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

1. An investor in a closed-end mutual fund can get money back before maturity by selling units
a. Back to the fund
b. To a special trust at NAV
c. On a stock exchange where the fund is listed
d. To the agent through which he/she subscribed to the units of the fund

2. A closed-end mutual fund has a fixed
a. NAV
b. Tenure
c. Rate of return
d. Number of distributors

3. A mutual fund is owned by
a. The Govt. of India
b. SEBI
c. All its investors
d. AMFI

4. Who is the primary guardian of unit holders funds?
a. The AMC
b. The Sponsor
c. The Trustees
d. The Custodians

5. The limit on maximum entry or exit load that a fund can charge is determined by the
a. AMC
b. SEBI
c. AMFI
d. Distribution agents based on demand for the fund

6. Which of the subsequent is not actual for Equity Linked Savings Schemes?
a. Investors can claim an income tax benefit
b. There is a lock-in period before investment can be withdrawn
c. There are not specific restrictions on investment objectives for the fund managers
d. These funds cannot invest in shares of listed companies

7. The fund sponsors should have a sound financial track record of
a. 7 years
b. 12 months
c. 5 years
d. 3 years

8. The agreement ranging from the Trustees and the AMC is known as
a. Trust Deed
b. Investment Management Agreement
c. Agreement to manage Portfolio
d. AMC appointment letter

9. A closed-end scheme of a mutual fund is not governed by
a. Exchange Rules of the stock exchange where it is listed
b. Listing Agreement ranging from the fund and the stock exchange
c. Guidelines issued by the Ministry of Commerce
d. Provisions of Companies Act, 1956 relating to transactions in securities

10. After dividend declaration, unit-holders are entitled to receive dividend within a period of
a. One week
b. 30-days
c. 42-days
d. Six weeks

11. The Board of Trustees of the UTI does not have nominees from
a. RBI
b. LIC
c. IDBI
d. The Bombay Stock Exchange (BSE)

12. The "Capital" of a scheme does not include
a. Unit capital
b. Reserves
c. Borrowing
d. Net worth of the AMC

13. The most important source of info for a prospective investor in mutual fund is
a. Offer document
b. Annual Report of the AMC
c. Economic Times
d. AMFI Newsletter

14. The offer document issued by mutual funds does not serve the purpose of
a. Announcing the launch of the scheme
b. Giving detailed info about the scheme
c. Explaining the risk factors of the scheme
d. Giving the fund manager's investment outlook for the next quarter

15. The offer document for a scheme remains valid even if

Earning:   Approval pending.