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

1.Distribution tax should be taken into account when computing net returns from
a. Equity fund
b. Debt funds
c. Both the above
d. None of the above

2.All debt fund investors are exposed to risk of principal loss
a. True
b. False

3.Running a money market mutual fund requires more of
a. Credit analysis skills
b. Equity analysis skills
c. Patience
d. Trading skills

4.Which is the most important in selecting debt fund for better return
a. Past performance
b. Level of interest rates
c. Fund expertise
d. The securities in which it has invested

5.Investors should be advised to avoid investing in a debt fund with a
a. Lower rated portfolio and higher expense ratio
b. Higher rated portfolio and lower expense ratio
c. Lower rated portfolio and lower expense ratio
d. Higher rated portfolio and higher expense ratio

6.An ideal money market mutual fund must have
a. Lower returns
b. Lower expense ratio
c. Low quality of investment
d. All the above

7.Circumstances that might reason an investor to change the composition of his portfolio
a. Cyclical modifications in economy
b. Unforeseen economic modifications affecting the portfolio's preferred sectors
c. Both the above
d. None of the above

8.If a charitable trust approaches a distributor with an application for investment in a mutual fund the distributor should
a. Accept the application without wasting time
b. Reject the application outright
c. Refer to the offer document
d. Accept the application as a direct application

9.An application form for investment in mutual fund is available with
a. The offer document
b. The abridged annual report
c. The key info memorandum
d. A bank challan

10.An aggrieved unit-holder of a mutual fund can sue
a. The AMC
b. The trustees
c. The sponsor if returns have been guaranteed by them
d. None of the above

11.As per SEBI regulations for evaluation of investments held by mutual funds, a security is considered "non-traded" when it
a. Has not been traded for 60 days prior to evaluation
b. Has not been traded for 30 days prior to evaluation
c. Is not listed on any stock exchange
d. Is held by the mutual fund without buying or selling

12.An ex-mark of 100% is possible for
a. A growth fund
b. An aggressive growth fund
c. An index fund
d. A balanced fund

13.A trail commission is justified when
a. An investor cancels his investment
b. The investor redeems his investment in a very short time
c. An agent invests his own money, not that of a client
d. And agent sells many mutual funds


14.Of the following, which kind of the fund would have a higher p/e multiple in comparison to avg. market multiple
a. A value fund
b. A growth fund
c. An index fund
d. Could be any of the above three, 1 cannot generalise

15.Which of the subsequent is not actual as per SEBI regulations for debt funds?

Earning:   Approval pending.