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

d.All of the above

35 . A fund manager who believes in the growth philosophy looks for companies with
a.Above avg. earnings growth
b. Large equity base
c.Likely to go for public problem
d.All of the above

36 . Which are the benchmarks used to evaluate fund performance
a.Return on benchmarks like S&P and Sensex
b. Return on other funds
c.Return on comparable instruments
d.All of the above

37 . Mutual funds are defined as ___________ in the SEBI Regulations, 1996
a.Companies
b. AMCs
c.Trusts
d.Agencies

38 . A mutual fund cannot invest more than ____ % of its net assets in un-rated debt of 1 issuer. Total investments in un-rated debt cannot exceed _____ % of net assets
a.10; 20
b. 15; 25
c.10; 25
d.15; 20

39 . Which of the subsequent will not require financial planning
a.A 40 years old doctor with substantial savings
b. A retiree who is currently getting an income of 4,000 but would want Rs. 10,000 a month
c.An old person wanting to transfer all his wealth to his grandchildren
d.A young professional aged 26 years

40 . Which of the subsequent is actual for closed ended funds
a.The fund offers to buy and sell units at NAV
b. The corpus of the fund is constant
c.The net assets of fund does not change
d.None of the above

41 . Mutual funds can lend funds in the form of
a.Loans
b. Promissory notes
c.Securities
d.None of the above

42 . If a fund’s NAV is Rs.12, what is the maximum sale price it can charge,according to SEBI regulations
a.Rs.12.70
b. Rs.12.84
c.Rs.13.68
d.Rs. 11.16

43 . Which of the subsequent mutual funds was not set up within the phase two : 1987-1993?
a.Canbank Mutual Fund
b. Kothari Pioneer Mutual fund.
c.SBI Mutual fund
d. LIC Mutual fund

44 . The Sponsor of a mutual fund may be compared to
a.A director in a company
b. The chief executive of the company
c.The promoter of a company
d.An equity shareholder of a company

45 . Mutual funds in India are set up as a
a.Company
b. Trust
c.Partnership
d.Association of persons

46 . Who needs to sign the trust deed with the trustee?
a.AMC
b. Sponsor
c.Custodian
d.All the above.

47 . In the case of a dispute, against whom can the unit holders initiate the legal proceedings?
a.Trust
b. Trustees
c.AMC
d.None of the above

48 . The abridged offer document contains the address of the subsequent
a.The trustees of the mutual fund
b. The directors of the AMC
c.The Registrars and Transfer agents.
d.A & B

49 . To A prospective investor the reliable source of pertinent info about a scheme is
a.Financial Press
b. Offer document
c.AMFI website
d.Advice from the distributor

50 . An NRI hold 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 units to his mother, who resides in India
d.None of the above

51 . A closed-end equity fund has avg. weekly net assets of Rs. 200 crores. As per SEBI’s regulations, the AMC can charge the fund with investment and advisory fees upto.
a.Rs.2.25 crores
b. Rs.2 crores
c.Rs.2.5 crores
d.Rs. three crores

52 . For which of the subsequent funds would you consider “average maturity” as an important factor in selecting the right 1 for the investor.
a.A debt fund
b. A balanced fund
c.A money market or liquid fund.
d.Both A & B above.

53 . The strategy advisable for an investor to maximize investment return in the long run is
a.Buy and hold on to investments for a long time
b. Liquidate poorly performing investments from time to time
c.Liquidate good performing investments from time to time.
d.Switch from poor performers to good performers.

54 . Distributors or agents
a.Can distribute several mutual funds simultaneously
b. Cannot appoint the sub agents or the sub brokers
c.Should be only individuals not the Companies or the banks.
d.Should not be an employee or the associate of the AMC

55 . Contingent deferred sales charge (CDSC)
a.Is higher for the investors who stay invested in the scheme longer.
b. Is lower for the investors who stay invested in the scheme longer.
c.Is the identical for all investor irrespective of how long they stay invested.
d.Is not allowed to be charged to the mutual fund investors in India

56 . A value manager does not look for
a.Stocks that are currently undervalued in the market
b. Stocks whose worth will be recognized by the market in the long term
c.High current yield
d.Long term capital appreciation

57 . Liabilities in the balance sheet of a mutual fund are
a.In the form of long term loans
b. Strictly short term in nature
c.Combination of the long term and the short term
d.Not allowed as per the regulations.

58 . An actively managed equity fund expects to
a.Be able to beat the benchmark
b. Earns the identical returns as the benchmark
c.Have no benchmark
d.Under perform when compared with the benchmark.

59 . The most suitable measure of a fund’s performance for all fund kinds is
a.NAV change
b. Total returns
c.Total return with reinvestment
d.NONE

Earning:   Approval pending.