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

d. None of the above

43.Which of the subsequent is the 1st step in financial planning
a. Asset allocation
b. Selection of fund
c. Studying the features of a scheme
d. None of the above

44.Why should 1 buy an insurance policy
a. It provide high current returns
b. It provide capital appreciation over its term
c. It should be bought due to the need for insurance and not as an investment
d. All of the above

45.SEBI regulations for mutual funds were formulated in
a. 1992
b. 1993
c. 1995
d. 1996

46.Expenses incurred by a fund for printing of key info memorandum can be amortized over
a. 10 yrs
b. 5 yrs
c. 15 yrs
d. Cannot be amortized

47.A mutual fund's investments are guided by the
a. AMC
b. Board of trustees
c. Investment objectives
d. Unit holders

48.UTI was the only mutual fund for the period
a. 1984 to 1988
b. 1963 to 1988
c. 1964 to 1992
d. None of the above

49.Investors who follow the fixed allocation approach
a. Maintain balance in their portfolio by liquidating a part of the position in the class, which has provided higher return, and reinvesting in the other asset class, which has lower return
b. Are not disciplined
c. Increase their equity position when equity prices tend to climb
d. None of the above

50.An investor should not invest in a mutual fund if
a. His capital base is large
b. He is able to carry out detailed investment research and monitor the stock market
c. Both the above
d. None of the above

51.Mutual fund can benefit from economies of scale because of
a. Portfolio diversification
b. Risk reduction
c. Large quantity of trades
d. None of the above

52.Which of the subsequent is a disadvantage suffered by a mutual fund investor?
a. High liquidity
b. Diversification
c. No tailor made portfolio
d. Low investment

53.A disadvantage suffered by mutual fund investor is that he has no control over the costs of investing
a. True
b. False

54.Which of the subsequent statements about UTI in untrue
a. It was set up in 1963
b. It was formed by RBI
c. It was established by an act of parliament
d. It was not provided a monopoly status

55.Which scheme has the largest investor base?
a. ULIP
b. UTI Master Share
c. US-64
d. SBI Magnum

56.Which was the 1st diversified equity investment scheme in India
a. SBI magnum
b. UTI Master Share
c. Mep-91
d. Mastergain-92

57.The private sector was granted permission to enter the mutual fund industry in
a. 1992
b. 1993
c. 1998
d. 1995

58.The 1st Non-UTI mutual fund was
a. SBI MF
b. LIC MF
c. Canbank MF
d. Indian Bank MF


59.The organisation responsible for a comprehensive set of regulations for all mutual funds in India is
a. RBI
b. SEBI
c. AMFI
d. SHCIL

60.The 1999 union government budget helped the mutual fund industry by
a. Regulating the industry practices
b. Exempting all mutual fund dividends in the hands of investors from income tax
c. Approving the code of ethics formulated by AMFI
d. Doing away with all regulations for mutual funds

61.During the period 1992-99,the mobilisation of funds by the mutual fund industry
was about
a. 5%-6% of gross domestic savings
b. 2%-4% of gross domestic savings
c. 7%-10% of gross domestic savings
d. 25%-40% of gross domestic savings

62.Which of the subsequent about public provident fund (PPF) are untrue
a. 50% of the balance of the fourth year can be withdrawn in the seventh year
b. The interest is tax free
c. The rate of interest is 12% p.a.
d. Contribution upto Rs.60000.00 are eligible for tax rebate

63.A close-ended scheme is quoted on the stock exchange at a discount to its NAV when
a. The markets are bearish
b. Investors perceive that the fund will be unable to maintain the NAV
c. The assets of the fund are undervalued
d. None of the above

64.Which of the subsequent is a fundamental attribute of a mutual fund scheme
a. The names and addresses of the registrars and custodians
b. The nature of the scheme being income bearing
c. The specified stocks in the scheme's portfolio
d. The name and address of the compliance officer

65.Offer document of a mutual fund is
a. Required by investors
b. Required by the AMC for its own reference
c. Required as per SEBI regulations
d. Not mandatory as per SEBI

66.The unites of a scheme being sold and repurchased as per the procedure laid down is 1 of the fundamental attributes of a scheme
a. True
b. False

67.The steps involved in the selection of an equity fund for investment are
a. Sector selection, asset classification, and selection of fund managers and schemes
b. Sector selection, selection of fund managers and schemes, asset classification
c. Asset classification, sector selection, selection of fund managers and schemes
d. Selection of fund managers and schemes, sector selection, asset classification

68.Compounding of interest is best discussed by a
a. Balanced fund
b. Growth fund
c. Value fund
d. Income fund

69.From whom can a unit-holder seek redressal if his complaint is not entertained by the mutual fund
a. AMC
b. Board of trustees
c. SEBI
d. RBI

Earning:   Approval pending.