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

c. 60%equity – 40% debt
d. 80% equity- 20% debt

36 . An investor in need of the regular income should not choose
a. A bank deposit
b. A debt fund
c. An equity growth fund
d. PPF

37 . Which is a better investment choice whilst selecting an equity fund?
a. Ex marks 75%, Beta-0.9, Gross dividend yield 8%
b. Ex marks 80%, Beta-0.9, Gross dividend yield 8%
c. Ex marks 90%, Beta-0.8, Gross dividend yield 9%
d. Either one Or three

38 . Who appoints the Custodian?
a. Asset Management Company
b. Sponsor Company
c. SEBI
d. Board of Trustees

39 . Which of the subsequent is actual for assured return schemes
a. Name and net worth of guarantor to be provided
b. Performance of past-assured return schemes to be provided
c. Whether assurance in earlier scheme was met to be said
d. All of the above

40 . An open ended fund can change its fundamental attributes by
a. Allowing investors to exit after six months
b. Allowing investors to exit at NAV without a load
c. With consent of 75% of investors
d. None of the above

41 . India’s Central Bank is called
a. Central Bank of India
b. Bank of India
c. Indian Bank
d. Reserve Bank of India

42 . Stock exchanges can act as regulators of
a. SEBI registered mutual funds
b. Closed ended funds listed on the exchange
c. All sectoral funds
d. All equity mutual funds

43 . Which of the subsequent will not require financial planning
a. A 40 years old doctor with substantial savings
b. A retiree who is currently getting an income of 4,000 but would want Rs. 10,000 a month
c. An old person wanting to transfer all his wealth to his grandchildren
d. A young professional aged 26 years

44 . Which of the subsequent represents the transition phase
a. Investor has no need for investment income
b. Investor has a long-term horizon
c. Investor cannot take risks
d. Investor’s financial goals are approaching

45 . A FII can invest in a mutual fund through its
a. Non resident external account
b. Non resident ordinary account
c. Non resident rupee account
d. RBI current account

46 . Which of the subsequent is not a benefit from a mutual fund?
a. Investor has custody of securities where fund invests.
b. Investor is able to diversify risk.
c. Investor can save costs.
d. Investor can get professional management to manage his money.

47 . The appointment of the AMC for the mutual fund can be terminated by
a. Majority of directors of the trustees
b. 50% of the unit holders
c. 45% of the Unitholders
d. 60% of the unitholders

48 . The AMC is appointed by
a. SEBI
b. Unitholders
c. Sponsor
d. Trustee

49 . In the case of a dispute, against whom can the unit holders initiate the legal proceedings?
a. Trust
b. Trustees
c. AMC
d. None of the above

50 . Validate the statement – The investor is not obligated to learn the offer document before investing in units of a scheme.
a. Completely actual
b. Rarely actual
c. Completely False
d. Partly false

51 . Which of the subsequent sales practices is prescribed by regulation?
a. AMFI code of ethics
b. SEBI advertising code
c. AMFI’s code for agents
d. None of the above

52 . An Open-end fund with 10000 units outstanding had the subsequent items in its balance sheet:,Investments at market value Rs. 100000,Other assets Rs. 20000,Current liabilities Rs. 25000,Calculate the fund’s NAV per unit.
a. Rs.9.5
b. Rs.12
c. Rs.10
d. Rs.14.5

53 . MFs in India are needed by SEBI to
a. prohibit their employees from personal trading in secondary markets
b. allow all employees to trade freely in secondary markets without restrictions
c. to establish a code of conduct and allow employees to do personal trading that conforms to SEBI guidelines
d. allow employees to carry on personal trading as long as they abide by SEBI guidelines

54 . SEBI does not require the subsequent to be included in the offer document issued by a mutual fund.
a. Details of the sponsor and the AMC
b. Description of a scheme and investment objective/strategy
c. Investors’ rights and services
d. Performance of the other mutual funds

55 . Contingent deferred sales charge (CDSC)
a. Is higher for the investors who stay invested in the scheme longer.
b. Is lower for the investors who stay invested in the scheme longer.
c. Is the identical for all investor irrespective of how long they stay invested.
d. Is not allowed to be charged to the mutual fund investors in India

56 . A bond’s rating shows its
a. Reinvestment risk
b. Default risk
c. Inflation risk
d. Interest rate risk

57 . For evaluation of the traded securities, which of the subsequent is not true?
a. The security is valued at the last quoted price
b. The security is valued on the basis of the earnings capitalization
c. Marking to market is applied
d. If the security has not been traded on the evaluation date, the trading price on any previous date may be used, given that date is not more than 30 days prior to the valuation d

58 . The expense ratio as a measure of a fund’s performance is described as
a. Total expenses and avg. net asset
b. Total expenses and total assets
c. avg. expenses
d. NONE

Earning:   Approval pending.