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

1 . Which of the subsequent is untrue of an automatic reinvestment plan

a. The plan allows for automatic reinvestment of all income and capital gains
b. Automatic reinvestment allows for accumulation of additional units of the fund
c. The major benefit of automatic reinvestment is compounding
d. The benefit of automatic reinvestment is often lost on account of the heavy load charge on the reinvestment

2 . In order to decide an improper index as benchmark for an actively traded fund, 1 should consider
a. Fund size and portfolio composition
b. Whether the fund is broad based or focused on specific kind of securities
c. Investment objective of the fund
d. All of the above

3 . The KIM of a mutual fund scheme is available

a. At the AMC office
b. At the offices of authorized agents
c. At the branches of all banks
d. Only a and b

4 . As per wealth cycle guide, during the accumulation stage

a. The client looks to build wealth
b. The clients’ goals are approaching
c. Client cashes out
d. Client feels the need to take care of the next generation

5 . The jurisdiction for resolving legal disputes concerning a mutual fund is

a. provided in the offer document
b. said in the stock exchanges
c. Decided by company legal regulations board
d. Decided by BSE

6 . A portfolio turnover of 200% implies that an avg. security stays in a portfolio for

a. six months
b. 12 months
c. 48 months
d. 36 months

7 . Procedure for redemption or repurchase need not

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

8 . Trail commission means paying

a. No commission at all
b. The entire commission up-front
c. Part of the commission up-front and the balance in phases
d. The entire commission after 5 years

9 . To sell funds effectively, an agent need not

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

10 . Documents available to investors for inspection do not include

a. Memorandum and Articles of Association of AMC
b. Consent of auditors and legal advisors
c. Investment management reports
d. Reports based on which true investments are made

Earning:   Approval pending.