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

1.The offer document has to be fully revised and updated
a. Every 6 months
b. Once in 2 years
c. Every quarter
d. Every month

2.An addendum giving details of material change in the offer documents should be circulated
a. Distributors/brokers
b. Unit holders
c. SEBI
d. All of the above

3.Which of the subsequent is not actual for offer documents of open-ended schemes
a. It is 1st issued at the time the scheme is launched
b. It is registered with SEBI
c. It has to be revised periodically
d. It need not be revised at all

4.All important disclosures that the mutual fund is needed to make, by regulation are contained in the offer document
a. True
b. False

5.The offer document issued when an open-ended scheme is launched is valid for all times, until amended
a. True
b. False

6.The most important source of info for a prospective investor is
a. Offer document
b. Annual Report of the AMC
c. Economic Times
d. AMFI Newsletter

7.An investor need not study the offer document before investing in a scheme
a. True
b. False

8.The offer document is not a legal document
a. True
b. False

9.Initial problem expenses are charged to a scheme in the 1st year itself
a. True
b. False

10.Scheme-wise annual report of a mutual fund need not be
a. Sent to all unit-holders
b. Forwarded to SEBI
c. Published as an advertisement
d. Stock exchanges

11.Mutual funds value their investments
a. At purchase price
b. On a mark-to-market basis
c. At par
d. At book value

12.Investors are totally exempt from paying any tax on the dividend income they receive from mutual funds
a. True
b. False

13.Income distributed to unit-holders by a debt fund is liable to dividend distribution tax
a. True
b. False

14.A close-ended has avg. weekly net assets of Rs.200 crore. As per SEBI regulations, the AMC can charge the fund with investment and advisory fee upto:
a. Rs.2.25 Crores
b. Rs.2.00 Crores
c. Rs.2.50 Crores
d. Rs.3.00 Crores

15.A passive fund manager
a. Researches stocks extensively
b. Does not buy and sell stocks often
c. Does not have to go through the process of stock selection
d. Does not have to track stocks

16.A fund manager managing an index fund
a. Has to keep fund expenses low
b. Does not have to research stocks
c. Does not have to balance his portfolio
d. None of the above

17.A growth manager looks for
a. High current income
b. Undervalued stocks
c. Above avg. earnings growth
d. None of the above


18.A value manager does not look for
a. Stocks that are currently undervalued in the market
b. Stocks whose worth will be recognised by the market in the long term
c. High current yield
d. Long term capital appreciation

19.From an investor's viewpoint, the most important is
a. A fund's investment style

Earning:   Approval pending.