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

d.Because of its simplicity, simple total return is preferred in practice to total return with reinvestment of distribution.

24 . In case of Borrowings by Mutual Fund, the potential risk of loss is presented to
a.AMC
b. AMC and its Unit holders
c.SEBI
d.AMFI

25 . When compared to Government Securities, the credit risk on corporate bonds is
a.Higher
b. Lower
c.Same
d.The 2 are not related

26 . Unit capital of a MF scheme is Rs 20 million; the market value of the investments is Rs 55 million. The No of units are! Million. The NAV is
a.Rs 20
b. Rs 75
c.Rs 55
d.Not possible to say.

27 . select the accurate statement-Alternative Investment Plans offered by the fund allows investors
a.Freedom with respect to investing 1 time or at regular intervals
b. Making transfers to various schemes with the identical fund family.
c.Receiving income at specified intervals or accumulating distributions.
d.All of above.

28 . tech. analysis tries to predict future movement of stock price by analyzing
a.The financial workings of a company
b. The stock price movements of a company
c.Both of the above
d.None of the above

29 . Returns can be annualized and compounded only if the scheme has completed
a.30 days
b. 12 Months
c.6 months
d.24 Months

30 . A criticism of rupee cost averaging is
a.Investment is for the identical amount at regular intervals.
b. Over a period of time avg. per share price will be more then guessing the highs and lows.
c.It does not tell you when to buy, sell or switch from scheme to scheme
d.Rupee cost averaging has no serious shortcomings.

31 . An investor in need of the regular income should not choose
a.A bank deposit
b. A debt fund
c.An equity growth fund
d.PPF

32 . Ex Marks (or R-squared factor) of a fund measures
a.How much of a fund’s NAV movement is due to the market index movement
b. How a fund’s NAV movement relates to the market index movement.
c.How much of a fluctuation has occurred in a fund’s NAV over a historical period
d.How many marks a credit rating agency accords to a fund.

33 . Gift funds invest in
a.IT sector
b. AAA securities
c.Money market securities
d.Government bonds

34 . Which of the subsequent is actual for assured return schemes
a.Name and net worth of guarantor to be provided
b. Performance of past-assured return schemes to be provided
c.Whether assurance in earlier scheme was met to be said

Earning:   Approval pending.