outstation cheque,

he will get NAV of
a. Same day closing NAV c. Previous day closing NAV
b. When fund gets credited d. Next Day NAV

592. Liquidity risk is highest in

a. Mid Cap stocks c. Index Stocks
b. Front Line Stocks d. Gilt Security

593. Mr A Holds 2000 Units, scheme declared 1:4 bonus. How many units will
Mr A Gets ?
a. 400 c. 8000
b. 500 d. Depends on NAV

594. Investor can sue the trust for breach of trust

a. True b. False

595. Distributors do not get commission on self business

a. True b. False
596. Which of the following is an SRO ?
a. AMFI c. AMC
b. SEBI d. None of above

597. What remains constant in a close ended fund ?

a. Unit Capital c. Both
b. NAV

598. SEBI regulates

a. Mutual Funds c. RTA
b. Depositories d. All of the Above

599. Unit holders can hold their units in demat form

a. True b. False

600. KIM needs to be updated every

a. 3 months c. Once a year
b. 6 months d. No need to update it

601. Trail commission are linked to valuation of portfolio in the market

a. True b. False

602. Risk can be measured by

a. Variance c. Beta
b. Standard Deviation d. Any of the above

603. According to the Certified Financial Planner - Board of Standards (USA),

the third stage in Financial Planning is
a. Establish and Define the client c. Define client goals
planner relationship
b. Gather client data d. Analyse and Evaluate Client's
Financial Status
604. Commodity as an asset class does not include
a. Fiber c. Energy
b. Spices d. Art

605. Financial Planning is just a process and so Financial Planner can use any
profile found in the web
a. True b. False

606. 5 star fund indicates

a. Lowest Expense ratio c. Highest Performance
b. Lowest Load d. Best Portfolio

607. Investor should invest in MF with few offices as office expense is charged
to the fund
a. True b. False

608. NAV changes with

a. Number of investor c. Size of Portfolio
b. Number of Units remaining d. Market value of the
invested portfolio

609. Investor select an MF based on matching

a. Investment Philosophy c. Investment Objective
b. Investment Policy d. Investment Strategy

610. Indian investor in a US $ based fund benefit when $ becomes

a. Weak c. Euro Becomes Weak
b. Strong d. Steady

611. Understanding the psychology helps in risk profiling

a. True b. False
612. Securities of a fund are held by
a. Custodian c. R&T
b. AMC d. Broker

613. Risk may be defined as

a. Asset Allocation c. Portfolio re balancing
b. High Transaction Cost d. Probability financial Loss

614. He Should
a. Inform the Client c. Avoid telling as he may lose
the client
b. Avoid telling as client will d. Increase risk to generate higher
be disheartened return and meet the goal

615. Which of the following is with drawable in NPS

a. Tier I c. Tier III
b. Tier II d. Tier IV

616. Mutual fund is exempted from Wealth Tax

a. True b. False

617. KYC is required for investment more than

a. 50 K c. Any Amount
b. 5 K d. 100K

618. Which of the distribution channel does not have wide branch network
a. Bank c. Broking company
b. Distribution House d. IFA

619. Which of the following is not a function of R&T

a. Process Dividend and c. Settling investors transaction
redemption of fund
b. Maintain the records d. Calculation of NAV
620. AMFI interacts with _______ on all issues related to MF industry
a. RBI c. Govt
b. SEBI d. All of the above

621. High portfolio turnover ratio implies

a. High Cost c. High return
b. Low Expense d. Non Performance

622. Since preparation of WILL is a long process, it has to be avoided

a. True b. False

623. What determines the interest rate sensitivity

a. Credibility c. YTM
b. Quality d. Avg Maturity

624. Fundamental Analyst are also called " Chartist”

a. True b. False

625. Fundamental Analyst's decision are base on

a. EPS in dollar c. Historic EPS
b. Trialling EPS d. Projected EPS

626. Debenture is physical asset because the paper has some value
a. True b. False

627. Investing in Gold ETF helps

a. Guarantees high return c. Provide risk cover
b. Not permitted in India d. Reduce storage cost
and risk
628. Which of these activity are carried out before getting SEBI approval
a. Updating the SID with NFO dates c. Dispatch product literature
b. Approval of the features by trustee d. Printing KIM and application
and AMC board form

629. Childhood and transition are similar stage of LIFE cycle and WEALTH
cycle stage
a. True c. False

630. Investor with a long term investment horizon for growth are likely to
invest in
a. Equity Fund c. Income fund
b. ST Debt Fund d. Liquid fund

631. Some allocation to GOLD is likely in most model portfolio

a. True b. False

632. Approval of SEBI is needed to appoint a person as Trustee

a. True b. False

633. What is the drawback of PPF

a. One withdrawal at the end of c. Half yearly Compounded
Seventh Year interest
b. Interest and Withdrawals are d. Not Guaranteed by Govt
not taxable

634. Commission paid at the time of investment are called

a. Upfront Commission c. Trail
b. Rebate d. AUM Retention Fee

635. Investors in NPS can choose asset class but not fund managers
a. True b. False
636. Settlement responsibility in BSE / NSE Platform are with
a. AMC c. Stock Exchange
b. Clearing House Concerned d. Member

637. Which of the following information does time stamp include

a. Machine Identifier c. Serial No
b. Location code d. All of the above

638. Comprehensive FP should be restricted to five years

a. True b. False

639. Closed ended fund has

a. Fixed AUM c. Fixed NAV
b. Fixed Unit Capital d. Assured Dividend

640. To which of the following PAN does not apply

a. PIO c. Minor & Senior Citizen
b. NRI d. None of above

641. Father wants to start his business, this is

a. Asset Allocation c. Appreciation
b. Financial Goal d. Financial Planning

642. In India one can invest in MF only through distributor

a. True b. False

643. SIP is called RCA (Rupee Cost Averaging)

a. True b. False
644. Liquidity risk arises in
a. Closed ended fund c. Gold
b. Open ended fund d. Debt

645. A mutual fund is

a. A pool of trustee money c. A pool of investment managers
b. A pool of investment d. A pool of investment fund
institutions

646. The name and background of key personnel in AMC

a. Are not included in SID c. Are included in SAI
b. Declared on MF website d. Are not relevant so not
disclosed

647. Annual report should announce the unclaimed amount and no. of investor
a. True b. False

648. STCG in GOLD is applicable if the holding period is less than

a. 12 months c. 6 months
b. 36 months d. 9 months

649. _______ allots the ARN number

a. AMC c. SEBI
b. AMFI d. NISM

650. Role of Credit rating agencies is highest in

a. Debt Fund c. Real Estate Fund
b. Gold Fund d. Equity

651. Cut-off time are

a. Agreed between AMC c. Prescribed by SEBI
& Distributor
b. Different for every RTA d. Different from AMC to AMC
652. Money market in which MF invests are regulated by
a. AMFI c. RBI
b. SEBI d. Stock exchange

653. For with-holding tax on income earned by NRI depends on nature of income,
nature investment and investor's country of domicile
a. True b. False

654. Gilt fund is a good alternative to Capital Appreciation

a. True b. False

655. Which is prohibited in AMC's Code of ethics

a. Inter Scheme transfer c. Security transaction through
associated broker
b. Front Running d. Distributor of MF through AMC

656. Loads are applicable to

a. Transfer of Closed ended c. Purchase and redemption
scheme
b. Redemption d. Purchase

657. Mutual Fund investor can't pledge units

a. True b. False

658. Standard risk factors are

a. Not market risk c. Not relevant to investor
b. Specific to scheme d. Common to all scheme

659. Unit holders are entitled to

a. Receive information that can c. Sue the MF or Trust
effect their investment
b. protection of capital even d. Assured return even if there
if market goes down is no guarantee
660. Appropriate benchmark to large cap
a. BSE small cap index c. BSE 500
b. Sensex d. BSE Mid cap Index

661. If market crashes after bull run which fund is more safer
a. Growth c. Sector
b. Value d. Theme

662. Insurance in case of MF is

a. Up to 1 Lac per scheme c. More than 1 lac
b. 1Lac per fund d. None of the above

663. Net Avg asset of the scheme is 300cr and Investment transaction value for
the same is 1000 cr in a year. What is the avg holding period (months)?
a. 0.3 c. Insufficient Data
b. 0.36 d. 3.6

664. Mutual Fund transaction on stock exchange are governed by stock exchange
redressal system
a. True b. False

665. IF Gold price appreciates investors should invest in

a. Gold sector fund c. Index fund
b. Gold ETF d. Gilt edge Security

666. When scheme is first launched, AUM of the scheme would be nil
a. True b. False

667. An investor looking to select a hybrid fund with tax benefits must choose.
a. Conservative MIP c. Balance fund Debt oriented
b. Balance fund Equity b. Aggressive MIP
oriented
668. Encroachment risk is higher for
a. Land c. Gold
b. Building d. Art

669. Unaudited report has to be published in newspaper every

a. 3 months c. 12 months
b. 6 months d. 3 financial year

670. Tax differal is advantage

a. Growth c. Dividend reinvest
b. Dividend payout d. Capital gain

671. The expense ratio is affected by

a. Fund size c. Portfolio composition
b. Average account size d. Stock market conditions

672. In a mutual fund investors subscription are accounted for as

a. Liabilities c. Deposits
b. Unit capital d. None of the above

673. A disclosure should be made in the offer document if an AMC has invested
more than the following percentage of its net assets in group companies.
a. 0.5 c. 0.4
b. 0.25 d. 0.1

674. Open ended fund can invest in unlisted securities up to-

a. 0.05 c. 0.06
b. 0.0475 d. 0.0525

675. Fund of Fund scheme invest in-

a. Mutual Fund scheme c. Index fund
b. International fund d. Gilt fund
676. A scheme can distribute dividend on its-
a. Realized profit c. Realized & non realized profit
b. Profit after tax d. None of the above

677. A newly married couple should invest into –

a. Debt fund c. Equity fund
b. Balance fund d. Liquid Funds

678. If an investor wants to invest in Mutual fund through exchange platform

he can buy from
a. Existing investor c. AMC
b. Broker d. Distributor

679. Standard risk factors are

a. Changes from scheme to c. Both
scheme
b. Common for all scheme d. None of above

680. The presence of market makers provide liquidity in case of ETF

a. True b. False

681. Net asset Rs.500cr./ total transaction value is Rs. 1000 cr what is portfolio
turnover ratio
a. 0.5 c. 1
b. 2 d. Data insufficient

682. Avg net asset of scheme is 3000,total transaction of a scheme 10,000 what
is portfolio turnover ratio
a. 0.3 c. 3.33
b. 4 d. 5
683. Which of the following is true with respect to the automatic reinvestment
plan?
a. It allows the investor to reinvest c. Some funds allow the investor the invest
the amount of dividend the dividend in the other schemes also
b. It ensures that the investor reaps d. All of the above
the benefit of compounding

684. Which of the following is not true for Exchange Traded Funds (ETF)?
a. ETF combines the best features c. It offers the investors the benefit of
of open end and closed end flexibility of holding a single share as
well as the diversification and cost
efficiency of index
a. Its pricing is linked to the index b. ETFs recover heavy load from the
investors

685. Which of the following is not the advantage of mutual funds?

a. Reduction of transaction costs c. Tailor made portfolio
b. Convenience and flexibility d. Liquidity

686. Investor who wants long term exposure to gold should opt for
a. ETF Gold c. Gold Future
b. Gold Sector Fund d. Jewellery's

687. Which is the short term Govt Security

a. Commercial Paper c. Certificate of Deposit
b. T-Bills b. Gilt

688. Which is the most Illiquid Asset?

a. Gold c. Debt
b. Equity d. Real state

689. Bank lends against

a. Pledged units c. Nomination
b. Dividend d. Redemption
690. SID is approved by
a. Investor c. AMC and Trustee
b. Sponsor d. Custodian

691. Cut-off time for NAV

a. Decided by AMC c. By trustee
b. Same for all scheme d. Prescribed by SEBI

692. Preparation of WILL is pessimistic exercise, so it is better to avoid

a. True b. False

693. Which document is not required for institutional investor

a. P & L account c. PAN card
b. Memorandum of the articles d. Authorized signatory list
of association

694. Distributors are provided commission for up to

a. 3 yrs c. 10 yrs
b. 5 yrs d. Investors stay invested

695. SEBI is responsible to develop a cadre of well trained agents and distributors
a. True b. False

696. High regular income yield is indicator of scheme weakness

a. True b. False

697. Who promotes MF

a. Sponsor c. AMC
b. Custodian d. Trustee
698. Liquidity risk is highest in
a. Mid cap stocks c. Index stock
b. Front line stocks d. Gilt security

699. A unit holder is not responsible for

a. Reading OD c. Regular monitoring
investment
b. Selecting stocks in a portfolio d. Awareness of risk factors
of the mutual fund scheme

700. Accepted standard for return calculation in financial market is

a. Abs return c. Total return
b. CAGR d. Simple annualized return

701. STT is applicable on

a. Purchase of debt fund c. Redemption of equity fund
b. Redemption of debt fund d. All of above

702. Mr A holds 1200 units , scheme declares 1:3 bonus. How many units will
Mr A gets
a. 300 c. 3600
b. 400 d. Depends on NAV

703. Corporate deposit interest rate depends on

a. Liability of borrower c. Credit rating
b. Asset of borrower d. Profit of borrower

704. Commodity does not include

a. Art c. Spices
b. Energy product d. Fibres
705. The value of investment in mutual funds..
a. Increase gradually every day c. Decrease gradually
every day
b. Change with the value of the d. Be volatile in long-term
investment portfolio

706. The first ever mutual fund scheme in India was launched in
a. 1964 c. 1970
b. 1951 d. 1994

707. Investors buy units of open-ended funds during the continuous offer at the
a. NFO price c. Both
b. Market Price d. None of the above

708. The investment objective of which of these funds would be to seek capital
appreciation?
a. Dividend yield fund c. Liquid Fund
b. Growth Fund d. Income Fund

709. If we have a view that gold price will appreciate, which mutual fund scheme
should we invest in?
a. Gold sector c. Index fund
b. Gilt edged securities d. Gold ETF

710. One of the advantage if ETF is..

a. Investor can see where his
money is invested
b. These schemes can generate
higher returns than mutual fund
c. Investors can buy of sell units on stock
exchanges at price that closely track
valuation at that time
d. ETF offer tax benefits

711. Mutual funds are constituted in India as a..

a. Companies c. Partnership firms
b. Trust d. NGO
712. Mutual fund sponsor can be compared to ..
a. A depositor in company c. Promoter of a company
b. A company director d. CEO

713. Which of these entities enables collection and payment of fund.

a. Broker c. R&T Agents
b. Banker d. Custodian

714. The constituents of mutual fund are appointed with the approval of ..
a. Sponsor c. SEBI
b. Trustees d. AMC

715. The applicable guidelines for mutual funds are set out in SEBI (Mutual Fund)
regulation, 1996..
a. True b. False

716. AMFI code of ethics prescribes that mutual fund scheme portfolios
should be managed in interest of
a. Identified class of unit holder c. Retail individual
b. All classes of unit holders d. Institutional unit holders

717. Although AGNI is mandated. there are no penalties for breach of code of
conduct.
a. True b. False

718. To achieve growth by investing in equity and equity related investments,

balanced with income generation by investing in debt and money market
instruments is likely to be the investment objective of ___________ .
a. Equity fund c. Balance fund
b. Money market fund d. Debt Fund
719. Annual report of AMC should necessarily mention the unclaimed amount and
the number of such investors for each scheme.
a. True b. False

720. Unit holders enjoy rights to the asset of the funds...

a. According to the plan chooses c. Equally for all holders
by them
b. As per decided by trustees d. In proportion of holding

721. For fund of fund NAV is to be updated on-line in the website of AMFI and
the mutual fund website..
a. Before 9 pm same day c. After 10 pm same day
b. Before 10 am following day d. Before 9 pm following day

722. Which of the following is not a mandatory services standard as per SEBI.
a. Periodic disclosure of the c. On-line purchase and sells
fund's holding of units
b. Periodic disclosure of AMC'c d. Dispatch of dividend within
accounts 30 days

723. Investors can sue trustees for breach of trust.

a. True b. False

724. Which of the following is the function of an offer document

a. To enable comparison of Mfs c. To report the performance
of scheme
b. To give the FM's commentary d. To give investors information
on market about scheme

725. NFO other than ELSS can remain open for _________
a. 15 days c. 45 days
b. 30 days d. Forever
726. Which of the following contain detail information on the portfolio
characteristics and operational features of a scheme?
a. Key Information of Memorandum c. Scheme information document
b. Statement of additional information d. Addendum

727. Unit holders enjoy rights to the asset of the funds...

a. According to the plan chooses c. Equally for all holders
by them
b. As per decided by trustees d. In proportion of holding

728. For fund of fund NAV is to be updated on-line in the website of AMFI and
the mutual fund website..
a. Before 9 pm same day c. After 10 pm same day
b. Before 10 am following day d. Before 9 pm following day

729. Which of the following is not a mandatory services standard as per SEBI.
a. Periodic disclosure of the c. On-line purchase and sells
fund's holding of units
b. Periodic disclosure of AMC'c d. Dispatch of dividend within
accounts 30 days

730. Investors can sue trustees for breach of trust.

a. True b. False

731. Which of the following is the function of an offer document

a. To enable comparison of Mfs c. To report the performance
of scheme
b. To give the FM's commentary d. To give investors information
on market about scheme

732. NFO other than ELSS can remain open for _________
a. 15 days c. 45 days
b. 30 days d. Forever
733. Which of the following contain detail information on the portfolio
characteristics and operational features of a scheme?
a. Key Information of Memorandum c. Scheme information document
b. Statement of additional information d. Addendum

734. Which of the following is not fundamental attribute of scheme?

a. Investment objective c. Investment Pattern
b. Name ff Fund Manager d. Type of risk profile

735. Which of the following is a synopsis of the offer document?

a. Trust deed c. Statement of additional information
b. Memorandum of Association b. Key information of memorandum

736. The format of KIM

a. Given by SEBI c. Varies to fund to fund
b. Given by AMFI d. By Stock Exchange

737. Some MF companies allow investors to transact through their website.

a. True b. False

738. There is no need for educational qualification to be MF advisor.

a. True b. False

739. Distributors are compensated by mutual fund companies primarily through..

a. Salaries c. Share in AMC's profit
b. Annual fees d. Commission

740. Which of the following statement is true?

a. Distributors do not get upfront
commission on self business but
they get trail commission
b. Distributors do not get trail
commission on self business but
get upfront commission
c. Distributors get upfront and trail
on self business
d. Distributors do not get upfront
and trail on self business
741. AMFI is SRO for mutual fund and regulates all mutual Fund
a. True b. False

742. AMFI code of ethics prescribes that mutual fund schemes portfolios should
be managed in the interest of
a. Identified special classes of c. Retail individual class
unit holders
b. All classes of unit holders d. None of above

743. Transfer of investment from one scheme to another is allowed

a. True b. False

744. If the investor wishes to change the distributor

a. He will need to give written c. AMC may allow or disallow
request to the fund house
b. he needs to give the NOC d. All of above
from previous distributor

745. Investor can sue the trust for breach of trust

a. True b. False

746. Since NFO is a marketing decision ,CIO has limited role in deciding it's
structure
a. True b. False

747. Info provided in the SAI

a. Addendum made in the c. Updation in KIM
scheme
b. Updation in OD d. None of above

748. Which of the following form a part of fundamental attributes of a fund

a. Fund manager c. Load
b. Investment objective of fund d. None of above
749. What remains constant in closed ended fund?
a. Unit capital c. Both
b. NAV d. None of the above

750. Where do high-yield funds invest?

a. Junk Bonds c. Equity growth Fund
b. Gilt fund d. Treasury bills

751. High yield bond schemes invest in junk bonds?

a. True b. False

752. Which ratio measures risk-adjusted return?

a. Sharp Ratio c. Both
b. Treynor ratio d. None of the above

753. Which funds have features of both open ended & close ended?
a. Interval Fund c. Sector Fund
b. Balance Fund d. Thematic Fund

754. Which approach is used by Fund managers for picking up the Value stocks.
a. Bottom up approach c. Both
b. Top down d. None of the above

755. Can liquid funds invest in short term bank fixed deposit?
a. Yes b. No

756. Expenses in fund of funds?

a. Less then direct Investment c. Equal to direct investment
in scheme in scheme
b. More than direct investment d. None
in scheme
757. Which fund has highest risk?
a. Liquid c. G-securities
b. Income d. Liquid Plus

758. Childhood & transition phase is common in life cycle & wealth cycle?
a. True b. False

759. What is not mandatory in application form?

a. Occupation c. Mode of holding
b. Status of Individual d. PAN

760. Is KIM a synopsis of offer document?

a. True b. False

761. Absolute return is best judged if the investment horizon is

a. <1yrs c. Anytime
b. >1 yr d. <2Yrs

762. Dividend distribution tax in liquid fund payable by investor?

a. Nil c. 10.38%
b. 12.5% d. 30%

763. Who can distribute mutual fund through stock exchange?

a. Equity Broker with out c. Both
certification
b. NISM certified & AMFI d. None of the above
registered member

764. What is the beta of index fund?

a. 1 c. Less than 1
b. More than 1 d. None of the above
765. When a time stamping machine is installed should it be informed to trustees
a. True b. False

766. The difference between the yield on gilt and the yield on a non government
debt security is called its yield spread.
a. True b. False

767. Mutual fund is

a. Trust c. Society
b. Company d. None of the above

768. Who is keeps the custody of security of Mutual Fund ?

a. AMC c. Custodian
b. R&T d. Sponsor

769. AMFI is a SRO ?

a. True b. False

770. AGNI is
a. Code of Conduct For c. Terms & Conditions
Intermediaries
b. Rules & Regulations d. Non of the above

771. NFO opening and closing detail mention in

a. KIM c. OD
b. SID d. All of above

772. KIM is to updated

a. Once in quarter c. Once in year
b. Once in month d. weekly
773. Recurring expenses includes
a. Investment advisory fee c. Marketing and selling fee
b. Charged by the AMC, d. All of above
R&T fee

774. Offer Document of Mutual Fund is approved by SEBI

a. True b. False

775. Stock exchange brokers are permitted to distribute MF after passing the
certifying exam
a. True b. False

776. If the post tax rate of return on an investment is 8% and the inflation rate is
6% the real rate of return is
a. 2.00 Percentage c. 8.00 Percentage
b. 1.89 Percentage d. Non of the above

778. A client is investing Rs. 1 Cr. in gilt fund which day NAV he will get?
a. Same day closing NAV c. Previous day NAV
b. Next Day NAV d. NAV of the day when funds are
realized

779. How many minimum client is required for a scheme to run

a. 20 c. 10
b. 10 d. 50

780. Which documents are needed for KYC?

a. PAN card c. Photo id proof
b. Address proof d. All of above

781. Which id proof is not valid identity proof for KYC (individual)
a. Credit card c. Driving license
b. Address proof d. All of the above
782. For additional purchase
a. Only transaction slip to be c. Only cheque
filled
b. Transaction slip with purchase d. None of the above
cheque

783. Which of the following entities reaches MF product beyond geographical

locations
a. The Brokers c. The Distributer
b. The Custodian d. R & T Agents

784. SEBI is sole regulatory authority for MF are answerable

a. True b. False

785. Where the investor desires to hold MF unit in DMAT form the AMC will
still be required to Perform KYC to such investors
a. True b. False

786. Offer document enable investor to compare the of MF scheme with another
MF scheme
a. True b . False

787. which of the following investors belong to institutional group?

a. HUF c. Proprietary firm
b. NRI d. FII

788. Performance advertisement

a. Shall identify Nature of
scheme
b. Shall only advertise compounded
annualise yield calculated using the
prescribe procedure
c. Shall mention the dividend declared
or paid in rs per unit along with face
value of each unit ofthat scheme and the
prevailing nav at the time ofdeclaration
of dividend
d. All of the above
789. Benefits of STP is
a. Paper work is minimized c. Both
b. Idle funds situation reduced d. None

790. Company has issued 10 core equity shares. It earns profit of Rs. 105 core on
which it has Paid tax of Rs. 5 core and distributed dividend of Rs 20 core.
What is EPS ?
a. 10 c. 12
b. 10.5 d. 11.5

791. Floating Rate Interest is ?

a. Government yield+ spread c. Base + spread
b. Yield spread d. Payable only on maturity

792. Market price of which of the following investment instruments will fluctuates
more ?
a. Long Tenor debt c. Floating Rate Securities
b. Short tenor Debt d. Debentures

793. Asset considered for Asset Allocation ideally be

a. Similar c. Only Financial Asset
b. Only Physical d. Mix of different kind of Asset

794. Which of the following is most unlikely to have a model portfolio with 20%
alloacation to sector fund?
a. Young Executive early in c. Investor in Distribution Phase
his career
b. Well Placed Mid Level d. Senior Executive with Well
Executive Settled Children
795. A distributor can be empaneled by AMC only if
a. Such distributor and its c. Such Distributor is registered
representative has/have cleared with Stock Exchange
certifying Exam
b. Such distributor is approved d. Approved by SEBI
by AMFI

796. AGNI is mandated by ?

a. AMFI c. RBI
b. AMFI and SEBI d. SEBI

797. Junk Bond Scheme is also be known as High Yeild Scheme ?

a. True b. False

798. According to Some studies Asset Allocations and Investment Policy can
better explain the portfolio performance as compared to Stock selection
and Investment Timimg?
a. True b. False

799. Which Of the following benefits of starting Health Inurance Policy early?
a. Higher Money Back after c. Both of the above
5 years
b. Protection against Insurance d. None Of the above
Company rejecting claim on the
ground of pre-existing illness

800. Which of the gollowing is Government Savings Scheme?

a. Infrastrucure Bond c. Post Office recurring
Deposit
a. RBI releif Bond d. All of the above

801. Duration of PPF deposit is

a. 15 years c. 7 years
b. 6 years d. 3 years
802. Relaxation from Documentation required for MICRO SIP is available for
a. Only Individuals other than c. Individuals Including
NRIs and PIOs NRI but not PIOs
b. Individual Including NRI d. Individuals including PIOs
and PIOs but not NRIs

803. Intial Phase of Life Cycle is Accumulation?

a. True b. False

804. Life insurance is meant for

a.Tax planing c. Investment
b. Risk protection d. Savings

805. Real Estate mutual fund is

a. Beyond means of retail c. Are popular investment options
investor's
b. Provided benefits of real estate d. Are not easy to liquidate
& MF investing

806. Black swan refer to

a. Probabilities of large losses c. Kind of offer documents
b. MF ratings d. Incentive to distributer

807. A five star rating in MF schemes indicates that

a. Lowest expense ration c. Demonstrate superior
performance
b. Lowest load d. Best portfolio

808. Which of the bond fund carries least amount of interest risk
a. Dynamic bond c. Income fund
b. G-sec fund d. Money market fund
809. Asset allocation must primarily based on
a. Investment needs c. Taxation needs
b. Insurance needs d. Financial goals

810. Faced with the financial difficulties a family is likely to do all this
except following
a. Move to a larger house in a c. Wifes starts working
better locality
b. Economise Expenses d. Husband takes additional
part time job

811. Pre-retirement stage

a. Annual investment amount c. Saving for retirement gets
gets reduced minimized
b. Parents reach towards peak d. Saving for investment is not
of their earning capacity required

812. Teir I account of new pension scheme is called pension account ?

a. True b.False

813. Which is false ?

a. Government is trying to convert c. Investment share can be translated
financial Asset to physical asset into projects
b. Investment in bank FD can be d. Investment in MF helps the real
transfered to loan economic

814. Minimum Networth requirement of the AMC is

a. Rs 10 crore c. Rs 4 core
b. Rs 5 crore d. Rs 2 crore

815. If a scheme is launched in the second six months of financial year the the
1st update of the SID is due within
a. Within 3 months of the end of c. Within 3 months from the end
the financial Year of the next financial year
b. IWith 3 months from the d. Within 6 months of the end
begining of Next financial year of the financial Year
816. Legally SAI is the part of SID
a. True b. False

817. Income tax allows setting of certain types of capital gain losses against
certain type of Income which of the following is true in case of such provision.
a. Capital losses can be offset c. Short term capital losses can be offset
again salary against dividend income for the year
In which the loss has occurred
b. Long term capital losses from equity d. Long term capital losses in equity
MF can Be offset against long term MF is not available for setting of
gain from property against business or Salary income

818. The __________ is the main driver of returns in a mutual fund scheme.
a. Return c. Portfolio
b. Profit of invested company d. None of the above

819. Fundamental Analysis entails review of the company's

a. Financial Statements c. Competitive Position
b. Quality of Management d. All of the above

820. ___________________ ratio indicates how much investors in the share

market are prepared to pay (to become owners of the company ) , in relation
to the company's earnings.
a. Earnings per Share c. Book Value Per Share
b. Price to Earnings ratio d. Price to Book Value

821. A ____________ fund maintains a portfolio that is in line with the passive
fund.
a. Active fund c. Equity fund
b. Index Fund d. Debt fund

822. Value investment style is an approach of picking up stocks which are valued
__________ , based on fundamental analysis.
a. Lower c. Medium
b. High d. A & B
823. Which is approach is also called stock picking.
a. Top – down Approach c. Either A & B
b. Bottom – up Approach d. None Of the above

824. If the proceeds on redemption are higher than the amount invested then it is
called __________ .
a. Capital Gain c. No Profit No Loss
b. Capital Loss d. None Of the above

825. Treasury Bills are short term debt instruments issued by the ____________
on behalf of the Government of India.
a. SEBI c. Central Government
b. Reserve Bank of India d. State Government

826. Commercial papers are short term Debt Securities issued by corporates.
a. True b. False

827. Credit rating companies are like _______________ .

a. CRISIL c. CARE & FITCH
b. ICRA d. All of the Above

828. Higher the credit risk , lower is likely to be the yield on the debt security.
a. True b. False

829. Which of the following are derivative _______________ .

a. Forwards c. Options and swaps
b. Futures d. All of the Above

830. Every scheme should have at least __________ investors .

a. 15 c. 25
b. 20 d. 30
831. __________ funds take Positions that are countrary to the market .
a. Thematic Funds c. Contra funds
b. Mid cap funds d. Dividend yield funds

832. Liquid schemes, which invest in securities of up 91 days maturity,

have the _________ risk amongest all kinds of schemes.
a. Higher c. Zero
b. Lowest d. None of the above

833. What is MIBOR ?

a. Mumbai Inter – Bank c. Mutual Inter – Bank
Offered Rate offered rate
b. Money Inter – Bank offered d. Multiple Inter – bank
Offered Rate Offred rate

834. To convert the demat units into physical from. This process is called
re-materialisation .
a. True b. False

835. RTGS refers to _______________ .

a. Real time Growth Settlement c. Real Technique Gross
Settlement
b. Real Time Gross Settlement d. Real Technique Growth
Settlement

836. What is ASBA _____________ .

a. Application Supported by c. Application Supported by
Blocked Account Blocked Amount
b. Application Supported by d. None of the Above
Blocked Acknowledgement

837. NSE's Mutua; Fund platform is called NEAT MFSS .

a. True b. False
838. When a dividend is paid , the NAV of the units falls to that extent.
a. True b. False

839. Risk can be measured by

a. Variance c. Beta
b. Standard Deviation d. Any of the above

840. SEBI has Facilitated buying and selling of mutual fund units through the
stock exchanges.
a. True b. False

841. ARN REFERS TO _____________ .

a. Agent registration Number c. Application Registration Number
b. AMFI Registration Number d. Account Registration Number

842. In hoardings / posters, the statement , “ Mutual fund investments are subject
to market risks, read the offer document carefully before investing ” is to be
displayed at least _________ inches height .
a. 6 c. 5
b. 9 d. 8

843. If a scheme is launched in the first 6 months of the financial year then the
first update of the SID is due with in ________ months of the end of the
financial year .
a. 2 c. 5
b. 6 d. 3

844. No single investor shall account for more than 20% of the corpus of the
scheme/plans.
a. True b. False
845. The asset management company shall confirm that a due diligence certificate
is signed by the ____________ .
a. Compliance officer c. Managing Director
b. Chif executive officer d. Any of the above

846. In case of specifice request recived from investors, mutual funds shall provide
the account statement (SIP/STP) to the investor's within __________ working
days from the receipt of such request without any charges .
a. 5 c. 7
b. 10 d. 15

847. The mutual fund would update the current expense ratios on the website
within _________ working days mentioning the effective date of the change .
a. 5 c. 2
b. 7 d. 10

848. Offer documents of mutual fund schemes are approved by SEBI .

a. True b. False

849. _______________ regulates mutual funds, depositories, custodians and

registrars & transfer agents in the country .
a. RBI c. AMFI
b. SEBI d. All of the above

850. The objectives of AMFI is/are ____________ .

a. To recommend and Promote c. To represent to the Government,
best business practices Reserve bank of india
b. To recommend and Promote d. All of the above
best business practices

851. “ To generate income by investing predominantly in wide range of debt and

money market securities “ is an objective of _________ .
a. Diversify equity Scheme c. Balanced scheme
b. Diversify Debt Scheme d. None
852. Institutional Distributors Build Reach through
a. Employees c. Sub Brokers
b. Agents d. Any of the Above

853. The distributor can charge fees from the Investor

a. True b. False

854. The difference between NAV and repurchase price is

a. Entry Load c. Expense
b. Exit Load d. Dividend Stripping

855. NAV of Income Funds is to be calculated upto _______ decimals

a. 4 c. 2
b. 3 d. 1

856. Investments in Mutual Fund can be made using

a. Cheque/DD c. ASBA
b. Remittance d. Any of the Above

857. STP is the combination of SIP and SWP

a. True b. False

858. In a Top Down approach, sector allocation precedes stock selection

a. True b. False

859. Loads and taxes may account for the difference between scheme return and
investor return
a. True b. False

860. Mutual Fund Ranking and rating amount to same

a. True b. False
861. Which of the following aspects of portfolio would an investor in a debt scheme
give more importance
a. Sector Selection c. Weighted Average Maturity
b. Stock Selection d. No of Securities in portfolio

862. The comparable for a Liquid Scheme is

a. Equity Scheme c. Gilt Fund
b. Balanced Scheme d. Savings Bank Account

863. Providing Funds for daughter's Marraige is an example of

a. Goal Oriented Financial Plan c. Financial Goal
b. Comprehensive Financial Plan d. None of the above

864. Distribution phase of Wealth Cycle is a parallel of retirement phase of life

cycle
a. True b. False

865. Incase of NPS investor can choose which of the asset class of the following
a. Equity c. Government Securities
b. Corporate Debt d. All of the above

866. New Pension Scheme is regulated by

a. PFRDA c. PFRDA+IRDA
b. IRDA d. None of this

867. What % of the total wealth of Indian People is in physical asset

a. More than 10% c. More than 50%
b. More than 25% d. All of the above
868. PFRDA refers to
a. Private Fund Regulatory and
Development Authority
b. Provident Fund Regulatory and
Development Authority
c. Pension Fund Regulatory and
Development Authority
d. All of the above

869. Investment in a Financial Assets can be productive for the economy

a. True b. False

870. NCDEX refers to

a. National Contract Exchange c. National Commodity Exchange
b. National Currency Exchange d. National Conversion Exchange

871. In case of the buying of the Gold Future Contract, entire value of the Gold
has to be paid
a. True b. False

872. ------exempted from the Wealth Tax

a. Gold Deposit Scheme c. Both A and B
b. MF d. None of this

873. Many investors invest money in Bank FD and not in Debt market because
a. Lack of Interest c. Lack of Money
b. Lack of awareness d. Lack of confidence

874. Interest earned in Bank FD is Taxable each year

a. True b. False

875. The primary objective of the Financial Planner is to make available the right
amount of money at the right time.
a. True b. False
876. The third stage of the wealth cycle is
a. Accumulation c. Reaping
b. Transition d. Intergenerational transfer

877. In many health insurance policies, the customer has to bear the expenses
and that can get reimbursed from the Insurance company
a. True b. False

878. Risk appetitte ---------- as no of dependant menber increases

a. Decreases c. No change
b. Increases d. Any of the above

879. Many-------have made available the risk profiling tool on their web sites
a. AMCs c. Both
b. Research Houses d. None of this

880. ------is the decision outcome based on the market behaviour

a. Tactical Asset Allocation c. Flexible Asset Allocation
b. Strategic Asset Allocation d. Fixed Asset Allocation

881. Many Financial advisor work on the Model Portfolio

a. True b. False

882. Which are the aspects that affect the Risk profiling of the investors?
a. Family Information c. Personal Information
b. Financial Information d. All of the above

883. We have to do the registration of the mutual fund with the SEBI. Who gets
registration done
a. Trust c. Sponsor
b. R & T d. AMC
884. AMFI do the following activity
a. Publish NAV, AUM of the fund c. Manages money under
house and maintain and publish
industry data
b. Compute NAV d. None of the above

885. In a liquid fund a application for repurchase comes at 3.30. Whats

is the NAV which would be available to it
a. Closing NAV of the c. Closing NAV of the day preceeding
date of application the next business day
b. Closing NAV of the d. Closing NAV of the day preceesing
next business day the date of application

886. In creating of model portfolio which is the first step

a. Deciding the Asset Allocation c. Selection of Sector
b. Identify financial Goal d. Selection of the scheme

887. Once the asset allocation is decided, sharpe ratio can help us to select the
good debt and equity Schemes
a. True b. False

888. Once the asset allocation is decide, treynor ratio can help us to select the
good debt and equity schemes
a. True b. False

889. With the increase in the regular income from the job risk taking ability of
the investor _________
a. Remains the same c. Increases
b. Decreases d. Insufficient data
890. A repurchase comes in a GILT fund at 2.30 pm. Whats would be the NAV
available to the redemption
a. Closing NAV of Next c. Closing NAV of the day preceeding
Business Day the next business day
b. Closing NAV of the d. Closing NAV of the day preceeding
Application Day the Application date

891. 75% investment in debt is suggested to

a. Aged couple with no immediate c. Young call centre executive
family support
b. 40 year old man with a family d. Young couple with 2 school
with grown up children going kinds

892. An investor with interest to earn high return and willing to take high risk are
refferred to as
a. Cautious Investor c. Adventurous Investor
b. Conservative Investor d. Aggressive Investor

893. A person requires 1,00,000 rs for the specific goal after 3 years. If we want to
known what amount he needs to invest no to get the said amount at rate of
5%. which of the following formula needs to be used
a. 100000*(1+0.05)^3 c. 100000/(1+0.05)^3
b. 100000*(1+0.05)*3 d. 100000/(1+0.05)*3

894. For an Micro SIP which one of the following is not a valid photo ID proof
a. PAN proof c. Credit card with Photo ID
b. Debit card with photo ID d. Voter ID proof

895. The responsiblity to manage funds in the new pension scheme is with
a. PFRDA c. AMCs
b. Insurance Companies d. PFMs
896. Where you get the information in regards to the key personals involved in
an AMC
a. They are not published as it is not c. Available in SAI ( Statement of
very important for the investor Additonal Information )
b. They are published on the
website of the mutual Fund

897. Which of the following is not available in SID

a. Type of Fund c. Due Diligence certificate
b. Risk Factor d. None of the above

898. Legally SAI is the part of SID

a. True b. False

899. The date of the applicablity of the NAV is not dependent on

a. Time at which the application c. The day on which the application
is submiited is submiited
b. Scheme in which the money d. The amount which is getting invested
is invested

900. The AMFI allots unique the ARN no which is valid for the period of three
years
a. True b. False

901. The following would not affect the trail commission to the advisor in mutual
Fund
a. Portfolio value going up with c. Change in the unit capital of
the increase in the market the the scheme
b. Investor making fresh purchase d. Investor redeeming the money
during the period during the period

902. STT paid on the re purchase of units by the AMC

a. 0.00125 c. 0.0025
b. Nil d. 0.00017
903. Which of the following when transacted on the stock exchange STT is not
applicable
a. ELSS c. Index ETF
b. GOLD ETF d. Diversified Equity Fund

904. Its is advisable for an average investor to do Tactical Asset allocation for
planning his retirement
a. True b. False

905. In case of sudden wealth which among the following is least advisable
a. Park the money in the liquid c. Start STP from liquid fund into
fund for a short time Equity Funds
b. Invest all money into equity d. Review the financial plan
at one go

906. Tactical asset allocation is suitable for seasoned investor with large
investible surpluses
a. True b. False

907. An application for re purchase in equity comes at 3.30. What would be the
applicable NAV
a. Closing NAV of Next Business c. Closing NAV of the day preceeding
Day the next business day
b. Closing NAV of the Application d. Closing NAV of the day preceeding the
Day Application date

908. In case there is a redemption from a NRI who have invested the money on a
non repatriable basis. The mutual would pay in dollors as redemption
a. True b. False

909. The investment grow faster in dividend re investment options as compared

to the growth option because more units are added on dividend reinvest
a. True b. False
910. In case of the growth option which of the following is not true
a. The NAV capture the full value c. The number of units increases
of the porfolio gain over period
b. There is no dividend declared d. There is a Tax Deffereal

911. If the company have 10 cores if Issued shares. The profit it makes is 105 coree.
IT pays 5 crore as tax. Also pays 20 crore as dividend what is the EPS
a. 10 c. Not sufficient Data
b. 8 d. 5

912. An investor in the debt scheme who completely want to eliminate investment
in equity should invest in MIP
a. True b. False

913. The fund have an average asset of 300 crore. The portfolio turnover is
Rs 1000 crore. For how many months the investment are held for
a. 0.36 c. 3
b. 3.6 d. 0.25

914. The floating rate fund hold on to there value even if the interest rate are
fluctuating
a. True b. False

915. Performance of the fund is most sensitive to the expense ratio in which of the
following Fund
a. Liquid Fund c. ETF
b. Diversified Equity Fund d. Sector Fund

916. Who among the following are not distributor for Mutual Funds
a. National Distributors c. Branches of Reserve bank
of India
b. Branches of Public Sector d. Branches of Foreign Banks
Bank
917. Importance of credit rating agency is most important in
a. Equity Funds c. ETF
b. Secutised Debt

918. Full form of AGNI

a. AMFI gudieline and Norms c. AMFI guideline for Asset
for Intermidiary Management Company
b. AMFI guideline and norms d. AMFI Guideline for Non Indians
for Investment

919. Sector selection is the key decision in the Bottom Up Apprach

a. True b. False

920. Illiquid Shares would be valued at

a. Value Decided by the broker c. Price decided by the
offmarket Trade
b. Fair market value as the the d. None of the above
guidelines of SEBI

921. Tax consultant should not advice financial planning to his client
a. True b. False

922. Mother want to set apart Rs 25 lakhs in 3 years time

a. Financial Goal c. Financial Planning
b. Asset Allocation d. Financial Desire

923. Followinf is the Asset Allocation

a. Dividend payout and c. Growth and Value Fund
Growth Option
b. Art and Gold Fund d. Active fund and Passive Fund

924. Limit of the commission to be paid to distributor is decided by SEBI

a. True b. False
925. Whats is an NFO Investments?
a. Investment done by any
investor in the new Scheme
b. Additonal Purchase by the
existing investor
c. First time investment in any of the
mutual Fund Scheme
d. Additional Purhase by the existing
investot in another scheme

926. Whats is true about the FMP

a. NAV dose fluctuate c. Returns can be reasonably predicted
before the maturity
b. No defaul Involve d. All of the above

927. SAI needs to be updated every

a. Yearly c. Quarterly
b. Monthly d. Half Yearly

928. Who is responsible for the information available in OD

a. Trustee c. Sponsor
b. AMC d. Custodian

929. Which of the following government secuity have leasr maturity period
a. CD c. T Bills
b. CP d. Gilt Scheme

930. Which of the following credit rating is not required

a. Shor term debt Fund c. GILT Schemes
b. Liquid Schemes d. FMPs

931. Insurance is more important in case of Physical Asset Vis a Vis financial
Asset
a. True b. False
932. Which of the asset have the higest risk to be stolen
a. Real Estate c. Mutual Fund
b. GOLD d. Bank Balance

933. Most best way to decide the risk appetite of the person is to ask client that
“ how mush risk you are ready to take in the market”
a. True b. False

934. Share price of the Gold Mining Company is dependent on

a. Gold Reserve c. Gold Price
b. Quality of the operation d. All of the above
of the company

935. Expense ration is more important in case of

a. Offshore Fund c. Debt Fund
b. Equity Fund d. Sector Fund

936. While construction of the portfolio the relative performance is done with
a. Peer Group c. Model Portfolio
b. Asset Alllocaton d. Tracking error

937. The balance funds based on flexible Asset Allication is lower riskier than
high yield debt fund
a. True b. False

938. Between whom the Trustdeed is executed between

a. Trustee and Sponsor c. Trustee and AMC
b. Sponsor and Custodian d. AMC and Sponsor

939. Repurchasing the predecided no unit at the regular interval is called

a. STP c. SIP
b. SWP d. All of the above
940. Unclaimed investment amount and dividend can be demand by the investor
a. True b. False

941. Applicable NAV for the different scheme is as per the following time
a. Office time of AMC c. As per the time of stock
market
b. Office time of R&T d. Cut-Off time decided by SEBI
for various MF scheme

942. While empannel with the AMC, every distributor have to provide the
following
a. Correct and complete information c. Provide all information and document
that the AMC may ask for from time
to time
b. Commitment to abide by instruction d. All of the above
given as also statutory codes and
guideline

943. Transaction done of MF on the NSE NEAT and BSE Start the exchange
gurantee the settlement of Funds
a. True b. False

944. Low P/E ratio indicate that it is unlikely to replicate its past performance
a. True b. False

945. Churning of the portfolio by the Fund Manager is called

a. Portfolio Turnover Ratio c. Annual Turnover Ration
b. Liquidity Ratio d. All of the above

946. Investment in a Real Estate Mutual Fund is

a. Beyond the means of the c. Highly illiquid
retail investor
b. Extremally Liquid and cost d. Offer the benefit of both real
effedctive estate and Mutual Fund
947. Advantage of investing in PPF is
a. Loan is available any time
b. Premature withdrwal is allowable
after one year
c. Any amount of investment
in the scheme
d. Tax free return every year

948. Self Regulatory Organisation controls

a. All his member to the limited extent c. All mutual fund company
b. All his member completely d. All share brokers

949. In case of Joint holder the pan card requriment for

a. 1st and 2nd Holder c. Only 1st Holder
b. All joint holders d. Any One

950. Maximum number of nominee which can be added

a. 5 c. 3
b. 1 d. 2

951. In case New Pension scheme how many PFM( Pesion Fund Managers) are
managing the money
a. 5 c. 3
b. 4 d. 6

952. In Lower Interest Rate Senario Debt Product of MF will Generate higher
return compared to Fixed Deposit.
a. True b. False

953. An employee of the mutual Fund can be an Agent

a. True b. False
954. Commission on Investment done by Sponsor in a Fund is
a. Not Payable c. Payable to distributor whose ARN is
mentioned in the application form
b. Payable to Sponsor d. None of the above

955. Book Value of a Share is dependent on Accounting Policies of the company

a. True b. False

956. Code of Conduct for AMC Personnel & Trustees are mentioned in
a. Chapter II c. Schedule II
b. Chapter IV d. Schedule V ( 5th Schedule)

957. If complaint of an investor is not solved by AMC, investor has to complain to

a. SEBI c. Sponsor
b. Trustees d. R & T

958. Feeder Fund can invest in International Market as

a. Anywhere as per Investment c. Only International Debt
Objective of the Fund
b. Only International Equity d. All of the above

959. Tax Deferral is available in

a. Growth c. Dividend Reinvest
b. Dividend

960. Benchmark of Sectoral Fund investing in Banking Sector would be

a. BSE Bankex c. S&P Nifty
b. Nifty Junior d. S&P 500

961. Before going to SEBI for approval of a Fund Launch AMC needs to
a. Take approval from Trustees c. Finalise the Launch Date
b. Print the application Form d. All of the above
962. Which of the Following Fund is most Sensitive to Expense Ratio
a. Liquid Fund c. Equity Fund
b. Index Fund d. Off shore Fund

963. ASBA is an Excellent Facility for Additional Purchase in a Fund

a. True b. False

964. Converting Units of a Mutual Fund from Demat Form to Physical & Vice
Versa is Possible
a. True b. False

965. Indexation means

a. Finalising the benchmark c. Considering the growth of
for the fund partcular asset class
b. Adjusting the Purchase Price of d. All of the above
the Fund considering the Inflation

966. Investor in Reaping Phase would primarily invest in

a. Equity c. Both
b. Securities yielding d. None of the above
Regular Return

967. Which of the following is not the scheme specific risk factor?
a. Risk arising from the c. No previous experience in
schemes objective managing a fund
b. Risk arising from the d. Movement in NAV because of
nondiversification the market movements.

968. A Financial Planner can use any of the Model Portfolio available on the Web
a. True b. False

969. In NPS Tier – I account is compulsory for opening Tier – II account

a. True b. False
970. A Retired couple with Zero income should invest all the money in Liquid
Fund
a. True b. False

971. Concentration risk is highest in

a. Equity Share c. Real Estate
b. Bank deposit d. Commodity

972. A high amount of equity investment is suggested to the investor if he is in

which stage ?
a. Accumulation phase c. Distribution phase
b. Transition phase d. No such relation with any
phase of life.

973. In an rising Market scenario When Equity Price Moves upward, The
Dividend Yield
a. Remains same while c. Decreases with the rising Market
keeping Dividend rate same. keeping the dividend rate same.
b. Increases as with The Rising d. Impossible to explain in absence of data.
Rate keeping the dividend rate
Same

974. When There is a rally in Bond market the likely impact is

a. The price of Bond c. Either a or b.
will increase.
b. The Yield will decrease. d. Both.

975. A Mutual Fund Equity portfolio reduces Risk if compared with an individual
Equity because
a. The diversification across the c. A Single stock carries both Systematic
Portfolio leads to averaging of risk. and higher Unsystematic risk unlike
Portfolio.
b. The stocks within portfolio may d. All of the above.
have negative correlation among them.
976. A Client wants to understand the Risk of his Portfolio, What are the
quantifiable numbers explained in Mutual Fund fact Sheet to explain them?
a. Standard Deviation c. Share Ratio
b. Beta d. All of the above.

977. A Bond Fund manager expects good Rally in Bond Market following
announcement of Gradual reduction in Fiscal deficit by Finance Minister.
What could be his inference?
a. The reduced fiscal deficit will c. The reduced fiscal deficit will reduced
reduced Government Bond the supply of Bond leading to surplus
Buying program. liquidity.
b. The reduced fiscal deficit will allow d. The reduced fiscal deficit will allow
fund manager to decide his own price. RBI to decide the Bond rate.

978. A Client with Low to medium risk appetite wants to invest for 2-3 year horizon,
what could be best suggestion?
a. He should invest in Sector c. He Should Buy Short term Bond Fund
Fund with 3 year. with matching duration.
b. He should be Index Fund with d. He should invest in Liquid for 2-3
3 Year Horizon. Year periods.

979. A Client wants to Plan his Retirement at the age of 60, while his present age is
25 and is married with 2 children. He has reasonable good Salary and no
other social responsibility.
a. He Should Start an SIP in an c. He should start an SIP in diversified
Aggressive Balanced Fund. Equity Fund.
b. He Should Start an SIP in index Fund d. He should start SIP in arbitrage Fund.

980. A Mutual Fund RM while marketing his Debt Scheme was insisting to invest
in a Long Duration debt Scheme, What actually he meant...
a. He is expecting a rise in c. He is expecting a rise in inflation.
Bond yield
b. He is expecting rise in d. He is expecting a rise in
Interest rate. Bond price.
981. Suppose A Dynamic debt Fund duration oscillates between 30 days to 8 years.
Given this objective if the Dynamic Fund these days is maintaining Duration
of 45 days. What does that meant?
a. The Dynamic Fund best reflect the c. The Dynamic Fund best reflect the
feature of Short Term Debt Fund. feature of arbitrage Fund.
b. The dynamic Fund best reflects the d. The Dynamic fund is long duration Bond
feature of Ultra Short Term Debt Fund. fund cannot have 45 days Duration.

982. The RM of a Fund House insisting upon the Beta as 1 to be the best sales
reason of his Fund? What he was referring to ...
a. The Fund he selling was a large c. The Fund he was referring to
cap diversified Fund. is Index Fund.
b. The Fund he was referring to d. The fund he was referring to is
was Micro Cap Fund. arbitrage Fund.

983. Which among the following about Arbitrage Fund is wrong?

a. This is a Low risk Fund. c. It generates return from Price
ambiguity across the Index.
b. This involves equity taxation. d. It is a close ended fund.

984. Tracking error is associated with

a. Index Fund c. Arbitrage Fund
b. Mid Cap Fund d. Liquid Plus Fund

985. A client after retirement should be offered

a. Scheme with equity exposure. c. Scheme with high Value Potential
b. Scheme of Long Duration. d. Scheme with optimum mix of
equity and Debt.

986. A Relation Ship Manager has no clue about Interest rate Movement. What
could be most risky recommendation?
a. He Should recommend c. He should recommend FMP.
Low duration Fund
b. He should recommend d. He should recommend
high Duration fund. Dynamic Fund.
987. Which among the following is not true about capital Protection fund?
a. These are mixture of Equity c. It assumes there is no default in
and Debt Portfolio. Debt instrument.
b. The earning of Debt portfolio d. Such Scheme Guarantee as per
hedges/ balances the optimum offer document.
erosion in Equity.

988. If arranged which among the following could best display Beta more than
one value?
a. Index Fund c. Sector Fund
b. Diversified Equity Fund d. Arbitrage Fund

989. In an declining interest rate scenario, It is best to advise

a. To invest in low duration fund c. To invest in Long duration
Bond Fund
b. To invest in Medium duration d. To invest in capital Protection
corporate Bond Fund Fund.

990. Which is not true among the following statement?

a. Beta Measures market Risk. c. Unsystematic risk is measured
by Beta.
b. Standard Deviation measure d. Systematic risk and market
total Risk. Risk are same.

991. In a Medium Term duration corporate Bond Scheme does not targets
returns through,
a. Likely decline in Interest Rate. c. Likely accrual from higher YTM.
b. Likely yield spread on Bond d. Likely capital appreciation from
portfolio. appreciating Yield.

992. If Two Bond portfolio A) and B) have same Duration but A) have higher
Yield than B), that implies...
a. A) Portfolio must be having high c. A) Portfolio has low Rated Bonds
rated security than B). than B).
b. A) Portfolio must be having more d. A) Portfolio holds more short term
cash than B) Paper than B)
993. A Bond portfolio invests only in call Money Market. What could be its YTM?
a. Not Possible to be ascertained. c. One day return of Call Money.
b. YTM of Call Money Market d. Both b) and C)

994. The Risk of a Equity scheme can be best explained by

a. Beta c. Both a) and B)
b. Standard Deviation d. This is always average of two.

995. An equity Scheme have high concentration of Low PE stock, it could be

best termed as.
a. Growth Portfolio c. Income Portfolio
b. Dividend Yielding Portfolio d. Value Portfolio

996. An equity Scheme with high SIP book Size have advantage of
a. Able to Invest in even c. Investing in all cycle of Equity
Low PE market. Market movement.
b. Investing Regularly. d. All of the Above.

997. Which among the following may not be a fair investment suggestion?
a. Value Averaging c. Systematic Transfer Plan.
b. Cost Averaging d. None of the Above

998. Liquid Fund is best explained as?

a. The Standard Deviation is low.
That means consistency.
b. It invests in Money Market
Instruments So the Return is
fixed.
c. There is no credit Risk, as it only
invests in T Bills.
d. There is no volatility in return.

999. What is correct about a Balanced Fund?

a. It captures the risk both related c. Risk of Portfolio decreases with
to Equity and Debt. increase in debt component.
b. Risk of Portfolio increases with d. All of the above.
increase in equity component.
1000. An Income fund and Gilt Fund can be differentiated in scheme comparison
based on.
a. The underlying Portfolio of c. The average Maturity /duration of
the two Schemes. the two schemes.
b. The Yield to Maturity of d. All of the Above.
the two Schemes.

1001. In 2014, 10 Year Debt market Yield declined, what could be the possible
reason
a. RBI promised it will decrease c. This is a cyclical move; rate if
the Short term rate. gone up has to come down.
b. There was record FII investment d. When equity market soars, the
to the tune of 24 Billion $ dollar in debt. debt yield declines.

1002. What best Describe the Valuation of Equity Market?

a. SENSEX c. PE
b. EPS d. Dividend Yield

1003. Which variable explains the anticipated earning of a Bond holder in time to
come?
a. Current Yield c. Yield to Call
b. Yield to Maturity. d. None of the above.

1004. The Sensex at 27500 is at 20 PE for 2014 EPS. Given linear Growth of
economy, What is not true?
a. The SENSEX valuation of 27500 c. Both statement appear logical and
will at lower PE for forwarding near to truth.
income.
b. The SENSEX valuation of 27500 d. PE and EPS together cannot explain
is at even higher PE for trailing the valuation of present SENSEX.
Income.

1005. A Arbitrage opportunity in an Arbitrage fund can exit between

a. Cash and future market c. NSE and BSE price
of a Security. of a Security
b. ADR and GDR market d. All of the above.
of a Security
1006. Capital Protection fund best explains
a. A Nature of hybrid fund. c. The investment horizon of Investor
matches with Portfolio maturity.
b. It has fixed maturity tenor. d. All of the above.

1007. What is true about Beta for a Mutual Fund Scheme?

a. Risk Neutral Beta is 1. c. Beta of inversely correlated Diversified
Fund ideally rest below 1.
b. Beta of Sector fund ideally d. All of the above.
above 1.

1008. Which among the folowing not a part of Gilt Fund Portfolio
a. T Bill c. G Sec
b. CP d. SDL

1009. What is True about MIP divided every Month .

a. It is Fixed c. As per Offer document
b. It is assured d. As per Fund manager

1010. ETF is different than Index Fund because ETF is

a. Listed c. Both a) and B)
b. Real time NAV d. None

1011. Which among the following is not a Legal document

a. Fact Sheet c. Offer document
b. KIM d. SID

1012. Which among the following may be a Scheme classification in MF

a. Open End c. Interval Fund
b. Close End d. All of the above
1013. Which among the following could be an Scheme classification of MF
a. Equity Scheme c. Hybrid Fund
b. Debt Scheme d. All of the Above

1014. What percentage of Unit holder together can close an MF Scheme ?

a. 25% c. 75%
b. 50% d. 90%

1015. KIM has to be updated on an interval of

a. 3 Month c. 9 Month
b. 6 Month d. One year

1016. Distributor can charge Fees from the Investor

a. Yes c. It depend on amc
b. No d. Varies Scheme to Scheme

1017. The most appropriate measure of returns for a scheme in existence

a. Simple Return c. Absolute return
b. Dividend return d. CAGR

1018. Which among the following can measure various risk associate with MF
investment
a. Standard Deviation c. Credit Spread
b. Beta d. All of the Above

1019. The comparable for a liquid scheme of MF can be

a. PPF account c. NBFC deposit
b. Insurance Policy d. Saving Account

1020. Who regulates Mutual Fund In India

a. RBI c. PFRDA
b. SEBI d. IRDA
1021. Which among the following is not a Money market Instruement
a. SDL c. CD
b. CP d. T Bill

1022. Which among the following is a Secured Bond

a. Repo c. Both of the above
b. CBLO d. None of the above

1023. Which among the following is a Long term Bond

a. CP c. CBLO
b. CD d. Debenture

1024. Which among the folowing is most risky Scheme

a. Balance Fund c. Liquid Scheme
b. Monthly Income Plan d. Ultra Short term Scheme

1025. Which among the following is a most risky Scheme

a. PSU bond Fund c. Credit Spread fund
b. Corporate Bond Fund d. Money market Fund

1026. Which among the following is a most risky Scheme

a. Gilt Fund c. Money Market Fund
b. Liquid Fund d. Saving Scheme

1027. FMP is a
a. Cose ended scheme c. Passive managed Scheme
b. Debt Scheme d. All of the Above

1028. Sector Fund generallay have

a. Highest Risk c. Non Systematic Risk
b. Concentration risk d. All of the Above
1029. Minimum networth requirement for a new AMC is ______________
a. 20 Cr c. 40 Cr
b. 30 cr d. 50 Cr

1030. Sponsors need to have a minimum of ____% share-holding in the capital of

AMC
a. 20% c. 50%
b. 40% d. 75%

1031. Within __ days of dividend declaration, warrants will have to be sent to

investors.
a. 3 Days c. 10 day
b. 7 Days d. 30 Days

1032. Application form is attached to _________

a. Offer document c. SAI
b. SID d. KIM

1033. Within __ days of redemption, reemption cheque will have to be sent to

investors.
a. 3 Days c. 10 day
b. 7 Days d. 30 Days

1034. NFO period for Scheme other than ELSS is

a. 10 Days c. 20 Day
b. 15 Day d. 30 Days

1035. Which among the following offer tax Scheme under section 80 C
a. FMP c. ELSS
b. Liquid Fund d. Index Fund
1036. Which among the following is Passively Managed Fund
a. Index Fund c. Liquid Fund
b. Mid cap Fund d. Gilt Fund

1037. Which among the following measure Systematic Risk

a. Beta c. Sharpe ratio
b. Standard Deviation d. Yield Spread

1038. Which among the following measure Credit Risk

a. Duration c. Beta
b. Sharpe ratio d. Credit Spread

1039. The relationship between Bond Price and Yield is

a. Linear c. Non linear
b. Uniform d. Inverse

1040. The interest rate Risk is measured by

a. Yield Spread c. Convexity
b. Duration d. Benchmark

1041. Which among the following measure Risk adjusted return

a. Share Ratio c. Both of the Above
b. Teynor ratio d. None of the Above.

1042. Unsystematic Risk can be reduced by

a. Fund manager c. Positive Corealation
b. Diversification d. None of the above

1043. Index Fund - if out perform its benchmark is called

a. Alpha c. Tracking Error
b. Jensen Alpha d. Outstanding performance
1044. Alpha is measurement of Fund manager performance over and above
a. Market return c. Benchmark return
b. 3 year Average return d. Peer performance

1045. When a Bond gets downgraded , a scheme portfolio will undergo

a. NAV increases c. Yield Decreases
b. NAV decreases d. No effect

1046. Which among the following is not a method of investment in MF Scheme

a. SIP d. One Time
b. STP e. SWP

1047. An investor with low risk profile Should choose to invest in

a. Diversified Equity Fund c. ELSS
b. Small cap diversified d. Close ended Equity Fund

1048. To become a Mutual Fund Distributor , One should pass which module of
NISm Exam.
a. NISm VIII c. Nism V
b. NISm VII d. Nism 1

1049. AMFI is a
a. Regulator c. Advisory Body
b. SRO d. None of the above

1050. Discliamer certificate to the Scheme of AMC is iisued by

a. AMFI c. RBI
b. SEBI d. Trustee

1051. To get KYC done , an investor needs to Submit

a. Photo c. Address proof
b. Identity proof d. All of the above.
1052. A distributor can work for
a. Only One AMC c. Minimum 3 AMC
b. All the AMC d. None of the above

1053. A Money market instruement will have its maturity up to

a. 90 Day c. 1 year
b. 14 Days d. 3 year

1054. The Short Term capital Gain for an equity portfolio should have investment
tenor of
a. 1 year c. Less than 1 year
b. 3 year d. Less than 3 year

1055. Which type of Mutual fund Scheme have the Indexation benefit attached for
its tax computation.
a. Equity Portfolio c. Debt Portfolio
b. Hybrid Portfolio d. All of the them

1056. Which among the following offer regular Operation and Services for MF
Investor
a. Depository c. Banker
b. Custodian d. R & T agent

1057. STT is applicable to

a. Equity Scheme c. Hybrid Scheme
b. Debt Scheme d. All of the above

1058. Which among the following may be a Scheme classification in MF

a. Open End c. Interval Fund
b. Close End d. All of the above
1059. Which among the following could be an Scheme classification of MF
a. Equity Scheme c. Hybrid Fund
b. Debt Scheme d. All of the Above

1060. Which among the following can measure various risk associate with MF
investment
a. Standard Deviation c. Credit Spread
b. Beta d. All of the above.

1061. The comparable for a liquid scheme of MF can be

a. PPF account c. NBFC deposit
b. Insurance Policy d. Saving Account

1062. Which among the following not a part of Gilt Fund Portfolio
a. T Bill c. G Sec
b. CP d. SDL

1063. What is True about MIP divided every Month.

a. It is Fixed c. As per Offer document
b. It is assured d. As per Fund manager

1064. ETF is different than Index Fund because ETF is

a. Listed c. Both a) and B)
b. Real time NAV d. None

1065. Who regulates Mutual Fund In India

a. RBI c. PFRDA
b. SEBI d. IRDA

1066. Which among the following is most risky Scheme

a. Balance Fund c. Liquid Scheme
b. Monthly Income Plan d. Ultra Short Term Scheme
1067. Which among the following is a most risky Scheme
a. PSU bond Fund c. Credit Spread fund
b. Corporate Bond Fund d. Money market Fund

1068. Which among the following is a most risky Scheme

a. Gilt Fund c. Money Market Fund
b. Liquid Fund d. Saving Scheme

1069. FMP is a
a. Close ended scheme c. Passive managed Scheme
b. Debt Scheme d. All of the above

1070. Sector Fund generallay have

a. Highest Risk c. Non Systematic Risk
b. Concentration risk d. All of the above

1071. Which among the following offer tax Scheme under section 80 C
a. FMP c. ELSS
b. Liquid Fund d. Index Fund

1072. Which among the following is Passively Managed Fund

a. Index Fund c. Liquid Fund
b. Mid cap Fund d. Gilt Fund

1073. Which among the following measure Systematic Risk

a. Beta c. Sharpe ratio
b. Standard Deviation d. Yield Spread

1074. Which among the following measure Credit Risk

a. Duration c. Beta
b. Sharpe ratio d. Credit Spread
1075. The relationship between Bond Price and Yield is
a. Linear c. Non linear
b. Uniform d. Inverse

1076. The interest rate Risk is measured by

a. Yield Spread c. Convexity
b. Duration d. Benchmark

1077. Which among the following measure Risk adjusted return

a. Share Ratio c. Both of the Above
b. Teynor ratio d. None of the above

1078. Unsystematic Risk can be reduced by

a. Fund manager c. Positive Corealation
b. Diversification d. None of the above

1079. Index Fund - if out perform its benchmark is called

a. Alpha c. Tracking Error
b. Jensen Alpha d. Outstanding performance

1080. Alpha is measurement of Fund manager performance over and above

a. Market return c. Benchmark return
b. 3 year Average return d. Peer performance

1081. When a Bond gets downgraded, a scheme portfolio will undergo

a. NAV increases c. Yield Decreases
b. NAV decreases d. No effect

1082. An investor with low risk profile Should choose to invest in

a. Diversified Equity Fund c. ELSS
b. Small cap diversified d. Close ended Equity Fund
1083. AMFI is a
a. Regulator c. Advisory Body
b. SRO d. None of the above

1084. Gilts Funds invest only in Treasury Bills and Govt. Securtities.
a. Yes b. No

1085. MIP seeks to deliver dividend every month and the same in assured.
a. True b. False

1086. ETF are open ended funds that trades in Stock Exchange
a. True b. False

1087. Which among the following is not a Money market Instruement

a. SDL c. CD
b. CP d. T Bill

1088. Which among the following is a Secured Bond

a. Repo c. Both of the above
b. CBLO d. None of the above

1089. Which among the following is a Long term Bond

a. CP c. CBLO
b. CD d. Debenture

1090. A Money market instrument will have its maturity up to

a. 90 Day c. 1 year
b. 14 Days d. 3 year
1091. To become a Mutual Fund Distributor, One should pass which module of
NISm Exam.
a. NISm VIII c. Nism V
b. NISm VII d. Nism 1

1092. Disclaimer certificate to the Scheme of AMC is issued by

a. AMFI c. RBI
b. SEBI d. Trustee

1093. To get KYC done , an investor needs to Submit

a. Photo c. Address proof
b. Identity proof d. All of the above

1094. A distributor can work for

a. Only One AMC c. Minimum 3 AMC
b. All the AMC d. None of the above

1095. Which among the following is not a Legal document

a. Fact Sheet c. Offer document
b. KIM d. SID

1096. What percentage of Unit holder together can close an MF Scheme ?

a. 25% c. 75%
b. 50% d. 90%

1097. KIM has to be updated on an interval of

a. 3 Month c. 9 Month
b. 6 Month d. One year

1098. Distributor can charge Fees from the Investor

a. Yes c. it depend on AMC
b. No d. Varies Scheme to Scheme
1099. The most appropriate measure of returns for a scheme in existence
a. Simple Return c. Absolute return
b. Dividend return d. CAGR

1100. Minimum networth requirement for a new AMC is ______________

a. 20 Cr c. 40 Cr
b. 30 cr d. 50 Cr

1101. Sponsors need to have a minimum of ____% share-holding in the capital of

AMC
a. 20% c. 50%
b. 40% d. 75%

1102. Within __ days of dividend declaration, warrants will have to be sent to

investors.
a. 3 Days c. 10 day
b. 7 Days d. 30 Days

1103. Application form is attached to _________

a. Offer document c. SAI
b. SID d. KIM

1104. Within __ days of redemption, reemption cheque will have to be sent to

investors.
a. 3 Days c. 10 day
b. 7 Days d. 30 Days

1105. NFO period for Scheme other than ELSS is

a. 10 Days c. 20 Day
b. 15 Day d. 30 Days
1106. Which among the following is not a method of investment in MF Scheme
a. SIP c. One Time
b. STP d. SWP

1107. The Short Term capital Gain for an equity portfolio should have investment
tenor of
a. 1 year c. Less than 1 year
b. 3 year d. Less than 3 year

1108. Which type of Mutual fund Scheme have the Indexation benefit attached for
its tax computation.
a. Equity Portfolio c. Debt Portfolio
b. Hybrid Portfolio d. All of the them

1109. Which among the following offer regular Operation and Services for MF
Investor
a. Depository c. Banker
b. Custodian d. R & T agent

1110. STT is applicable to

a. Equity Scheme c. Hybrid Scheme

b. Debt Scheme d. All of the above

1111. Even thought investment in Mutual Funds are subject to market risks, an
investor invests in an equity fund after reading the risk factors etc. Due to a
fall in the stock markets the value of the fund goes down drastically. The
investor ______.
a. Can get some remedy if he c. Cannot get any remedy
appeals to SEBI from the AMC
b. Can get some remedy if he d. Can get some remedy if he
appeals to AMC appeals to AMFI
1112. An investor gives a cheque of Rs 2 lacs for investing in a ELSS scheme at
2.30 pm at a Mutual Fund office. The NAV of which day will be applicable
to him ?
a. NAV of the same day c. NAV of the day on which funds
will be available
b. NAV of the next business day d. None of the above

1113. Which of the below is a physical asset?

a. GOLD Exchange Traded c. Building
Funds - ETF
b. Real Estate Fund d. Debentures

1114. Which of the following is true with respect to Growth Option in Mutual
Fund schemes?
a. Dividend Distribution Tax c. Units rise or fall depending on
is applicable the scheme's performance
b. The change in NAV captures d. The NAV falls as and when
the scheme performance dividend is declared

1115. For calculating Capital Gains, investment in mutual funds for less then 1
year is considered as _______
a. Long Term c. Short Term
b. Medium Term d. Ultra Short Term

1116. Mutual funds are constituted as ______and therefore, they are governed by
the __________.
a. Companies, Indian Companies c. Trusts, Indian Trusts Act
Act
b. NGOs, NGO Act d. Investment Agencies, SEBI
Act

1117. If an Institutional Investor is making an application for investing in a

Mutual Fund, which additional document is required?
a. Bank Statements c. Approval letter from SEBI
b. Audited Accounts for the d. Board Resolution
last 3 years
1118. The investment objective of a ______________ might read as follows: To
generate capital appreciation from a portfolio of predominantly equity
related securities
a. Balanced Fund c. Diversified Equity Fund
b. Money Market Fund d. Arbitrage Fund

1119. A Board Resolution is not required for an institutional investor to invest in

Mutual Funds if the Memorandum and Articles of Association permit it to
do so - True or False?
a. True b. False

1120. Different investors have different investment needs and objectives. This is
the reason Mutual Fund offer different ________.
a. Plans c. Schemes
b. Options d. Time horizons.

1121. Which of the following is a measure of market risk?

a. Beta Coefficient c. Treynor Ratio
b. Sharpe Ratio d. None of the above

1122. A investors wishes to invest in debt mutual funds but wants high liquidity
- should he invest in Fixed Maturity Plans ?
a. Yes b. No

1123. To do away with multiple KYC formalities with various intermediaries,

SEBI has mandated a unified KYC for the securities market through the
Depository Participants registered with SEBI - True or False ?
a. True b. False

1124. Nomination facility is not available to investors holding the Mutual Fund
units jointly - True or False?
a. True b. False
1125. As per SEBI regulations, every application form is to be accompanied by
_____________.
a. Key Information Memorandum c. Addendum
(KIM)
b. Scheme Information Document d. Statement of Additional
(SID) Information

1126. Of the following documents, which is required to be appended to the

application form of a MF scheme?
a. Scheme Information Document c. Key Information Memorandum
- SID - KIM
b. Statement of Additional d. Addendum
Information - SAI

1127. Gold Future Contracts ___________.

a. Are traded on the Commodity c. Can be bought through
Exchanges Mutual Funds
b. Are not standardized products d. None of the above

1128. All advertisements and Sales Literature containing an AMC(s)/Mutual Fund

ranking must prominently disclose, with respect to the ranking ___________.
a. The name of the Ranking Entity c. The name of the category
and the criteria on which the (e.g. income/growth)
ranking is based
b. The number of AMC(s)/Mutual d. All of the above
Funds in the category.

1129. The trail commission paid by Mutual Funds to a distributor ____________.

a. Is paid only for high valued c. Grows at a steady rate
transactions
b. Is linked to the NAV d. Is paid to the Corporate and
Bank Distributors only

1130. Gilt funds and diversified debt funds should figure prominently in the
portfolio of_________ .
a. Employed with small children c. Young married with no children
b. Old couple with no family support d. None of the above
1131. An investor in an active fund bears a ________ cost for the fund
management, and takes a ________ risk.
a. Higher, Lower c. Higher, Higher
b. Lower, Lower d. Lower, Higher

1132. Of the below options, what is FALSE with respect to Arbitrage Funds?
a. Arbitrage Funds have c. Arbitrage Funds invest in both
Basis Risks Spot and Futures Market
b. Arbitrage Funds invest d. Arbitrage Funds are more riskier
in Equity Markets than Sectoral Funds

1133. While selling mutual fund products of the distributors group/affiliate/

associates, the distributor shall make disclosure to the customer regarding
the conflict of interest arising from the distributor selling such products -
True or False ?
a. True b. False

1134. A Mutual Fund scheme gave an annualised return of 9.86% and the
annualised Standard Deviation of the fund is 3.47. The current risk free
return is 8.63%. Calculate the Sharpe Ratio.
a. 0.63 c. 0.48
b. 0.55 d. 0.35

1135. Minimum duration of an interval period in an interval scheme/plan is

_______.
a. 15 Days c. 45 Days
b. 30 Days d. 60 Days

1136. All advertisements and Sales Literature containing an AMC(s)/Mutual Fund

ranking must prominently disclose ____________.
a. The publisher of the ranking data. c. The name of the Ranking Entity.
b. Criteria on which the ranking is based. d. All of the above
1137. The face value of a Mutual Fund unit in India is generally _____.
a. Re 1 c. Rs 100
b. Rs 10 d. Decided by AMFI

1138. Its compulsory to list units of _____________ on the stock exchange.

a. Close Ended Fund c. Gilt Fund
b. ELSS Fund d. Arbitrage Fund

1139. After payment of dividend the NAV comes down even in the Dividend
Reinvestment option - True or False ?
a. True b. False

1140. Open-ended schemes, except ELSS, have to re-open for ongoing sale /
re-purchase within ______ business days of allotment.
a. 3 c. 10
b. 5 d. 12

1141. The Stock Exchanges which provide facilities for Mutual Fund trading also
do the functions of Mutual Fund RTAs. - True or False ?
a. True b. False

1142. You have to construct a model portfolio for your client - which amongst the
following factors will you consider ?
a. Clients Employment status c. The size of portfolio
b. Clients Risk Profile d. All of above

1143. You are a mutual fund advisor. To whom would you advise investment of
more than 70 % of their funds in debt funds?
a. A 33-year-old well employed c. Elderly couple with no children
with one son
b. A 45-year-old Executive Manager d. Young man working with Glaxo
of a company who has 2 children
1144. The Transaction Slips are used by __________.
a. First time investors of Mutual c. Relatives of Existing Investors
Funds
b. NFO Investors d. Existing Investors

1145. In Liquid funds, simple annualized return method is used to show the
returns because ___________.
a. Its a simpler way to calculate and c. The return is calculated over smaller
investors understand it easily time horizons
b. The investment made is fixed for d. The amount invested is usually small
30 - 90 - 180 days

1146. The _________________ maintains investor records.

a. The specific fund accountants c. The Back Office of AMFI
b. Registrars and Transfer Agents d. The Fund Manager and his team

1147. Cut-off timing guidelines are not applicable for _____.

a. International Funds c. Both of the above
b. New Fund Offer (NFO) d. None of the above

1148. To have a structured approach to Financial Planning and Investment

counseling, Financial Planners use Model Portfolios - True or False ?
a. True b. False

1149. Every trust has beneficiaries - True or False?

a. True b. False

1150. Prediction of equity markets in the short run is easier than in the long run
- True or False?
a. True b. False
1151. The floating rate debt securities tend to hold their value, despite changes in
yield in the debt market - True or False?
a. True b. False

1152. A Mutual Fund scheme is known to distribute dividends from time to time.
Such MF can be used as a source of ___________.
a. Good Capital Appreciation c. Safety of Capital
b. Regular Income d. Tax Planning

1153. Stock selection is important in bottom-up approach - True or False ?

a. True b. False

1154. Summary of SID - Scheme Information Document and SAI - Statement of

Additional Information is known as KIM - Key Information Memorandum
- True or False ?
a. True b. False

1155. Young Age, Good Steady Job, an Adventurous streak etc are some qualities
of an investor who takes risks in investments - True or False?
a. True b. False

1156. AMC does not appoint the __________.

a. Custodian c. Banker
b. R&T Agent d. Distributor

1157. A Mutual Fund scheme has a portfolio of shares whose beta is less than 1.
This indicates that the scheme is ___________.
a. Very Very risk compared to c. Less risky than the market
the market
b. Some what risky than d. Equally risky as the market
the market
1158. Mutual funds can accept cash to the tune of Rs _________ from small
investors.
a. Rs 5000 c. Rs 50000
b. Rs 20000 d. No cash can be accepted

1159. The cost of fund management are the highest in __________.

a. Active Funds c. Index Funds
b. Passive Funds d. None of the Above

1160. NAV of Equity funds is to be calculated at least upto ___ decimals.

a. 1 c. 3
b. 2 d. 4

1161. Exchange Traded Funds-ETF Gold regularly invest in good gold mining
companies - True or False?
a. True b. False

1162. The National Pension System (NPS) offers a wider portfolio choice than
Mutual Funds - True or False?
a. True b. False

1163. The amount which is paid to the distributor at the time the money is
invested in a scheme is called __________.
a. Trail Commission c. Rebate
b. Upfront Commission d. Fund Incentive

1164. Can recurring expenses be charged to a mutual fund scheme ?

a. Yes, they can be charged. b. No, they cannot be charged.

1165. As per the provisions of the Income Tax Act - Short term capital loss is to be
set off against short term capital gain or long-term capital gain - True or
False?
a. True b. False
1166. Which of the following should NOT be included in the Key Information
Memorandum?
a. The risks associated with c. The opening - closing dates
the scheme of the NFO
b. The functions of Trustees d. Minimum investments required
and AMC and the cutoff time.

1167. Tier II account of the National Pension System is called the _________.
a. Savings Account b. Pension Account

1168. Which one of the below mentioned document is not required for KYC
process?
a. PAN Card c. Income Proof
b. Address Proof d. Identity Proof

1169. There are no penalties for breach of code of conduct as mandated by AGNI
- True or False?
a. True b. False

1170. The ______________ is the phase when the earning years usually starts.
a. Young Unmarried c. Married with one child
b. Young Married d. During graduation

1171. Which of the following is an important aspect of an OFFER DOCUMENT?

a. To inform the investors about c. To provide a comparison
the AMC's views on Stock Markets of the schemes
b. To inform the investors on the d. To inform the investors on the
performance of the scheme detailed information about the scheme

1172. An Index fund has an beta of 1 - State True or False ?

a. True b. False
1173. The strategy of Tactical Asset Allocation is considered to be a risky strategy
- True or False?
a. True b. False

1174. Which of the below expenses can be charged to a fund?

a. Expenses to manage a fund c. Expenses done by the AMC
b. Expenses to launch a new fund d. Expenses done by the Investors

1175. Post the New Fund Offer, investors who wishes to buy units need to pay
______.
a. The NFO price plus inflation rate c. A price linked to the inflation
index
b. The same price as NFO d. A price that is linked to its NAV.

1176. Mr. Deven gives his investment application form to the distributor at 10 am.
The distributor then goes to the Mutual Fund office and submits this
application at 1 pm. What is the time stamping time for this investment?
a. 10:00 AM b. 1:00 PM

1177. Mutual Funds are allowed to borrow __________.

a. For long term investment purposes c. To meet redemption requests or
dividend payments.
b. Are not allowed to borrow at all d. Freely as per their investment
objectives

1178. Relaxation in documentation requirements for micro-SIPs is available

for ___________.
a. Non-Resident Indians c. Hindu Undivided Family
b. Non-Individuals d. None of the Above

1179. Which is the re-opening date for a scheme?

a. The next working day after c. The date on which it lists on
the close of a NFO a Stock Exchange
b. The date when investors can d. The date on which NFO opens
go for re-purchase
1180. On liquidity parameters, which is most liquid?
a. Equity Shares c. Gold
b. Bank Fixed Deposits d. Real Estate

1181. ELSS schemes should contain the least amount of Ill Liquid Investments
- True or False ?
a. True b. False

1182. Which of the following options form the basis of appointment of a Mutual
Fund distributor ?
a. An agreement between the c. Power of Attorney from
AMC and the Distributor the AMC
b. Approval from SEBI d. An agreement with AMFI

1183. After deciding the model portfolio, Sharpe Ratio is used for finalizing the
schemes of Equity and Debt - True or False ?
a. True b. False

1184. Mutual funds/AMCs shall disclose portfolio (along with ISIN) as on the last
day of the month for all their schemes on their respective website on or
before the______ of the succeeding month
a. 3rd working day c. 10th working day
b. 7th working day d. 15th working day

1185. To achieve growth by investing in equity and equity related investments,

along with income generation by investing in debt and money market
instruments would be the investment objective of a ___________________.
a. Balanced scheme c. Sectoral Equity fund
b. Non-individuals d. ELSS Fund

1186. The Absolute Return is calculated using the formula _________.

a. (Cost Price - Sale Price ) / c. (Sale Price - Cost Price) /
Sale Price Cost Price
b. (Sale Price / Cost Price) - 1 d. 1 - (Cost Price / Sale Price)
1187. Every trust has beneficiaries and the beneficiaries, in the case of a mutual
fund trust, are _____________.
a. The Employees of the c. The Chairperson and Managing
Mutual Fund Company Director of the AMC
b. The Trustees of the AMC d. The investors who invest in various
schemes of the mutual fund

1188. Investments in Mutual Funds can be done only through a AMFI authorized
MF distributors - True or False ?
a. True b. False

1189. Foreign nationals can invest in Indian mutual funds - True or False ?
a. True b. False

1190. Many AMCs, distribution houses and mutual fund research houses offer free
tools in their website which can be used for evaluating a funds performance
- True or False ?
a. True b. False

1191. Mr. Shah gives a local cheque at 4.30 pm of Rs 10 lacs at a Mutual Fund
office for investing in a Gilt Fund. Of which day will the NAV be applicable
to him ?
a. NAV of the same day c. NAV of the day on which the
funds will be available
b. NAV of the next business day d. None of the above

1192. AMC directors are appointed with the permission of SEBI - True or False?
a. True b. False

1193. Minors are not legally eligible to contract, so for investing in Mutual Funds
they _________.
a. Have to become 18 years c. Can invest only in long term
before investing capital gain funds
b. Can invest thro' their guardians d. Can invest in specific 'minors
only' mutual funds
1194. Due to the popularity of cash less health insurance policies the liquidity
needs of the investors have reduced - True or False
a. True b. False

1195. Investments owned by the scheme may be quoted in the market at higher
than the cost paid and these gains are called as __________.
a. Valuation Gains c. Notional Gains
b. Booked Gains d. Notional Losses

1196. Dividend Distribution Tax (DDT) on debt-oriented mutual fund schemes for
Corporate Investors is ____ + Surcharge + Education Cess
a. 15% c. 35%
b. 30% d. 0%

1197. At what rate is the Securities Transaction Tax charged on sale of units of
debt oriented mutual fund in a stock exchange ?
a. 0.01% c. 0.13%
b. 0.10% d. 0%

1198. An important feature of Growth Option is Tax Deferral - True or False ?

a. True b. False

1199. Asset allocation means ____________.

a. Distribution of Funds between c. Distribution of funds between various
Fund Managers in a Mutual Fund asset classes in a portfolio
b. Distribution of funds between various d. Distribution of funds between
persons after the death of a person beneficiaries of an AMC

1200. A person wishes to avail of a loan. For which of the below options he cannot
get a loan ?
a. To start a Pharma factory c. To buy a high priced lottery ticket
b. To buy a car of value above d. To buy a house in a Union Territory
Rs 20 lacs
1201. Investments in Mutual Funds are subject to market risks and therefore do not
provide any guarantee of Capital Growth / Protection - True or False ?
a. True b. False

1202. Loads and taxes pull the investor's returns below that earned by the Scheme
- True or False ?
a. True b. False

1203. The strategy of maintaining a constant ratio of asset allocation is know as

__________.
a. Dynamic Asset Allocation c. Flexible Asset Allocation
b. Fixed Asset Allocation d. SIP

1204. Investments in mutual fund units attract Wealth Tax if the investments are
over Rs 5 lacs - True or False ?
a. True b. False

1205. Debt-oriented, close-ended / interval, schemes /plans need to disclose their

portfolio in their website every month, by the _____ working day of the
succeeding month.
a. 3rd c. 12th
b. 10th d. 15th

1206. If you are expecting interest rates (yields) to rise in the markets. Where
would you invest your money considering this forecast ?
a. Long Terms Debt Funds c. Equity Funds
b. Short Term Debt Funds d. Banking Sector Funds

1207. Condensed financial information for schemes launched in last 3 financial

years is mentioned in the ______________.
a. Scheme Information Document c. Fact Sheet
(SID)
b. Statement of Additional Information d. Prospectus
(SAI)
1208. The dividend received by a Mutual Fund investor will be taxed at a rate
of _____.
a. 5% c. 20%
b. 10% d. It is Taxed as per income
Slab.

1209. A Mutual Fund investor can file a case against the ________ for breach of
trust.
a. Mutual Fund c. Stock Exchange
b. Trustees d. No, a MF investor cannot
file a suit.

1210. Management fees cannot be charged by liquid schemes on funds parked in

short term deposits of commercial banks - True or False ?
a. True b. False

1211. Mutual funds are a vehicle________________________

a. To invest in different markets c. To assist investors in building
and securities their wealth
b.To mobilize moneys d. All of the above
from investors

1212. The following features, which one cannot be considered as an advantage

while investing in Mutual Funds?
a. Diversification c. Low Transaction Cost
b. Professional Management d. Guaranteed Return

1213. Mutual funds in India are governed by SEBI (Mutual Fund) Regulations,
1996 -True or False?
a. True b. False

1214. The Fund Manager of a 'FUND OF FUND' has to select the_____________.

a. Sectors c. Funds
b. Right Stocks d. All of the above
1215. Interval funds combine features of ___________________
a. Only Open-ended schemes c. Both open-ended and close
ended schemes
b. Only Close-ended schemes d. None of the above

1216. FMP's are usually offered as _______________________.

a. Close Ended Funds c. Open Ended Funds
b. Interval Funds d. None of the above

1217. Passive funds invest on the basis of a______________

a. Only Nifty Index c. Specified Index
b. Only BSE Index d. None of the above

1218. Gold funds can be designed as ______.

a. Gold ETF schemes c. Both A and B
b. Gold Sector Fund d. None of the above

1219. Every trust has beneficiaries and in the case of a “Mutual Fund Trust” the
beneficiaries are _____________.
a. The Sponsors of the AMC c. The Chairperson and Managing
Director of the AMC
b. The Trustees of the AMC d. The investors who invest in various
schemes of the mutual fund

1220. SEBI regulates________________?

a. AMC c. Trustees
b. Registrars and Transfer Agents d. All of the above

1221. The assets of AMC are held by ________________.

a. Fund Manager of that scheme c. Custodian
b. Trustees d. Registrar and Transfer Agents
1222. The minimum net worth requirement for AMC is_____________.
a. Rs 100 crores c. Rs 20 crores
b. Rs 50 crores d. Rs 200 crores

1223. Is AMFI a Self-Regulatory Organization (SRO)- True or False ?

a. True b. False

1224. _____________ of the Unit holders can pass a resolution to wind–up a

scheme.
a. 25% c. 60%
b. 75% d. 50%

1225. The _____________ maintains investor records.

a. The specific fund accountants c. The Investor Service Centres
b. Registrars and Transfer Agents d. The fund Manager and his team

1226. The __________ executes the function of issuance and redemption of units
of a Mutual Fund.
a. Banker c. Transfer agent
b. Custodian d. Depositories

1227. AMC does not appoint the ________.

a. Custodian c. Banker
b. R & T Agent d. Distributor

1228. The principal of caveat emptor ( let the buyer beware) applies to mutual
fund investments –True or False?
a. True b. False

1229. As per SEBI rules, an AMC can manage the schemes of more than one
Mutual Fund –True or False
a. True b. False
1230. The investors of Mutual Fund cannot sue the “trust” because
________________.
a. The funds are managed by the c. Members of the trust are usually
AMC and not the trust very trusted people
b. The trust is notional entity d. All of the above

1231. Which of the statement is not true with respect to objectives of AMFI?
a. To represent to the Government, c. To circulate information on Mutual
Reserve Bank of India and other Fund Industry and to undertake studies
bodies on all matters relating to the and research directly and/or in association
Mutual Fund Industry. with other bodies
b. To regulate the Mutual Fund d. To develop a cadre of well – trained
Industry Agent distributors

1232. Anyone who is aggrieved by a ruling of SEBI, can file an appeal with
________
a. Company Law board c. Ministry of Finance
b. Office of the public trustee d. All of the above

1233. Mutual funds are constituted as ___ and therefore, they are governed by
the ____.
a. Companies, Indian Companies Act c. Trusts, Indian Trusts Act
b. NGOs, NGO Act d. Investment Agencies, SEBI Act

1234. A Mutual Fund investor can file a case against the _________ for breach of
trust.
a. Mutual Fund c. Stock Exchange
b. Trustees d. No, a MF investor cannot file a suit

1235. Statement of Account is to be sent to investors within _____ days of NFO

closure.
a. 3 c. 10
b. 5 d. 30
1236. Which of the following sentences are true and clearly explain that Statement
of Account(SOA) is different from Unit Certificate(UC)?
a. SOA is like a Balance Confirmation c. Both A & B
Certificate issued by bank whereas UC
is like a bank pass book.
b. SOA shows details about transactions d. None of the above
during the period whereas UC only
states the no. of units held by the investor

1237. Mutual funds allow investor/s to appoint upto ____nominees, who will be
entitled to the units in the event of the demise of the investor/s.
a. 1 c. 4
b. 3 d. Any number

1238. Dividend warrants have to be dispatched to investor's within_________

days of declaration of the dividend.
a. 15 c. 30
b. 20 d. 45

1239. Unit holders do not have proportionate right to the beneficial ownership of
the assets of the mutual fund schemes they invest in- True or False?
a. True b. False

1240. Mutual fund has to publish a complete statement of the scheme of the
scheme portfolio and the unaudited financial results within______ from the
close of each half year.
a. 1 month c. 6 months
b. 3 months d. 9 months

1241. Debt oriented, close ended / interval, schemes/plans need to disclose their
portfolio in their website every month by the ______ working day of the
succeeding month.
a. 1 st c. 10 th
b. 3 rd d. 15 th
1242. Scheme wise Annual report should be mailed to all unit holders within
______ months of the close of the financial year.
a. 1 st c. 10 th
b. 3 rd d. 15 th

1243. Which of the following statements are true with respect to documentation
required from a Mutual fund investor?
a. PAN No. is compulsory c. There are some exceptions to PAN no
& KYC documentation in case of
micro-SIPs.
b. KYC documentation is compulsory d. All of the above

1244. The investor can claim his moneys from the scheme within ______ years,
based on____________.
a. 3 years, NAV at the end of the c. After 3 years, prevailing NAV
time period
b. 3 years, prevailing NAV d. All of above

1245. Legally KIM is part of _____________.

a. SAI c. Both A and B
b. SID d. None of the above

1246. The Mutual Fund application form is attached to the __________.

a. AMC Memorandum c. SID
b. KIM d. SAI

1247. The detail regarding the key personnel of an AMC (especially fund
managers) is found in____________.
a. OD c. AMFI Guide
b. SID d. MF Advertisements
1248. Which of the below statement information needs to be disclosed to the
Mutual Fund investors?
a. The Annual Report of the AMC c. The AMFI guidelines for AMC
b. Scheme Portfolio d. The Names of Fund Managers

1249. The past performance of any scheme shall not be provided or advertised if
the scheme has been in existence for less than______ year.
a. Two c. Half
b. One d. Three

1250. Dividend warrants should be sent to investors within ________ days of

dividend declaration
a. 15 days c. 45 days
b. 30 days d. 60 days

1251. Offer document contains additional disclosures related to credit evaluation

policy, fund past performance, sectors and types of investments, in case of
___________
a. Equity Funds c. Debt Funds
b. ELSS Funds d. Commodity Funds

1252. NFO'S for ELSS schemes can remain open for ______days.
a. 45 days c. 20 days
b. 30 days d. 15 days

1253. Post the NFO (New Fund Offer),when the scheme is open for investment, the
investors have to pay
a. A price that is linked to the c. A price that may or may not be
Inflation Index linked to NAV
b. A price that is linked to NAV d. None of the above
1254. NFOs (except ELSS AND RGESS) can be open for a maximum of _____.
a. 30 days c. 15 days
b. 20 days d. 10 days

1255. Offer documents of mutual fund schemes are approved by_______________

a. Sponsor c. SEBI
b. Trustee d. All of the above

1256. Which of the following is NOT included in the Key Information

Memorandum?
a. The opening- closing dates of c. The name and details of AMC,
the NFO Sponsor and Trustee
b. The functions of Trustees d. The registrar information for
and AMC investor grievances

1257. An important aspect of an OFFER DOCUMENT is to inform the investors

about
a. The detailed information about c. The comparison of the various
the scheme schemes floated by AMC
b. The past performance of the Sponsor, d. The futuristic view on Stock Markets.
Trustees and AMC

1258. KIM has to be updated every______________.

a. Three months c. Six months
b. One year d. Five year

1259. Brokers of recognized Stock exchanges are required to pass a certification

test before they are eligible to distribute mutual funds –True or False?
a. True b. False
1260. The trail commission paid by Mutual Funds to a Distributor is paid
_____________.
a. Only for high valued transactions c. On the net assets value of the
total mobilisation
b. Every month at increasing rate d. To the corporate and Bank
Distributors only

1261. Which of the following options form the basis of appointment of a Mutual
Fund distributor?
a. An agreement with AMFI. c. Power of Attorney from the AMC
b. An approval from SEBI d. An agreement between the AMC
and the Distributor

1262. An investor can do investments in Mutual Funds only through an AMFI

authorized MF distributors- True or False?
a. True b. False

1263. The maximum commission payable to a Mutual Fund distributor on his own
investment is __________
a. 1% c. 2.50%
b. 1.50% d. NIL

1264. Are trail commissions linked to valuation of portfolio in the market-True or

False?
a. True b. False

1265. What are the “ Net Assets” of a Fund if the market value of portfolio is
Rs.2000 crores and the current liabilities are Rs.500 crores?
a. Rs 2500crores c. Rs 1500crores
b. Rs 2000crores d. Rs 500 crores

1266. STT is not charged on_______.

a. Debt Funds c. Gold ETF
b. Arbitrage Funds d. ELSS Funds
1267. An investor has got 1000 units of a scheme purchased at NAV of Rs.10. It
declares a 1:1 bonus. The NAV Ex- Bonus becomes Rs 30. What shall the
investor pay to get the additional units as per the allotment due to him?
a. Rs 30500 c. Rs 5000
b. Rs 10000 d. Nil

1268. While calculating profits the principle of ____________is used, which means
that all the expenses that relate to a period need to be considered,
irrespective of whether or not the expense has been paid.
a. Accrual system c. Deferred payment system
b. Double entry system d. None of the above

1269. The process whereby an investor can convert his holding of investments
from physical form (paper) to digital record is called ___________________
a. KYC c. Auto debit process
b. Dematerialization d. None of the above

1270. Investors applying for subscription in NFO using ASBA mode have to pay
______.
a. 75% of subscription money in advance c. 25% of subscription money in advance
and balance on allotment of units and balance on allotment of units
b. 50% of subscription money in advance d. Only on allotment of units
and balance on allotment of units

1271. The NAV of a Mutual Fund scheme is Rs. 25 and the Exit Load is 1%.What
will be the sale price of this scheme?
a. Rs 24.75 c. Rs25.25
b. Rs 25 d. Rs27

1272. An investor buys a Mutual Fund scheme at NAV of Rs 15 in Jan 2012.The

scheme declares a dividend of Rs 2.In May 2012, the investor sells all the
units at NAV Rs11.What is the capital loss available for exemption?
a. Rs 2 c. As it's a short term loss no
exemption for the capital loss
b. Rs 3 d. None of the above
1273. Investors generally bear higher fund management expenses in
_____________.
a. Sectoral Equity Fund c. Fund of Fund
b. Diversified Equity Fund d. Gold Funds

1274. Which of the below investments can be used for tax benefits?
a. Investments in ELSS Funds c. Both a and b
b. PPF d. None of the above

1275. Does investment in mutual fund units attract Wealth Tax if the investments
are over Rs 5lacs-True or False?
a. True b. False

1276. While calculating Capital Gains, investment in mutual funds is termed as

___________ if the time period is less than 1 year.
a. Long Term c. Short Term
b. Medium Term d. Ultra Short Term

1277. Lower the expenses of a Mutual Fund______________

a. lower would be the NAV c. It does not have any effect on
NAV values
b. Higher would be the NAV d. None of the Above

1278. If a unit holder does a repurchase, the final redemption price is _________.
a. The NAV c. NAV - Exit Load
b. NAV - Entry Load d. NAV + Exit Load

1279. On which items is there is no Tax Deducted at Source (TDS) for Indian
investors?
a. Dividend payments c. Both A and B
b. Re-purchase payments of d. None of the above
Mutual funds
1280. Calculate the Absolute Return for a Mutual Fund investor if he bought units
at NAV 20 and sold at NAV 40 after two years?
a. 100% c. 25%
b. 50% d. Insufficient Data

1281. When Investments owned by the scheme are cited in the market at higher
than the cost price, these gains are called as_____________.
a. Valuation Gains c. Opportunity Gains
b. Notional Gains d. Booked Gains

1282. What type of Capital gain offer benefits of Indexation benefit to investor?
a. Short term capital gain in Equity c. Short term capital gain in debt
b. Long Term capital Gain in Equity d. Long Term capital Gain in Debt

1283. Mutual fund Scheme pay DDT (Dividend distribution tax ) to Govt
a. On Equity Scheme c. On both the Schems
b. On debt Schemes d. Not applicable any more now

1284. Securities Transaction Tax is charged at __________ on sale of units of debt

oriented mutual fund in a stock exchange?
a. 0% c. 0.10%
b. 0.13% d. 0.01%

1285. Securities Transaction Tax is applicable on __________________.

a. Gold ETF transactions @ 0.01% c. Debt transactions @ 1%
b. Purchase of Equity shares @ 0.10% d. All of the above

1286. The market value of investment of a Mutual Fund scheme is Rs 650 crores
and the total liabilities are Rs 34 crores. The number of unites of face value
10 are 40 crores. What is the NAV of this scheme?
a. 14.35 c. 16.25
b. 15.40 d. 17.10
1287. Distribution Expenses in excess of what is specified by SEBI has to be borne
by___________.
a. Unit holders c. AMC
b. AMFI d. Fund Manager

1288. The Market Value of a scheme is Rs 345 cores. Dividend accrued but not
received is Rs 25 core. The Expenses payable are Rs 13 core. The total
number of outstanding units is 260 Lakhs. What is the NAV of the scheme?
a. 127.69 c. 145.62
b. 137.31 d. 132.69

1289. A Mutual Fund scheme has equity shares of Infosys in its portfolio. Which
of the following prices will be considered for calculation of NAV?
a. The closing price of Infosys shares c. The Average trading price on Regional
on Regional Stock Exchanges on the Stock Exchanges on the day of
day of calculation of NAV calculation of NAV
b. The closing price of Infosys on d. The Average trading price on BSE/ NSE
BSE/ NSE on the day of calculation on the day of calculation of NAV
of NAV

1290. In case of joint holding under the 'either or survivor' option, who has to be
KYC compliant?
a. Only the First holder c. Both the joint holders
b. Only the Second holder d. None of the above

1291. In which of the following cases is PAN CARD mandatory for investor when
they invest in a Mutual Fund scheme?
a. Below Rs.20000/- c. Above Rs.50000/-
b. Between Rs.20000/- d. All of the above
- Rs.50000/

1292. Mr. Ratan wishes to do additional purchases in his Mutual Fund scheme.
Can he give a post dated cheque? Is this acceptable?
a. Yes b. No
1293. Does an investor need to get a “No Objection Certificate (NOC)” from his
old distributor if he wishes to change to a new distributor?
a. True b. False

1294. If there are 3 unit holders who jointly hold mutual fund units, the
redemption proceeds will be paid to __________.
a. The first holder c. To the Nominee
b. Equally to all the holders d. As per % stated by all joint
holders in the declaration

1295. When Mutual fund scheme pays any dividend or redemption money to the
investors, the AUM ______________
a. Increases c. Does not change
b. Decreases

1296. Investor KYC details are stored in the server of ___________.

a. SEBI c. KRA
b. AMFI d. AMC

1297. The mode of payment used for Investments in mutual fund can be
____________.
a. Auto debit facility c. ASBA
b. Cheque/ DD d. Any of the above

1298. The Micro SIP route is not available to __________for investment in Mutual
Funds.
a. Corporates c. Persons of Indian Origin (PIO)
residing abroad
b. HUF d. All of the above

1299. Institutional Mutual Fund Distributors build their client base through
___________.
a. Sub brokers c. Agents
b. Employees at their branch offices d. All of the above
1300. When the unit holder gives his money to buy units of Mutual Fund then he
______
a. Can decide what securities or c. Has voting rights for what securities
investments the scheme would buy or investments the scheme can invest
b. Cannot decide what securities or d. None of the above
investments the scheme would buy

1301. An institutional investor can invest in Mutual Funds after submission of

________
a. Memorandum of Association c. Board Resolution
b. Articles of Association d. All of the above

1302. The Transaction slips are used by ___________.

a. NFO investors of mutual Funds c. Relatives of Existing Investors
b. First time Investors of mutual funds d. Existing Investor of mutual fund

1303. The amount paid to the distributor for getting investors to invest in mutual
fund scheme is called______________.
a. Trail Commission c. Incentive voucher
b. Upfront Commission d. Fund Rebate

1304. KYC process does not require______________ as mandatory document for

completing the KYC processing request.
a. PAN Card c. Address Proof
b. Income Proof d. Identity Proof

1305. Micro SIPs provide some relaxation in documentation requirements for

________.
a. Resident Indians c. Hindu Undivided Family
b. Non-resident Individuals d. None of the Above
1306. In the top –down approach______________,
a. Sector allocation precedes stock
selection
b. Stock selection precedes sector
allocation
c. No significance given to sector
allocation
b. Random stock selection

1307. ___________ style is an approach of picking up stocks, for less than their
intrinsic value or stocks that have high dividend yields, based on
fundamental analysis.
a. Growth investing c. Bottom up approach
b. Value Investing d. Top Down Approach

1308. Does “Fundamental analysis” evaluates each company's price-volume charts

individually before making an investment decision?
a. True b. False

1309. What forms a basis for selection of better schemes in Index Funds?
a. Tracking Error c. 5year Managers past record
b. Fund Managers past record d. All of the above

1310. Beta as a risk measure is relevant for_________________.

a. Only Debt Schemes c. Both Equity and Debt schemes
b. Only Equity Schemes d. FMP's

1311. VARIANCE is used as a “ Measure of Risk” for________.

a. Equity schemes c. Both debt and equity schemes.
b. Debt Schemes d. FMP's

1312. Technical analysts study the price-volume charts of a company because

________.
a. It determines intrinsic value of
securities based on past market data
b. It predicts future share price
c. It aims to identify patterns that can
suggest future activity, decide support
levels, resistance levels, breakouts
d. All of the above
1313. Which measure of returns is considered to be the most appropriate and been
used for measuring schemes for the past several years?
a. Simple Return c. Absolute Return
b. Annualised Return d. CAGR

1314. Risks involved in mutual fund schemes depend on factors like

________________.
a. Liquidity and nature of the portfolio
b. Level of interest rates then prevailing
in the financial markets
c. Forces affecting capital markets in
particular, trading volumes
d. All of the above

1315. If there is an anticipation of interest rates (yields) to rise in the markets,

where should an investor invest his money for better returns?
a. Long Terms Debt Funds c. Diversified Equity Funds
b. Short Terms Debt Funds d. Sectoral Funds

1316. A Beta of less than 1 in Mutual Fund scheme indicates ______________.

a. Very high risk compared to the market c. Less risky than the market
b. Moderate risk as compared to the market d. Equally risky as the market

1317. Simple annualized return method is used to measure Liquid Funds returns
because ____________.
a. The investment made is for fixed c. The return is calculated over smaller
tenure of 30-90-180 days time horizons
b. The amount invested is usually small d. It's a simple way of calculation and
investors understand it easily

1318. Technical Analysis is used for____________

a. Shorter term speculative decisions c. Anticipating future activity in view of
shares past performance
b. Intra Day trading decisions d. All of the above
1319. Which of the following is a measure of market risk?
a. Beta Coefficient c. Treynor Ratio
b. Sharpe Ratio d. None of the above

1320. Risk can be measured by _____________________.

a. Modified Duration c. Variance
b. Standard Deviation d. Any of the above

1321. Exit loads are charged to _____________

a. Bonus Units c. Both A and B
b. Units issued on reinvestment d. None of the above
of dividends

1322. Which fund is comparable with a liquid scheme?

a. Gilt Scheme c. Savings Bank account
b. Diversified Equity scheme d. Gold Fund

1323. _______________funds units are compulsorily listed on the stock exchange.

a. ELSS Fund c. Gold Fund
b. Close Ended Fund d. Arbitrage Fund

1324. The unique feature about “Growth Option” in Mutual Fund schemes is that
______
a. Units rise or fall depending on c. The change in NAV captures the
the schemes performance scheme performance
b. Dividend Distribution Tax is d. The NAV falls as and when
applicable dividend is declared

1325. The investment objective of a_____________ is to generate capital

appreciation from a portfolio of predominantly equity related securities.
a. Arbitrage Fund c. Diversified Equity Fund
b. Diversified Debt Fund d. Exchange traded Fund
1326. Which of the following cannot be true with respect to Arbitrage Funds?
a. Arbitrage funds have only c. Arbitrage Funds invest in both spot
Basic Risks and Futures Market
b. Arbitrage funds invest in only d. Arbitrage funds are more riskier
Diversified Equity Markets than sectoral Funds

1327. If an investor invests in an active fund, then to get ________returns, he bears

a ____ cost for the fund management, and takes a ____ risk.
a. Higher, Lower, Higher c. Higher, Higher, Higher
b. Lower, Lower, Lower d. Lower, Higher, Lower

1328. As Dividends are distributed by Mutual Fund schemes time and again,
therefore MF can be used as a source of _________________.
a. Good Capital Appreciation c. Retirement planning
b. Regular Income d. Tax Planning

1329. Gold future Contracts _________________.

a. Are non-standardized investment c. Can be bought through mutual
option funds
b. Are not traded on the commodity d. Can be bought through fixed
exchanges deposits

1330. ____________________ is considered as a safe haven among all asset classes.

a. Debt c. Gold
b. Equity d. Real Estate

1331. Which of the below option is true with respect to PPF?

a. There is no maximum limit of c. One can withdraw money after
investment in PPF starting a PPF account
b. PPF is tax free d. Minors cannot open PPF Account
1332. Which among the following have Equity component in its investment
Portfolio?
a. PPF c. ELSS
b. NSC d. All of the above

1333. In the National Pension System, which type of option has withdrawal
facilities?
a. TIER 1 c. Both A and B
b. TIER 2 d. None of the above

1334. Which of the following is exempt from Wealth tax?

a. Real Estate c. Gold ornaments
b. Real estate mutual fund d. NPS

1335. Returns in gold as an asset class depends on ______________.

a. Indian gold demand-supply quotient c. Global Price of Gold
b. Strength of the rupee d. Both 1 and 2

1336. National Pension System can invest in __________________________.

a. Diversified Equity Funds c. Corporate bonds, debentures,
commercial papers
b. Government Securities d. All of the above

1337. In the National Pension System – NPS, the investor is allotted a

_______________.
a. Special NPS number c. QNPSN
b. PRAN d. MANN

1338. _______________ is the Regulator for the National Pension System.

a. AMFI c. Chambers of Commerce
b. SEBI d. PFRDA
1339. Which of the following is a physical asset?
a. GOLD Exchange Traded Funds c. Building
b. Fixed deposit d. Debenture

1340. Stock selection is important in ____________?

a. Top –Down approach c. Both A & B
b. Bottom-Up approach d. None of the above

1341. The National Pension System (NPS) offers__________

a. Wider portfolio choice than c. Higher returns than Mutual Funds
Mutual Funds Futures & Commodities markets
b. Wider portfolio choice than Futures d. Higher returns than
& Commodities markets

1342. Tier II account of the National Pension System is called the______________.

a. Savings Account b. Pension Account

1343. Mr.& Mrs Agarwal desire to make their son a doctor. This is an example of
_______
a. Financial Planning c. Asset allocation
b. Setting Financial Goals d. Aspirations

1344. 'Past Performance is not indicative of future performance'-This statement

_______
a. Should be a standard risk
factor for all schemes
b. Should be present in all performance
related advertisement of Mutual fund
c. Should be only for some specific
schemes where this statement is valid
d. Both 1 and 2

1345. Financial planning for investors means ________________________.

a. Assessing the investors c. Investing the investors surplus funds
financial details in 100% secured investments
b. Investing the investors surplus d. Helping investors to evade tax
funds in high growth stocks
1346. When a person gets an unexpected gain from horse betting activity
(sudden wealth) he should _______.
a. Take more risk and invest in equity c. He should look into the
shares of aggressive stocks so that he taxation aspect
can grow his money faster.
b. He should invest in debt instruments. d. He need not look into taxation
aspect as sudden wealth is not
regular income

1347. Mutual Funds can be used as Derivatives for __________________.

a. Re-Balancing the portfolio c. Leveraging

b. Hedging against risk d. Both 1 and 2

1348. Accumulation is the phase applicable to_________________.

a. Student c. Young married
b. Young Unemployed d. Retired bank Manager

1349. _____________ approach studies all the financial goals of an investor taken
together, and then the investment strategies are worked out based on the
results derived.
a. Tactical Financial Planning c. Strategic financial planning
b. Comprehensive Financial planning d. Goal Oriented Financial Planning

1350. An investor who is interested in high liquidity will not choose

________________
a. Diversified Equity Fund c. Diversified Debt Fund
b. ELSS Fund d. Gold funds

1351. The interest received from a Bank Fixed Deposit is fully taxable –True or
False?
a. Fully taxable c. Exempted from tax
b. Taxable upto a limit of Rs.10000/- d. Taxable up to a limit of Rs.50000/-
1352. While selecting amongst the various dividend options in a Mutual Fund
scheme, taxation and liquidity needs are major deciding factors for
____________
a. Growth option c. Dividend re-investment option
b. Dividend payout d. All of the above

1353. Mutual Funds can be used as Derivatives for __________________.

a. Re-Balancing the portfolio c. Leveraging
b. Hedging against risk d. Both 1 and 2

1354. Investor can do long term investment commitments in __________________

while allot a higher proportion to income Funds in___________________.
a. Inter-generational Phase, c. Accumulation Phase,
Transition phase distribution phase
b. Distribution Phase, d. Transition phase, Inter-
accumulation phase generational phase

1355. Distribution phase of Wealth Cycle can be termed as __________________

a. Retirement phase of Life Cycle c. Young married phase of Life Cycle
b. Pre- retirement phase of Life cycle d. None of the above

1356. For an investor, the benefits of subscribing to health insurance early in

life_____.
a. Is that at later age insurance companies c. Both of the above
may reject the claim on the pretext of
pre-existing illness.
b. Is that premium at a young age is low. d. None of the above

1357. An investor in a debt scheme gives utmost importance to the following aspects
of portfolio___________
a. Maturity term of the securities c. Stock selection & sector
in portfolio selection
b. Weighted Average Maturity d. Number of securities
1358. Gilt funds and diversified debt funds should figure prominently in portfolio
of _____.
a. Employed with small children c. Young married with no children
b. Old couple with no family support d. None of the above

1359. Financial Planners use Model Portfolios __________________

a. To have a structured approach c. To plan a diversified investment
to Financial planning portfolio
b. To assist in Investment counselling d. All of the above

1360. Risk Profile of an investor is affected by__________

a. The nature of job and amount c. Psychology of the investor
of earning
b. The regularity of the investor's d. All of the above
income

1361. Asset allocation means investing in _______

a. Only Financial Assets c. Both Financial and Physical Assets
b. Only Physical Assets d. Either Financial or Physical Assets

1362. ______________ approach helps the investors to book profits in rising

markets and increase holdings in a falling market.
a. Strategic Asset Allocation c. Tactical Asset Allocation
b. Fixed Asset Allocation d. Flexible Asset allocation

1363. To promote an investment discipline for long term wealth creation,

mutual funds offer the systematic approaches of ____________.
a. SIP, SWP c. SIP, STP, SWP
b. SIP, STP d. None of the above

1364. The last stage in developing a model portfolio is__________

a. Fund selection c. Mode of payment selection
b. Sector selection d. Dividend option selection
1365 _______is the decision based on calls taken on the likely behaviour of the
market.
a. Tactical Asset Allocation c. Fixed Asset Allocation
b. Strategic Asset Allocation d. Flexible Asset Allocation

1366. The asset allocation planned for an investor based on risk profiling is called
_____.
a. Strategic Asset Allocation c. Tactical Asset Allocation
b. Fixed Asset Allocation d. Flexible Asset Allocation

1367. Evaluating a scheme and investing in it, is ____________

a. An art not a science c. Both an art and a science
b. A science not an art d. None of the above

1368. ___________ strategy is supposed to be a risky strategy of asset allocation.

a. Strategic Asset Allocation c. Both 1 and 2
b. Tactical Asset Allocation d. None of the above

1369. People capable of taking more risk with their investments and bear losses,
if any, have__
a. A Daring and adventurous psyche c. Multi- Skilled and qualified professionals
b. Regular source of income with d. All of the above
enough surplus funds to invest

1370. While constructing a model portfolio for an investor, which amongst the
following factors should be considered?
a. Clients Employment status c. The size of portfolio
b. Clients Risk Profile d. All of the above
1371. Mutual fund advisor can advise more than 70% of funds investment in
debt funds to_____
a. A 33 year old well employed c. Elderly couple with no children
with TCS with no kids
b. A 45 year old Executive Manager d. All of the above
of TCS with young kids

1372. The__________ is the phase when the earning years usually start.
a. Young Unmarried c. Married with older children
b. Young unemployed d. During graduation

1373. Asset allocation means____________.

a. Distribution of Funds between
Fund Managers in a Mutual Fund
b. Distribution of Funds between
various persons after the death
of a person
c. Distribution of Funds between various
asset classes in a portfolio
d. Distribution of Funds between
beneficiaries of an AMC

1374. The strategy of maintaining a constant ratio of asset allocation is known as

______.
a. Dynamic Asset Allocation c. Flexible Asset Allocation
b. Fixed Asset Allocation d. Strategic Asset Allocation

1375. Mutual Fund scheme having feature of both close ended and open ended
scheme would most closely associated with
a. Interval Fund c. Fund of Fund
b.Hybrid Funds d. Exchange traded Fund

1376. Which among the following is not an advantage of Mutual Fund?

a. Mutual Fund employs professional c. It is a Tax efficient investment.
management to generate Wealth.
b. Investor has access to larger Portfolio d. It is passing through vehicle, but
despite a small investment. passes only profit, retain Loss.
1377. Mutual Fund Scheme performances are capture through Movement of NAV.
How Profit and Loss is are shared between Investor and AMC.
a. There is fixed proportion between c. There are SEBI guidelines
Investor and AMC. regarding Loss separately.
b. Profit or Loss both are exclusively d. None of the Above.
passed on to the Investor.

1378. Can an Investor loose more Money than what he has invested in Mutual
Fund?
a. No b. Yes

1379. We know Index Funds are Passive Fund. In terms of performance it is

expected to
a. Replicate the return of underlying c. Perform less than the Benchmark.
Benchmark.
b. Perform better then bench mark. d. None of the above

1380. Among the Scheme classification, Can the Gold Funds and Gold Sector
funds be considered as same one?
a. False b. True

1381. Which among the following is not able to describe a Thematic Fund?
a. Thematic Scheme may have more c. Thematic Fund is more diversified than
than one Sector Exposure. Sector Fund.
b. Thematic Fund is less diversified d. Thematic Fund is like Index Fund.
than Diversified Fund.

1382. Which among the following is False about Exchange traded fund?
a. Such Scheme is available for trading c. These are managed actively.
like Share on Stock Exchange.
b. An Investor can buy or sale at any d. These scheme trade with an underlying
time and on any working day from Benchmark like Nifty or Commodity
Exchange. like Gold.
1383. Which among the following is not a feature of Index Fund?
a. It targets a return in line with c. These are passively managed Fund.
Bench Mark performance.
b. Any excess performance will be d. AMC charges higher fee for
termed as tracking error. managing such technical scheme.

1384. Indian domestic Mutual Fund Scheme can invest in Commodity Market?
a. True b. False

1385. If an Indian Investor invest in an International Fund through a Domestic

Indian Scheme. The International fund is called as ............. and Indian Fund
is called as.........
a. Host Fund, Feeder Fund c. Fund of Fund, domestic Fund
b. Feeder Fund, Host Fund d. None of the Above

1386. Which among the following does not reflect the nature of fixed maturity
Plan?
a. These are close ended Fund. c. They primarily invest in high quality
or Investment grade debt papers.
b. Investor horizon in these scheme d. These are special type of Hybrid Funds.
matches with the Scheme horizon.

1387. Which of the following is NOT a characteristic of mutual fund?

a. Pooling of investments c. Uniform unit holder rights
b. Market risk d. Safety of principal

1388. As per SEBI (Mutual Fund) Regulation, who acts as the protector of
unit-holder's interest?
a. Trustees c. Ministry of Finance
b. SEBI d. Compliance officer
1389. To choose an appropriate benchmark for a scheme, all of the following are
required except
a. The composition and size c. Historical data of fund performance
of the portfolio
b. The investment objective d. The nature of investments

1390. Which among the following is explained as limitation/ disadvantage while

investing in Mutual Fund?
a. Lack of Portfolio customization c. No control over cost
b. Choice Overload d. All of the Above

1391. Which among the following is true about Exchange traded Fund?
a. It is like an open ended Index Open c. One can also buy ETF through another
that is traded on Stock Exchange. open ended fund called feeder Fund.
b. Market maker facilitates buying and d. All of the Above
selling of larger volume of units at
Exchange.

1392. Junk Bonds are part of those portfolios that invest in high Yielding and
poorly rated Bond Papers?
a. True b. False

1393. Investment objective as explained by Mutual Fund through offer document

are associated with
a. SIP/SWP/STP c. Trigger
b. Mutual Fund Schemes d. NAV

1394. The Minimum Net worth required for AMC to Start an AMC business.
a. 50 Cr c. 10 Cr
b. 5 Cr d. 100 Cr
1395. Which among the following is true?
a. Day to Day management of the c. Sponsor appoints Trustee
Scheme is handled by AMC.
b. Sponsor needs to have minimum d. All of the Above
40% share in Capital of AMC.

1396. Which among the following is not appointed by AMC?

a. Registrar and transfer Agent c. Auditor of Scheme
b. Banker d. Auditor of AMC

1397. What is true about custodian of Mutual Fund?

a. A custodian agreement is c. Custodian keeps track of dividend,
in between Trustee and Custodian. Bonus and right on Share held of AMC.
b. Custodian keeps the custody of d. All of the Above.
asset of the Funds.

1398. Which among the following true?

a. Sponsor appoints at least 4 trustees.
b. There could be minimum 4 directors
if Trustee Company has been formed.
c. At least 2/3rd of Trustee/ Director Should
are independent, not associated with the
Sponsor.
d. All of the Above.

1399. Which among the following is not the function of the Board of trustee?
a. It protects the Investor interest. c. It can terminate the appointment of AMC
by majority subject to approval of SEBI.
b. Handles Fund management. d. They perform variety of due diligence
activity on AMC.

1400. What is true about Sponsor?

a. Sponsor needs to have minimum c. Sponsor must have earned profit in
40% share in AMC. last 3 financial years.
b. Sponsor should have positive net d. All of the above.
worth in last 5 financial years.
1401. What percentage of Unit holder together can terminate the AMC?
a. 75% c. 50%
b. 2/3rd d. They cannot terminate.

1402. Trustee is engaged in appointment of following Entity?

a. Custodian c. Both of the Above
b. Scheme Auditor d. None of the Above.

1403. To become Distributor, Which among the following is part of Process?

a. One should qualify NISM – VA. c. One should separately apply to AMC
to become Advisor.
b. He should apply to AMFI for ARN. d. All of the above

1404. The Board of Trustees of a mutual fund:

a. Act as a protector of investors interests c. Do not have the right to dismiss
the AMC
b. Directly manage the portfolio d. Cannot supervise and direct the
of securities working of the AMC

1405. Which among the following is true for custodian of a mutual fund?
a. Is appointed for safekeeping of securities d. Does give or receive deliveries
of physical securities
b. Needed to be an entity independent e. All of the Above
of the sponsors
c. Is required to be registered with SEBI.

1406. The role of AMFI in the mutual funds industry is not to

a. Promote the interests of c. Regulate mutual funds
the unit holders
b. Set a Code of Ethics d. Increase public awareness
of mutual funds in the country
1407. Which among the following is true?
a. Sponsor appoints minimum 4 Trustee c. Mutual Fund Trust could be governed
at least 2/3rd of them are independent by Individual trustee of Trustee Company.
from Sponsor.
b. At least 50% of the AMC Director d. All of the Above.
should be independent.

1408. Custodian in Mutual Fund are appointed by

a. AMC c. Sponsor
b. Trustee d. SEBI

1409. Trustee appoints following

a. Custodian and Scheme Auditor c. Custodian and AMC auditor
b. Custodian and Banker d. Custodian and R&T

1410. Which among the following is true about Compliance Officer?

a. Compliance Officer an employee of
AMC issue all legal certificate on
behalf of AMC.
b. Compliance directly report to
head of the AMC.
c. Compliance officer also works along
with Trustee to ensure the AMC follows
the ethical and legal guidelines.
d. All of the Above.

1411. Which among the following is true?

a. Scheme Auditor and AMC c. AMC auditor is appointed by AMC.
auditor are different.
b. Scheme Auditor is appointed d. All of the Above
by Trustee.

1412. Prior approval of Trustee is ensured for someone to be appointed as director

on the Board of AMC.
a. True b. False

1413. Other than AMC office, Investor can transact at

a. Custodian office. c. Distributor Office.
b. Registrar and Transfer agent Office. d. Banker office.
1414. Which among the following is true?
a. Minimum 75% of Unit holder can c. Both of the above
pass a resolution to wind up a Scheme.
b. Minimum 75% of Unit holder can d. None of the Above
pass a resolution to terminate the AMC
contract with Trustee.

1415. Prior Approval of SEBI is required to for a Sponsor to appoint someone as

Trustee?
a. True b. False

1416. Most of the Service related solution and after sales support to the Investor
are provided through
a. AMC office c. Distributor
b. Custodian d. Registrar and Transfer Agent.

1417. Which among the following is the true?

a. SEBI regulates Mutual Fund, c. Stock Exchange is SRO.
Depository, Custodian and R&T.
b. AMFI is not a Self regulatory d. All of the Above.
organization, only advisory industrial body.

1418. AMFI code of ethics deals with

a. Standard of Good Practice to c. Either of the Two.
be followed by AMC.
b. AMC follows such practice while d. Both of the Above.
dealing with Investor, Intermediary
and Public.

1419. AMFI has framed Guideline called AGNI, Which among the following is
true?
a. It is set of Guideline to be followed c. It focuses on financial Planning while
by distributor, agents and broker. ensuring advisor to follow correct selling.
b. It aims at to ensure protection d. All of the Above.
of client interest.
1420. For ongoing transaction (Other than NFO) statement of account should be
sent to the Investor before
a. 2 Working days c. 30 working days.
b. 10 working days d. Once in a quarter.

1421. NAV and repurchase price of a Mutual fund Scheme (Except FOF schemes)
Should be updated on Website of AMFI and Mutual Fund before ………
a. 7 PM Same day c. 9 PM Same Day
b. 8 PM Same day d. 10 PM Same Day

1422. AMC pays an Interest at the rate of..... For any delay in despatching
dividend warrants/ redemption cheques beyond the stipulated Time Period.
a. 12%. c. 15%
b. Bank rate d. Case to case Basis.

1423. Which is correct about NAV?

a. NAV should be published in one c. NAV for Scheme other than FOF should be
English and one vernacular language. updated on web site by 9 PM same Day.
b. NAV for Liquid fund is to be d. All of the Above.
published in four decimal points.

1424. For NFO application other than ELSS, the process of refund of allotment
(Statement of Account) are completed within
a. 5 Business day c. 2 Week
b. 10 Business Day d. None of the Above.

1425. An investor can nominate maximum

a. 1 Nominee c. 3 Nominee
b. 2 Nominee d. 4 Nominee

1426. An investor can maintain maximum

a. 2 Bank Account c. 5 Bank Account
b. 4 Bank Account d. 10 Bank Account
1427. An open ended scheme can change its fundamental attributes ……..
a. By obtaining the consent of c. After obtaining prior approval from SEBI.
at least 75% of Unit Holders.
b. By information each unit holder d. All of the Above
individually of the proposed change
and by allowing them to exit the scheme
without any exit load.

1428. Investor of a Mutual Fund scheme cannot sue the …………

a. AMC c. Sponsors
b. Trustee d. Mutual Fund Trust

1429. If Investor, who has not collected his Dividend / Redemption cheque, if he
comes back to claim the proceeds within a period of 3 years, he gets the
payment based on …….
a. Prevailing NAV i.e adding the Income c. Prevailing NAV of the Scheme.
earned in Money Market on the
unclaimed.
b. No change. Same Amount is Paid. d. Prevailing Bank rate along with
original unclaimed Amount.

1430. An entity holding 5 % or more of the total corpus of any mutual fund
scheme are called …………..
a. HNI- High Net worth Investor c. Investor
b. Significant Unit Holders d. None of the Above

1431. Investors have the right to receive interest from the AMC if redemption
proceeds are not despatched within a period of :
a. A month c. 14 working days
b. 14 days d. 10 working days

1432. The fund sponsors should be in the Business of Financial Services for
a. 7 years c. 5 years
b. 12 months d. 3 years
1433. The agreement between the Trustees and the AMC is known as
a. Trust Deed c. Agreement to manage Portfolio
b. Investment Management Agreement d. AMC appointment letter

1434. Sponsor are expected to have earn profit after providing for depreciation
and Interest for at least.... out 5 years under consideration.
a. One financial year c. 3 financial years
b. 2 financial years d. 2 calendar years

1435. Documents available to investors for inspection do not include

a. Memorandum and Articles of c. Final Accounts of the AMC
Association of AMC
b. Trust Deed d. Reports based on which actual
investments are made

1436. What is Full Form of AGNI?

a. Agents gross net Income c. ARMI's Geo Nuclear Injector
b. AMFI Guidelines and Norms d. None of the above
for Intermediaries

1437. Statement of Account is also sent to dormant investor. A dormant investor is

one who has not transacted for
a. 3 Month c. 9 Month
b. 6 Month d. 12 Month

1438. On request of investor, unit certificate is issued within

a. 10 Days c. 30 Days
b. 20 Days d. 2 Month

1439. AMC deploy the unclaimed dividend and Redemption amount in Money
Market. And he can charge up ..... as Investment management fee for this
corpse.
a. 0.5 P.A c. 2.5% P.A
b. 1 % P.A d. He cannot charge
1440. Unit holder can hold their units
a. In the form of Unit certificate. c. In the form of Electronic units through
D mat Account.
b. In the form of Statement of Account d. All of the above.

1441. Unit holding in D Mat form are held with

a. AMC c. Custodian
b. R & T Agent d. Depository

1442. Scheme of Mutual fund disclose their Portfolio every

a. Month c. Half Yearly
b. Quarterly d. Annually

1443. The principle of caveat emptor means

a. Let the buyer beware c. It does not apply to Mutual
Fund Industry
b. Let the seller beware d. None of the Above

1444. Which among the following expansion is right .

a. SID- Scheme Information document. c. KIM – Key Information memorandum
b. SAI – Scheme Additional Information d. All the Above.

1445. Which among the following is true.

a. SID offers the details of the Scheme. c. KIM offer abridged summary
of SID and SAI.
b. SAI offer statutory information d. All of the Above
about Mutual Fund

1446. Which of the following is not true of Key information Memorandum?

a. It is an abridged summary of
SID and SAI.
b. It is not a legal document.
c. As per SEBI, every application form
must accompany KIM.
d. An investor should read SID and
SAI before investing, or else he must
read KIM.
1447. As per SEBI guidelines, NFO other than ELSS can remain open for
a. 10 Days c. 21 Days
b. 15 Days d. 30 Days.

1448. Offer document of the Scheme is

a. Approved by SEBI. c. Both of the above.
b. Vetted by SEBI. d. None of the Above.

1449. Principle of Caveat Emptor which is applicable to Investor in Mutual fund

a. Let the Buyer beware. c. let the AMC mediate
b. Let the Distributor facilitate. d. Let the Regulator adjudicate.

1450. For Any fundamental change in Scheme attributes, AMC needs to publish
a. In Television c. In an English daily newspaper having
Nationwide circulation and in a news
paper published in the language of the
region where the head office of the Mutual
fund is located.
b. In any local newspaper where d. No need for advertisement.
the head of AMC is situated

1451. The statutory source of information on investment plans and investor

relation services offered
a. Advertisement of the Scheme c. Market analyst
b. SID and SAI d. The scheme half yearly
and annual report.

1452. The Draft SID is available for observation on SEBI`s websites for
a. 7 Working Days c. 21 working days
b. 15 Working days d. 30 Working days
1453. Which of the following is not valid information in SAI?
a. Investment valuation and accounting norms. c. Contact information of service providers.
b. Profiles of Key personnel. d. Data of opening and closing number
of investor complaint for previous
2 financial years.

1454. When an investor of an open ended Mutual Fund scheme holds 25% or
more of the corpus of the scheme, the maximum time limit an AMC is
granted to balance the portfolio as per Statutory regulation
a. 1 Month c. 1 month normal times plus 15 days
notice period thereafter.
b. 15 days d. No time limit allowed.

1455. The function and responsibility of the sponsor, AMC, trustee and custodian
of the Mutual Fund are explained in
a. Statement of Additional c. Both SAI and KIM
Information. (SAI)
b. Key information Memorandum d. Scheme information document
(KIM)

1456. A prospective investor who has not invested in the Mutual Fund Scheme,
can he legally sue AMC/Trustee for any Mutual Fund related issue?
a. Yes b. No

1457. Portfolio of a Mutual Fund Scheme of Mutual Fund is uploaded on its web
site on every 3rd of succeeding month.
a. True b. False

1458. Mutual Fund Scheme SID the risk factor are explained in two parts.
a. Standard Risk and Scheme c. Active Risk and Passive Risk
Specific Risk
b. Systematic Risk and Non d. Top down Risk and Bottom
systematic Risk up Risk
1459. The Scheme Plan shall have minimum 20 Investor and no investor can hold
more than 25% of Holding of the corpus of the Scheme?
a. True b. False

1460. As per AGNI, The practice of rebating i.e sharing part of commission earned
by distributor is banned.
a. True b. False

1461. NSE Platform called NEAT-MFSS and BSE platform called BSE-STAR
offer its services to Mutual fund investor for making convenient transaction
a. True b. False

1462. Which among the following is true?

a. Government issue G Security c. Commercial paper are issued by
and T Bills. Companies for up to 1 year period.
b. Certificate of deposit (CD) is d. All of the above.
issued by Bank for 91 days to 365 days.

1463. Which among following explains the fundamental attribute of the offer
document?
a. Types of Scheme c. Terms of Issue
b. Investment objective d. All of the above

1464. Mutual Fund /AMC have to make disclosure of their unaudited financial
result every
a. Monthly c. Half Yearly
b. Quarterly d. Yearly

1465. The statutory disclaimer “Mutual fund is subject to market risk “in visual
mode should be advertised as ...
a. Covering 10% of the display is c. Either of the above
in white background.
b. Displayed in back letter of at d. Both of the above.
least 8 inches height in white background.
1466. Which among the following is true with regards to SEBI regulation on
commission with regard to distributor?
a. SEBI regulation does not speak c. Anything above the expense structure
about minimum or maximum shall be borne by the AMC.
commission limit.
b. Commission should be from within d. All of the above..
the laid out expense structure.

1467. SEBI advertisement code states, annualized return for a scheme which is in
existence for more than a year can be displayed as
a. 1 yr, 3 yr , 5 yr and since launch. c. 1 yr, 3 yr and since launch
b. 1 yr, 5 yr and since launch. d. 1 yr, 3 yr and 5 yr.

1468. New SEBI provision states that upfront commission to distributor is paid by
a. AMC c. AMC has discretion to pay
or not to pay.
b. Investor Directly d. It depends upon Scheme.

1469. Trail commission is paid by AMC to distributor as long as the investment is

held in the scheme?
a. True b. False

1470. SEBI advertising code prohibits a distributor from advertising any publicity
material other than that provided by the AMC or pre approved by the AMC.
a. True b. False

1471. Are Distributor entitled to claim commission on their own investment.

a. Yes b. No

1472. Which among the following is False?

a. Close Ended Scheme are listed c. Retail Investor cannot transact
on Stock Exchange? through Listed Units.
b. ETF are bought and Sold in d. Both NSE and BSE have extended
the Stock Exchange. their Platform for trading of MF Units.
1473. Trail commission can vary according to the valuation gained or lost on
account of Market movement.
a. True b. False

1474. The New SEBI guidelines entitles a Distributor to claim upfront commission
directly from the investor
a. True b. False

1475. Which among the following has emerged as newer distribution channel for
marketing Mutual Fund Scheme?
a. Internet c. Both of the above.
b. Stock Exchange d. Distribution Channel.

1476. Distributor cannot claim commission on the investment made in his name?
a. True b. False

1477. In money market schemes of Mutual Fund, where investment horizon are
extremely short, performance of the Scheme can be advertised using simple
annualization of yield for the performance period
a. 7 Days c. 30 Days
b. 15 Days d. All of the above

1478. For Product like Fixed Maturity Plan, Can Mutual Fund indicate
prospective Scheme Portfolio or Indicative Scheme Yield?
a. Yes b. No

1479. The maximum initial commission that an AMC can pay to distributor is
a. 1.5% c. 0.5%
b. 1% d. Nil
1480. SEBI has mandated disclosure of commission by AMC for the distributor
having
a. Multiple point of presence c. Receipt of Commission over Rs 50
exceeding 20. lac in a year from one AMC.
b. Receipt of commission of over d. All of the Above.
1 Cr from industry in Year.

1481. Empanelment with AMC by a distributor requires.

a. Registration with AMFI. c. Registration with AMC.
b. Know your distribution – d. All of the above
verification of document.

1482. Which among following is true about mark to market?

a. When each security of Portfolio is
valued as per market price.
b. When Security is not or thinly
traded, a Proper SEBI guideline on
valuation is followed.
c. Mark to market help investor to
transact at fair price of the Portfolio.
d. All of the Above.

1483. The new SEBI provision states that the Initial issue expense of Mutual fund
scheme shall be borne by ….
a. Investor c. AMC
b. Sponsor d. There cannot be any initial
issue expense.

1484. Which among the following is true?

a. The Entry Load has been removed c. Exit load charged beyond 1% is
by SEBI since Aug-2009. added back to Scheme NAV.
b. The exit Load is same and is d. All of the Above.
applicable to all Investor scheme wise.

1485. All expense and income accrued up to valuation date are considered for
valuation except for some minor expenses accrual if they do not affect the
Scheme NAV over
a. 2% c. 0.5%
b. 1.5% d. 1%
1486. Which among the following is true?
a. The definition of Long Term for c. Both a and b.
Equity Scheme portfolio is beyond
1 Year.
b. The definition of Long Term for a d. None of the Above
Debt Scheme Portfolio is beyond
3 Year.

1487. When an individual thinly traded or not traded securities together

represents more than 5% of the net asset of a scheme portfolio, the
valuation of such thinly traded securities are conducted by
a. An independent valuer has c. Market based price matrix
to be appointed. decides the price.
b. Valuation of peer group companies d. Nearest historical price
is to be considered. is considered.

1488. Equity share which are not traded or thinly traded in an equity portfolio
are valued on the basis of …..
a. Book Value. c. Valuation of peer group
companies.
b. Earnings per share. d. All of the above.

1489. A fund`s NAV can change on account of

a. Purchase and sale of investment c. Units repurchased by Investor.
security
b. Change in Valuation of all d. All of the above.
invested security.

1490. NAV is calculated up to 4 decimal point in the case of

a. Index Fund c. Other Debt Fund
b. Liquid Fund d. All the above.

1491. Annual report related to Scheme Portfolio has to be published within

………. Months of accounting date.
a. Four c. Three
b. Six d. Nine
1492. Which among the following have the practice of having lowest expense ratio
among MF Schemes.
a. Liquid Fund c. Credit risk Fund
b. Gilt Fund d. Corporate Bond fund

1493. Valuation norms for non-traded securities should be disclosed

a. At the end of every c. In the offer document at the time
financial year of launch of the scheme
b. Every quarter d. Should not be disclosed, being
confidential information

1494. A value Manager does not look for

a. Stocks that are currently c. Low Current yield
undervalued in market.
b. Stock whose worth will be d. Long term capital Appreciation.
recognized in the long run.

1495. Which among the following is true?

a. Short Term capital Loss can be set
off against Short term and Long term
capital Gain.
b. Long Term capital Loss can be set
off against Long Term capital Gain.
c. Long Term Capital gain from debt
have indexation benefit.
d. All of the Above.

1496. If a Equity Scheme NAV is Rs 15. And the applicable exit Load is 2%, what
would be the Redemption price.
a. 14.70 c. 15.00
b. 15.30 d. 14.85

1497. which is true about taxation on Mutual Fund Schemes?

a. Short term capital Loss from Mutual
Fund can be offset against both Short
and Long term Capital Gain.
b. Long term capital Loss from
Mutual fund can be off set against
only Long term Capital Gain.
c. Long term capital Loss arising out
of Equity Portfolio have no such
advantage.
d. All of the Above.
1498. Which among the following is true?
a. Long Term capital Gain from c. Dividend Income received by Investor
Equity Scheme are taxable. under Debt Scheme is Taxable.
b. Dividend Income received by d. All of the Above.
Investor under Equity scheme
is Taxable.

1499. Which among the following is true?

a. Mutual Fund pays does not pay c. Mutual Fund Debt Investor
DDT tax to Govt for dividend does not Pay STT tax.
announced in Debt Scheme.
b. Mutual Fund does not pay DDT d. All of the Above.
tax to Govt for dividend announced
in equity Scheme.

1500. PAN card is not compulsory for …………..

a. Micro SIP c. Investment by Minor
b. STP d. Investment by Trust

1501. What are the options available with Mutual Fund Investor within a Scheme?
a. Growth Option c. Dividend Payment.
b. Dividend reinvestment option. d. All of the above.

1502. An Investor under Debt Scheme Who wants cash at regular interval should
apply for option
a. Daily Dividend pay-out plan. c. Systematic Transfer Plan
b. Monthly dividend pay-out plan. d. Systematic Withdrawal plan.

1503. Which among the following Document are available to investor for
inspection?
a. Memorandum and articles of c. Investment management report.
association of the AMC.
b. Consent of auditor and legal advisor. d. All of the Above.
1504. In a dividend re-investment option of a mutual fund scheme, the new units
are reinvested at
a. Cum dividend NAV c. It varies Scheme to Scheme.
b. Ex dividend NAV d. It is allotted on face value.

1505. The dividend distribution policy of Scheme is explained in

a. Fact Sheet published by The c. Annual Statement of the Scheme.
Scheme.
b. Monthly Portfolio statement d. Offer Document of the Scheme.
of the Scheme

1506. Which of the following is true about systematic withdrawal plan (SWP).
a. It assists the Investor who needs c. SWP is paid to Investor even if
regular cash out flow from the Scheme. Scheme NAV has declined.
b. Scheme redeems desired units to pay d. All of the Above.
the SWP amount to Investors.

1507. SIP works on the Rupee cost averaging. However A short coming of rupee
-cost averaging is
a. Investor invest regularly and c. It does not inform an investor when
periodically same amount. to buy, sell or switch from one scheme
to another
b. Over a period of time, the d. Rupee cost averaging has no
average purchase price will serious shortcomings
work out lower than the highest
Price the Scheme.

1508. Which among the following is most appropriate about Systematic

Investment plan?
a. Investor can start investments
with amounts as low as Rs. 500 or
Rs. 1000 per month
b. Investor gets the habit of investing
c. Investor reaps the benefits of
Rupee Cost Averaging.
d. All of the above
1509. Systematic Transfer Plan allows investors to
a. Transfer amount from one mutual c. Transfer amount from one scheme
fund to another mutual fund at to his bank account
regular intervals
b. Transfer amount from one scheme d. Transfer dividends of one
to another within the same scheme to another
mutual fund

1510. A Passive fund has the following feature.

a. A Passive fund tracks the Index. c. A passive fund selects the stock
that is present in the Index.
b. A passive fund matches d. All of the above.
the performance of the Index.

1511. A growth Manager looks for...

a. High Current Income. c. Above average earnings Growth.
b. Undervalued Stock. d. None of the Above.

1512. “Who can invest” section in the offer document is most important for
a. For a Regular Investor Who c. AMFI to know who can invest.
invests MF since long.
b. SEBI to know who are eligible d. A first time investor in Mutual
to invest. Fund, Who does not know about his
eligibility of investing.

1513. Which among the following is True about KYC?

a. KYC needs to be processed c. KYC applications are accepted at
only Once. POS, or office of MF.
b. KYC processing ends at CVL d. All of the Above.
(CDSL Venture Limited).

1514. If Investment is being made on behalf of Minor Child, the KYC needs to be
processed for
a. Minor Child c. School Teach who issue
Age certificate.
b. Guardian and donor both. d. Not required to be processed.
1515. If investment is being made on behalf of Power of attorney, The KYC shall
be processed for
a. Investor c. Both a) and b)
b. Person holding Power of attorney d. Both Investor, POA as well
as Nominee also.

1516. In the event of change in address or any other information, Mutual Fund
investor needs to fill up KYC update request only once which updates his
record at all Mutual Fund house.
a. True b. False

1517. For purchasing units in an Scheme, Investor can make Remittance in bank
account of Mutual Fund using
a. NEFT c. SWIFT
b. RTGS d. All the above

1518. Which among the following is true?

a. Standing Instruction or direct c. Both the Above
debit for SIP is accepted when both
Investor and Mutual Fund have
account with same Bank.
b. When they two have different Bank d. SIP investments are made through
account, ECS form is used to process only multiple cheques.
SIP request.

1519. A redemption request from Mutual Fund is facilitated using

a. Cheque Payment by Mutual Fund c. Demand Draft for remote Location.
b. NEFT/Direct Credit from Mutual Fund d. All of the Above.

1520. Cut off time for Processing of Sales and Repurchase of Equity and Debt
Scheme is
a. 12 O clock c. 3 PM
b. 2 PM d. It varies as per Schemes.
1521. The conditions of Trigger in Mutual Fund Portfolio may vary from scheme
to Scheme?
a. True b. False

1522. …………. Stock performances are better than the Growth rate of Economy.
At the same time the Stock decline fast when market falls.
a. Value c. Index Stock
b. Growth d. Thematic Stocks.

1523. Money market debt instrument have a maturity period of

a. Less than 14 days c. Less than 1 year.
b. Less than 3 Month d. More than 1 Year

1524. Yield Spread is difference between the yields on

a. Debt Portfolio and benchmark. c. G- Sec and Corporate bond of
similar maturity.
b. Monet Market debt and Long d. T Bills and G Sec.
Term Debt

1525. Modified Duration measures

a. The Sensitivity and Volatility c. This is not applicable for
of a Debt Scheme an Equity Scheme.
b. It measures the impact of d. All of the above.
Interest rate change on Bond Value.

1526. While expecting a increase in Interest Rate, Debt Fund manager does
a. Reduces the Debt portfolio c. May convert investment
Duration substantially. into cash
b. May add floating rate instrument. d. All of the above

1527. Non systematic risk of an equity portfolio can be reduced by

a. Value Buying. c. Low P/E stock Buying.
b. Diversification d. This risk cannot be reduced.
1528. Sharpe ratio of a scheme represents?
a. It is risk adjusted return with c. Both of the Above.
respect to Standard Deviation.
b. Higher the Sharpe ratio better d. None of the Above.
is the Scheme Performance.

1529. Which among the following is true for Standard Deviation?

a. It is measure of Total Risk.
b. It is based on past return,
which does not necessarily
indicate further performance.
c. Higher Standard Deviation leads
to higher Volatility.
d. All of the Above.

1530. Investor fined difference between Scheme return and investor return. The
reason that lead to such difference may be..
a. Loads c. Both of the above.
b. Taxes d. Never ever.

1531. Alpha measures the ………

a. Fund manager performance. c. Scheme Performance due to
diversification.
b. Scheme Performance due d. None of the Above.
to Market factor.

1532. MIBOR is based on ………..

a. International Money Market c. Short Term Money market
b. Government Security Market d. Corporate Bond market.

1533. Higher the Sharpe Ratio better is the scheme performance.

a. True b. False

1534. The general Risk of a Scheme NAV moving up or down on the basis of
capital market movement can be best attributed to
a. An investment risk c. Standard Risk
b. Scheme specific risk. d. Credit Risk.
1535. Which among the following is true?
a. Portfolio diversification leads to c. Systematic risk of an equity
minimization on non systematic Risk. portfolio is measured by Beta.
b. Index Fund has Beta equals to 1. d. All of the Above.

1536. In a floater debt instrument, when the market yield goes up, the issuer
………
a. Allow the same rate to continue. c. Re-set Payment at higher Interest.
b. Re-set payment at lower interest. d. Floater instrument bond incur
value Loss.

1537. There is relationship between Bond Yield and Bond Value. Which among
the following is true?
a. There is a Inverse relationship c. When Interest Rate decreases,
between yield and value of debt Bond Price increases.
security.
b. When Interest Rate increases, d. All of the Above.
Bond price decreases.

1538. Which among the following is true?

a. A debt security of shorter maturity
would fluctuate less than longer tenor
maturity.
b. Credit risk and yield on debt
security are directly related.
c. Higher credit risk would lead to
higher yield spread.
d. All of the Above.

1539. For choosing an appropriate benchmark to measure a scheme performance,

Which of the following are required ….
a. The composition and market c. Historical data of fund performance.
size of the portfolio.
b. The investment objectivity as d. The nature of investment.
stated in offer document.

1540. Which among the following is true?

a. A G Sec has less credit risk c. Lowering of Rating may attract
compared to a Corporate Bond. higher default risk.
b. A zero-coupon bearing bond d. All of the Above.
has zero reinvestment risk.
1541. The definition impact cost is when a Bond cannot be sold at a price near its
value, In such an scenario the investment in the bond is said to be exposed to
a. Liquidity risk c. Reinvestment risk
b. Credit Risk d. Inflation risk.

1542. Mutual fund are permitted to use derivative for

a. Leveraging the portfolio c. Re balancing of portfolio.
b. Portfolio hedging against risk. d. Both b and c.

1543. An investor in a closed-end mutual fund can get liquidate his holding before
maturity through selling Units at
a. Back to the fund c. On a stock exchange where
the fund is listed
b. To the trustee at NAV d. To the Banker at the prevailing
NAV.

1544. CDSC stands for:

a. Contingent Deferred Sales Charge c. Commonly Disclosed Commission
b. Commission and Discounts d. Compounded and Discounted
Structure Committee Sales Commitment Sales

1545. Net Asset Value per unit means

a. (Book value of assets liabilities) c. Net assets dividend by Initial
/Units outstanding number of units
b. Unit capital / Units outstanding d. (Market value of assets Liabilities)
/Units outstanding

1546. Debt is a lending and Borrowing Exercise. When We place deposit with a
bank, We are
a. Borrower from the bank c. Shareholder of the bank
b. A lender to the bank d. Owner of the Bank proportionately.
1547. Past performance of a sponsor/AMC mutual fund is not indicative of the
future performance of the scheme. This is
a. No, performance does c. A scheme-specific risk factor
follow a pattern.
b. A standard risk factor d. It is a SEBI statement to
for all schemes caution the Investor.

1548. Which among the following Scheme offers highest potential for capital
appreciation is offered by
a. Liquid Fund c. Growth funds
b. Gilt funds d. Balanced funds

1549. During Investment in Equity, A price risks can arise from

a. Company specific c. Sector specific
b. Market level d. All of the above

1550. Portfolio diversification reduces

a. Company specific risk or c. Both of the above
Non-systematic Risk
b. Market risk or Systematic Risk d. None of the above

1551. Debt funds target

a. Low risk and stable income c. High growth with risk
b. Protection of principal d. Long term capital appreciation

1552. What are the disadvantages attached to Mutual Fund investment in

comparison to direct Equity investment
a. Tailor - made portfolio c. Control over costs
b. Distribution expense d. All of the above.

1553. A person who analysis shares based on Published statement on finances and
operations of the company is known as
a. Chartist c. Technical Analyst
b. Fundamental Analyst d. Quantitative Analyst
1554. Beta of an equity fund measures its
a. Performance c. Risk adjusted return
b. Risk d. All of the above

1555. Which of the following is an important criterion to select a money market

fund?
a. Portfolio turnover c. The expense ratio
b. Duration of the fund d. Fund manager

1556. Standard deviation is a measure of

a. Market risk/ Systematic Risk c. Credit risk/ Default Risk
b. Total risk d. Liquidity Risk

1557. Beta co-efficient is a measure of

a. Market risk c. Credit risk
b. Total risk d. Re-investment risk

1558. The Price Earnings (PIE) Ratio is calculated using:

a. Market price and Net Worth c. Market capitalisation and dividend
b. Market price and earnings per share d. Market price and Book Value

1559. A Portfolio turnover of 200% implies that an average security stays in a

portfolio for
a. 6 Month c. 48 Month
b. 12 Month d. 36 Month

1560. Sharpe and Treynor ratio are measure of

a. Absolute Risk c. Risk adjusted Return
b. Absolute Performance d. Beta of the Portfolio.
1561. On 1 Jan ,04 NAV was Rs. 12/-. On 1 April,04 fund declared dividend of
14% which was reinvested at the ex-dividend NAV of Rs.l4/-, On 31 Dec,04
NAV was Rs. 20. What is the return as per total return with dividend
reinvestment method
a. 75% c. 83.33%
b. 25.33% d. 93.33%

1562. If the NA V of a scheme grows from Rs. 10 to Rs. 40 in two years, what is the
compounded annual growth rate?
a. 10% c. 58.74%
b. 100% d. 48.74%

1563. If Scheme Return is 16%, Risk free Return is 8% and Standard Deviation
of the Portfolio is 4, what is Sharpe Ratio...
a. 1 c. 2.5
b. 2 d. 8

1564. If Scheme Return is 24%, Risk free Return is 8% and Standard Deviation
of the Portfolio is 16, what is Sharpe Ratio...
a. 1 c. 2.5
b. 2 d. 8

1565. The NAV of a close ended scheme when listed at Stock exchange are found
to be quoted ………….
a. At a premium to NAV c. At par
b. At a discount to NAV d. Either of the above.

1566. What is true about Passive Fund?

a. Index fund are also called
Passive fund.
b. The passive fund offer return in
the line with the benchmark it
follows.
c. Any extra return over and above
benchmark is not Alpha but
tracking error.
d. All of the Above.
1567. A High portfolio turnover in an equity fund means ….
a. The fund is very active in buying c. The fund could be quite risky.
and selling security.
b. It may ideally lead to high d. All of the above.
transaction cost are high.

1568. A better gold ETF is the one which …………

a. Tracks the Gold price better. c. Which offer facility of converting
the Gold ETF into Physical Gold.
b. Have high AUM. d. Gives higher return than
underlying Gold.

1569. A portfolio turnover of 200% implies that an average security stays in a

portfolio for ….
a. 6 Month c. 48 Month
b. 12 Month d. 36 Month

1570. A debt fund investor should give more attention to …………. Before
selecting a debt scheme?
a. Fund house reputation c. Scheme Performance
and track record.
b. Portfolio Composition. d. Weighted average maturity.

1571. Market Risk can be effectively managed by ……….

a. Investing with Short term horizon. c. Investing in price Share.
b. Investing in debt fund. d. Investing regularly with a long
term perspective to smoothen out
the effect of volatility in market Price.

1572. A close ended Scheme is quoted on the Stock exchange at discount to its
NAV when …..
a. The market Are bearish. c. The asset of the fund is
undervalued.
b. Investor perceive that the fund d. None of the above.
will be unable to maintain the NAV
1573. The maximum exit load that could be charged to investor as per SEBI
regulation is …………
a. 5% c. 7%
b. 1% d. 2%

1574. Arbitrage fund is suitable for ………….

a. Those who prefers risk mitigation c. Getting tax treatment as that
while investing in equity market. of equity funds.
b. Getting ordinary return like d. All of the above.
debt fund.

1575. An investor buys units in a fund that has given excellent return in the past,
but his expectation are not met. As the fund does not perform well this year,
the Investor can
a. Sue the AMC c. Sue the agent/ distributor
b. Sue the trustee d. None of the above.

1576. Portfolio turnover rate refer to …..

a. Ratio of purchase or sales to c. Ratio of sales or purchase (Whichever
the net asset of the funds. is lower ) to net assets of the funds .
b. Ratio of total purchase and sales d. Ratio of sales or purchase (whichever
to the net asset of the funds. is higher ) to net assets of the funds.

1577. Investor should be advised to avoid investing in a debt fund with a

a. Lower rated portfolio and higher c. Lower rated Portfolio and lower
expense ratio. expense ratio.
b. Higher rated Portfolio and d. None of the above.
Lower expense ratio.

1578. Passive fund is expected

a. Beat the return of the Index. c. Keep the cost Low
b. Furnish the returns of the d. Both B and C)
Market index.
1579. For a informed Investor, the sequence of decision making like
.... 1) Selecting the Right option with the Scheme
.....2) Selecting a Scheme within the category
.....3) Deciding on the Scheme category.
a. 3, 2, 1 c. 2, 3, 1
b. 1, 2, 3 d. 3, 1, 2

1580. Which among the following is true?

a. High Yield Debt Fund is c. Capital Protection Fund has
riskier then Gilt Fund. no Equity Bases.
b. A Liquid Fund is Riskier d. Monthly Income Plan offers
than G- Security Fund. assured Monthly Income.

1581. Open ended fund NAV may fluctuate due to

a. Sale and repurchase in c. Due to Quality of Portfolio
the Scheme. and Stock selected.
b. Movement of underlying d. All of the Above.
Equity Market.

1582. A FMP (Fixed Maturity Plan) offer

a. Fixed Return to the Investor. c. Tax free return.
b. No Liquidity before Maturity. d. None of the Above

1583. Mutual Fund Can Invest in

a. Equity, Debt among the Asset class. c. Can invest in Gold and Gold
related Sector fund.
b. International fund and d. All of the Above.
International Market.

1584. In a Top down approach, Sector allocation preceeds Stock Selection.

a. True b. False

1585. .......... is a Local Asset and .......... is a International Asset

a. Equity, Debt c. Debt, Gold
b. Equity, Gold d. Real Estate, Gold
1586. The most appropriate measure of Scheme performance is
a. Simple return c. Simple Annualized Return
b. Absolute Return d. Compounded Annual Growth Rate.

1587. The risk of Mutual fund Portfolio can be measured by

a. Standard Deviation and Beta c. Variance
b. Sharpe Ratio and Treynor Ratio d. All of the Above

1588. Mutual Fund ranking and Mutual Fund Scheme rating could be considered
one
a. True b. False

1589. While choosing between a Bank deposit and a debt income fund, a investor
must consider …?
a. Credit rating of a bank. c. His investment objectivity
and risk appetite.
b. Quality of a Mutual Fund scheme. d. All of these.

1590. The biggest advantage of investment in gold is ….

a. High Return c. Low Purchase price
b. High appreciation in value. d. Hedge against inflation.

1591. Gold and real estate are attractive investment option only in high inflation
economies?
a. True b. False

1592. The new pension scheme do not offer equity investment product?
a. True b. False

1593. Gold feature are considered to be an alternative and superior route of

investing in gold then Gold ETF.
a. True b. False
1594. Which among the following is true?
a. Liquid Fund has the shortest Average
maturity among the Schemes.
b. FMP scheme maturity matches with
investor Investment horizon.
c. Monthly Income Portfolio have both
Equity and Debt asset class.
d. All of the Above.

1595. Which among the following is True?

a. NSE- MIBOR is based on c. Crisil –AAA corporate Bond index
Short term Money Market. is based on Corporate Bond market.
b. ICICI Security Sov- Bond index d. All of the Above.
is based on Govt Security Market.

1596. Which among the following are associated with Investment in Gold?
a. Gold ETF c. Gold Future
b. Gold Sector Fund d. All of the Above

1597. Which among the following is true?

a. Gold ETF are open ended scheme c. Mutual Fund appoint market maker
with No fixed maturity. to facilitate Gold ETF transaction.
b. Gold ETF trade on underlying d. All of the Above
price of Gold.

1598. A investor should consider before choosing between, Fixed Deposit in Bank
and Mutual Fund Debt Scheme
a. Bank offer taxable Interest with TDS. c. Mutual Fund debt free offer tax
efficient Long Term Capital gain.
b. Mutual Fund debt Scheme Offer d. All of the Above
Tax free Dividend.

1599. Investment in New pension Scheme

a. Qualify for Tax rebate under c. It offer a single Personal retirement
section 80C. account Number (PRAN)
b. Offer Different Portfolio in d. All of the Above.
combination of equity and debt.
1600. In respect to New pension Scheme
1) Tier 1 (Pension account) is non withdrawal.
11) Tier 2 Saving Account allows Withdrawal
a. Both 1) and 11) are true. c. Only 11) is true
b. Only 1) is true d. None of the above.

1601. Despite India having high Savings to GDP ratio, more than 50% of wealth
of Indian is held in Physical form?
a. True b. False

1602. Pension Scheme is regulated by

a. RBI c. PFRDA
b. IRDA d. SEBI

1603. An Investor under pension scheme can have exposure into

a. Government Security c. Equity
b. Short term and medium term Debt d. All the Above

1604. GOLD ETF remains listed at Stock exchange. Investor can buy or redeem
their units through Stock Exchange directly.
a. True b. False

1605. The savings account Tier II, of NPS is a withdrawal account. But can be
operated only after having an active Tier I Pension account?
a. True b. False

1606. Financial planning is not required in the case of

a. A 45 year old doctor with
substantial saving.
b. A retiree whose current income
of 10,000 but would want Rs 20,000
a month.
c. An old person wanting to transfer
all wealth to his grand children.
d. A young professional aged 30 year.
1607. As per financial Planning norms, Investor in ……… stage prefer long term
risky investment.
a. Transition c. Distribution
b. Accumulation d. Reaping

1608. A 60 year old investor who is employed and earning well, can be said to be in
a. Accumulation phase c. Reaping/ Distribution stage
b. Transition stage d. Inter generational wealth
transfer stage.

1609. An investor who gets sudden wealth should ideally invest the sum
immediately into..
a. Stock exchange c. Diversified equity scheme
of Mutual Fund.
b. Bank fixed deposit d. Liquid Scheme of Mutual Fund.

1610. As per wealth cycle guide, during the accumulation stage ….

a. The client looks to build wealth. c. Client prefers to sit on cash.
b. Client finds his financial goals d. Client discharges his liability
as immediate and fast approaching. towards retirement.

1611. Person must learn the habit of saving from Young unmarried stage itself
a. True b. False

1612. When an investor keeps investing a fixed amount at regular interval what is
also termed as SIP, the average cost of acquisition of units will always be less
than the highest price
a. True c. False

1613. What could be best indicator of transition phase?

a. Investor starts planning for c. Investor cannot take any risk.
long term objective.
b. Investor prefer as equity . d. Investor financial goal are
Investment scenario. fast approaching.
1614. Asset Allocation for a Investor means
a. His investment across various
Mutual Funds.
b. His investment across various
Financial Institution.
c. His investment across Geographical
Investment destination.
d. His investment across available
asset in line with his financial objective.

1615. Financial Planning involves ….

a. Studying financial management c. Financing the client`s
investments objective.
b. Managing the financial d. Picking Good Stocks.
risk of investment.

1616. Long term investment commitment or strategic investment should be

developed in the
a. Transition phase c. Reaping Phase
b. Accumulation Phase d. Inter-generational transfer phase.

1617. Which of the following strategies is an example of the combined approach

of Rupee cost and value averaging.
a. When the investor invests regularly in c. It is process of regular withdrawal
liquid fund and set to transfer that into from Equity when it appreciates.
Equity. He then transfers more into
equity, if equity value decline and transfer
out from equity when equity value appreciate.
b. It is process of regular and periodic d. It is Systematic transfer Plan.
investment into equity.

1618. A series of decision together facilitate Financial Planning. It comprises of

comprises
a. Defining a client's profile c. Monitoring financial
and goals recommendations
b. Recommending appropriate d. All of the above
asset allocation
1619. A Young Investor with no short term liability in accumulation of phase of
life cycle should invest in
a. Gilt funds c. Equity Growth funds
b. Income Funds d. Liquid funds
asset allocation

1620. A very high proportion of investment in equity funds is advisable for

investors
a. In distribution phase c. In transition phase
b. In accumulation phase d. Who is wealth preserving
affluent individuals

1621. The transition phase of an investor's wealth cycle is achieved when the
a. Financial goals have been c. Financial goals are approaching
already met
b. The investor has retired d. Investor suddenly gets a windfall

1622. A high proportion of investment in income funds is desired by the Investor

When he is
a. in accumulating phase of Investment. c. Investors in the inter-generational
transfer phase.
b. a Affluent investors d. Investors in the distribution phase

1623. Retired investors should

a. Invest in an illiquid asset.
b. Not invest in securities which
bear risk of capital erosion
c. Continue holding some portion of their
holding in high yielding equity
growth funds.
d. Never invest in equity

1624. For older investors who want to transfer their wealth

a. No financial planning is required
b. The right investment strategy depends
upon who the beneficiaries are
c. The right investment strategy depends
upon the quantum of the Wealth he has
accumulated so far.
d. He can choose various Equity Fund
to take benefit of Capital market.
1625. Investors who acquire sudden wealth
a. Can speculate in Stock Market.
b. Should diversify across the
International market.
c. Should take the effect of taxes
into account
d. Should buy Gold to avoid as Gold
is best hedge against inflation.

1626. Among the following, which is more important for an investor?

a. Size of the fund. c. Good Performing Old Scheme.
b. Funds suitability in ref to d. Fund Manager track record.
Investor objective.

1627. A wealth preserving affluent investor is likely to invest pre dominantly in

a. Equity Security and International c. Money Market and in Gold
market.
b. Debt funds and fixed Income d. Real Estate
security

1628. The Strategy advisable for an investor to maximize return in the long run is
a. Buy and hold on to investment c. Liquidate good performing
for a long time. investment from time to time.
b. Liquidate poorly performing d. Switch from poor performers to
investment from time to time. Good performers.

1629. A high proportion of investment in equity Scheme is most suited to one?

a. In Distribution phase. c. In Transition phase.
b. In Accumulation phase d. Who are wealth preserving
individual

1630. Risk appetite of an investor can be understood through ….

a. Risk analysis of Investment he c. Risk profiling
has made.
b. Achievement of financial d. Evaluation of Socio and
objective. cultural condition.
1631. A relatively high proportion of equity investment is suggested in
a. In distribution phase. c. In transition Phase.
b. In accumulation phase. d. Reaping Stage.

1632. Retired investor should …..

a. Keep his investment Liquid c. Should convert his investment
and Tax efficient. into cash.
b. Keep continues to invest in equity. d. Never invest in equity.

1633. The Transition phase of an investor `s wealth cycle is when the

a. Financial Goal has been already met. c. Financial Goal are approaching
b. The Investor has retired. d. Investor suddenly gets a windfall

1634. What is the portfolio you will recommend to a Young couple with two
income and two children?
a. 10% Money Market, 30% Aggressive c. 60% Equity, 30% Money Market,
equity, 25% diversified equity, 35% 10% Debt.
bond Fund
b. 40 % aggressive equity, 30% Money d. 70% Bond Fund, 30% equity Fund.
Market, 30 % Bond fund.

1635. Financial Planning is

a. Investing funds to achieve a c. Planning for Retirement with
highest possible rate of return maximum income Possible.
b. Resorting to tax planning to keep d. Process of solving financial Problems
taxes as low as Possible. and reaching financial Goals.

1636. You have just won a huge sum in Lottery, what should you ideal allocation
be?
a. Invest in Government bonds as c. Consider the impact of Tax.
risk is low.
b. Invest in Money Market Fund and d. Both c and b.
decide over the next few days.
1637. The objective of Asset allocation is Risk management?
a. True b. False

1638. The Asset allocation which is based on Investor risk appetite and Investment
Objective is
a. Tactical Asset allocation c. Flexible Asset allocation
b. Fixed asset allocation d. Strategic Asset Allocation.
 Bullet Points
1. Mutual Fund invests its unit holder money in capital market through various
Schemes to generate income (Dividend) and growth (Capital Appreciation).

2. Mutual Fund is constituted as Trust.

3. The relative size of Mutual Fund Company among its peer is assessed by the
asset under the Management (AUM).

4. The diversified equity fund invests in diverse mix of Equity that cut across the
sector.

5. Thematic Funds are broader based than a Sector fund. In other word Thematic
Fund is more diversified than Sector Fund.

6. Interval fund combines the feature of both open ended and close ended fund.

7. Fixed maturity plan are kind of debt fund where the investment horizon of
Investor is closely aligned to the maturity of the scheme.

8. There are few disadvantages with Mutual Fund. These are, lack of portfolio
customization, No control on Cost and overload of scheme and scheme variant.

9. Mutual Fund can benefit from economies of scale because of large volume of
Trade. That means Investment through Mutual Fund are less expensive than
direct investment into capital market.
10. SEBI regulates Mutual Fund. Yet Bank Owned Mutual Fund, (that is where
Sponsor are Bank) is jointly supervised by SEBI and RBI.

11. The investor in a Mutual Fund Scheme cannot bear a loss higher than the
amount invested by him.

12. Equity Linked saving schemes offers tax benefits to its investor.

13. Dividend yield scheme invest in share that fluctuate less and maintains a track
record of high Dividend payout. And hence dividend represents significant part
of return on these shares.

14. The custodian of a Mutual Fund is appointed by Trustee. The primary job of
custodian to keep record of Security of Mutual Fund Schemes. They are
regulated by SEBI.

15. Capital protected schemes are close ended Hybrid Scheme (Where Investment
is made in Equity and Debt). The Portfolio of the scheme is structured in such
a way that investor get their principle back.

16. Exchange traded fund are open ended fund that is traded in stock exchange.
They follow the Value /price of their underline. They offer real time NAV to
their Investor.

17. The Sponsor Who creates the Structure of Mutual fund through Trust and
AMC needs to maintain 40% share holding in the capital of the AMC.

18. The custody of the assets of the Scheme rest with custodian who is appointed
by the trustee. While the assets are managed by AMC, it is kept with
Custodian. This works as check and balance and thus protects the interest of
Investor.
19. AMFI is not a SRO. It is an Industry advisory body to assist SEBI in
Regulating and formulating Rules. A Self Regulatory organization can regulate
only its member in a Limited Way.

20. AMC can outsource maintenance of Unit holding account, Transaction,

Services to Registrar and Transfer Agent.

21. The directors on the Board of AMC are appointed with prior approval from
trustee. The 50% of the director of the AMC should be Independent from any
association with Sponsor or Trustee..

22. AMFI issue advisory to maintain ethical and highest standard in Mutual Fund
Industry. It has issued two guidelines – a) AMFI code of ethics, it sets the
standard of good practices for AMC b) AMFI- code of conduct for
Intermediary, It sets the guidelines for distributor and Market intermediary.

23. The Scheme name should represent the asset class or sector of Investment it is
intended for. At least 65% of the Scheme corpus should be invested in the
kinds of the Security/ Sector implied by the Scheme name.

24. Statement of account needs to be sent to the Investor within 5 days of the
closure of the NFO other than ELSS and RGESS.

25. An offer document contains an AMC`s Investor`s grievances history of the

past 3 years.

26. Distributor or agent can distribute several Mutual Funds simultaneously.

27. Contingent deferred Sales charge is an exit load. It is staggered with time.
CDSC is lower who stay invested in a scheme for longer period.
28. AMC needs to update the NAV and repurchase price in two News Papers.

29. The appointment of the AMC for the Mutual Fund can be terminated by the
majority of the trustee or 75% of the Unit Holder.

30. PAN no and KYC documentation is compulsory for the Mutual Fund
Investment. However requirement of PAN No is exempted for Micro SIP. But
Still Investor (for Micro SIP) has to get KYC done through simpler set of
documentation.

31. Investor can maintain 5 Bank details in their Folio. He can also nominate 3
person as his Nominee in his folio.

32. An Investor is a beneficiary in trust. And hence he can sue Mutual Fund trust.
Still if he feels, Trustee has not fulfilled the obligation; Investor can file breach
of Trust case against the Trustee.

33. NFO other than ELSS and RGESS in general can remain open for maximum
period of 15 days.

34. Mutual Fund Documents have two Parts SID (Scheme information document)
and SAI (Statement of additional Information.) Though the two parts are
legally only one document.

35. KIM is the summary of SID and SAI. It must be attached with application
form.

36. Apart from Individual and Stock Broker, the distributions of Schemes are
conducted through Institutional channel. They build their reach through
employee agents and Sub brokers.
37. SEBI does not speak on maximum or minimum commission. It only speaks
about maximum expense that a scheme can charge. Commission should be
paid within the overall limit of expense. There is no upfront commission
payable to the distributor. Distributors are expected to charge upfront
commission from Investor directly. AMC pay trail commission for the period
the investment has been held in the scheme.

38. Since Trail commission is calculated as percentage of AUM maintained by

distributor with the AMC, distributor gets the benefits in the valuation in the
market.

39. Net assets are the unit holder Fund in the scheme.

40. A scheme cannot show better payment by delaying dividend payment and
other expense. As NAV calculation follows Accrual method of accounting.
Where expense and Income both are booked upfront.

41. SEBI has banned the entry Load from Mutual Fund Scheme. However there is
exit Load. Difference between NAV and repurchase price is called exit load.

42. A Mutual Fund must despatch Dividend Warrant within 30 days of the
declaration of the dividend and redemption cheque within 10 to the Investor.
The AMC is liable to pay compensation @15% per annum on the amount
involved in both the case for the delayed period to the Investor. Such penalty
payments are charged from AMC accounts not the Scheme accounts.

43. Redemption/ Repurchase cheques would need to dispatch to investor within 10

working days from the date of the receipt of the request.

44. The investor can choose to hold units in dematerialized form. It is mandatory
in case investor wishes to trade on exchange and take service benefit of Stock
exchange route.
45. Equity investment can have two methods of Stock picking. Growth and Value.
High P/E multiple of a fund in comparison to average market multiple could
be of Growth Fund. And Low P/E multiple could be a Value Fund.

46. Fundamental attributes of Schemes as mentioned in offer document can be

changed with due process. Trustee in concurrence with unit holder can bring
about change in fundamental attributes. The dissenting unit holders can
choose to exit at a prevailing NAV rate without any exit Load within 30 days.

47. Dividend in Mutual Fund Scheme can be paid out of distributable reserves
only.

48. Investment in equity Scheme for a period less than one year is treated as short
term investment.

49. There is no Tax deducted at source (TDS) on dividend payment and

repurchase payment to resident Indian investor.

50. Investments in Mutual Fund units are exempted from wealth Tax.

51. Security Transaction Tax (STT) is applicable on Investment of Equity and

Equity Mutual Fund Schemes. Debt Schemes don't pay any STT on its
transaction.

52. Dematerialization of Mutual Fund unit is a process of conversion of Physical

unit into electronic unit. It is mandatory for a investor for trading at stock
exchanges.

53. Mutual Fund Scheme generally offer three option under it scheme. Dividend
payout, Dividend reinvestment and Growth.
54. Units in Mutual Fund are purchased and sold through application of NAV. The
Time Stamping is a mechanism to ensure that the cut off timing is strictly
followed in awarding NAV to the transaction.

55. A separate transaction slip mentioning details of Scheme and folio duly signed
by the investor is a valid document for redemption process.

56. Fund manager may follow different security analysis while constructing his
investment portfolio. Fundamental Analysis and Technical Analysis.

57. Fundamental Analysis is review of firm`s published financials like Balance 3

sheet, Profit and Loss account or cash flow statement. Technical Analyst studies
price volume charts of the company share prices.

58. Equity fund manager can have two investment strategies while choosing
Equity stock. Growth Stock or Value Stock Picking.

59. Growth investment style leads to selection of high P/E growth Stock. The
growth rates of such companies are generally higher than the average
economic growth rate. Value investment style is an approach of picking stocks
which are valued lower based on their fundamental analysis. These are
generally available at Low P/E multiple.

60. In medium to long duration Debt portfolio`s of Mutual Fund scheme, the
return are largely driven by the interest rate and yields spread.

61. The difference in the Yield (Return) between a Government bond and
Corporate Bond of similar maturity is called yield Spread.
62. The Scheme return can be calculated by three ways. Simple return, Simple
annualize and Compounded annual growth Rate (CAGR). The CAGR is
accepted as calculation of all return for unit held beyond one year.

63. A Bond rating indicates its associated default Risk. Poorer the rating weaker
the Bond and higher the yield it will offer. Poorest qualities of Bonds are called
Junk Bond.

64. The Interest rate and Bond Price are inversely proportional. When Interest
Rate rises, Bond Price fall. And when interest rate declines, bond price rises.

65. A security which is not traded regularly or whose closing price are not
available for NAV calculation, are called thinly traded security. The valuation
formula of such security is based on earning per share of the company, book
value, and the valuation of similar share in the market (Peer Group).

66. Debt Securities that are not traded on the valuation date are valued as per the
approved yield matrix prepared by SEBI approved valuer. The yield matrixes
consider the different credit rating of peer debt security to compare and derive
the yield of thinly traded security.

67. Mutual funds should be recommended as investment to achieve a long term

Goal. The long Term Goals are called Strategic Goal.

68. The Investment objective and benchmark are decided at the time of launch of
Scheme through Offer document. The choice of an appropriate benchmark for
evaluating a fund`s performance depends on the investment objective of the
fund.
69. Schemes performances are compared in respect to its underlying Benchmark.
Scheme outperforming benchmark consistently over a period is called a better
performing Scheme. The ability of fund manager to outperform Benchmark is
measured by Alpha. All funds may have alpha except Index Fund. Index fund
Manager is not expected to beat the Benchmark. He mirrors the Index and
tries to replicate the Index performance. Any deviation positive or negative by
Index fund Manager from its benchmark is termed as tracking error.

70. Fluctuation in return is a measure of Risk. There two types of Risk a)

Systematic Risk (Market Risk) b) Non Systematic Risk. The non systematic
risk can be eliminated by diversification. The systematic Risk is measured by
Beta. The Total risk is measured by Standard Deviation.

71. When Beta of a Scheme is one, It represents risk neutral feature. Index Fund
have Beta =1. Aggressive funds have beta more than 1 and defensive funds
have beta less than 1.

72. Scheme return and Investor return are never same. Loads and taxes pull the
Investor return below what is earned by the Scheme.

73. Systematic Investment plan (SIP) is based on Rupee cost averaging. Investors
under SIP always invest at average price less than the highest price of the
Scheme. Similarly Systematic Withdrawal plan (SWP) is ideal for Investor
who prefers a Regular Income stream.

74. Minimising risk is a priority for any Investor while approaching capital
market. Asset diversification of is the approach through which one can spread
ones investment among multiple asset classes to diversify the underlying risk.

75. Arbitrages try to locate profit when a security is prices differently in two
markets at a given point of time. It is ambiguity in price discovery. Arbitrage
fund are meant to lock a better risk adjusted return in relation to a Liquid
fund.
76. A Balance Scheme or hybrid fund offers exposure to both debt and Equity.

77. Tracking error in an index fund is the basis of selecting a better Index scheme.
Lower the tracking error, better the Schemes is.

78. Among the three option under a Scheme, as such dividend payout, dividend
reinvestment and growth, a Investor need to prioritize his taxation and
liquidity requirement before deciding his Scheme option.

79. Gold Linked or other Mutual Fund Scheme is exempted from wealth Tax.

80. Risk profiling in an approach to understand the risk appetite of an investor.

Based on Risk profile, Investor can select his investment strategy. The Two
Investment strategy could be Strategic asset allocation or tactical asset
allocation.

81. Strategic asset allocation is a long term strategy, where asset allocation across
equity and debt follows a consistency. For example, one should hold debt in
proportion to the age he belongs. Higher the age higher should be debt in his
portfolio.

82. Tactical asset allocation is based on the calls in relation to the likely behaviour
of the Market. A investor with higher investible surplus and speculative
behaviour favours tactical asset allocation

83. Total Risk = Systematic Risk+ Non systematic Risk.

84. Systematic Risk is also called Market Risk. This cannot be diversified.
85. The Non systematic Risk or diversifiable risk can be minimized by investing in
a portfolio.

86. Beta of Passive Portfolio or Index fund should be 1.

87. Share Ratio and Treynor Ratio measures risk adjusted return of the Portfolio.

88. Alpha measures the ability of Fund manager to create extra return over and
above the benchmark.

89. Deviation in the return between an index fund and benchmark is called
tracking error.

90. High Portfolio turnover ratio leads to higher risk and cost. It is especially
important in case of Liquid and debt Fund.

91. R Square of a Portfolio states the extent of alignment between portfolio and
the benchmark. Hence the Index fund R square should e be 1.