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

1.A Debt Fund that invests in all available kinds of debt securities issued by entities across all industries & sectors is a :
1. Focused debt fund
2. Diversified debt fund
3. Assured return fund
4. High yield debt fund

2.Some close - end funds sell at a discount to their NAV because
1. The repurchase price fixed by the fund is lower than its NAV.
2. Of the inherent risk prevalent in close - end funds.
3. Investors expect their future potential to be unable to sustain their current NAV Of high expense ratio.

3.The AMC is needed to be approved & registered with SEBI with a net worth of:
1. Rs. 20 Crores
2. Rs. 100 Crores
3. Rs. 50 Crores
4. Rs. 10 Crores

4.The sponsor of a mutual fund may be compared to:
1. An equity shareholder in a company
2. The Chief Executive of a company
3. The promoter of a company
4. A director in a company

5. Money Market Funds are regulated by:
1. Trustee
2. AMC
3. SEBI
4. RBI

6.An investor in need of regular income should invest:
1. A Debt (Income) fund
2. PPF
3. Bank Fixed Deposit
4. Equity growth fund

7.Which is the High Risk Fund from the following?
1. Index Fund
2. Short-term Bond Fund
3. Intermediate Bond Fund
4. International Fund

8. The scheme wise Annual Report of a Mutual Fund shall be published or mailed to unit holders not later then:
1. 3 Months
2. 6 Months
3. 12 Months
4. None of the above

9. The trustees appoint AMC with the prior approval of:
1. SEBI
2. Stock Exchange
3. AMFI
4. None of the above

10. Which is the self-regulatory authority from the following:
1. AMFI
2. RBI
3. SEBI
4. Bombay Stock Exchange

11. What is the duty of the custodian?
1. Marketing different schemes through agents network.
2. Handling securities in terms of physical delivery & eventual safekeeping.
3. Issuing & redeeming units of the fund.
4. Receiving the proceeds on sale of investments & discharging its obligations towards operating expenses.

12. Which 1 of the subsequent is not a specialty fund?
1. Growth Fund.
2. Small- Cap Equity Fund
3. Offshore Fund
4. Sectoral Fund

13. Direct investments in stock markets can be better choice over investing through mutual funds if:
1. The investor wants better returns than those offered by mutual funds.
2. The investor has identified bullish phase in the stock market.
3. The investor wants to invest for the long run.
4. The investor has large capital, knowledge & resources for research.

14.Which is the High-Risk fund?
1. Money Market Fund
2. Sector Fund
3. Index Fund
4. Balanced Fund

15.Offer Document is needed by Mutual Fund:
1. As a AMC requirement
2. As a SEBI requirement
3. As an investor requirement
4. All of the above

16.The ownership of Mutual Fund belongs to:

Earning:   Approval pending.