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

a. AMC
b. Unit holders
c. SEBI
d. AMFI


15. Offer Document of a mutual fund is
a. Required by investors
b. Required by the AMC for its own reference
c. Required as per SEBI regulations
d. Not mandatory as per SEBI

16. Procedure for redemption or repurchase need not
a. Be defined in the offer document
b. Include how redemption or repurchase price of units would be determined
c. Include names of centers where redemption can be effected
d. Indicate the redemption or repurchase price s at the end of the current fiscal year

17. SEBI guidelines for agents includes
a. Agents can sell products of a single mutual fund
b. Agents can sell products of mutual funds with whom he has entered into agreements
c. Agents could be only individuals
d. None of the above

18. Agents are compensated by mutual funds
a. Through salaries
b. Through commissions
c. Through an annual fee
d. Not in cash but in type

19. An agent’s appointment by a fund
a. Requires SEBI’s approval
b. Is a lengthy and cumbersome process
c. Is mandatorily preceded by an AMFI test
d. Does not require any approval

20. An investor buys units in a fund that has provided excellent returns in the past, but his expectations are not met, as the fund does not perform well this year. The investor can
a. Sue the AMC
b. Sue the Trustees
c. Sue the agent
d. None of the above

21. Are Overseas Corporate Bodies allowed to invest in Mutual Funds
a. No
b. Yes
c. If Ministry of Finance approves
d. If AMFI approves


22. Documents available to investors for inspection do not include
a. Memorandum and Articles of Association of AMC
b. Consent of auditors and legal advisors
c. Investment management reports
d. Reports based on which true investments are made

23. Distribution tax should be taken into account when computing net returns from
a. Equity funds
b. Debt funds
c. Both the above
d. None of the above

24. A mutual fund declares Re one as distribution. The income in the hands of unit holders is
a. Taxable at 20%
b. Not taxable in the hands of unit holders
c. Information is inadequate to assess tax liability
d. Income tax will be assessed as per unit holder’s liability

25. For a close-ended fund, the repurchase price should not be lower than
a. NAV
b. 95% of NAV
c. 93% of NAV
d. 97% of NAV

26. The “load” charged to an investor in a mutual fund is
a. Entry fee
b. Cost of the paper on which the unit certificates are printed

Earning:   Approval pending.