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

b. Kothari Pioneer Mutual Fund
c. Morgan Stanley Mutual Fund
d. SBI Mutual Fund

17. The subsequent is the fund you would advice to an investor who wants to invest for 1 year
a. A debt fund with expense ratio of 1.15% and a entry load of 2%
b. A debt fund with expense ratio of 1.2% and a entry load of 2.5%
c. A debt fund with expense ratio of 1.5% and an entry load of 4%
d. A debt fund with expense ratio of 0.5% and entry load of 3%

18. Mutual funds are defined as ____ in the SEBI Regulations, 1996
a. Companies
b. AMCs
c. Trusts
d. Agencies

19. What proportion of a mutual funds trustees have to be independent form the sponsor?
a. 50%
b. 2/3rd of trustees
c. 3/4th of the trustees
d. 60% of the trustees

20. Which of the subsequent cannot be distributors of a mutual fund
a. Sponsor
b. Associate of sponsor
c. Associate of AMC
d. Employees of AMC

21. Stock exchange can act as regulators of:
a. SEBI registered mutual funds
b. Closed end funds listed on the exchange
c. All sectoral funds
d. All equity mutual funds

22. A mutual fund cannot invest more than_____% of its net assets in un-rated debt of 1 issuer. Total investments in un-rated debt cannot exceed ____% of net assets.
a. 10; 20
b. 15; 25
c. 10; 25
d. 15; 20


23. Which of the subsequent is an ideal allocation for a wealth preserving affluent investor?
a. 50% equity; 50% debt
b. 70% equity; 30% debt
c. 30% equity; 70% debt
d. 100% equity

24. If a 8% bond with face value of Rs. 1,000 is selling for Rs. 1,100 what is the current yield?
a. 8%
b. 7.27%
c. 7.8%
d. 8.2%

25. If you maintain a flexible asset allocation you would
a. Rebalance debt and equity periodically
b. Rebalance debt and equity frequently
c. Generally avoid portfolio re-balancing
d. Keep fixed percentage in debt and equity at all times.

26. Which of the subsequent will NOT require financial planning?
a. A 40 years old doctor with substantial savings
b. A retiree who is currently getting an income of 4,000 but would want Rs. 10,000 a month
c. An old person wanting to transfer all his wealth to his grandchildren
d. A young professional aged 26 years

27. What is the portfolio you will recommend to a young couple with 2 incomes and 2 children?
a. 10% money market; 30% aggressive equity; 25% diversified equity; 35% bond funds
b. 40% aggressive equity; 30% money market; 30% bond fund
c. 60% equity; 30% money market; 10% debt
d. 70% bond funds; 30% equity funds

Earning:   Approval pending.