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

c. The on the date he has applied for redemption
d. 15% beneath the prevailing NAV

22.After closures of the initial offer an open-ended scheme, on going sales and repurchases must begin within
a. One week
b. 30 days
c. 45 days
d. 180 days

23.For scheme to be able to change its fundamental attributes, it must find the consent of
a. 50% of the unit holders
b. 50% of the trustees
c. 75% of the unit holders
d. None of the above

24.The prospectus of Offer Document containing the details of new scheme is 1st registered with the
a. AMFI
b. SEBI
c. Bombay Stock Exchange
d. Ministry of Finance

25.The offer document issued by mutual funds does not serve the purpose of
a. Announcing the scheme
b. Giving detailed info about the scheme
c. Inviting the the investors
d. Giving the fund manager's investment outlook for the next quarter

26.The prospectus of a close-ended fund is issued
a. Every year
b. Only once at the time of problem
c. Every quarter
d. Every 6 months

27.Fundamental attributes of scheme
a. Do not include the objective of the scheme
b. Can be changed without the investor’s approval or knowledge
c. Include the terms of the scheme
d. Are not necessary for deciding whether to invest in the scheme or not

28.The offer document
a. Contains the terms of problem
b. Gives no info relevant for making an investment decision
c. Is not the operating document describing the scheme
d. Cannot be called a reference document

29.SEBI does not require the subsequent to be included in the offer document issued by a mutual fund
a. Details of the Sponsor and the AMC
b. Description of the Scheme & investment objective/strategy
c. Investor's Rights and Services
d. Performance of other mutual funds

30.'Key info Memorandum' is
a. An abridged version of the offer document
b. The Memorandum & Articles of Association of the AMC
c. A sheet containing historical NAV's of other fund schemes
d. Annual Report of the AMC

31.The Offer document for a scheme remains valid even if
a. The AMC is reconstituted
b. Entry or exit load are changed
c. The scheme's NAV modifications
d. New plans are added to existing schemes

32.An investor wishes to switch ranging from a money market mutual fund and equity fund. What would you advise him?
a. It would be better to stick to 1 kind of fund, the 1 that meets his investment objective
b. He should keep switching parts of his investment from the equity fund to the money market fund as the market rises and switch back to the equity fund when the market falls
c. He should switch from the money market fund to the equity fund in a rising market and switch back to money market fund when the market falls
d. None of the above

33.For choosing an improper benchmark to measure a scheme's performance, All of the subsequent are needed other than
a. The composition and size of the portfolio
b. The investment objective
c. Historical data of fund performance
d. The nature of investments

34.Which of the subsequent characteristic of a fund that a risk averse investor should select
a. Gross dividend yield 15% beta 1.5, ex-marks 90
b. Gross dividend yield 10% beta 1,ex-marks 70
c. Gross dividend yield 11%,beta 0.9,ex-marks 80
d. Gross dividend yield 12%, beta 1.2,ex-marks 80

35.A mainstream diversified debt fund is most affected by
a. Reinvestment risk
b. Liquidity risk
c. Interest risk
d. Default risk

36.If yields fall, a debt fund manager will do all of the subsequent other than
a. Sell short maturity securities and buy long maturity securities
b. See that the fund's avg. duration becomes longer than the market's avg. duration
c. Sell long duration securities and buy short duration securities
d. Sell high coupon securities and buy low coupon securities

37.In which kind of schemes should an unmarried professional will invest
a. Scheme investing 80% in debt securities
b. 50% in equity funds and 50% in income funds
c. 90% n equity funds having a higher p/e ratio than the market
d. All the money in a balanced fund

38.An investor buys units in a fund that has provided excellent returns in the past, but his expectations are not met as the fund does not perform well this year. The investor can
a. Sue the AMC
b. Sue the trustees
c. Sue the agent
d. None of the above

39.A fund's investments at market value total Rs.700.00 Crores, total liabilities stand at Rs.50.00 Lacs and the number of units outstanding is 28 Crores. What is the NAV
a. Rs.30.19
b. Rs.24.98
c. Rs.32.15
d. Rs.40.49

40.The role of an AMC is to act as
a. Promoters
b. Investment Management
c. Distribution agents
d. Regulators

41.A mutual fund may invest in short-term deposits of scheduled commercial banks
a. True
b. False

42.Mutual funds are allowed to lend
a. Loans
b. Securities
c. Physical assets
d. None of the above

41.The tenure of an Indira Vikas Patra is
a. 7 years
b. 6 years
c. 5 years
d. 3 years

42.The maturity period of RBI Relief Bonds is
a. 5 years
b. 6 years
c. 7 years
d. 8 years

43.Debt fund with long-term investments carries higher risk of capital loss
a. True
b. False

44.The differentiating factor among debt funds of comparable maturity and quality is
a. Gross yields
b. Costs
c. Fund age
d. Tenure of the fund manager

Earning:   Approval pending.