Association of Mutual Funds in India (AMFI) 2008 AMFI Mutual Fund Basic Module Model Mock Test I - Question Paper

Q.1 A non-traded equity is valued using ……….

1.Net worth per share
2.Valuation using capitalization earnings methods
3.Average of (1) and (2)
4.Average of (1) and (2) further discounted for illiquidity
5.None of these.


Q.2 Which of the subsequent SEBI restrictions applies to a scheme’s investment in unlisted shares ?

1.A closed-end scheme may invest a maximum of 10% of its NAV in unlisted shares
2.An Open-end scheme may invest a maximum of 5% of its NAV in unlisted shares
3.‘1 & two above
4.None of these

Q.3 As per SEBI, Non-Performing assets (NPA) of a mutual fund can be described as...

1.An equity which is trading beneath its par value
2.An equity share which is yet to be listed on the stock exchange
3.A debt security on which either interest or the principle or both amounts are due but not received for 1 quarter after the due date
4.None of these

Q.4 An investor purchased units in an approved mutual fund on Juanuary’01 1998, for Rs.4, 00,000.00He sold the units on December 15, 1999 for Rs.6, 00,000.00Calculate the capital gains taxes paid by him without the benefit of indexation (ignore taxation).

1.Rs.20, 000.00
2.Rs.40, 000.00
3.Zero
4.Depends on the investor’s tax bracket

Q.5 An open-end fund with 10000 units outstanding had the subsequent items in its balance sheet:
Investments at market value Rs100000/-, Other assets Rs20000/- Current Liabilies Rs 25000/-, compute the fund’s NAV per unit.

1.Rs9.50
2.Rs12
3.Rs10
4.Rs14.50

Q.6 Liabilities in the balance sheet of a mutual fund are

1.In the form of long-term loans
2.Strictly short term in nature
3.Combination of long term and short term
4.Not allowed as per regulations

Q.7 A funds NAV is affected by

1.Purchase & sale of investment securities
2.Valuation of all investment securities held
3.Units sold or redeemed
4.All of the above

Q.8 Which of the subsequent expenses cannot be charged to the scheme

1.Audit fees
2.Costs related to investor communication
3.Winding costs for terminating the scheme
4.Penalties and fines for infraction of laws

Q.9 As per SEBI guidelines, a security is to be treated as untraded when

1.Security is never traded on stock exchange
2.Security is not traded for 30 days
3.Security is not traded for 60 days
4.None of the above

Q.10 NAV is

1.Book value/ no of outstanding units
2.Net value / initial allotted units
3.Net asset/ outstanding units
4.None

Q.11 An investor invested 200 units at Rs12 What will be the value of the asset after one year if the outstanding units at the end is 20000 units?

1.2400
2.1% of value of 20000 units

Earning:   Approval pending.