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

Q.18 The strategy advisable for an investor to maximize investment return in the long run is:

1.Buy and hold on to investments for a long time
2.Liquidate poorly performing investments from time to time
3.Liquidate good performing investments from time to time
4.Switch from poor performers to good performers

Q.19 If you maintain a flexible ratio of asset allocation, would you

1.Rebalance the Debt/Equity allocation periodically?
2.Rebalance the Debt/Equity allocation very frequently?
3.Generally avoid portfolio rebalancing?
4.Keep fixed percentages of equity and debt investments at all times?

Q.20 While deciding on an asset allocation strategy, the investor must consider ………

1.The stage of his life
2.His risk appetite
3.The purpose of making investment
4.All of these


Q.21 Which of the subsequent is the best investment choice for the purpose of getting the maximum benefits of compounding?

1.12% interest paid yearly
2.6% interest paid every six months
3.3% interest paid every quarter
4.1% interest paid monthly


Q.22 Asset allocation of a portfolio should be re-evaluated every time there is change in the...

1.Family size and requirement
2.Job of the investor
3.Dramatic change in the market condition
4.All of these



Q.23 Which Product category should be the core foundation of a financial plan?

1.Equities
2.Gold
3.Mutual Fund
4.None of these


Q.24 The biggest disadvantage of investment in real estate is

1.Less potential for capital appreciation
2.High purchase risk
3.Depreciation in value as time passes
4.Value gets eroded due to inflation


Q.25 Many investors prefer Bank deposits because.

1.Bank deposits offer higher return other investment choice
2.They are considered safe and liquid.
3.Bank deposits offer higher capital appreciation
4.Bank deposits offer better tax rebates schemes

Q.26 Which of the subsequent does not generally guarantee return or capital?

1.Bank Deposit
2.PPF
3.Units of Mutual fund
4.NSC


Q.27 While choosing ranging from a bank deposit and a debt income fund, the investor must consider

1.Credit rating of bank
2.Quality of the mutual fund assets
3.His investment objective and risk appetite
4.All of these



Q.28 Market risk can be effectively managed by:

1.Investing with a short term horizon
2.Investing in debt funds
3.Investing in high price shares
4.Investing regularly with a long term perspective to smoothen out the effects of volatility in market price

Earning:   Approval pending.