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

a. Taxable at 20%
b. Not taxable in the hands of the unit holders
c. Inadequate info
d. Income tax will be assessed as per unit holder’s liabilities

22 . The evaluation norm for non-investment grade, performing assets is done:

a. On YTM basis using the CRISIL evaluation methodology
b. On YTM basis with 25% discount
c. At 25% discount to the face value.
d. At face value.

23 . Which of the subsequent is false

a. ROI is a measure similar to total return with the reinvestment of distribution
b. Total return with the reinvestment of the distributions assumes reinvestment at NAV on the distribution date
c. As a measure of performance, total returns with reinvestment of distribution seeks to overcome the shortcomings of simple total returns
d. Because of its simplicity, simple total return is preferred in practice to total return with reinvestment of distribution.

24 . In case of Borrowings by Mutual Fund, the potential risk of loss is presented to

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

25 . When compared to Government Securities, the credit risk on corporate bonds is

a. Higher
b. Lower
c. identical
d. The 2 are not related

26 . Unit capital of a MF scheme is Rs 20 million; the market value of the investments is Rs 55 million. The No of units are! Million. The NAV is
a. Rs 20
b. Rs 75
c. Rs 55
d. Not possible to say.

27 . select the accurate statement-Alternative Investment Plans offered by the fund allows investors

a. Freedom with respect to investing 1 time or at regular intervals
b. Making transfers to various schemes with the identical fund family.
c. Receiving income at specified intervals or accumulating distributions.
d. All of above.

28 . tech. analysis tries to predict future movement of stock price by analyzing

a. The financial workings of a company
b. The stock price movements of a company
c. Both of the above
d. None of the above

29 . Returns can be annualized and compounded only if the scheme has completed

a. 30 days
b. 12 Months
c. six months
d. 24 Months

30 . A criticism of rupee cost averaging is

Earning:   Approval pending.