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

d. S&P CNX Defty

32.When comparing performance of 2 funds, the subsequent need not be similar
a. Risk profiles
b. Investment objectives
c. Fund size
d. Fund managers

33.Which of the subsequent is false ?
a. ROI is a measure similar to total Return with Reinvestment of distribution
b. Total Return with Reinvestment of distributions assumes reinvestment at NAV on the distribution date
c. As a measure of performance, Total Return with Reinvestment of distribution seeks to overcome the shortcomings of simple Total Return
d. Because of its simplicity, simple total return is preferred in practice to total return with Reinvestment of distribution

34.The basis of genuine investment advice should be
a. The current market situation
b. The agent commissions paid by various funds
c. Financial planning to suit the investor's situation
d. Planning to complete the agent's annual targets

35.Financial goals do not include
a. Buying a home
b. Winning a sports gold medal
c. Planning for retirement
d. Saving for child's education

36.Financial planning allows a person
a. To become a billionaire
b. To achieve financial goals through proper management of finances
c. To invest in foreign countries
d. None of the above

37.Financial plans do not alter in any way the amount of tax an investor pays as the tax is on his income
a. True
b. False

38.Which of the subsequent works with an investor on his overall financial situation
a. Tax Advisor
b. Financial Planner
c. Insurance Agency
d. Financial Advisor


39.A Financial planner takes responsibility for the financial well being of his/her clients
a. True
b. False

40.Financial planners and their clients should focus on
a. Allocating funds to asset classes (e.g.debt,equity etc.)
b. Allocating funds to individual securities
c. Tracking stocks, which they feel have potential
d. None of the above

41.Within an asset class, which individual security to invest in should be decided by
a. The financial planner
b. The investor himself
c. A professional fund manager
d. An objective advisor

42.Financial Planning comprises
a. Defining a client's profile and goals
b. Recommending improper asset allocation
c. Monitoring financial planning recommendations
d. All of the above

43.Financial planning is relevant only for high networth individuals
a. True
b. False

44.Financial planning does work for older clients
a. True
b. False

45.Financial planning is primarily tax planning

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