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

MF Sample Paper 2

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

2. A gilt fund is a special kind of fund that invests
a. In very high quality equity only
b. In instruments issued by companies with a sound track record
c. In short-term securities
d. In government securities only

3. The private sector was granted permission to enter the mutual fund industry in
a. 1992
b. 1993
c. 1998
d. 1995

4. A close-ended scheme is quoted on the stock exchange at a discount to its NAV when
a. The markets are bearish
b. Investors perceive that the fund will be unable to maintain the NAV
c. The assets of the fund are undervalued
d. None of the above

5. In the re-investment choice offered by mutual funds, the number of units held by an investor increases because of
a. Growth in net asset value
b. Reinvestment of dividend
c. Interest received on the fund’s assets
d. None of the above

6. Transfer Agents of a mutual fund are not responsible for
a. Issuing and redeeming units of the mutual fund
b. Updating investor records
c. Preparing transfer documents
d. Investing the funds in securities markets

7. Who is the primary guardian of unit holders’ funds/assets
a. The AMC
b. The Trustees
c. The Registrars
d. The custodians


8. If the schemes of a mutual fund are taken over by a different mutual fund, which of the subsequent is false?
a. There is a change in the AMC of the schemes that are taken over
b. There is a change in the Sponsor of the schemes that are taken over
c. The scheme has to be wound up compulsorily
d. The schemes’ offer documents have to be changed and updated.

9. The amount of authority enjoyed by a self-regulatory organization is described by
a. The apex regulatory authority
b. Company legal regulations board
c. Its own members
d. RBI

10. The role of AMFI in the mutual funds industry is not to
a. Promote the interest of the units holders
b. Set a Code of Ethics
c. Regulate mutual funds
d. Increase public awareness of mutual

11. A due diligence certificate does not certify that
a. The draft offer document forwarded to SEBI is in accordance with SEBI regulations
b. All legal requirements connected with launching of the scheme have been complied with
c. Disclosures made in the offer document are true, fair and adequate
d. The AMC guarantees a good performance

12. Along with the application, it is mandatory to distribute
a. Investment rebate
b. Offer document
c. Key info memorandum
d. None of the above

13. An offer document contains the summary of expenses history of all schemes for the past
a. 1 fiscal year
b. 2 fiscal year
c. 3 fiscal year
d. Six months

14. Excess distribution expenses are to be borne by the

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