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

b. SEBI
c. Fund Sponsor
d. AMFI

15. The Board of trustees of a mutual fund
a. Act as a protector of investor’s interest
b. Directly manage the portfolio of securities
c. Do not have the right to dismiss the AMC
d. Cannot supervise and direct the working of the AMC

16. The fund sponsor has to contribute:
a. Nothing to the AMC
b. The total Net Worth of the AMC
c. At lowest 40% of the AMC’s net worth
d. Exactly 50% of the net worth of AMC

17. Special Privileges of erstwhile UTI include
a. Assured return schemes
b. Guarantees
c. Ability to take/make loans
d. All of the above

18. The most important factor to look for when investing in a corporate fixed deposit is the
a. Yield
b. Rate of interest
c. Credit rating of the deposit
d. None of the above

19. Risk arising from a scheme’s investment objective/strategy and proposed asset allocation is
a. Not a risk at all
b. Common to all schemes
c. Specific to that scheme
d. Not applicable to debt funds




20. The role of AMFI in the MF industry is not to:
a. Promote the interest of the unit holders
b. Set a code of ethics
c. Regulate mutual funds
d. Increase public awareness of MFs in the country

21. Loads are recovered
a. From agents and distributors
b. As a fixed amount every year
c. At the time of investor’s entry or exit
d. None of the above

22. Which of the subsequent is actual about the fundamental attributes of a scheme
a. Investment objectives of a scheme are not a fundamental attribute
b. These can be changed after informing investors and taking approval from SEBI and Trustees
c. OD need not be updated after change in fundamental attributes of a scheme
d. All are false

23. Investments made by mutual fund on behalf of investors are accounted as
a. Assets
b. Liabilities
c. Capital
d. None of the above

24. The NAV of an Open-ended scheme is 15. What can be the maximum entry load charged to the investor?
a. 2.25% of 10
b. 2.25% of 15
c. 7% of 15
d. 7% of 10

25. A high portfolio turnover for a fund shows
a. That the fund is active
b. Higher transaction cost
c. Both of the above
d. None of the above

26. Which of the subsequent is not an equity instrument?
a. Preference shares
b. Equity warrants
c. Ordinary debentures

Earning:   Approval pending.