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

c. Chartist approach



12. SIP is not


a. Rupee cost averaging

b. Systematic investment at regular intervals

c. Transfer of units



13. Value of stocks refers to


a. Shares of companies whose earnings are correlated with the state of the economy

b. Shares of companies whose earnings are expected to increase at normal levels

c. Shares of companies trading in precious commodities

d. Shares of companies in nature industries expected to yield low growth earnings



14. A mutual fund is not


a. A portfolio of stocks- bonds- and securities

b. A pool of funds used to purchase securities on behalf of investors

c. A collective investment vehicle

d. A company that manages an investment portfolio



15. A prospective investor to seek legal recourse can sue


a. AMC

b. Sponsors

c. Trustees

d. None of the above



16. The maximum limit of inter-scheme investments by a fund is:


a. 5% of the NAV of the transferring scheme

b. 15% of the NAV of the receiving scheme

c. 5% of the NAV of all schemes of the fund

d. 15% of the NAV of all schemes of the fund



17. The subsequent is not a duty of the board of trustees of a mutual fund


a. raise the maximum possible amount of assets in every scheme floated by the fund

b. ensure that investors interests are safeguarded

c. the management of the fund is in accordance with SEBI regulations

d. ensure the AMC has proper systems- procedures and key personnel in place



18. For a merger of 2 AMCs to go through which of the subsequent is not required?


a. Approval by SEBI

b. Approval by trustees

c. Approval by company legal regulations board



19. Mutual Funds in India started with the launch of schemes by


a. RBI

b. UTI

c. CANBANK

d. SBI



20. A bond having coupon rate nine % , when current coupons for bonds of similar maturities are 11% will sell


a. At a price which is not related to interest rates for similar maturities

b. Above face value

c. At face value

d. beneath face value



21. Private sector funds were granted permission to enter the mutual fund industry


a. 1992

b. 1993

c. 1988

d. 1995



22. An investor invests Rs 300 today. After seven yrs the value becomes Rs. 600. What is his annualized compounded rate of return


a. nine

b. 11

c. 10.41



23. Which of the subsequent is not a criteria for a sponsor :


a. Networth to be more than capital investment

b. Sponsor should contribute 40% of net assets

c. Sponsor should ensure that 20% of funds assets to be invested in sponsors company



24. The dividend yield of a company growing faster than the market usually will be:


a. Higher than the market avg.

b. Lower than the market avg.

c. identical as the market avg.



25. While comparing mutual funds with other choices which of the subsequent should not be taken into consideration?


a. Compounded annual return

b. Transaction costs

c. Cumulative aggregate returns

d. Liquidity



26. Which of the subsequent funds would not be very volatile?


a. A fund with investments across only 2 sectors

b. A fund with investments in high quality assets

c. A fund with investments in a handful of stocks

d. A small cap fund





27. Which of the subsequent statements is not actual


a. excess expenses over prescribed cap can be carried forward and charged next year

b. there is a cap on the total expenses chargeable to a scheme every year

c. as per SEBI regulations- all initial problem expenses incl. Brokerage are limited to 6% of resources raised

d. open-end funds are authorised to charge the investors entry and exit loads to cover fund distribution expenses

Earning:   Approval pending.