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

b. Is lower for investors who stay invested in the scheme longer
c. Is the identical for all investors irrespective of how long they stay invested
d. Is not allowed to be charged to mutual fund investors in India.

26. The amount needed to buy 100 units of a scheme having an entry load of 1.5% and NAV of Rs. 20 is:
a. Rs. 2000
b. Rs. 2015
c. Rs. 1985
d. Rs. 2030

27. A high P/E multiple of a fund in comparison to avg. market multiple could be of
a. Value fund
b. Growth fund
c. Balanced fund
d. Equity diversified fund

28. A company whose earnings are strongly related to the state of economy is a
a. Economy stocks
b. Cyclical Stocks
c. Value Stocks
d. Growth stocks

29. A value manger does not look for
a. Stocks that are currently undervalued in the market
b. Stocks whose worth will be recognized by the market in the long term
c. High current yield
d. Long term capital appreciation

30. A bond’s rating shows its
a. Reinvestment risk
b. Default risk
c. Inflation risk
d. Interest-rate risk

31. When interest rates rise, bond prices
a. Also rise
b. Fall
c. Are not affected
d. Fluctuate either up or down

32. As per SEBI, mutual funds can borrow for short term to the extend of
a. Total net assets
b. 50% of net assets
c. 25% of net assets
d. 20% of net assets

33. A mutual fund is not allowed to invest in the sponsor company,
a. > 25% of its net assets
b. > 10% of its net assets
c. Not at all
d. > 5% of net assets

34. Liabilities in the balance of a mutual fund are
a. In the form of long-term loans
b. Strictly short term in Nature
c. Combination of long term and short term
d. Not allowed as per regulations

35. A funds weekly avg. net assets are Rs. 1000 Crore. What is the limit on the expenses of the fund
a. Rs. 10.5 Crore
b. Rs. 10.25 Crore
c. Rs. 20.5 Crore
d. Rs. 17.5 Crore

36. A fund’s investments at market value total Rs. 700 crores, Total liabilities stand at Rs. 50 lacs and the number of units outstanding is 28 Crores. What is the NAV?
a. Rs. 30.19
b. Rs. 24.98
c. Rs. 32.15
d. Rs. 40.49

37. For evaluation of traded securities, which of the subsequent is not true?
a. The security is valued at the last quoted price
b. The security is valued on the basis of earnings capitalization
c. Making to market is applied
d. If the security has not been traded on evaluation date, the trading price on any previous date may be used, given that date is not more than 30 days prior to evaluation date.

Earning:   Approval pending.