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

MF sample paper 1

1. A mutual fund is not
a. A portfolio of stocks, bonds and other securities
b. A company that manages investment portfolios
c. A pool of funds used to purchase securities on behalf of investors
d. A collective investment vehicle


2. After UTI, the 1st mutual funds were started by
a. Private sector banks
b. Public sector banks
c. Financial institutions
d. Non-banking Finance Companies

3. Mutual fund can benefit from economics of scale because of
a. Portfolio diversification
b. Risk reduction
c. Large quantity of trades
d. None of the above

4. Equity Linked Savings Scheme does not have which of the subsequent features?
a. It entitles the unit holder to tax rebate
b. The investment is locked in for three years
c. A minimum said level of investments is made in equity and equity related instruments
d. None of the above

5. A close ended mutual fund has a fixed
a. NAV
b. Fund Size
c. Rate of Return
d. Number of Distributors

6. Of the subsequent fund types, the highest risk is associated with
a. Balanced Funds
b. Gilt Funds
c. Equity Growth Funds
d. Debt Funds

7. The Custodian of a mutual fund:
a. Is appointed for safekeeping of securities
b. Need not be an entity independent of the sponsors
c. Not needed to be receive deliveries with SEBI
d. Does not provide or receive deliveries of physical securities





8. The Mutual fund is constituted as
a. A trust
b. A private limited company
c. An asset management company
d. A trustee company

9. A Self Regulatory Organisation can regulate
a. All entities in the market
b. Only its own members in a limited way
c. Its own members with total jurisdiction
d. No entity at all

10. Bank owned Mutual Funds are supervised by
a. SEBI
b. RBI
c. Jointly by SEBI & RBI
d. AMFI


11. In case of merger of 2 AMC, 75% of the unit holders have to approve the merger in case of
a. Open ended funds
b. Both open and close ended funds
c. Close ended funds
d. None of the above

12. The 1st level regulator of AMCs is
a. Board of Trustees
b. Company legal regulations Board
c. SEBI
d. RBI

13. As per SEBI guidelines, a due diligence certificate is not
a. Signed by a Compliance Officer of the mutual fund
b. A certificate that all legal formalities of a scheme are completed
c. Attached to Annual report
d. A part of offer document

14. An offer document contains an AMCs investor grievances history of the past
a. 1 fiscal year
b. 2 fiscal year
c. 3 fiscal year
d. Six months






15. For scheme to be able to change its fundamental attributes, the fund managers must find the consent of
a. 50% of the unit holders
b. 50% of the trustees
c. 75% of the unit holders
d. None of the above

16. SEBI does not require the subsequent to be included in the offer document issued by a mutual fund

Earning:   Approval pending.