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

c) Established distribution companies
d) The Internet

31) Which of the subsequent sales practices is prescribed by regulation?
a) AMFI Code of Ethics
b) SEBI Advertising Code
c) AMFI’s code for agents
d) None of the above

32) Risk factors may not be mentioned in
a) Product launch advertisement
b) Tombstone advertisement
c) Performance advertisement
d) All of the above advertisements

33) An NRI holds units in a mutual fund. What should he do with his holding if he takes up a foreign citizenship?
a) He redeems
b) He continues
c) He transfers the unit to his mother, who resides in India
d) None of the above

34) MF Regulations prescribe
a) The minimum commission of the distributor
b) The maximum commission of the distributor
c) The minimum as well as the maximum commission of the distributor
d) Neither the minimum nor the maximum commission to the distributor

35) Which of the most improper position under MF Regulations?
a) Buyer beware
b) Buyer is always right
c) Seller is always right
d) Seller is guilty unless proved right

36) According to SEBI’s code for mutual fund advertisement, for funds that have been in existence for more than a year, annualized returns have to be furnished for
a) 1 yr, three yr, five yr. and since launch
b) 1 yr, five yr and since launch
c) 1 yr, three yr and since launch
d) 1 yr, three yr and five yr

37) An open-end fund with 10,000 units outstanding had the subsequent items in its balance sheet:
Investment at market value Rs. 1,00,000
Current Assets Rs. 20,000
Current Liabilities Rs. 25,000
compute the fund’s NAV per unit.
a) Rs. 9.5
b) Rs. 12
c) Rs. 10
d) Rs. 14.5

38) A closed-end equity fund has avg. weekly net assets of Rs. 200 crores. As per SEBI Regulations, the AMC can charge the fund with investment and advisory fee upto:
a) Rs. 2.25 crores
b) Rs. two crores
c) RS. 2.5 crores
d) Rs. three crores

39) An investor purchased units in a mutual fund in 1995 for Rs. 75000. He sold the units in 1998 for Rs. 125000. The cost inflation index for 1995 and 1998 are 281 (C) and 351(D) respectively. The capital gains chargeable to tax are:
a) 64,957
b) 31,317
c) 50,000
d) 75,000

40) Income earned by a Mutual Fund registered with SEBI is exempt from Income-Tax as per part
a) 10(23D)
b) 10(33)
c) Total Income is taxable @ 33.2%
d) 88

41) Unit capital of a mutual fund scheme is Rs. 20 million; The market value of its investments is Rs. 55 million; The number of units is one million. The NAV is

Earning:   Approval pending.