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

a.Risk Factors
b. Opening, Closing and earliest Closing Date of the offer
c.Disclaimer Clause
d.Functions and responsibilities of the sponsor, trustees, AMC and custodian responsibilities

14 . If the AMC is managing a fund for the 1st time, this info can be obtained in
a.Newspapers
b. SEBI
c.AMFI Newsletter
d.Offer document

15 . In developed countries, an important Mutual Fund marketing channel is through
a.Insurance Companies
b. Banks
c.Non-Banking Finance Companies
d.Retail Distributors

16 . Sales Practices cover the subsequent areas
a.Desirable marketing practices
b. Agents responsibilities to the investor
c.Ethical code of conduct
d.All of the above

17 . The biggest disadvantage of the investment in the real estate is
a.Less potential for the capital appreciation
b. High purchase price
c.Depreciation in the value as the time passes.
d.Value gets eroded due to inflation.

18 . Compounding of the interest is best discussed by
a.Balanced fund
b. Growth fund
c.Value fund
d.Income fund.

19 . The transition phase of an investor’s wealth cycle is when the
a.Financial goals have been already met.
b. The investor has retired.
c.Financial goals are approaching
d.Investor suddenly gets a windfall

20 . Which of the subsequent funds should a risk averse investor chose
a.Gross div yield 15% beta 1.5 ex – marks 90
b. Gross div yield 10% beta 1.0 ex – marks 70
c.Gross div yield 11% beta 0.9 ex – marks 80
d.Gross div yield 12% beta 1.2 ex – marks 80

21 . A mutual fund declares Re one as distribution. The income in the hands of the unit holders is
a.Taxable at 20%
b. Not taxable in the hands of the unit holders
c.Inadequate info
d.Income tax will be assessed as per unit holder’s liabilities

22 . The evaluation norm for non-investment grade, performing assets is done:
a.On YTM basis using the CRISIL evaluation methodology
b. On YTM basis with 25% discount
c.At 25% discount to the face value.
d.At face value.

23 . Which of the subsequent is false
a.ROI is a measure similar to total return with the reinvestment of distribution
b. Total return with the reinvestment of the distributions assumes reinvestment at NAV on the distribution date
c.As a measure of performance, total returns with reinvestment of distribution seeks to overcome the shortcomings of simple total returns

Earning:   Approval pending.