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

b. Relatively higher P/E ratio, and have higher dividend payouts
c. Relatively higher P/E ratio, and have lower dividend payouts
d. Relatively lower P/E ratio, and have lower dividend payouts

13. A mutual fund is not allowed to invest in the sponsor company,
a. >25% of its net assets
b. >10% of its net assets
c. Not at all
d. >5% of net assets

14. Which of the subsequent is applicable to the debt market in India?
a. The debt market is a wholesale market
b. There are large players like banks, financial institutions, mutual funds, etc
c. Government securities are traded on a large scale
d. All of the above

15. Current yield relates interest on a security to
a. Its current market price
b. Its face value
c. Its fair value
d. The current price of T-Bills




16. Which of the subsequent measures are not taken by SEBI for protecting investors of mutual funds?
a. Mandating minimum levels of diversification for mutual funds
b. Ensuring that the funds are not used to favour a few companies
c. Tracking the securities that every fund has Invested in
d. Ensuring that the funds are invested in approved securities only

17. Portfolio characteristics of a fund can be judged by looking into Fund’s ……
a. Cash position
b. Concentration for checking its largest holdings
c. Portfolio turnover
d. All of these

18. Which benchmarks are used for evaluating fund performance?
a. Stock market indices such as S&P CNX Nifty, Sensex Etc.
b. Performance of other mutual funds
c. Return offered by other financial products or investment choices open to the investor
d. All of these

19. A portfolio turnover of 200 percent implies that.........
a. On an avg. a security stays in the portfolio for six months
b. On an avg. a security stays in the portfolio for 12 months
c. On an avg. a security stays in the portfolio for 36 months
d. On an avg. a security stays in the portfolio for 48 months

Earning:   Approval pending.