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

c) Closed-end schemes can offer re-purchase facility.
d) All the above.
e) Only (a) and (c)

40. A debenture with a face value of Rs. 1000 and a two year term to maturity has yield to maturity (YTM) of nine per cent. The coupon rate is 12 per cent per annum, payable half-annually. What is its price?
a) Rs. 1000.00
b) Rs. 995.35
c) Rs. 990.10
d) Rs. 1052.80

41. What is the best combination for a high yield - low risk investment?
a) Ex-Marks: 70% Beta:0.9 Dividend Yield:10%
b) Ex-Marks: 70% Beta:0.8 Dividend Yield:11%
c) Ex-Marks: 80% Beta:0.9 Dividend Yield:12%
d) Ex-Marks:90% Beta:0.8 Dividend Yield:13%

42. The subsequent are the characteristics of bonds other than
a) Par value
b) Coupon
c) Maturity
d) Technical analysis

43. Offer document may not contain subsequent
a) Open End – Close End
b) Investment trend
c) Sponsor & Trustees Address
d) Registrars Address
e) none of the above

44. "Load" is
a) Charge borne by Fund
b) Charge borne by AMC
c) Charge borne by investor
d) Charged borne by Trustees

45. Recurring Expenses include
a) Penalties and fines
b) Interest on delayed payment to unit holders
c) Depreciation on fixed assets
d) Marketing and selling expenses of a scheme

46. What is the risk profile of a fund having 35% exposure to equities?
a) Low
b) Moderate
c) Aggressive
d) Very Aggressive

47. Distributors can be appointed by
a) AMC
b) Trustee
c) Sponsor
d) Custodian

48. Of the subsequent kinds of equity funds, the highest potential risk is with
a) diversified funds
b) sector funds
c) growth funds
d) index funds

49. NAV of a scheme has gone up from Rs.10 to Rs.11.50 in 15 months. The CAGR is - 12 per cent
a) (11.5 / 10)^(12/15) -1
b) (11.5 / 10)^(15/12) -1
c) (10 / 11.5)^(15/12) -1
d) (10 / 11.5)^(12/15) -1

50. The position on tax benefit under part 88 for investment in units of pension scheme floated by a mutual fund is -
a) benefit not available
b) available upto a cap of Rs.10,000, but within overall limit of Rs.60,000 for all part 88 investments
c) available without cap, but within overall limit of Rs.60,000 for all part 88 investments
d) available upto Rs.80,000

51. Mutual funds in India can invest in -
a) Transferable securities in the capital and money markets
b) Gold
c) Real-estate
d) Only (a) and (c)
e) (a), (b) and (c)

52. The unit capital of a mutual fund scheme is Rs.20 million. The market value of investments is Rs.55 million. If the number of units outstanding is one million, what is the NAV per unit?
a) Rs. 20
b) Rs. 75
c) Rs. 55
d) cannot be determined

53. A scheme can be launched by
a) The trustees
b) The sponsor
c) The AMC
d) AMC on behalf of the trustees

54. The most significant risk in a well-diversified debt scheme is -
a) Re-investment risk
b) Credit risk
c) Interest rate risk
d) Liquidity risk

55. A Systematic Investment Plan is the best example of
a) Rupee Cost Averaging
b) Value averaging
c) Buy & Hold
d) none of the above

56. Indira Vikas Patra is liked because of -
a) Good returns
b) Tax-free returns
c) No record of identity of investors
d) All of the above

57. The Statutory auditor of the mutual fund should not be associated with the auditor of
a) The trustee Company
b) The Asset management Company
c) The Sponsor
d) All of the Above
58. What does AMFI stands for?
a) Association of Mutual Funds in India
b) Association of Market Federation of India
c) Association of Money Funds in India
d) Association of Money Federation of India

59. The concept of Distribution companies has been accepted internationally to (a) avoid administrative costs (b) to get more sophisticated distributors (c) to get institutional money (d) to get niche marketing
a) A only
b) b only
c) c only
d) d only
e) All of the above
f) None of the above

60. The appointment of AMC of the Mutual Fund can be terminated by
a) Managing Director
b) Chairman
c) 60% of the Unitholders
d) 45% of the Unitholders
e) 75% of the Unitholders
f) 50% of the Unitholders

61. Investor's rights are available in which of the subsequent documents:
a) Application form
b) Offer Document
c) AMFI directory
d) SEBI
e) UTI

62. What is Mark to Market?
a) Valuing investments at cost price
b) Valuing investments at market price
c) Valuing investments at cost or market price whichever is lower
d) Valuing investments at cost or market price whichever is higher

63. Information about a scheme can be obtained out from
a) Newspaper
b) Magazine
c) Offer document
d) Newsletter

Earning:   Approval pending.