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

a. Computation date
b. Valuation date
c. Record date
d. Book closure date

45.A Fund's NAV is affected by
a. Purchase and sale of investment securities
b. Valuation of all investment securities held
c. Units sold or redeemed
d. All of the above

46.When computing NAV of fund SEBI requires accrual of major expenses to be accounted
a. Quarterly
b. Annually
c. On a day to day basis
d. When truly paid

47.If a fund calculates NAV daily, it will include all the transaction concluded up to
a. Last week
b. Last 2 days
c. Previous day
d. Today

48.For an open-ended fund, the repurchase price should not be lower than
a. NAV
b. 95% of NAV
c. 93% of NAV
d. 97% of NAV

49.For a close-ended fund, the repurchase price should not be lower than
a. NAV
b. 95% of NAV
c. 93% of NAV
d. 97% of NAV

50.For a scheme that has a load, the AMC can charge an investment management fee not exceeding
a. 1.50%
b. 2.00%
c. 1.25%
d. 0.50%

51.Initial expenses of launching schemes should not exceed
a. 15% of amount received
b. 10% of amount raised
c. 6% of amount raised
d. 5% of the amount raised

52.Which of the subsequent expenses cannot be charged to the scheme
a. Audit fees
b. Costs related to investor communication
c. Winding costs for terminating the scheme
d. Penalties and fines for infraction of laws

53.Which of the subsequent are not actual for Equity Linked Savings Schemes ?
a. Investors can claim an income tax rebate
b. There is a lock-in period before investment can be withdrawn
c. There are not specific restrictions on investment objectives for the fund managers
d. These funds cannot invest in equity

54.Which of the subsequent is not actual for Index Funds
a. These funds invests in the shares that constitute a specific index
b. The investment in shares is in the identical proportion as in the index
c. These funds take only the overall market risk
d. These funds are not diversified

55.The structure, which is needed to be followed by mutual funds in India, is laid down by
a. Financial Ministry
b. Securities & Exchange Board of India (SEBI)
c. Fund Sponsor
d. Association of Mutual Funds of India (AMFI)

56.The Board of Trustees of a mutual fund:
a. Act as a protector of investor's interests
b. Directly manage the portfolio of securities
c. Do not have the right to dismiss the AMC
d. Cannot supervise and direct the working of the AMC

57.The AMC of a mutual fund cannot
a. Undertake advisory services or financial consulting
b. Cannot invest the funds in government paper
c. Act as a trustee of more than 1 mutual fund
d. Cannot invest the funds in securities

58.The trust that manages a mutual fund is appointed by
a. The Finance Ministry
b. RBI
c. SEBI
d. The sponsor of that mutual fund

59.The custodian of a mutual fund:
a. Is appointed for safekeeping of securities
b. Need not be an entity independent of the sponsors
c. Not needed to be registered with SEBI
d. Does not provide or receive deliveries of physical securities

60.The custodian of a mutual fund :
a. Is appointed for safekeeping of securities
b. Need not be an entity independent of the sponsors
c. Not needed to be registered with SEBI
d. Does not provide or receive deliveries of physical securities

61.Transfer Agents of a mutual fund are not responsible for
a. Issuing and redeeming units of the mutual fund
b. Updating investor records
c. Preparing transfer documents
d. Investing the funds in securities markets

62.Distributors or agents
a. Can distribute several mutual funds simultaneously
b. Cannot appoint sub-agents or sub-brokers
c. Should be only individuals not companies or banks
d. Should not be an employee or associate of the AMC

63.A transfer in the management of a close-ended scheme does not require the consent of
a. Unit holders with 75% voting rights
b. SEBI
c. Trustees
d. AMC

64.The fund sponsor has to contribute
a. Nothing to the AMC
b. The total networth of the AMC
c. Atleast 40% of the AMC's networth
d. Exactly 50%

65.The sponsor of a mutual fund may be compared to
a. A director in a Company
b. The Chief Executive of a Company
c. Promoter of a Company
d. An equity shareholder in a Company

66.Issuing and redeeming units of a mutual fund is the role
a. The custodian
b. The transfer agent
c. The trustees
d. The bankers

67.The fund sponsors should have a sound financial track record of
a. 7 years
b. 12 months
c. 5 years
d. 3 years

68.The networth of an asset management company should be greater than
a. Rs.100 Crores
b. Can be decided by the Sponsor
c. Should be atleast Rs.10 Crores at all times
d. Should be greater than Rs.10 Crores

69.The AMC and directors are answerable to
a. Stock Exchanges
b. The Board of Trustees
c. Agents and distributors
d. Stock Brokers

Earning:   Approval pending.