1.
A Debt Fund that invests in all available types of debt securities issued by entities across all industries & sectors is a: a) b) c) d) Focused debt fund Diversified debt fund Assured return fund High yield debt fund Some close - end funds sell at a discount to their NAV because
11.
What is the duty of the custodian?
a) Marketing
2.
various schemes through agent’s network. b) Handling securities in terms of physical delivery & eventual safekeeping. c) Issuing & redeeming units of the fund. d) Receiving the proceeds on sale of investments & discharging its obligations towards operating expenses. 12. Which one of the following is not a specialty fund? a) Growth Fund b) Small- Cap Equity Fund c) Offshore Fund d) Sectoral Fund Direct investments in stock markets can be better option over investing through mutual funds if: a) The investor wants better returns than those offered by mutual funds. b) The investor has identified bullish phase in the stock market. c) The investor wants to invest for the long run. d) The investor has large capital, knowledge & resources for research. 14. a) b) c) d) 15. a) b) c) d) 16. a) b) c) d) 17. Which is the High-Risk fund? Money Market Fund Sector Fund Index Fund Balanced Fund Offer Document is required by Mutual Fund: As a AMC requirement As a SEBI requirement As an investor requirement All of the above The ownership of Mutual Fund belongs to: Sponsor AMC Unit-Holders Board of Trustee What is the criticism of the Rupee Average costing? a) It has no shortcomings b) Investment is for the same amount every month c) It does not guide you when to buy, sell or switch from one scheme to another d) In the long run, the average per share price will be more than guessing the highs & lows 18. a) b) c) d) 19. On which of the following incomes investor can't claim rebate U/s 88? Winning from state lotteries Long-term capital gains Speculation business Income from house property What is the feature of the Passive Fund?
a) The repurchase price fixed by the fund is
lower than its NAV b) Of the inherent risk prevalent in close end funds c) Investors expect their future potential to be unable to sustain their current NAV d) Of high expense ratio. 3. The AMC is required to be approved & registered with SEBI with a net worth of: a) Rs. 20 Crores c) Rs. 50 Crores 4. a) b) c) d) 5. a) b) c) d) 6. a) b) c) d) 7. a) b) c) d) 8. b) d) Rs. 100 Crores Rs. 10 Crores
13.
The sponsor of a mutual fund may be compared to: An equity shareholder in a company The Chief Executive of a company The promoter of a company A director in a company Money Market Funds are regulated by: Trustee AMC SEBI RBI An investor in need of regular income should invest: A Debt (Income) fund PPF Bank Fixed Deposit Equity growth fund Which is the High Risk Fund from the following? Index Fund Short-term Bond Fund Intermediate Bond Fund International Fund The scheme wise Annual Report of a Mutual Fund shall be published or mailed to unit holders not later then: a) 3 Months b) 6 Months c) 12 Months d) None of the above
9. a) c) 10. a) c)
The trustees appoint AMC with the prior approval of: SEBI AMFI b) d) Stock Exchange None of the above
Which is the self-regulatory authority from the following? AMFI b) RBI SEBI d) Bombay Stock Exchange
a) A passive fund matches the performance of the index b) A passive fund tracks the index c) A passive fund selects the stocks that are present in the index d) All of the above 20. The AMFI objectives does not include the following: a) To emphasize on ethical & moral trade practices b) To create awareness about mutual funds c) To regulate the stock markets along with SEBI in tandem d) To improve the standards of mutual fund industry 21. NAV is a) Asset value divided by all shares sold since the fund was initiated b) Total number of shares divided by asset value c) Total value of assets held by the fund divided by the number of outstanding units d) Total value of assets held by the annual revenue 22. a) b) c) d) 23. The Mutual Fund in India is constituted as: Investment Company Trust Company None of the above A mutual fund is owned by
c) Take decision of keeping. Liquidating or acquiring mutual fund d) None of the above 29. a) b) c) d) 30. Which of the following sales practices is prescribed by regulation? AMFI code of Ethics SEBI Advertising code AMFI's code of Agents None of the above What portfolio mixed would you recommend to the 56 years old client? a) 40% in Equity & 60 % in Debt funds b) 20% Equity, 20% in Liquid & 60% in Debt funds c) 40% in Equity & 60% in Balanced funds d) 100% in Monthly Income schemes 31. a) b) c) d) 32. The first time investor would be well advised to refer to: Detailed offer document Key information memorandum Either of the above None of the above Commission are not paid to distributors for a) Any out of pocket expenses incurred which attracting investors b) For bringing in investors to the fund c) To provide extra returns to investors d) all of the above 33.
the
a) SEBI
c) Govt. of India 24. a) b) c) d) 25. a) b) c) d) 26.
b) d)
Investors AMFI
In case of the closes end scheme what is the periodicity of amortization of Issue expenses. a) Weekly c) Half yearly b) d) Quarterly Yearly
How UTI different from other mutual funds? can hire, lease underwriting can borrow internally & abroad all of the above The advantage of mutual fund is Diversified risk Professional management Small amount of investment All of the above 35. 34.
Which of the following is not a balanced fund? a) b) c) d) 50% equity 50% debt 65% equity 35% debt 35% equity 65% debt 90% equity 10% debt AMFI code of ethics broadly covers the following areas.
a) Management of the fund ought to be in
the interest of the unit-holders.
The mutual fund industry began in a) 1969 b) 1963 c) 1972 d) 1973 A good agent consideration of a) b) c) d) will never sale on 36.
b) High standards of service are expected c) d)
from funds. Both a and b. Neither a nor b. Which of the following are important criteria for comparison of fund performance? a) b) c) d) 37. Portfolio composition Maturity profile Fund size None of the above. Jacob's 4 step program includes a) work with investors to develop long term goals
27.
Comparative features of other funds Can assure rate of dividend Past record of the scheme None of the above Investor should track mutual funds in which he has invested because
28.
a) He comes to know the performance of the fund b) The annual reports inform him about the NAV of the fund
b) determine asset allocation of investment portfolio c) neither of the above d) both a and b 38. Maximum permissible investment by a mutual fund in money market securities during the first 6 months from allotment of units in an IPO is a) 100 % b) 60 % c) 50 % d) Depends on whether it is an equity scheme or a debt scheme 39. a) b) c) d) e) 40. Which of the following statements is true? Open-end schemes have variable unit capital. Open end schemes can be listed in the stock market. Closed-end schemes can offer re-purchase facility. All the above. Only (a) and (c) A debenture with a face value of Rs. 1000 and a 2 year term to maturity has yield to maturity (YTM) of 9 per cent. The coupon rate is 12 per cent per annum, payable half-annually. What is its price? a) c) 41. Rs. 1000.00 Rs. 990.10 b) d) Rs. 995.35 Rs. 1052.80
47. a) c) 48.
Distributors can be appointed by AMC Sponsor b) d) Trustee Custodian
Of the following types of equity funds, the highest potential risk is with a) diversified funds b) sector funds c) growth funds d) index funds NAV of a scheme has gone up from Rs.10 to Rs.11.50 in 15 months. The CAGR is 12 per cent a) b) c) d) (11.5 / 10)^(12/15) -1 (11.5 / 10)^(15/12) -1 (10 / 11.5)^(15/12) -1 (10 / 11.5)^(12/15) -1 The position on tax benefit under section 88 for investment in units of pension scheme floated by a mutual fund is a) benefit not available b) available upto a cap of Rs.10,000, but within overall limit of Rs.60,000 for all section 88 investments c) available without cap, but within overall limit of Rs.60,000 for all section 88 investments d) available upto Rs.80,000
49.
50.
51.
Mutual funds in India can invest in a) Transferable securities in the capital and money markets b) Gold c) Real-estate d) Only (a) and (c) e) (a), (b) and (c)
What is the best combination for a high yield - low risk investment? a) Ex-Marks: 70% Beta:0.9 Dividend Yield:10% b) Ex-Marks: 70% Beta:0.8 Dividend Yield:11% c) Ex-Marks: 80% Beta:0.9 Dividend Yield:12% d) Ex-Marks:90% Beta:0.8 Dividend Yield:13%
42.
The following are the characteristics of bonds except a) Par value b) Coupon c) Maturity d) Technical analysis
52.
The unit capital of a mutual fund scheme is Rs.20 million. The market value of investments is Rs.55 million. If the number of units outstanding is 1 million, what is the NAV per unit? a) Rs. 20 c) Rs. 55 b) d) Rs. 75 cannot be determined
43. Offer document may not contain following a) b) c) d) e) 44. Open End – Close End Investment Pattern Sponsor & Trustees Address Registrars Address none of the above "Load" is a) Charge borne by Fund b) Charge borne by AMC c) Charge borne by investor d) Charged borne by Trustees 45. Recurring Expenses include 53.
A scheme can be launched by a) The trustees b) The sponsor c) The AMC d) AMC on behalf of the trustees
54.
The most significant risk in a welldiversified debt scheme is a) Re-investment risk c) Interest rate risk b) d) Credit risk Liquidity risk
55. a) b) c) d) 56. a) b) c) d)
A Systematic Investment Plan is the best example of Rupee Cost Averaging Value averaging Buy & Hold none of the above Indira Vikas Patra is liked because of Good returns Tax-free returns No record of identity of investors All of the above
a) Penalties and fines
b) Interest on delayed payment to unit holders c) Depreciation on fixed assets d) Marketing and selling expenses of a scheme 46. a) c) What is the risk profile of a fund having 35% exposure to equities? Low Aggressive b) d) Moderate Very Aggressive
57.
The Statutory auditor of the mutual fund should not be associated with the auditor of a) b) c) d) The trustee Company The Asset management Company The Sponsor All of the Above What does AMFI stands for? Association of Mutual Funds in India Association of Market Federation of India Association of Money Funds in India Association of Money Federation of India The concept of Distribution companies has been accepted internationally to (a) avoid administrative costs (b) to get more sophisticated distributors (c) to get institutional money (d) to get niche marketing a) b) c) d) A only b only c only d only All of the above None of the above The appointment of AMC of the Mutual Fund can be terminated by a) b) c) d) e) f) Managing Director Chairman 60% of the Unitholders 45% of the Unitholders 75% of the Unitholders 50% of the Unitholders Investor's rights are available in which of the following documents: a) b) c) d) e) Application form Offer Document AMFI directory SEBI UTI What is Mark to Market? a) Valuing investments at cost price b) Valuing investments at market price c) Valuing investments at cost or market price whichever is lower d) Valuing investments at cost or market price whichever is higher
58. a) b) c) d) 59.
e)
f) 60.
61.
62.
63. a) b) c) d)
Information about a scheme can be found out from Newspaper Magazine Offer document Newsletter