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

b. A pass through vehicle
c. A private trust
d. An association of persons

13. Only 1 of the subsequent is needed to pass the AMFI examination:
a. Trustees
b. Officers of SEBI working in the Mutual Fund department
c. Employees in a call center dealing with mutual fund investors
d. Fund managers

14. An investor claims that the PPF is a superior instrument to Mutual Funds. An argument to defend investment in a Mutual Fund over PPF is:
a. Mutual Fund will surely yield a better return than PPF
b. A mutual fund offers the potential for higher income and capital appreciation
c. The capital investment is safer in a Mutual Fund
d. A Mutual Fund investment is less volatile

15. An NRI wishes to invest in a Mutual Fund. Which of the subsequent is true?
a. He cannot apply has he will be paying in Foreign Currency
b. Need not take individual permission as RBI has granted general permission in this regard
c. The investor has to apply to RBI seeking permission as he will be paying in foreign currency
d. Cannot apply as it is open to Indian residents only

16. The cut-off time for redemption request kept by an AMC is 3:00 pm. An application for redemption received at 3:01pm
a. Redemption will be based on next day NAV but no exit load will be charged
b. Redemption will be based on next day NAV
c. Applicant will be asked to resubmit the request 10 am the next day
d. The identical day NAV will apply since the gap is less than 30 minutes from cut-off time

17. Duration of a bond means the percent change in:
a. Price with change in yield
b. Price as a outcome of stock market fluctuations
c. Price with change in coupon rate
d. None of the above

18. Where would you place a 53 years old executive planning to retire at age 60?
a. Sudden wealth stage
b. Reaping stage
c. Accumulation stage
d. Transition stage

19. The OD should indicate the management of the fund. The management doesn’t include:
a. Name of trustees
b. Name of the Fund Manager
c. Business experience of the key personnel of the AMC
d. Registration number of the custodian

20. Small funds:
a. Are relatively easier to manage
b. Achieve their objectives in a more focused manner
c. Have limited holding of securities
d. All of the above

21. OD must contain info about unit holder transaction expenses. Which of the subsequent is not an item under this?
a. Repurchase load
b. Initial problem expenses
c. Max sales load
d. Switchover load

22. An open ended scheme can change its fundamental attributes:

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