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

a) 8%
b) 7%
c) 7.5%
d) 8.5%
51) A unit of open-end fund was purchased when its NAV was Rs. 20. At year-end its NAV was Rs. 22. In the interim period, the fund made a distribution of Rs. four per unit when its NAV was Rs. 21. What was the simple Total Return of the Fund?
a) 25%
b) 30%
c) 20%
d) 31%

52) Which of the subsequent is false?
a) ROI is a measure similar to Total Return with reinvestment of distributions
b) Total Return with reinvestment of distributions assumes reinvestment at NAV on the distribution date
c) As a measure of performance, Total Return with reinvestment of distributions seeks to overcome the shortcomings of simple Total Return
d) Because of its simplicity, simple Total Return is preferred in practice to Total Return with reinvestment of distribution

53) Return can be annualized and compounded only if the Scheme has completed
a) 30 days
b) 12 months
c) 6 months
d) 24 months
54) An equity scheme is 90 days old. To calculate its yield, it can use
a) Absolute return
b) Simple annualized return
c) Compounded annualized return
d) Any of these
55) Financial Planning is
a) Investing funds to receive the highest rate of return possible
b) Resorting to tax planning to keep taxes as low as possible
c) Planning for retirement with the maximum income possible.
d) Process of solving financial issues and reaching financial goals.
56) Your client has won Rs. one crore in “Kaun Banega Crorepati”. What would your suggestion be?
a) Invest the entire amount without any delay in “old economy” stocks—since they are back in favour
b) Invest the entire amount immediately in an Equity Index Fund—since the index is at a historic low
c) Invest in very safe liquid investment choices and take the time needed to work out a financial plan
d) Invest immediately in IT stocks, since their valuations are now considered to be attractively low
57) Which 1 of the subsequent portfolio is most risky?
a) 75% Equity — 25% debt
b) 40% Equity — 60% debt
c) 60% Equity — 40% debt
d) 80% Equity — 20% debt
58) The strategy advisable for an investor to maximize investment return in the long run is:
a) Buy and hold on to investments for a long time
b) Liquidate poorly performing investments from time to time
c) Liquidate good performing investments from time to time
d) Switch from poor performers to good performers
59) A criticism of rupee-cost averaging is
a) Investment is for the identical amount at regular intervals

Earning:   Approval pending.