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

HUF can invest in mutual fund


24. Listed equity shares are to be valued at
(1-Mark)
The avg. price of the share in NSE

The least price of the day in BSE

Cost price or current market price whichever is lower

The last traded price in the stock exchange where the security is principally traded


25. As per SEBI (Mutual Fund) Regulations ,1996 an asset shall be classified as NPA if
(1-Mark)
Interest warrant bounces twice

The issuer refuses to repay interest

If the interest/installment becomes overdue for a period of 180 days

If the interest/installment becomes overdue for a period of 1 quarter


26. For a open-end fund, the repurchase price should not be lower than
(2-Mark)
NAV

95% of NAV

93% of NAV

97% of NAV


27. For a no-load fund , the AMC can change an investment management fee not exceeding
(2-Mark)
3.50%

4.00%

2.25%

0.50%


28. A funds NAV is affected by
(2-Mark)
Purchase and sale of investment securities

evaluation of all investment securities held

Accrual of income or expense

All of the above


29. If an investor switches from 1 scheme to a different scheme within the identical mutual fund
(1-Mark)
No load will be charged

Only entry load will be charged in the new scheme

Only exit load will be charged in the old scheme

Depends on AMC and varies ranging from various AMC


30. Which of the subsequent is untrue of an automatic reinvestment plan?
(2-Mark)
The plan allows for automatic reinvestment of all income and capital gains

Automatic reinvestment allows for accumulation of additional units of the fund

The major benefit of automatic reinvestment is compounding

Its benefit is often lost on account of the heavy load charge on the reinvestment


31. A passive fund manager
(1-Mark)
Researches stocks extensively

Does not buy and sell stocks often

Does not have to go through the process of stock selection

Does not have to track stocks


32. Coupon of a debt security refers to
(1-Mark)
A piece of paper attached to the certificate

The return-on investor would earn

The rate of interest paid on par value of the bond

Earning:   Approval pending.