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

Q.43 Commission payable to agents by mutual fund is..

1.Based on the funds’ policy and discretion
2.Based on SEBI guidelines on agent commissions
3.Based on commissions paid by UTI to its agents
4.Based on Regulations of the RBI

Q.44 Which of the subsequent sales practices is prescribed by regulation?

1.AMFI Code of Ethics
2.SEBI Advertising Code
3.Mafia’s code of agents
4.None of the above

Q.45 Some funds pay of the commission up-front and the balance in phasesThis practice is called

1.Exit load
2.Discounting
3.Deferred contingent sales charge
4.Trail commission
5.Phased commissioning

Q.46 One of the subsequent statements cannot be considered as the fundamental attribute of a schemeWhich one?

1.The scheme is an Income-oriented scheme
2.The scheme is open-end in nature
3.Details on listing, repurchase and redemption of units
4.The address and contact details of the registrars and custodians

Q.47 For a person to become an agent of a mutual fund, he must...

1.Have passed class 12 examinations
2.Obtain approval from the main broker of the fund
3.Be a university graduate
4.Meet the requirements laid down by the concerned AMC

Q.48 The jurisdiction for resolving legal disputes concerning mutual funds is

1.Given in the offer document/ key info memorandum
2.Stated in the major stock exchanges
3.Decided by company legal regulations board
4.Decided by the BSE/NSE

Q.49 As on March 2002, in India a person can be appointed as an agent of a mutual fund if he

1.Passes the AMFI test
2.Signs an agreement with a fund on non- judicial stamp paper
3.Both (1) and (2)
4.has the knowledge about mutual funds

Q.50 Who cannot invest in a mutual fund in India?

1.Provident funds
2.Non – banking finance companies
3.Foreign citizens
4.Non-resident Indians
5.Overseas corporate bodies

Q.51 The AMFI code of ethics does not cover the subsequent prescriptions

1.Adequate disclosures should be made to the investors
2.Funds should be managed in accordance with said investment objectives
3.Conflict of interest should be avoided in dealings with directors or employees
4.Each investment decision should be approved by investors

Q.52 Contingent Deferred Sales Charge (CDSC)

1.Is higher for investors who stay invested in the scheme longer
2.Is lower for investors who stay invested in the scheme longer
3.Is the identical for all investors irrespective of how long they stay invested
4.Is not allowed to be charged to mutual fund investors in India

Q.53 SEBI guidelines for agents includes

1.Agents can sell products of a single mutual fund
2.Agents can sell products of mutual funds with whom he has entered into agreements
3.Agents could be only individuals
4.None of the above

Q.54 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

1.Sue the AMC
2.Sue the Trustees
3.Sue the agent
4.None of the above


Q.55 Are Overseas Corporate Bodies allowed to invest in Mutual Funds?

1.No
2.Yes
3.If Ministry of Finance approves
4.If AMFI approves

Q.56 Documents available to investors for inspection do not include

1.Memorandum and Articles of Association of AMC
2.Consent of auditors and legal advisors
3.Investment management reports
4.Reports based on which true investments are made

Q.57 Open ended schemes are sold by

1.NSE
2.Agencies of banks
3.National Distributors
4.Both two and 3

Q.58 Which of the subsequent decisions can not be taken by a Mutual fund unitholder?

1.Change of Load structure
2.Point of entry and exit
3.Purchase and sell of securities
4.1 and third choice

Q.59 The NAV of XYZ equity scheme is Rs10.50 on third September 2002, if the fund charges 0.25% as the exit load, what would be the repurchase price for the investor?

1.7.8750
2.13.1250
3.10.000
4.10.4737

Q.60 An equity fund with weekly avg. net assets of Rs1400 crore may change maximum ongoing expenses (excluding issue/redemption expenses) to the extent of

1.Rs35.00 crore
2.Rs26.75 crore
3.Rs27.50 crore
4.19.75 crore

Q.61 If NAV of a scheme is 11 and entry load is 2%, what would be the number of units purchased by Rs100

1.Less than 10
2.Equal to 10
3.More than 10
4.None of the above

Q.62 A close-end equity fund has avg. weekly net assets of Rs200 croresAs per the SEBI Regulation, the AMC can charge the fund with investment and advisory fees upto:

1.Rs2.25 crores
2.Rs2 crores
3.Rs2.5 crores
4.Rs3 crores

Q.63 An open-ended fund was purchased when its NAV was Rs.22One year later, its NAV was Rs.24The annualized percent Nav change is.

1.5.88%
2.9.09%
3.6.42%
4.Insufficient data

Q.64 If NAV of 40 becomes 44What is % annualized return?

1.10%
2.12 %
3.8%
4.14%

Q.65 Which of the beneath is a short-term capital asset?

1.Unit of MF held for a period of not more than 1 year preceding the date of transfer
2.Unit of MF held for a period of less than 1 year preceding the date of transfer
3.Unit of MF held for a period of less than 3 years preceding the date of transfer
4.Unit of MF held for a period of not more than 3 years preceding the date of transfer

Q.66 10 crore units were allotted in a scheme2.25% is the entry load charged and Rs.8 crore is the initial problem expenses incurredWhat maximum can be charged as expenses towards entry load?

1.Rs8 crore
2.Rs6 crore
3.Rs2.25 crore
4.None of the above.

Q.67 In a no load debt fund of corpus 200 Crores, what could be the maximum investment management charges?

1.2 crore
2.2.25 crore
3.3.25 crore
4.4.25 crore
5.5.25 crore

Q.68 Unit capital falls under which head in balance sheet?

1.Asset
2.Liabilities
3.Profit and Loss account
4.None of the above

Q.69 If NAV of a scheme is Rs.12 and units allotted are 100, what will be the total asset of the scheme.

1.Less that Rs.1200
2.More than Rs1200
3.Exactly Rs1200
4.None of the above.

Earning:   Approval pending.