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. N A V .rate of
0b.Rs.2015 .Rs.1985.R s . 2 0 3 0 .in very high quality equity only.in instruments issued by companies with
F u n d s .Equity Growth Funds. D e b t F u n d s .is always c o n s t a n t b.keep s going up at a steady rate luctuates
with market price movements . c a n not go down a t a l l n option to invest in any kind of security its available for sale
and repurchase at all times . a n upper limit on its NAV. a fixed fund size.back to t h e f u n d b.to a special trust at N A V n a stock
exchange where the fund is listed the agent through which he/she subscribed to the units of the fund. e n t r y f e e .cost of the
paper on which the unit certificates are printedhe fee the agent charges to the investor e expenses incurred by fund
managers for marketing a mutual fund . t h e Govt. of Indiab . S E B I .all its investors. A M F I .on a stock
exchange.fro m the fund itself . f r o m A M F I .from a stock b r o k e r .owned jointly by all investors ompan y that manages
investment portfolios of high networth individuals ol of funds used to purchase securities on behalf of investors.a
collective investment vehiclethe time of the investor's entry into the fundb.as a fixed amount each year t the time the
investor exits the fund .from the fund's distribution agent .quick capital appreciation b . high regular income.safety
of principal. n o l o a d s .of high expense r a t i o s vestors do not expect the current NAV to be sustained in future e
repurchase price fixed by the fund in lower than the NAVthe inherent risk involved in investing in such type of funds. e v e r y
quarter b.ev ery month.every hour .every d a y .low risk and stable i n c o m e .protect ion of pr incipal . h i g h
growth with r i s k .long term capital appreciation.go vernment debt instruments b . c orporate p a p e r .financi al institutions'
bonds .equity of private companies fault by issuer on payment of interest or principal.price fluctuations of the debt
ncome funds. S e c t o r f u n d s .an open-ended fund.a closeended fund .a fixed term b a n k d e p o s i t .a fixed term
corporate bond . S t o c k market m o v e m e n t s ents affecting the industry/sector in which the fund has invested Happenings
plan allows for automatic reinvestment of all income and capital gainstomatic reinvestment allows for accumulation of
additional units of the funde major benefit of automatic reinvestment is compounding e benefit of automatic reinvestment is
often lost on account of the heavy count balance should not fall below the minimum capital required.Checks issued must be
for at least the minimum amount specifiedmber of checks per month must not exceed a specified number . B o t h
y warrants.ordi nary debentures .co nvertible d e b e n t u r e s ssibi lity of capital appreciation.ow nership
privilege of the company.guara nteed dividend incomeo guaranteed income or security. v o t i n g r i g h t s .fixed dividend income
from post-tax profitsting rights and unlimited dividend income. n o guaranteed rights. R . 1 0 b.Face value
of each s h a r e .Current market value of each share. d i v i d e n d y i e l d .Market price and d i v i d e n d .Marke
t price and earning per share arket capitalisation and dividend.Marke t price and face value . E c o n o m
appreciation and steady dividends yields.high capital appreciation and high dividend yields gh capital appreciation but low dividend
yields eady capital appreciation but high dividend yields.have greater growth potential . a r e more liquid.are not
available.non e of the above.dividen d per s h a r e b.dividen d per face v a l u e ividend per share to current market
price . n o n e o f the a b o v e .have high current dividend yield b.yield high growth in earnings. a r e currently
under valued. n o n e of the above.passive fund manager .an active fund manager. a l l fund
usiness channels on TV.the offer document.AM FI newsletter 45. Information on estimated expenses to be
incurred by a scheme is not found in theoffer document, but in brochures of the funda . T r u e b.Fals e 46. When comparing a fund's
performance with that of its peer group, the followingcannot be compareda.Two debt funds with 5 year maturities
b.A broad-based equity fund with an IT Sector Fund c.A bond fund with a b o n d d.A government securities fund
with a government security47. An AMC must explain adverse variation between expense estimates for the schemeon offer and
d.offer documente.A MFI N e w s l e t t e r 48. Information on estimated expenses to be incurred by a scheme is not
found in theoffer document, but in brochures of the funda . T r u e b.Fals e 49. The offer document and key information memorandum
contain financial informationfor a.a ll schemes of all mutual funds in the capital market b.all schemes launched by the particular fund
during the last 3 fiscal years c.none of the s c h e m e s d.com panies in which investment is proposed50. The functions and responsibilities of
the sponsor, AMC, trustees and custodian of themutual fund are listed in a.offer document only b.key information
memorandum c. both offer document and key information memorandumd . none of the a b o v e 51. Information about trusteeship fees is
included in the offer document but not in the keyinformation memoranduma . T r u e b.Fa l s e 52. The following information about
the constitution of the mutual fund is found in boththe offer document and key information memoranduma . a c tivities of the s p o n s o r b.sum
mary of trust deed provisions c.name and addresses of the board of trusteesd . a l l of the a b o v e 53. The
investment objectives of the fund an investor selects for investmenta . a r e of no r e l e v a n c e b.sh ould be the same as his own
investment objectivesc.cha nge with market movements d.ch ange with change in the AMC's key personnel54. The
investment policies listed out in the offer document of a fund do not includea.the type of securities in which the scheme will
invest principally b.as s et allocation patternc.policy of diversification d.the specific securities in which the fund
will invest55. If a scheme's name implies that it will invest primarily in a particular type of securityor in certain industry/sector, then it should
invest atleast the following percentage of itstotal assets in the indicated type of security/industry/s ector a . 1 0 0 % b . 8 0 %
c . 6 5 % d . 4 0 % 56. For assured return schemes, information about the guarantor's net worth which justifies the guarantor's ability
to meet any shortfalls in the returns assured under thescheme can be found ina . t h e o f f e r d o c u m e n t b.th e key information
memorandumc . both (a) and (b)d.none of t h e a b o v e 57. The names and background of key personnel of the AMCa.need not be disclosed to
investors b.are of no relevance as they may changec.are disclosed in the offer documentd.are declared in newspaper
advertisements5 8. The minimum amount to be raised, and the maximum target amounta.are not known before the offer is concluded b.can
be decided based on investor response to the offer c.are defined as per SEBI Regulations before the offer is maded.need
not be disclosed in the offer document59. The circumstances for refund of investment in the initial offer and period withinwhich
refund must be carried out are not specified in the offer document, but only on theapplicationa . T r u e
b . F a l s e 60. Offer related information required to be listed in the offer document and keyinformation memorandum includesa.dates of
opening, closing, earliest closing, allotment and despatch of certificates b.pro cedure for transfer and transmission of unitsc . b o t h
the a b o v e d.neithe r of the a b o v e 61. In the offer document, funds are required to make disclosures summarising
associatetransactio ns and their impact on the performance of the scheme for the lasta . o n e fiscal year b.2 fiscal
yearsc.3 fiscal yearsd.5 fiscal y e a r s 62. The circumstances under which a scheme shall be wound up are to be
described in theoffer document at the time of the initial launch of the scheme itself a . T r u e b.False6 3. The following do not form a part
of the investment procedure described in an offer documenta.v arious plans under the scheme (e.g. dividend reinvestment
plant) b.minimu m initial (and subsequent) investmentc . d e t ails of who can i n v e s t d.details of other competing
mutual funds64. A scheme's policy on dividends and distributiona.is decided by the fund manager as per is market outlook b.can be changed to
suit the requirements of the AMCc . n e e d not be c o n s i s t e n t d.sh ould be disclosed at the time of initial launch65. SEBI
restricts mutual fund investments in companies forming part of the same groupas the AMC. This is:a . n o t t r u e b.in the interest of
investor protectionc.appl ied only to some mutual funds, not alld.not favourable to investors at all66. A
disclosure should be made in the offer document if an AMC has invested more thanthe following percentage of its net assets in group companiesa . 5
for investment p u r p o s e s c.only to meet redemption demandsd . n o t allowed at a l l 68. As a part of borrowing policy, the following need
not be disclosed in an offer documenta.p urpose and circumstances of borrowing b.reg ulatory limits on
borrowingc.pot ential risk to AMC and unitholdersd . n a m e s of l e n d e r s 69. Valuation norms for non-traded securities should
be discloseda.at the end of every financial year b . e v e r y q u a r t e r c.in the offer document at the time of launch of the
schemed.should not be disclosed, being confidential information70. Procedure for redemption or repurchase need nota.be
described in the offer document b.incl ude how redemption or repurchase price of units would be determinedc.incl ude names of
centres where redemption can be effectedd.indicat e the redemption or repurchase price as at the end of the current fiscal
year 71. The fund need not describe its accounting policies in the offer document as these areof no use to an investor a . T r u e b.Fals
e 72. The accounting policies of a fund should be in accordance witha . G A A P b.SEBI regulationsc.I CAI
Guidelinesd. American G A A P 73. Tax treatment of investments does nota.form a section in the offer document b.desc
ribe the tax elements applicable to investors who invest in the fundc.form a section in the key information memorandumd .
offer tax advice to investors 74. Documents available to investors for inspection do not includea.Memora ndum and
Articles of Association of AMC b.consent of auditors and legal advisors c.investment management reportsd.reports
based on which actual investments are made75. Investors' rights under a scheme area.uniform for all schemes of all
funds b . n o t d e f i n e d c.liste d in the offer document d.avai lable with stock exchanges76. The offer document for a
scheme should describe how the NAV of the scheme is to be computeda . T r u e b.Fals e 77. An offer document contains an AMC's investor
grievance's history for the pasta . o n e fiscal year b.2 fiscal yearsc.3 fiscal yearsd.six m o n t h s 78. Any
pending cases or penalties levied on the sponsors or AMC should be disclosed inthe offer documenta . T r u e b.Fals e 79. Who among
the following are not eligible to invest in MFa . I n d i a n Companies b . B a n k s c.N o n Banking Finance Companies d . F
oreign C i t i z e n s 80. NRIs are eligible to invest in Mutual Fundsa . T r u e b.False8 1. The most important link between Mutual
Fund and Investors isa . G o v e r n m ent b . S E B I c.Fund distributorsd . A M F I 82. Are Overseas Corporate Bodies allowed to invest
83. Who among the following are not Institutional Investorsa . B a n k s b.Reside nt Individualsc . P rovident F u n d s d.Non
Banking Finance Companies84. It is compulsory to use fund agents/intermediar ies for investing MFsa . T r u e b.Fals e
85. Generally, which category of investors need advice for Investing in Mutual Fundsa.Non Banking Finance
86. Most eligible investors of Mutual Funds can broadly be grouped into either individualor institutional investors a . T r u e
b . F a l s e 87. Commission rates or loads applicable to big investors and small investors area . s a m e b.different
c.not charges to either d.none of the a b o v e 88. What document Mutual Fund distributors need to refer for finding out
c.Offer document d.RBI G u i d e l i n e s 89. As per AMFI figures, how many agents approximately, are there in India
sellingMutual Fundsa . 5 0 0 0 0 b.100000 c . 7 5 0 0 0 d. 1 5 0 0 0 0 90. Which Mutual Fund has majority of the agents
selling its Mutual Fund units in Indiaa . L I C Mutual Fund b.UTI Mutual Fund c.SBI Mutual Fund
.None of the above. T r u e . F a l s e .Ye s, a tes t conducted by AMFI b.Yes, a test conducted by SEBI . N o .a
Post Graduate university course. a p p r o x imately 9b.approxima tely 11.approximat ely 10.approxima
tely 25. T r u e . F als e . T r u e b.False. S E B I .the AMC. A M F I .the Company Law Board. T r u e
b . F a l s e .Ri sk F a c t o r s .Openi ng, Closing and earliest Closing Date of the offer . D i s c l a i mer C l a u s e nctions
and responsibilities of the sponsor, trustees, AMC and Custodian ening, closing and earliest closing date of the
d r i v e n b.com mon to all s c h e m e s .of relevance to novice investors. n e w to a regular investor . T r u e b.False
. n o t t r u e b.a standard risk factor for all schemes.a schemespecific risk factor .applica ble only to gilt funds . n o t
p r e s e n t b.com mon to all schemes.speci fic to that s c h e m e .not applicable to debt funds . T r u e b . F a l s e .ne
wspapersb . S E B I .AMFI Newsletter .O ffer d o c u m e n t ands guarantee to the information contained in the offer
documentb . b e l o ngs to S E B I nnot certify that the AMC's legal and procedural obligations are fulfilled.cannot be appointed
by the AMC .the managing director of the AMCb.an executive director of the AMC. t h e compliance
o f f i c e r .Invest or relations officer e draft offer document forwarded to SEBI is in accordance with SEBIl legal requirements
connected with launching of the scheme have beensclosures made in the offer document are true, fair and adequatehe AMC
ail Distributors.I nsurance Companiesb . B a n k s .Quali fied Mutual Fund agents rect Sales agents of
eign investors. T r u e b.False. desirable marketing practices.agents ' responsibilities to the investor . e t h i c a
annual fee.not in cash but in kind. T r u e b . F a l s e .Eq uity f u n d s b.tax benefit schemes of mutual funds. d e b t
from a g e n t s .charge entry and exit loads from investors. c r e a t e a reserve.sell investments.n o commission
a t a l l b.the entire commission upfrontrt of the commission upfront and the balance in phaseshe entire commission
ment rebateb.offer d o c u m e n t .key information memorandum . n one of the a b o v e ully aware of the important
characteristics of the schemeb.know his/her client's risk profile. g i v e after sales s e r v i c e .offer large
investment rebates.uniform computation of yieldsb.uniform presentations of dividends. i d e n t ical time periods. a l l o f the
above. N A V b.the NSE Fifty Index. t h e BSE Sensex.none of the a b o v e .requires SEBI's
a p p r o v a l b.is a lengthy and cumbersome processs mandatorily preceded by an AMFI test.does not require any approval . T r
u e b.False. any price he c h o o s e s .a price determined by competition among agentsrice based on demand for that fund's
unitshe public offering price currently in effect. T r u e b.False.th e f u nd b.the agent. A M F I . S E B I .l aid down by
SEBIb.laid down by A M F I .not uniform to all funds. n o n e o f the above. i s mandatorys in the form of recommended
practices .is unfavourable to investors es not cover distribution and selling practicesequate disclosures should be made
to the investorsnds should be managed in accordance with stated investment objectivesnflict of interest should be avoided in
dealings with directors or employees ch investment decision should be approved by investors. T r u e b . F a l s e .I ndividual
A g e n t s b.Small Distribution companies .esta blished distribution companies . t h e I n t e r n e t .AM FI Code of Ethics.SEBI
Advertising.A MFI's Code for Agents. N o n e of the above. l i a b i l i tiesb.deposi ts.unit capital.none
of the above. a s s e t s b.liabilities . c a p i t a l .no ne of the a b o v e .in the form of long term loans .strictly
short term in nature ombinati on of long term and short term.not allowed as per regulations. a s s ets minus liabilitiesb . a s
sets per u n i t .assets minus liabilities per unit . n o n e of the above.comput ation date.valuatio n
date. r e c o r d d a t e .book closure d a t e urchase and sale of investment securities.valuat ion of all investment
raised.6% of amount raised.5% of the amount raised. A u d i t f e e s .costs related to investor communicationi
nding costs for terminating the schemenalties and fines for infraction of lawsnvestors can claim an income tax rebate.There is a
lock-in period before investment can be withdrawnere are not specific restrictions on investment objectives for the fund
managershese funds cannot invest in equityese funds invests in the shares that constitute a specific indexe investment in
shares is in the same proportion as in the indexese funds take only the overall market risk .These funds are not diversified. F i n
ancial M i n i s t r y .Secur ities & Exchange Board of India (SEBI). F u n d S p o n s o r socia tion of Mutual Funds of India
(AMFI)t as a protector of investors' interests.directl y manage the portfolio of securitieso not have the right to dismiss the
AMCnnot supervise and direct the working of the AMCdertake advisory services or financial consulting.canno
t invest the funds in government paper ct as a trustee of more than one mutual fundannot invest the funds in
securities. T h e Finance Ministryb . R . B.I. S E B I . The sponsor of that mutual funds appointed for safekeeping of
securities.need not be an entity independent of the sponsorsot required to be registered with SEBIes not give or receive deliveries of
physical securitiesssuing and redeeming units of the mutual fundb.updating investor records .prepari ng transfer
documents nvest ing the funds in securities marketsn distribute several mutual funds simultaneously.c annot appoint
sub-agents or subbrokershould be only individuals not companies or bankshould not be an employee or associate of the
AMCnit holders with 75% voting rightsb . S E B I .Trustees . A M C .not hing to the A M C b.the total networth
of the AMC .atleast 40% of the AMC's networth. e x a c t l y 5 0 % .a director in a C o m p a n y b.the Chief
the Sponsor hould be atleast Rs. 10 Crores at all timeshould be greater than Rs.10 Crores. S t o c k E x c h a n g e s b.T
ibution agents. r e g u l a tors.Fund s p o n s o r s b.Tr ustees of the fund. F u n d M a n a g e r .Me mbers of the AMFI
Committee. S E B I b.Unit h o l d e r s .both SEBI and unit holders. n o n e of the above. T r u e b . F a l s e .p rivate sector
any Law Board. R B I .Ministry of Finance.share registrarsb.m utual funds.stock e x c h a n g e s .no n-banking
finance companies. A M F I b.Regist rar of Companies.Ag ents' Association. U T I change Rules of the
stock exchange where it is listed.Listing Agreement between the fund and the stock exchangeideline s issued by the
Ministry of Commercempani es Act provisions relating to transactions in securities. P u b l i c Sector B a n k s b.Private Sector mutual
trustees.75% of unit holders.none of the a b o v e .Bankowned mutual f u n d s b.Private Sector mutual funds . U T I .
f i n a n c e .engage in real estate and property development business.provid e merchant banking services. i n v e s t in
E B I . A M F I . R B I .all entities in the m a r k e t .only its own members in a limited way ts own members with total jurisdiction. n o
entity at a l l lf-regulatory organisation is defined by .the apex regulatory authority. c o m p any law board.its own members. R
B I romote the interests of the unit holdersb . s e t a Code of Ethics.regulat e mutual f u n d s crease public awareness
of mutual funds in the country .the Offer Document of that scheme b . Q u a r t erly Reports. A n n u al
R e p o r t s .mark eting b r o c h u r e s oport ionate ownership of the scheme's assetsb.dividen d declared for that
schemevidend declared for other schemes of the mutual funds .income declared under that scheme . o n e week .one
month. 4 2 d a y s .six w e e k s taining from the trustees any information having an adverse effect on their b.inspectin g major
documents of a fundceiving of a copy of the annual financial statements of that fund proving investment decisions of the fund .by
sponsors of such schemes ly if the offer document specifically provided such a guarantee by a named . t h e Government
carefullying aware of information that affects his investment in a major wayarefully studying the offer
document king decisions about where the fund managers should invest . T r u e .Fals e . S E B I b . A M F I .A special act. R B I .
applied for redemption.15% below the prevailing NAV. O n e week b.30 days.45 days.180 d a y s .50% of
the unit holdersb.50% of the trustees.75% of the unit holders. n o n e of the above. A M F I b . S E B I .B
ombay Stock Exchange.Min istry of Finance.annou ncing the s c h e m e .giving detailed information about the
scheme.inviting the the investors ving the fund manager's investment outlook for the next quarter . e v e r y
y e a r b.only once at the time of issue . e v e r y quarter .ever y six monthso not include the objective of the scheme.can be
changed without the investor's approval or knowledge.inclu de the terms of the scheme e not necessary for deciding whether to invest in the
scheme or not.contains the terms of issue ves no information relevant for making an investment decisions not the
operating document describing the schemeannot be called a reference document.detail s of the Sponsor and
the AMC.Descriptio n of the Scheme & investment objective/strateg y.Investors' Rights and Services.Perfor mance of other
mutual fundsn abridged version of the offer document.the Memorandum & Articles of Association of the AMCheet
containing historical NAVs of other fund schemes. A n n u a l Report of the AMC.the AMC is r e c o n s t i t u t e d b. entry or exit
load are changed. t h e scheme's NAV c h a n g e s ew plans are added to existing schemes. e v e r y six monthsb.once
t h e a b o v e t is first issued at the time the scheme is launchedb.it is registered with SEBI .it has to be revised periodically.it
need not be revised at all . T r u e b . False. T r u e b . F a l s e .o ffer d o c u m e n t b.A nnual Report of the
mark -to -market basis . a t p a r .at book value. T r u e b.False. T r u e b.Fal s e .Rs 2.25 croreb.Rs
2.00 crore.Rs 2.50 crore.Rs 3.00 c r o r e .research es stocks extensivelyb.do es not buy and
sell stocks oftenes not have to go through the process of stock selection.does not have to track stocks .has to
keep fund expens es low b.does not have to research stocksoes not have to balance his portfolio. n o n e
of the a b o v e ocks that are currently undervalued in the marketocks whose worth will be recognised by the market in the long term. h i g h
current y i e l d .long term capital appreciation. a fund's investment styleb.perform ance of the f u n d .the fund
manager's judgement . n o n e of the a b o v e ecking the foundations of the company's factory building.researc h into the
operations and finances of the companytudying the company's share prices. n o n e o f the a b o v e storical data on the
company's share priceb.the company shares' trading volume. c u r r e n t market s e n t i m e n t he company's regulatory
environment. T r u e b.Fal s e .when to buy a given s h a r e b.whether to buy a given share or notether to use technical
analysis or quantitative analysisether the company's factory can withstand earthquakes. w h ether to buy o r s e l l .the
right time to buy or sell ether company's technical personnel are adequately qualified. n o n e of the a b o v e .capitalis
buying and selling shares at all for some days .using equity derivatives ving TV interviews to improve sentiment. s h a
dealers. t r u s t e e s .continuou s tracking systems . e q u i t y analysts. t r u s t e e s .security d e a l e r s .guard the cabin of the fund
manager xecute buy and sell orders for the fund .decide which shares to buy or sell. n o n e o f the above. T r u
floating rate b a s i s b.a fixed rate plus a variable portion . a fixed r a t e .zero coupon basis. T r u e
banks . n o n e o f t h e a b o v e meet short-term working capital requirements .to finance the acquisition of long term capital assets. t o r e t i r e
long term debt. t o p a y dividend. T r u e b.False. the Government of India. a u c t i o n .the State
financial institutions ertifi cates of deposit issued by banks. p a r value b.face value.fair v a l u e .redem ption
v a l u e piece of paper attached to the certificateb.the return on investor would earne amount rate of interest paid on par
value of the bond. n o n e o f t h e a b o v e he date on which the certificates becomes oldb . t h e t e r m of the bond.the date
of r e d e m p t i o n he date on which the issuer has to repay the amount . T r u e b . F a l s e .ca ll out the names of the
investorsb.rede em the debt on maturity .exten d the tenure of the debt .redeem the debt before maturity vestor to put away the certificates in
safe deposit vaults nvestors to redeem debt prior to maturity ssuers to redeem debt prior to maturitynvestor s to extend the
tenure of debt .its current market pr ice b . i t s face value.its fair v a l u e .the current price of T -
that yields.none of the above.The Economic Timesb . t h e S ens ex .the Yield C u r v e .the
r i s k .reinves tment risk . d e f a u l t risk .inflatio n r i sk .interestrate risk .high liquidity risk b.high
default risk .low liquidity risk .inflatio n risk . y i e l d plus.yield spread.yield extra.yield premium.high
. 1 0 % . 2 % .longer than its maturity.less than its maturity.equal to its m a t u r i t y he quality of paper
used for the certificate. a b o ve par .below par. a t p a r a price unrelated to the prevailing interest
based on what distributors want. t h e i n v e s t o r s ndati ng minimum levels of diversification for mutual funds.ensuring
that the funds are not used to favour a few companies acking the securities that each fund has invested in suring that the funds are
of the above.25% of its net assetsb.10% of its net assets. a t a l l .>5% of net assets. n o t
a t a l l .at current market rates. a t c o s t p r i c e .at a fixed premium over market rate. F u t u r e s b . O p t i o n s .I nterest Rate
l s e .above par .below par. a t p a r a price unrelated to the interest rates for similar securities. t y p e of
f u n d b.investm ent objective of the fund.financial market conditions .amo unt invested by investor . 6 . 0 % b.34.6%
the above. n o n e tal return takes dividend into account while NAV change does not otal return does not take NAVs into
accounttal return does not take the time period into account. N A V C h a n g e b.Tot al R e t u r n .Total Return with reinvestment . n
one of the a b o v e .product market conditionb.gro wth in the e c o n o m y .preva lent market practices . t h e fund's
e f f i c i e n c y otal expenses and average net assets b.total expenses and total assetsverage expenses and average net
assets. n o n e o f the above. T r u e b.False. Debt fund b.Index fund.Equity fund.Bond fund.fund
s i z e b.average account size.portfolio c o m p o s i t i o n .st ock market conditions .tota l income and total as sets et investment
income and net assets .total income and net assets . n o n e o f the above. E q u i t y Fundsb.Grow th F u n d s .Regula
r Income Funds. I n d e x F u n d s .size of the fund's portfolio ount of buying and selling done by the fund he average number
of units sold by the fund in one day. n o n e o f the a b o v e .high transaction costsb.greater e f f i c i e n c y .hig h returns to the
commissionsb. stamp duty on transfers. c u s t odians fees .agent commissions.b rokerage commissions. d ealer
assets.25% of net assets.20% of net assetse performance of the stock market as a wholeb.The performance of other mutual
fundse returns given by other comparable financial products .The change in wholesale price index . t h e f u n d m a n a g e r he
investment objective of the fund . S E B I . A M F I .be able to beat the benchmarks b.ea rn the same returns as the benchmark . h a
m a n a g e r s I is a measure similar to Total Return with Reinvestment of distributiontal Return with Reinvestment of distributions
assumes reinvestment at NAV ona measure of performance, Total Return with Reinvestment of distribution cause
of its simplicity, simple Total Return is preferred in practice to Total .the current market situation he agent
commissions paid by different funds nancial planning to suit the investor's situation anning to complete the agent's annual
targets. b u y i n g a h o m e .winning a sports gold medal . p l a n n i n g for r e t i r e m e n t .savi ng for child's education . t o
become a b i l l i o n a i r e chie ve financial goals through proper management of finances .to invest in foreign countries. n o n e
ial Advisor . T r u e b.Falsel ocating funds to asset classes (e.g. debt, equity etc.) .allocating funds to individual
securitiesrackin g stocks which they feel have potential. n o n e of the ab o ve .the financial planner b.the investor
lined monthly budgeting . n o n e of the a b o v e owth in net asset value i.e. capital appreciation inve stment of dividend which
is like compounding nte rest received on the fund's assets. n o n e o f the above. T r u e .False. T r u e b.Fals
e .Fixed Rates of Asset Allocation b.Fle xible Ratio of Asset Allocationnvest ment without any asset allocation
plan. B u y a n d Hold S t r a t e g y ntinuou sly changing the ratio of various assets in the portfolio t doing any re-balancing and letting the
profits run . a c t i v e switching.no ne of the a b o v e y and hold on to investments for a long time.liquidate
poorly performing investments from time to timequidate good performing investments fro time to time itch from poor
performers to good performers vestm ent is for the same amount at regular intervalser a period of time, the average
purchase price will work out higher than if one oes not tell you when to buy, sell or switch from one scheme to another pee cost averaging
has no serious shortcomings.ca pital market instruments b . r eal estate. b u l l i o n . money market instruments .
U T I .Ban k s .Mutual f u n d s .none of the above.Bank d e p o s i t s b.Pub ic provident fund (PPF) ational
p r i c e . Hedge agains t inflation ess potential for capital appreciation . H i gh purchase p r i c e epreciatio n in value as
time passes.Value gets eroded due to inflation. L i q u i d i t y b.High perceived safety. L o w entry
l i q u i d i t y .the stock market situation b . S E B I g u i d e l i n e s .the company's credit rating .the amount of
money being raised. A higher rate of interestb . h i g h er r i s k .unfavour able effect of tax.very high liquidity.The
interest is taxf r e e b.Post-tax returns are attractive. L i q u i dity is rather low.none of the above.rural i n v e s t o r s b.inv
before tax.8.5% after t a x dividual investors re not allowed to invest in Government Securities.the amount required
for investment is very largeafety of principal is not guaranteed. n o n e of the above. p r e m i u m .sum assured.face
value.real v a l u e .taxed at s o u r c e b.taxed in the hands of the investors.are subject to capital gains
tax re tax-free in the hands of the investordentifyi ng stocks is a difficult process gents get commissions on mutual fund
investmenteturn ed are guaranteed by mutual fundsl l of the a b o v e ying one share each of all listed companies .i nve
sting in a mutual fund rrowing enough money to buy shares of well-managed companies. n o n e of the above.Higher
t Fund. T r u e b . F a l s e nts better returns than those offered by mutual funds s large capital, knowledge and
resources for research s identified a bullish phase in the stock market.wants to invest for the long term.stock market
situation on dateb.amount of money to be invested .invest or 's risk tolerance ase through which the economy is passing.studyin
g financial management .ma naging the risks of investing inanci ng the client's investments. n o ne of the above. T r u
e .False.h i s a g e b.his i n c o m e .the stock market movements . h i s job security. l o w risk f u n d b.modera
te risk fund. h i g h risk f u n d .low -tomoderate risk fund . T r u e . Fals e . T r u e b.False. T r u e .Fal
s e .low risk f u n d s .moderat e risk funds. h i g h r i s k f the above depending on the market . h i g h risk
c a t e g o r y .deter mined by the commodity price movements. c a n not be specified.low risk category.give
of the a b o v e .compan y specific risk b . m a r k e t level risk .both of the above.none of the
a b o v e nvesting in a money market mutual fundb.Investin g in an index fund hort term investment in an equity fund ong term investment
in an equity fund . T r u e b . F a l s e andard Deviation measures total risk, not just market risk is based on past returns, which
does not necessarily indicate further . I t is an independent n u m b e r l types of funds can be measured with standard
deviationint out the features and benefits of various investments options lp the investor develop the right approach to
investing ecomm end some investment option availablefer ad hoc advise whenever the investor has surplus money
available .develo p a model portfolio .buy a few units of every mutual fund scheme availablenvest all the money in one fund
schemevest all the money in different schemes of the same fund family. l o w post tax returnsb.dram a t i c r e s u l t s tter
returns than every other available option nly realistic wealth accumulation goals eping certificates of the physical
securities in proper places.allocation the available money to all the securities available locating the right proportion of
funds to equity, debt and money market . n o n e o f the above. T r u e .False. T r u e b.Fals e .Equity Fundsb.Inde
individualshe financial goals have been already metb . t h e investor has r e t i r e d .financia l goals are approaching .inv
estor suddenly gets a windfall. a c c u m ulating investorsb.affl uent i n v e s t o r s vestor s in the intergenerational
transfer phase nvestors in the distribution phase .not draw down on their capital t invest in securities which bear risk of capital
erosion ntinue holding a major portion of their holding in equity growth funds. n e v e r invest in e q u i t y .no financial
planning is required e right investment strategy depends upon who the beneficiaries are e right investment strategy depends upon the state of
the stock marketl the funds can be invested in aggressive equity fundsn speculate with all the acquired money in the stock
markets.should not use any of the new wealth to invest in equity hould take the effect of taxes into account ed not pay any taxes on
the newly acquired wealth as it is not a part of their . T r u e . Fals e . T r u e b.False. T r u e .Fal s e .costs of
investinge specific securities in which the fund has invested .the number of employees of the AMC. a l l of the
loadb.exit l o a d .deferre d load. n o l o a d higher for investors who stay invested in the scheme longer lower for investors who
stay invested in the scheme longer the same for all investors irrespective of how long they stay investednot allowed to be charged to
mutual fund investors in India . T r u e b . F a l s e aggres sive equity fund and a money market mutual fund.A value fund and a
government securities fund . A b o n d fund and a debt f u n d iversified equity fund and a debt fund. T h e
A M C b.The Trustees.The Registrars.Th e c u s t o d i a n s igh Court approval may not be necessaryb . S E BI approval is
above. T r u e b . F a l s e en it invests in only in two or three stocks.when it invests in may companies of the same sector en top ten holdings
account for more than 50% of net assets invested en top ten holdings account for more than 25% of net assets invested.can be expected from
the fund .level of risk assumed by the fund . s t a t e o f the stock market. a l l o f the a b o v e .longterm
orientationb.lo wer transaction costs. b o t h t h e above.none of the above.perfor manceb . r i s k .both the
above.none of the above. p e r f o r mance. r i s k .both the above.none of the a b o v e gher Ex Marks, lower
Beta and higher Gross Dividend Yield .higher Ex Marks, higher Beta and higher Gross Dividend Yieldwer Ex Marks, lower Beta and lower
Gross Dividend Yieldwer Ex Marks, higher Beta and higher Gross Dividend Yield . T r u e b.False. T r u e b.Fals e he Indian
Stock Market is always going down .the returns are more predictable .mos t investors are always in debt. a l l o f the
edit analysis skillsb.equity analysis skills. p a t i e n c e .trading skills.past performanceb .level of interest
rates. f u n d e x p e r t i s e he securities in which it has invested wer rated portfolio and higher expense ratio .higher
rated portfolio and lower expense ratioower rated portfolio and lower expense ratioower rated portfolio and higher expense
economy foresee n economic changes affecting the portfolio's preferred sectors . b o t h the above.none of the
a b o v e cept the application without wasting timeb.reject the application outright .refer to the offer document cept the application
as a direct application. t h e offer d o c u m e n t b.the abridged annual report .the key information memorandum . a
bank challan. t h e A M C b.the trusteese sponsor if returns have been guaranteed by them . n o n e of the aboves
not been traded for 60 days prior to valuation s not been traded for 30 days prior to valuation .is not listed on any stock
exchangeheld by the mutual fund without buying or selling. a growth f u n d b.an aggress ive growth
fund . a n i n d e x fund.a balanced f u n d .an investor cancels his investment e investor redeems his investment in
a very short time agent invests his own money, not that of a client.an agent sells many mutual funds. A Value
Fund.A Growth Fund.An Index F u n d uld be any of the above three, one cannot generalisevestme
nt in rated debt securities of a single issuer should not exceed 15% of tal investment in unrated debt securities of a single issuer
should not tal investment in unrated debt securities below investment grade should nottal investment in rated debt securities below
investment grade should not. C o r p o r a t e Bondsb.Equit y S h a r e s overnme nt Securities with maturity less than 1
year . A l l o f the above. V a l u e F u n d b.Divers ified Equity Fund. G r o w t h F u n d .Balanc e d F u n d .that the fund is
a c t i v e b.higher transaction costs . b o t h t h e above.none of the a b o v e .is listed on stock exchanges b.has a fixed price for
sale and repurchase s its sale and repurchase price declared periodicaly by UTI s its price determined by market forces. i s
Wholesale in n a t u r e mprises large players like financial institutions and bankstnesses large scale trading in government
securities . a l l of the above. T r u e . F a l s e .in dividual a g e n t s .banks and non-banking finance companies. d i s t r
ibution companies. a l l of the a b o v e ax rebate is available to investors in these schemes.The investment has
to be locked in for 3 yearse minimum amount for investment is fixed . A l l o f t h e a b o v e as the same status as a unit-holder
of a fund b . c a n sue the AMC/trustee.h as no legal recourse.all of the a b o v e .other mutual fund of the same
of the a b o v e .the credit worthiness of the bank .because the bank does not invest in securities.that
the bank offers a guarantee. a l l of the aboves always sold at a discount to its issue priceb . b e a r s interest a n n u a l l y redeem
ed at a price much higher than issue price ears interest at varying interests. b o d y corporateb . c ompany. t r u s t .an as set
management company scribe the past performance of the schemeb.compa re the fund with other mutual funds . a s s u r e a
rate of r e t u r n mpare the fund with other financial products . 2 5 . 7 1 % b.Rs.27. 51. 2 1 . 2 7 % .Rs.21.75. Rs.1225b.
Rs.225.Rs. 1 0 0 0 .none of the a b o v e .Means of fulfilling the guarantee.Infor mation for all schemes launched by the
fund in the past .comparison with other mutual funds . I n v e s t m e nt objective.trust ees of the fundb . t h e
a scheme. N o n e of the a b o v e .It gives high current returns .It gives good capital appreciation over its term hould be
bought due to the need for insurance and not as an investment . A l l of the above. 1 9 9 2 b . 1 9 9 3 . 1 9 9 5 . 1 9 9
of the a b o v e intain balance in their portfolio by liquidating a part of the position in theb . a r e n o t d i s c i p l i n e d crea se their equity
position when equity prices tend to climb. n o n e o f t h e a b o v e .his capital base is l a r g e s able to carry out detailed investment
research and monitor the stock market . b o t h the above.none of the a b o v e .portfoli o diversification
b.risk r e d u c t i o n .larg e volume of trades. n o n e o f the above.High liquidityb.di versification. no tailor made
portfolio. l o w investment. T r u e b.Fal s e .It was set up in 1963b.It was formed b y R B I t was established by an act of
Parliament .It was not given a monopoly status . U L I P b.UTI Mastershare. U S - 6 4 .SBI Magnum.SB I
practices empting all mutual fund dividends in the hands of investors from income proving the code of ethics formulated by
AMFIing away with all regulations for mutual funds .5% - 6% of gross domestic savings b.2% 4% of gross
domestic savings.7% 10% of gross domestic savings.25% 40% of gross domestic savings% of the balance of the
4th year can be withdrawn in the 7th year b . T h e interest is tax f r e e .The rate of interest is 12% p.a. ntributions upto Rs.60000 are eligible for
tax rebate. t h e markets are b e a r i s h vestors perceive that the fund will be unable to maintain the NAV he assets of the fund are
undervalued. n o ne of the a b o v e e names and addresses of the registrars and custodians e nature of the scheme being income bearing e
specified stocks in the scheme's portfolioe name and address of the compliance officer . r e q u i r e d by i n v e s t o r s .requi red by the AMC
for its own reference .requir ed as per SEBI regulations . n o t mandatory as per SEBI. T r u e b . F a l s e ctor selection, asset
classification, selection of fund managers and schemesctor selection, selection of fund managers and schemes, asset classification et
classification, sector selection, selection of fund managers and schemes lection of fund managers and schemes, sector selection, asset
uld be better to stick to one type of fund, the one that meets his investment should keep switching parts of his investment from the equity fund to
theshould switch from the money market fund to the equity fund in a rising. n o n e of the a b o v e he composition and size of the
portfoliob.the investment objective .histor ical data of fund performance . t h e nature of i n v e s t m e n t s oss dividend yield 15% Beta 1.5,
Ex-Marks 90.Gross dividend Neil 10%, Beta 1, Ex-Marks 70 ross dividend yield 11%, Beta 0.9, Ex-Marks 80 oss dividend
yield 12%, Beta 1.2, Ex-Marks 80. r e i n v e s t m e nt risk b.liquidi ty risk .interest rate risk . d e f a u l t
r i s k ll short maturity securities and buy long maturity securitiese that the fund's average duration becomes longer
than the market's average ll long duration securities and buy short duration securities ll high coupon securities and
buy low coupon securitiescheme investing 80% in debt securities.50% in equity funds and 50% in income funds % in equity funds
having a higher P/E Ratio than the market .all the money in a balanced fund. s u e t h e A M C b.sue the Trustees. s u e
c .
No:Ans 5 2 d 5 3
d 6 7 b d 8 7 d No:Ans 2 c 9 7 c 5 a 1 7 4 5 c 4 5 d 2 7 8 5 6 b 5 c b 0 7 d 3 5 d 3
.
4
7 3 2 5 3 9 7 0 3 7 9 9
b d a b a c a b b b c a
3 5 6 6 7 8 1
4 5 3 7 4 6 8 4 3 6 2
d . b b c b b . a c d c c
.
5 9 4 9
4 1 c 4 6 d 4 8 d 4 9 b 9 9 d
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to QuestionsBack Feedback .
NoAns No:AnsN o:Ans1 1 b 2 2 c 3 4 c No:A
0 a 8 7 d 9 5 a NoAns 0 3 d 2 2 b 3 4 d 4 9 b . NoAns 5 5 b 6 1 a 6 3 b
b 9 4 c 4
9 9 d 2 6
3 c . 1 7 c
3 d 5 d 6 2 6 4 c
6 5 b 6 2 b 7 3 b 7 5 a 8 6 b 8 2 c . NoAns 1 8 a 1 9 b 4 1 c 4 8 d 4
7 a 7 9 7 b 4 9
c 7 9 a a 2 6 b
7 4 c 9 1 0 d .
NoAns 5 3 b 5 4 c 8 3 b 9 9 d
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parminder79 7 days ago Reply take Hari3 years ago Reply good smiley305851403 years ago Reply nice.thanks deleted_fbuser_13509765762 years ago Reply Thanx a lot man! Bhatt Krishnaa year ago Reply thnk u soo much About
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