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

1. An equity fund with weekly avg. net assets of Rs. 1400 crore may change maximum ongoing expenses (excluding issue/redemption expenses) to the extent of
a. Rs. 35.00 crore
b. Rs. 26.75 crore
c. Rs. 27.50 crore
d. 19.75 crore

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

3. Which of the beneath is a short-term capital asset?
a. Unit of MF held for a period of not more than 1 year preceding the date of transfer
b. Unit of MF held for a period of less than 1 year preceding the date of transfer
c. Unit of MF held for a period of less than 3 years preceding the date of transfer
d. Unit of MF held for a period of not more than 3 years preceding the date of transfer

4. In a no load debt fund of corpus 200 Crores, what could be the maximum investment management charges?
a. 2 crore
b. 2.25 crore
c. 3.25 crore
d. 4.25 crore
e. 5.25 crore

5. Which of the subsequent SEBI restrictions applies to a scheme’s investment in unlisted shares?
a. A closed-end scheme may invest a maximum of 10% of its NAV in unlisted shares
b. An Open-end scheme may invest a maximum of 5% of its NAV in unlisted shares
c. (1) & (2) above
d. None of these

6. An investor purchased units in an approved mutual fund on Juanuary’01 2006, for Rs. 4, 00,000.00. He sold the units on December 15, 2007 for Rs.6,00,000.00. compute the capital gains taxes paid by him without the benefit of indexation (ignore taxation).
a. Rs.20, 000.00
b. Rs.40, 000.00
c. Zero
d. Depends on the investor’s tax bracket

7. Entry load is used for meeting
a. Distribution Expenses
b. Marketing & Promotion
c. None of the above
d. Both


8. A systematic withdrawal plan is ideal for:
a. Investors with growth as the main investment objective
b. Investors who wish to benefit from market fluctuations
c. Investors who prefer a regular income stream
d. Investors who are not sure about themselves

9. Up to what extent unlisted equity shares can be held in an Equity fund?
a. 10% in Closed Ended fund
b. 5% in open ended fund
c. Both a and b
d. None of the above.

10. Calculate the current yield on a G.Sec with at par value of Rs. 1000, coupon of 11% and market price of Rs. 1010.
a. 11.20%
b. 10.89%
c. 11.21%
d. 12.20%

11. An index fund managers tries
a. To beat the market by superior stock selection
b. To beat the market by superior market timing
c. To beat the market by superior asset allocation
d. None of these

12. Cyclical stocks command,
a. Relatively lower P/E ratio, and have higher dividend payouts

Earning:   Approval pending.