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

01.Standard risk factors are not
a. Market driven
b. Common to all schemes
c. Of relevance to novice investors
d. New to a regular investor

02.The risk of a scheme's NAV moving up or down on the basis of capital market movements is a standard risk factor
a. True
b. False

03.Past performance of a sponsor/AMC mutual fund is not indicative of the future performance of the scheme. This is
a. Not actual
b. A standard risk factor for all schemes
c. A scheme-specific risk factor
d. Applicable only to gilt funds

04.Risk arising from a scheme's investment objective/strategy and proposed asset allocation is
a. Not current
b. Common to all schemes
c. Specific to that scheme
d. Not applicable to debt funds

05.In an assured returns scheme, it assurance is only for a limited period, it must be said in the offer document that there is no guarantee for sustaining the assured return for the remaining duration of the scheme
a. True
b. False

06.If the AMC is managing a fund for the 1st time, this info can be obtained in
a. Newspapers
b. SEBI
c. AMFI Newsletter
d. Offer document

07.A compliance officer
a. Stands guarantee to the info contained in the offer document
b. Belongs to SEBI
c. Cannot certify that the AMC's legal and procedural obligations are fulfilled
d. Cannot be appointed by the AMC

08.The due diligence certificate that must be submitted to SEBI along with the draft offer document cannot be signed by
a. The managing director of the AMC
b. An executive director of the AMC
c. The compliance officer
d. Investor relations officer

09.A due diligence certificate does not certify that
a. The draft offer document forwarded to SEBI is in accordance with SEBI regulations
b. All legal requirements connected with launching of the scheme have been complied with
c. Disclosures made in the offer document are true, fair and adequate
d. The AMC guarantees a good performance

10.In developed countries, an important Mutual Fund marketing channel is through
a. Insurance Companies
b. Banks
c. Non-Banking Finance Companies
d. Retail Distributors

11.Emerging or new channel for distributors/marketing or Mutual Fund in India is
a. Insurance Companies
b. Banks
c. Qualified Mutual Fund agents
d. Direct Sales agents of respective mutual funds

12.Mutual Funds often use their own employees to mobilise funds from
a. Retail investors
b. High Networth individuals/institutional investors
c. All investors
d. Foreign investors


13.Retail distribution channels are a critical element in the distribution of mutual funds in India
a. True
b. False

14."Sales Practices" cover the subsequent areas
a. Desirable marketing practices
b. Agents responsibilities to the investor
c. Ethical code of conduct
d. All of the above

15.The subsequent are not termed as "sales practices"

Earning:   Approval pending.