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

28. Financial planning is:
a. Investing funds to achieve a highest possible rate of return
b. Resorting to tax planning to keep taxes as low as possible
c. Planning for retirement with maximum income possible
d. Process of solving financial issues and reaching financial goals

29. You have just won a huge sum in a lottery. What should you ideal allocation be?
a. Invest every thing in sectoral funds, as NAV is very low.
b. Invest in government bonds, as risk is low.
c. Invest in money market funds and decide over the next few months
d. Consider the impact of tax
e. Both c and d

30. Which of the subsequent is actual for closed end funds?
a. The fund offers buy and sell units at NAV
b. The corpus of the fund is constant
c. The net assets of fund does not change
d. None of the above

31. Which of the subsequent represents the transition phase?
a. Investor has no need for investment income
b. Investor has a long term horizon
c. Investor cannot take risks
d. Investor’s financial goals are approaching.

32. P/E of which of these stocks is usually high?
a. Value stocks
b. Cyclical stocks
c. Small cap stocks
d. Growth stocks

33. If an AMC does not resolve in investor’s complaint, investor can appeal to:
a. SEBI
b. Ministry of Finance
c. Office of the public trustee
d. Company legal regulations Board

34. Mutual funds can lend funds in the form of
a. Loans
b. Promissory notes
c. Securities
d. None of the above

35. An offer document of an open ended fund has to be revised
a. Once in three years
b. Not at all
c. Every year
d. Once in 2 years

36. A FII can invest in a mutual fund through its
a. Non resident external account
b. Non resident ordinary account
c. Non resident rupee account
d. RBI current account

37. You invest Rs. 25,000 in a mutual fund. After two years you redeem your units at Rs. 32, 000. Ignoring indexation and surcharges, what is the capital gain tax on this transaction?
a. Rs. 7,000
b. Rs. 700
c. Rs. 1,400
d. Depends on the marginal rate of taxation

38. If a fund’s NAV is Rs. 12, what is the maximum sale price it can charge, according to SEBI regulations?
a. Rs. 12.70
b. Rs. 12.84
c. Rs. 13.68
d. Rs. 11.16

39. Debt securities with less than 182 days to maturity are valued at
a. Face value
b. YTM basis
c. Accrual basis
d. Duration basis

40. If a scheme holds more than 15% in illiquid securities, all securities above that limit have to

Earning:   Approval pending.