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

a. Details of the Sponsor and the AMC
b. Description of the Scheme & investment objective/strategy
c. Investors’ Rights and Services
d. Performance of other mutual funds

17. Mutual funds do not justify the need for paying commission to agents when the investors skip out of the scheme before a specified period. In India this practice is adopted by
a. Agents voluntarily paying back the commission to the Mutual fund
b. Trail commission is not paid to the agents
c. None of the above
d. The whole of commission is paid to the agents

18. An aggrieved unit-holder of a mutual fund can sue
a. The AMC
b. The trustees
c. The sponsor if returns have been guaranteed by them
d. None of the above

19. Distributors or agents
a. Can distribute several mutual funds simultaneously
b. Cannot appoint sub-agents or sub-brokers
c. Should be only individuals not companies or banks
d. Should not be an employee or associate of the AMC

20. If a charitable trust approaches a distributor with an application for investment in a mutual fund, the distributor should
a. Accept the application without wasting time
b. Reject the application outright
c. Refer to the offer document
d. Accept the application as a direct application

21. One of your friends who have invested in a mutual fund is about to get Canadian citizenship. What would you advise?
a. He should transfer the investment to his relative
b. He should get RBI approval for continuing
c. If he does not need the money, he can continue on
d. He should immediately redeem his investment since foreign citizens are not eligible investors

22. The AMFI code of ethics does not cover the subsequent prescriptions
a. Adequate disclosures should be made to the investors
b. Funds should be managed in accordance with said investment objectives
c. Conflict of interest should be avoided in dealings with directors or employees
d. Each investment decision should be approved by investors

23. Unit holders’ right to info does not include
a. Obtaining from the trustees any info having an adverse effect on
their investments
b. Inspecting major documents of a fund
c. Receiving of a copy of the annual financial statements of that fund
d. Approving investment decisions of the fund

24. A Debt fund distributes 10% dividend. How much tax does the investor have to pay on this dividend?
a. 10%
b. 12%
c. 20%
d. None

25. Contingent Deferred Sales Charge (CDSC)
a. Is higher for investors who stay invested in the scheme longer

Earning:   Approval pending.