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

d. Convertible debentures

27. Retired investors should
a. Not draw down on their capital
b. Not invest in securities which bear risk of capital erosion
c. Continue holding a few proportion of their holdings in equity growth funds
d. Never invest in equity

28. The code of conduct may be put in place by:
a. AMFI
b. Board of Trustees
c. Directors of AMC
d. All of the above

29. The expense ratio is not affected by:
a. Fund size
b. Average account size
c. Portfolio composition
d. Stock market conditions

30. Which of the subsequent transaction cost are not quantified in the offer document?
a. Brokerage commission
b. Dealer spread
c. Custodian fee
d. Registrar fee

31. 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

32. The liquidity needs of an investor are met through
a. Equity funds
b. Index funds
c. Money market funds
d. Sector funds

33. Which of the subsequent is not false about a mutual fund
a. Open ended funds can be sold in secondary markets
b. Close ended funds do not have a fixed tenure
c. Open ended funds do not compute their NAV on every business day
d. The NAV of a close ended fund has to be computed at lowest once in a week

34. An investor should be advised to avoid investing in a debt fund with a
a. Lower rated portfolio and higher expense ratio
b. Higher rated portfolio and lower expense ratio
c. Lower rated portfolio and lower expense ratio
d. Higher rated portfolio and higher expense ratio

35. A self-regulatory organization can
a. Regulate all entities in the market
b. Regulate only its own members in a limited way
c. Regulate its own members with total jurisdiction
d. Regulate no one

36. Systematic Withdrawal Plan allows investors to get back the principal amounts invested in addition to the income on investment
a. True
b. False

37. UTI was set up by
a. SEBI
b. AMFI
c. A special Act
d. RBI

38. Constraints imposed by most funds on check writing are
a. Account balance should not fall beneath the minimum capital needed
b. Checks issued must be for at lowest the minimum amount specified
c. Number of checks per month must not exceed a specified number

Earning:   Approval pending.