1.

A Debt Fund that invests in all available types of debt securities issued by entities across all industries &
sectors is a:

Focused debt fund

Diversified debt fund
Assured return fund
High yield debt fund

2. Some close - end funds sell at a discount to their NAV because:

The repurchase price fixed by the fund is lower than its NAV.
Of the inherent risk prevalent in close - end funds.
Investors expect their future potential to be unable to sustain their current NAV
Of high expense ratio.

3. The AMC is required to be approved & registered with SEBI with a net worth of:

Rs. 20 Crores
Rs. 100 Crores
Rs. 50 Crores
Rs. 10 Crores

4. The sponsor of a mutual fund may be compared to:

An equity shareholder in a company

The Chief Executive of a company
The promoter of a company
A director in a company

5. Money Market Funds are regulated by:

Trustee
AMC .
SEBI
RBI

6. An investor in need of regular income should invest:

A Debt (Income) fund

PPF
Bank Fixed Deposit
Equity growth fund
7. Which is the High Risk Fund from the following?

Index Fund
Short-term Bond Fund
ntermediate Bond Fund
International Fund

8. The scheme wise Annual Report of a Mutual Fund shall be published or mailed to unit holders not
later then:

3 Months
6 Months
12 Months
None of the above

9. The trustees appoint AMC with the prior approval of:

SEBI
Stock Exchange
AMFI
None of the above

10. Which is the self-regulatory authority from the following:

AMFI
RBI
SEBI
Bombay Stock Exchange

11. What is the duty of the custodian?

Marketing various schemes through agents network.

Handling securities in terms of physical delivery & eventual safekeeping.
Issuing & redeeming units of the fund.
Receiving the proceeds on sale of investments & discharging its obligations towards operating
expenses.

12. Which one of the following is not a specialty fund?

Growth Fund.
Small- Cap Equity Fund
Offshore Fund
Sectoral Fund
13. Direct investments in stock markets can be better option over investing through mutual funds if:

The investor wants better returns than those offered by mutual funds.
The investor has identified bullish phase in the stock market.
The investor wants to invest for the long run.
The investor has large capital, knowledge & resources for research.

14. Which is the High-Risk fund?

Money Market Fund

Sector Fund
Index Fund
Balanced Fund

15. Offer Document is required by Mutual Fund:

As a AMC requirement
As a SEBI requirement
As an investor requirement
All of the above

16. The ownership of Mutual Fund belongs to:

Sponsor .
AMC
Unit-Holders
Board of Trustee

17. What is the criticism of the Rupee Average costing?

It has no shortcomings
Investment is for the same amount every month
It does not guide you when to buy, sell or switch from one scheme to another
In the long run, the average per share price will be more than guessing the highs & lows

18. On which of the following incomes investor can't claim rebate U/s 88?

Winning from state lotteries

Long-term capital gains
Speculation business
Income from house property
19. What is the feature of the Passive Fund:

A passive fund matches the performance of the index

A passive fund tracks the index
A passive fund selects the stocks that are present in the index
All of the above

20. The AMFI objectives does not include the following:

To emphasize on ethical & moral trade practices

To create awareness about mutual funds
To regulate the stock markets along with SEBI in tandem
To improve the standards of mutual fund industry

21. NAV is

Asset value divided by all shares sold since the fund was initiated
Total number of shares divided by asset value
Total value of assets held by the fund divided by the number of outstanding units
Total value of assests held by the annual revenue

22. The Mutual Fund in India is constituted as:

Investment Company
Trust
Company
None of the above

23. A mutual fund is owned by

SEBI
Investors
Govt. of India
AMFI

24. How UTI different from other mutual funds?

can hire, lease

underwriting
can borrow internally & abroad
all of the above
25. The advantage of mutual fund is

Diversified risk
Professional management
Small amount of investment
All of the above

26. The mutual fund industry began in

1969
1963
1972
1973

27. A good agent will never sale on consideration of

Comparative features of other funds

Can assure rate of dividend
Past record of the scheme
None of the above

28. Investor should track mutual funds in which he has invested because

He comes to know the performance of the fund

The annual reports inform him about the NAV of the fund
Take decision of keeping. Liquidating or acquiring mutual fund
None of the above

29. Which of the following sales practices is prescribed by regulation?

AMFI code of Ethics

SEBI Advertising code
AMFI's code of Agents
None of the above

30. What portfolio mixed would you recommend to the 56 years old client?

40% in Equity & 60 % in Debt funds

20% Equity, 20% in Liquid & 60% in Debt funds
40% in Equity & 60% in Balanced funds
100% in Monthly Income schemes
31. The first time investor would be well advised to refer to:

Detailed offer document

Key information memorandum
Either of the above
None of the above

32. Commision are not paid to distributors for

Any out of pocket expenses incurred which attracting investors

For bringing in investors to the fund
To provide extra returns to the investors
all of the above

33. In case of the closes end scheme what is the periodicity of amortization of Issue expenses.

Weekly
Quarterly
Half yearly
Yearly

34. Which of the following is not a balanced fund ?

50% equity 50% debt

65% equity 35% debt
35% equity 65% debt
90% equity 10% debt

35. AMFI code of ethics broadly covers the followinh areas.

management of the fund ought to be in the interest of the unit-holders.

high standards of service are expected from funds.
both a and b.
neither a nor b.

36. Which of the following are important criteria for comparison of fund performance ?

Portfolio composition
Maturity profile
Fund size
None of the above.
37. Jacob's 4 step program includes

work with investors to develop long term goals

determine asset allocation of investment portfolio
neither of the above
both a and b

38. Maximum permissible investment by a mutual fund in money market securities during the first 6 months
from allotment of units in an IPO is -

100 per cent

60 per cent
50 per cent
Depends on whether it is an equity scheme or a debt scheme

39. Which of the following statements is true?

Open-end schemes have variable unit capital.

Open end schemes can be listed in the stock market.
Closed-end schemes can offer re-purchase facility.
All the above.
Only (a) and (c)

40. A debenture with a face value of Rs. 1000 and a 2 year term to maturity has yield to maturity (YTM) of 9
per cent. The coupon rate is 12 per cent per annum, payable half-annually. What is its price?

Rs. 1000.00
Rs. 995.35
Rs. 990.10
Rs. 1052.80

41. What is the best combination for a high yield - low risk investment ?

Ex-Marks: 70% Beta:0.9 Dividend Yield:10%

Ex-Marks: 70% Beta:0.8 Dividend Yield:11%
Ex-Marks: 80% Beta:0.9 Dividend Yield:12%
Ex-Marks: 90% Beta:0.8 Dividend Yield:13%

42. The following are the characteristics of bonds except

Par value
Coupon
Maturity
Technical analysis
43. Offer document may not contain following

Open End Close End

Investment Pattern
Sponsor & Trustees Address
Registrars Address
none of the above

44. "Load" is

Charge borne by Fund

Charge borne by AMC
Charge borne by investor
Charged borne by Trustees

45. Recurring Expenses include

Penalities and fines

Interest on delayed payment to unit holders
Depreciation on fixed assets
Marketing and selling expenses of a scheme

46. What is the risk profile of a fund having 35% exposure to equities ?

Low
Moderate
Aggressive
Very Aggressive

47. Distributors can be appointed by

AMC
Trustee
Sponsor
Custodian

48. Of the following types of equity funds, the highest potential risk is with

diversified funds
sector funds
growth funds
index funds
49. >NAV of a scheme has gone up from Rs.10 to Rs.11.50 in 15 months. The CAGR is -

12 per cent
(11.5 / 10)^(12/15) -1
(11.5 / 10)^(15/12) -1
(10 / 11.5)^(15/12) -1
(10 / 11.5)^(12/15) -1

50. The position on tax benefit under section 88 for investment in units of pension scheme floated by a
mutual fund is -

benefit not available

available upto a cap of Rs.10,000, but within overall limit of Rs.60,000 for all section 88
investments
available without cap, but within overall limit of Rs.60,000 for all section 88 investments
available upto Rs.80,000

51. Mutual funds in India can invest in -

Transferable securities in the capital and money markets

Gold
Real-estate
Only (a) and (c)
(a), (b) and (c)

52. The unit capital of a mutual fund scheme is Rs.20 million. The market value of investments is Rs.55
million. If the number of units outstanding is 1 million, what is the NAV per unit?

Rs. 20
Rs. 75
Rs. 55
Cannot be determined

53. A scheme can be launched by

The trustees
The sponsor
The AMC
AMC on behalf of the trustees
54. The most significant risk in a well-diversified debt scheme is -

Re-investment risk
Credit risk
Interest rate risk
Liquidity risk

55. A Systematic Investment Plan is the best example of

Rupee Cost Averaging

Value averaging
Buy & Hold
none of the above

56. Indira Vikas Patra is liked because of -

Good returns
Tax-free returns
No record of identity of investors
All of the above

57. The Statutory auditor of the mutaul fund should not be associated with the auditor of

The trustee Company

The Asset management Company
The Sponsor
All of the Above

58. What does AMFI stands for?

Association of Mutual Funds in India

Association of Market Federation of India
Association of Money Funds in India
Association of Money Federation of India

59. The concept of Distribution companies has been accepted internationally to (a) avoid administartive
costs (b) to get more sophisticated distributors (c) to get institutional money (d) to get niche marketing

A only
B only
C only
D only
All of the above.
None of the above.
60. The appointment of AMC of the Mutual Fund can be terminated by

Managing Director
Chairman
60% of the Unitholders
45% of the Unitholders
75% of the Unitholders
50% of the Unitholders

61. Investor's rights are available in which of the following documents:

Application form
Offer Document
AMFI directory
SEBI
UTI

62. What is Mark to Market ?

Valuing investments at cost price

Valuing investments at market price
Valuing investments at cost or market price whichever is lower
Valuing investments at cost or market price whichever is higher

63. Information about a scheme can be found out from

Newspaper
Magazine
Offer document
Newsletter
Question No. Correct Answer
Q1 2
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Q6 1
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Q8 2
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Q11 2
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Q14 2
Q15 2
Q16 3
Q17 3
Q18 1
Q19 4
Q20 3
Q21 3
Q22 2
Q23 2
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Q25 4
Q26 2
Q27 2
Q28 3
Q29 2
Q30 2
Q31 1
Q32 3
Q33 1
Q34 4
Q35 3
Q36 4
Q37 4
Q38 1
Q39 4
Q40 4
Q41 4
Q42 4
Q43 5
Q44 3
Q45 4
Q46 2
Q47 1
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Q49 2
Q50 3
Q51 1
Q52 4
Q53 4
Q54 3
Q55 1
Q56 3
Q57 1
Q58 1
Q59 5
Q60 5
Q61 2
Q62 2
Q63 3