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

39. In a mutual fund investors’ subscriptions are accounted for as
a. Liabilities
b. Deposits
c. Unit capital
d. None of the above

40. A funds NAV is affected by
a. Purchase and sale of investment securities
b. Valuation of all investment securities held
c. Units sold or redeemed
d. All of the above

41. Which of the subsequent expenses cannot be charged to the scheme
a. Audit fees
b. Costs related to investor communication
c. Winding costs for terminating the scheme
d. Penalties and fines for infraction of laws

42. The evaluation norm for non-investment grade, performing assets is done:
a. On YTM basis using the Crisil evaluation methodology
b. On YTM basis with 25% discount
c. At 25% discount to face value
d. At face value

43. Valuation norms for non-traded securities should be disclosed
a. At the end of every financial year
b. Every quarter
c. In the offer document at the time of launch of the scheme
d. Should not be disclosed, being confidential info

44. As per SEBI guidelines, a security is to be treated as untraded when
a. Security is never traded on stock exchange
b. Security is not traded for 30 days
c. Security is not traded for 60 days
d. None of the above

45. Ex-marks with 100% could be for the subsequent fund:
a. Growth fund
b. Index fund
c. Value fund
d. Balanced fund

46. A high turnover rate for a fund shows
a. High transaction costs
b. Greater efficiency
c. High returns to the investor
d. A rising market

47. An investor can assess the performance of his mutual fund by comparing it with the performance of
a. Other mutual fund of the identical kind
b. The stock market
c. Other financial products
d. All of the above

48. If the NAV of an open-ended fund was Rs. 16 at the beginning of the year and Rs.22 after 13 months, the annualized change in NAV is
a. 6.0%
b. 34.6%
c. 40.6%
d. 37.5%

49. The option of an improper benchmark for evaluating a fund’s performance depends on
a. The fund manager
b. The investment objective of the fund
c. SEBI
d. AMFI

50. When comparing a fund’s performance with that of its peer group, the subsequent cannot be compared
a. Two debt funds with five year maturities
b. A broad-based equity fund with an IT Sector Fund
c. A bond fund with bond index
d. A government securities fund with a government security

51. Which of the subsequent is false?
a. ROI is a measure similar to Total Return with Reinvestment of distribution

Earning:   Approval pending.