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

1.In case of listed securities of group companies of the sponsor, mutual fund is not allowed to invest more than
a. 25% of its net assets
b. 10% of its net assets
c. At all
d. >5% of net assets

2.A mutual fund may transfer investments from 1 scheme to a different
a. Not at all
b. At current market rates
c. At cost price
d. At a fixed premium over market rate

3.Interest Rate Risk for an Indian debt fund can be decreased by using
a. Futures
b. Options
c. Interest Rate Swaps
d. None of the above

4.The Interest Rate Forecasting Unit of a debt fund is generally manned by
a. Technicians
b. Statisticians
c. Economists & Econometricians
d. Accountants

5.AMC's need not maintain records in support of every investment decision
a. True
b. False

6.When interest rates for similar maturities bonds are 11% bond with a 9% coupon rate will sell
a. Above par
b. Below par
c. At par
d. At a price unrelated to the interest rates for similar securities

7.The most suitable measure for a fund's performance does not depend on the
a. Type of fund
b. Investment objective of the fund
c. Financial market conditions
d. Amount invested by investor

8.If the NAV of an open-ended fund was Rs.16 at the beginning of the year and Rs.22 after 13 months, the annualised change in NAV is
a. 6.0%
b. 34.6%
c. 40.6%
d. 37.5%

9.Change in NAV as a measure of fund performance is more suitable for
a. Growth funds
b. Income funds
c. Funds with withdrawal plans
d. None of the above

10.The difference ranging from NAV change and total return as measures of fund performance is
a. None
b. Total return takes dividend into account while NAV change does not
c. Total return does not take NAV's into account
d. Total return does not take the time period into account

11.The most suitable measure of fund performance for all fund kinds is
a. NAV change
b. Total Return
c. Total Return with reinvestment
d. None of the above

12.The expense ratio used for measuring fund performance is an indicator of
a. Product market condition
b. Growth in the economy
c. Prevalent market practices
d. The fund's efficiency

13.The Expense Ratio as a measure of a fund's performance is described by a fund's
a. Total expenses and avg. net assets
b. Total expenses and total assets
c. Average expenses and avg. net assets
d. None of the above

14.While computing the Expense Ratio for a fund, brokerage commissions on the fund's transactions are not included in the fund expenses
a. True
b. False

15.The Expense Ratio is not of utmost importance in case of
a. Debt fund
b. Index fund
c. Equity fund
d. Bond fund

16.The expense Ratio is not affected by
a. Fund size
b. Average account size
c. Portfolio composition
d. Stock market conditions

17.The Income Ratio as a measure of a fund's performance is described by the fund's

Earning:   Approval pending.