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

c. Recommend a few investment choice available
d. Offer adhoc advise whenever the investor has surplus money available

31.One of the most effective ways to invest through mutual fund is to
a. Develop a model portfolio
b. Buy a few units of every mutual fund scheme available
c. Invest all the money in 1 fund scheme
d. Invest all the money in various schemes of the identical fund family

32.Mutual fund should be advised to expect
a. Low post tax returns
b. Dramatic outcomes
c. Better returns than every other available choice
d. Only realistic wealth accumulation goals

33.Asset allocation is
a. Keeping certificates of the physical securities in proper places
b. Allocating the available money to all the securities available
c. Allocating the right proportion of funds to equity, debt and money market securities
d. None of the above

34.Once a financial advisor works out ideal asset allocation, it can be used for all investor whom he/she advises
a. True
b. False

35.Asset distribution among equity debt and money market securities should correspond to the investors' need for capital growth, income and liquidity
a. True
b. False

36.The liquidity needs of an investor are met through
a. Equity funds
b. Index funds
c. Money market funds
d. Sector funds

37.A retired person generally needs a greater proportion of
a. Debt funds
b. Equity funds
c. Money market funds
d. All of the above

38.To satisfy a young investor's need for growth, a greater proportion of investment should be advised in
a. Gilt funds
b. Income funds
c. Equity growth fund
d. All of the above

39.A very high proportion of investment in all kinds of equity funds is advisable for investors
a. In distribution phase
b. In accumulation phase
c. In transition phase
d. Who are wealth preserving affluent individuals

40.The transition phase of an investor's wealth cycle is when
a. The financial goals have been already met
b. The investor has retired
c. Financial goals are approaching
d. Investor suddenly gets a windfall

41.A high proportion of investment in income funds is needed by
a. Accumulating investors
b. Affluent investors
c. Investors in the inter-generational transfer phase
d. Investors in the distribution phase

42.Retired investor should
a. Not draw down on their capital
b. Not invest in securities, which bear risk of capital erosion
c. Continue holding a major portion of their holding in equity growth funds

Earning:   Approval pending.