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

a. Investment in rated debt securities of a single issuer should not exceed 15% of NAV
b. Total investment in unrated debt securities of a single issuer should not exceed 25% of NAV
c. Total investment in unrated debt securities beneath investment grade should not exceed 25% of NAV
d. Total investment in rated debt securities beneath investment grade should not exceed 25% of NAV

16.A money market mutual fund is most likely to invest in
a. Corporate bonds
b. Equity shares
c. Government securities with maturity less than one year
d. All of the above

17.Of the following, which would be suitable for a retiree with a modest risk appetite
a. Value fund
b. Diversified equity fund
c. Growth fund
d. Balanced fund

18.A high portfolio turnover for a fund shows
a. That the fund is active
b. Higher transaction cost
c. Both of the above
d. None of the above

19.Unit Trust of India's US-64 scheme
a. Is listed on stock exchanges
b. Has a fixed price for sale and repurchase
c. Has its sale and repurchase price declared periodically by UTI
d. Has its price determined by market forces

20.The Indian debt market
a. Is wholesale in nature
b. Comprise large players like financial institutions and banks
c. Witnesses large scale trading in government securities
d. All of the above

21.A fund that charges a load is better than a no-load fund
a. True
b. False

22.An AMC can approach investors either directly or with the help of
a. Individual agents
b. Banks and non-banking finance companies
c. Distribution companies
d. All of the above

23.Which of the subsequent is actual for equity linked savings scheme (ELSS)
a. A tax rebate is available to investors in these schemes
b. The investment has to be locked in for three years
c. The minimum amount for investment is fixed
d. All of the above

24.A prospective investor
a. Has the identical status as a unit-holder of a fund
b. Can sue the AMC / trustee
c. Has no legal recourse
d. All of the above

25.An investor can assess the performance of his mutual fund by comparing it with the performance of
a. Other mutual fund of the identical kind
b. The stock market
c. Other financial products
d. All of the above

26.Unrated securities in the portfolio of a mutual fund are not to be valued
a. True
b. False

27.An exit load guarantees a higher return
a. True
b. False

28.Bonds held in the portfolio of a mutual fund are valued at yield to maturity

Earning:   Approval pending.