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

1 . Ex-marks of an equity fund measures its
a.Performance
b. Risk
c.Both the above
d.None of the above

2 . In order to decide an improper index as benchmark for an actively traded fund, 1 should consider
a.Fund size and portfolio composition
b. Whether the fund is broad based or focused on specific kind of securities
c.Investment objective of the fund
d.All of the above

3 . Investors can inspect the subsequent documents
a.Trust deed
b. Agreements with different constituents
c.Memorandum and articles of association of AMC and Trustee company
d.All of the above

4 . Unit holders who do not agree with the merger of a fund’s scheme have the choice to
a.Exit from the scheme if it is an open ended scheme
b. Exit from the scheme after six months
c.Cannot exit if the AMC does not permit such withdrawal
d.Can exit only after approval of SEBI

5 . An investor cannot plead ignorance of the procedures while investing in a mutual fund because
a.Mutual fund is a risky investment
b. legal regulations does not permit the investor to sue the Trust
c.While applying the investors sign an agreement stating they have learn and understood the terms and conditions
d.An investor is expected to be careful while investing

6 . To cover fund distribution expenses, open ended funds
a.Charge a fee from agents
b. Charge entry and exit loads from investors
c.Create a reserve
d.Sell investments

7 . To sell funds effectively, an agent need not
a.Be fully aware of the important characteristics of the scheme
b. Know his/her client's risk profile
c.Give after sales service
d.Offer large investment rebates

8 . An agent can offer and sell a fund's units at
a.Any price he selects
b. A price determined by competition among agents
c.A price based on demand for that fund's units
d.The public offering price currently in effect

9 . The AMFI code of ethics does not cover the subsequent prescriptions
a.Adequate disclosures should be made to the investors
b. Funds should be managed in accordance with said investment objectives
c.Conflict of interest should be avoided in dealings with directors or employees
d.Investors should approve every investment decision

10 . Investments made by a mutual fund on behalf of investors are accounted as
a.Assets
b. Liabilities
c.Capital
d.None of the above

11 . 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

12 . 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

13 . The Board of Trustees of a mutual fund:
a.Act as a protector of investor's interests

Earning:   Approval pending.