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

20. A fund has a front –load of 1% and back-end load of 0.5%. The investor enters at NAV of Rs.10 and exits at NAV of Rs.12.The return of investment earned by him is...
a. 20%
b. 18.22%
c. 18.5%
d. None of these

21. How many scripts does Nifty constitute?
a. 40
b. 30
c. 100
d. None of the above

22. For evaluating sectoral funds, the preferred benchmark would be the
a. BSE Sensex
b. S&P CNX Nifty
c. BSE 200
d. S&P CNX Sectoral Indices

23. An investor can assess the performance of his mutual fund by comparing it with the performance of
a. Other mutual fund of the identical kind
b. The stock market
c. Other financial products
d. All of the above
24. When comparing a fund's performance with that of its peer group, the subsequent cannot be compared
a. Two debt funds with five year maturities
b. A broad-based equity fund with an IT Sector Fund
c. A bond fund with a bond index
d. A government securities fund with a government security

25. CRISIL evaluates
a. Risk
b. Default possibility of the fund house
c. Performance of the various mutual funds
d. Performance of a particular fund

26. Fundamental qualities of a good financial planner are
a. Building trust with the client by understanding their needs
b. Good knowledge of all financial products and taxation related problems
c. Balanced, independent and ethical thinking
d. All of the above
e. None of the above

27. Financial Planning is
a. investing assets to receive the highest rate of return possible
b. is a process aimed at identifying financial needs of a client and planning investments that allows meeting future financial goals of the investor
c. keeping taxes as low as possible
d. planning to retire with the maximum income possible

28. The objective of the financial planning is to ensure
a. Right amount of money is available in the right hands at the right point in future to achieve an individual’s financial goals
b. That tax payable is as low as possible
c. One understands that technicalities of the financial market
d. One does not require the expertise of the financial advisers

29. Direct investment in stock markets can be a better choice over investing through mutual funds if
a. The investor wants better returns than those offered by mutual funds
b. The investor has large capital, knowledge and resources for research

Earning:   Approval pending.