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

c. When the investor invests regularly in a Liquid Fund
d. When the investor invests regularly in a Liquid Fund , sets a target for an Equity Fund, then invests more in Equity Fund if its value declines and books profits when its value exceeds the target value

38. If you maintain a flexible ratio of asset allocation, would you
a. Rebalance the Debt/Equity allocation periodically?
b. Rebalance the Debt/Equity allocation very frequently?
c. Generally avoid portfolio rebalancing?
d. Keep fixed percentages of equity and debt investments at all times?



39. Which of the subsequent is the best investment choice for the purpose of getting the maximum benefits of compounding?
a. 12% interest paid yearly
b. 6% interest paid every six months
c. 3% interest paid every quarter
d. 1% interest paid monthly

40. Asset allocation of a portfolio should be re-evaluated every time there is change in the...
a. Family size and requirement
b. Job of the investor
c. Dramatic change in the market condition
d. All of these

41. The biggest disadvantage of investment in real estate is
a. Less potential for capital appreciation
b. High purchase risk
c. Depreciation in value as time passes
d. Value gets eroded due to inflation

42. Many investors prefer Bank deposits because.
a. Bank deposits offer higher return other investment choice
b. They are considered safe and liquid.
c. Bank deposits offer higher capital appreciation
d. Bank deposits offer better tax rebates schemes

43. Market risk can be effectively managed by:
a. Investing with a short term horizon
b. Investing in debt funds
c. Investing in high price shares
d. Investing regularly with a long term perspective to smoothen out the effects of volatility in market price

44. A small investor can build a diversified portfolio by
a. Buying 1 share every of all listed companies
b. Investing in a mutual fund
c. Borrowing enough money to buy shares of well-managed companies
d. None of the above

45. The difference ranging from debenture and bond is:
a. 1.Bonds are issued by corporations and debentures are issued by PSUs
b. Bonds are unsecured and debentures are secured.
c. Bonds are backed by loans and debentures are backed by assets
d. None of the above.








46. An income fund scheme invests in debenture of a company. What is the relationship of MF investor with that company?

Earning:   Approval pending.