Association of Mutual Funds in India (AMFI) 2007 AMFI Mutual Fund Basic Module Model Mock Test - Question Paper

MF Sample Paper 3

1. A systematic withdrawal plan is ideal for investors who
a. Seek growth as the main objective
b. Wish to benefit from market fluctuations
c. Prefer a regular income stream
d. Not sure about themselves

2. Gilt funds invest in
a. IT sector
b. AAA securities
c. Money market securities
d. Government bonds

3. Which of the subsequent is recommended by Bogle for older investors in accumulation stage?
a. 50% in equity and 50% in debt
b. 60% in equity and 40% in debt
c. 70% equity and 30% debt
d. 40% equity and 60% debt

4. Illiquid securities in a portfolio
a. Cannot be transferred across schemes
b. Cannot be more than 15% of net assets
c. Cannot be more than 20% of net assets
d. a and b are actual
e. a and c are actual

5. Which of the subsequent cannot invest in mutual funds?
a. NRIs
b. Charitable trusts
c. FIIs
d. Foreign investors

6. Which of the subsequent is actual for assured return schemes?
a. Name and net worth of guarantor to be provided
b. Performance of past assured return schemes to be provided
c. Whether assurance in earlier scheme was met to be said
d. All of the above

7. Your friend in Dubai wants to invest in a mutual fund. She should be advised to learn
a. Trust deed
b. SEBI regulations
c. Offer document
d. AMC balance sheet
e. All of the above


8. While deciding on asset allocation, an investor must consider
a. The stage of his life
b. The purpose of making investment
c. His risk appetite
d. All of the above

9. Mutual funds should be recommended as
a. Investments to achieve long term goals
b. A get-rich quick choice
c. Investments to take advantage of stock market
d. All of the above

10. A fund manager who believes in the growth philosophy looks for companies with
a. Above avg. earnings growth
b. Large equity base
c. Likely to go for public problem
d. All of the above

11. An open ended fund can change its fundamental attributes by
a. Allowing investors to exit after six months
b. Allowing investors to exit at NAV without a load
c. With consent of 75% of investors
d. None of the above

12. Which of the subsequent is not a SRO?
a. BSE
b. NSE
c. AMFI
d. None of the above

13. Which of the subsequent do not give a guarantee on capital?
a. PPF
b. NSC
c. Post office deposits
d. Units of mutual funds

14. Which are the benchmarks used to evaluate fund performance
a. Return on benchmarks like S&P and Sensex
b. Return on other funds
c. Return on comparable instruments
d. All of the above

15. Mutual funds can borrow:
a. upto 25% of net assets
b. upto 20% of net assets
c. For period not exceeding six months
d. Both a and c
e. Both b and c

16. The 2nd mutual fund to be set up in India after UTI was
a. Canbank Mutual Fund

Earning:   Approval pending.