Association of Mutual Funds in India (AMFI) 2007 AMFI Mutual Fund Basic Module - Question Paper

1. An investor in a closed-end mutual fund can get money back before maturity by selling units
(1-Mark)
Back to the fund

To a special trust at NAV

On a stock exchange where the fund is listed

To the agent through which he/she subscribed to the units of the fund


2. A closed-end mutual fund has a fixed
(1-Mark)
NAV

Tenure

Rate of return

Number of distributors


3. A mutual fund is owned by
(1-Mark)
The Govt of India

SEBI

All its investors

AMFI


4. Who is the primary guardian of unit holders funds?
(1-Mark)
The AMC

The Sponsor

The Trustees

The Custodians


5. The limit on maximum entry or exit load that a fund can charge is determined by the
(1-Mark)
AMC

SEBI

AMFI

Distribution agents based on demand for the fund


6. Which of the subsequent is not actual for Equity Linked Savings Schemes?
(2-Mark)
Investors can claim an income tax benefit

There is a lock-in period before investment can be withdrawn

There are not specific restrictions on investment objectives for the fund managers

These funds cannot invest in shares of listed companies


7. The fund sponsors should have a sound financial track record of
(1-Mark)
seven years

12 months

five years

three years


8. The agreement ranging from the Trustees and the AMC is known as
(2-Mark)
Trust Deed

Investment Management Agreement

Agreement to manage Portfolio

AMC appointment letter


9. A closed-end scheme of a mutual fund is not governed by
(1-Mark)
Exchange Rules of the stock exchange where it is listed

Listing Agreement ranging from the fund and the stock exchange

Guidelines issued by the Ministry of Commerce

Provisions of Companies Act, 1956 relating to transactions in securities


10. After dividend declaration, unit-holders are entitled to receive dividend within a period of
(1-Mark)
1 week

30-days

42-days

6 weeks


11. The Board of Trustees of the UTI does not have nominees from
(1-Mark)
RBI

LIC

IDBI

The Bombay Stock Exchange (BSE)


12. The "Capital" of a scheme does not include
(1-Mark)
Unit capital

Reserves

Borrowing

Net worth of the AMC


13. The most important source of info for a prospective investor in mutual fund is
(1-Mark)
Offer document

Annual Report of the AMC

Economic Times

AMFI Newsletter


14. The offer document issued by mutual funds does not serve the purpose of

Earning:   Approval pending.