Q1.

A close-ended mutual fund has a fixed

Your Answer : Correct Answers : Tenure Tenure

Q2. The maximum load that a fund can charge is determined by the
Your Answer : Correct Answers : SEBI SEBI

Q3. The amount required to buy 1000 units of a scheme having an entry load of 1.5% and NAV of Rs. 20 is Rs.
Your Answer : Correct Answers : 20300 20300

Q4. A gilt fund is a special type of fund that invests

Your Answer : Correct Answers : in government securities only in government securities only

Q5. Of the following fund types, the highest risk is associated with
Your Answer : Correct Answers : Equity Growth Funds Equity Growth Funds

Q6. The NAV of a mutual fund

Your Answer : Correct Answers : fluctuates with market price movements fluctuates with market price movement

Q7. An open-ended mutual fund is one that has

Your Answer : Correct Answers : units available for sale and repurchase at all times units available for sale and repurchase at all times

Q8. All buy orders through an agent do not become valid till the fund accepts and confirms the orders.
Your Answer : Correct Answers : TRUE TRUE

Q9. Distribution and sales practices are only partly regulated by SEBI at present.
Your Answer : Correct Answers : FALSE TRUE

Q10. The "load" charged to an investor in a mutual fund is

Your Answer : the expenses incurred by the AMC for marketing a mutual fund scheme

Correct Answers :

the expenses incurred by the AMC for marketing a mutual fund scheme

Q11. A mutual fund is owned by

Your Answer : Correct Answers : all its investors all its investors

Q12. Units from an open-ended mutual fund are bought

Your Answer : Correct Answers : on a stock exchange from the fund itself

Q13. A mutual fund is not

Your Answer : Correct Answers : a company that manages investment portfolios of high networth individuals a company that manages investment portfolios of high networth individuals

Q14. The most important advantage of a money market mutual fund is

Your Answer : Correct Answers : safety of principal safety of principal

Q15. The NAV of each scheme should be updated on AMFI"s website

Your Answer : Correct Answers : every day every day

Q16. In which of the following do debt funds not invest?

Your Answer : Correct Answers : Corporate paper Equity of private companies

Q17. Equity of private companies

Your Answer : Correct Answers : Interest volatility Share price movements

Q18. A Fixed Term Plan Series is

Your Answer : Correct Answers : a fixed term bank deposit a close-ended fund

Q19. NAVs of equity funds are not affected directly by

Your Answer : Correct Answers : real estate prices real estate prices

Q20. The greatest potential for appreciation in capital is offered by

Your Answer : Correct Answers :

growth funds growth funds

Q21. A Systematic Withdrawal Plan, allows investors to get back the principal amount invested in addition to any income on investment.
Your Answer : Correct Answers : TRUE TRUE

Q22. A Growth stock refers to shares of a company whose earnings are projected to grow at the normal market rates.
Your Answer : Correct Answers : TRUE FALSE

Q23. A change in key personnel, especially the fund manager of an AMC does not necessitate a revision of the offer document.
Your Answer : Correct Answers : FALSE FALSE

Q24. If fresh litigation cases or adjudication proceedings are referred by SEBI against the fund sponsors or a company associated with the sponsors, then the offer document needs to be revised.
Your Answer : Correct Answers : TRUE TRUE

Q25. The offer document need not be revised if the management or the controlling interest in the AMC change.
Your Answer : Correct Answers : FALSE FALSE

Q26. Information about trusteeship fees is included in the offer document but not in the key information memorandum.
Your Answer : Correct Answers : TRUE TRUE

Q27. The circumstances for refund of investment in the initial offer and period within which refund must be carried out are not specified in the offer document, but only on the application.
Your Answer : Correct Answers : TRUE FALSE

Q28. The circumstances under which a scheme shall be wound up are to be described in the offer document at the time of the initial launch of the scheme itself.
Your Answer : TRUE

Correct Answers :

TRUE

Q29. The fund need not describe its accounting policies in the offer document as these are of no use to an investor.
Your Answer : Correct Answers : FALSE FALSE

Q30. The offer document for a scheme should describe how the NAV of the scheme is to be computed.
Your Answer : Correct Answers : FALSE TRUE

Q31. Any pending cases or penalties levied on the sponsors or AMC should be disclosed in the offer document.
Your Answer : Correct Answers : TRUE TRUE

Q32. NRIs are eligible to invest in Mutual Funds.

Your Answer : Correct Answers : TRUE TRUE

Q33. It is compulsory to use fund agents / intermediaries for investing MFs.

Your Answer : Correct Answers : TRUE FALSE

Q34. Most eligible investors of Mutual Funds can broadly be grouped into either individual or institutional investors.
Your Answer : Correct Answers : TRUE TRUE

Q35. Mutual Fund agents / distributors are not allowed to sell Financial Products other than Mutual Funds.
Your Answer : Correct Answers : FALSE FALSE

Q36. The offer document is not a legal document.

Your Answer : Correct Answers : FALSE FALSE

Q37. A copy of all changes in the offer document has to be filed with SEBI.
Your Answer : TRUE

Correct Answers :

TRUE

Q38. Though the offer document of a scheme is prepared as per SEBI Regulations and is filed with SEBI, SEBI does not certify the accuracy or adequacy of the document.
Your Answer : Correct Answers : FALSE TRUE

Q39. A "glossary" of Defined Terms must be included in the offer document.

Your Answer : Correct Answers : TRUE TRUE

Q40. The risk of a scheme"s NAV moving up or down on the basis of capital market movements is a standard risk factor.
Your Answer : Correct Answers : FALSE TRUE

Q41. Retail distribution channels are a critical element in the distribution of mutual funds in India.
Your Answer : Correct Answers : TRUE TRUE

Q42. Sales practices are never mandated by regulators, but arise from convention only.
Your Answer : Correct Answers : FALSE TRUE

Q43. Sub-brokers serve as agents of the principal broker and a mutual fund is not answerable for their activities.
Your Answer : Correct Answers : FALSE TRUE

Q44. An equity mutual fund generally invest in

Your Answer : Correct Answers : market-traded securities market-traded securities

Q45. The drawback of an ordinary share is

Your Answer : Correct Answers : no guaranteed income or security no guaranteed income or security

Q46. An owner of preference shares is given which of the following rights?

Your Answer : Voting rights

Correct Answers :

Fixed dividend income from post-tax profits

Q47. Market capitalisation of a company is calculated by multiplying the number of outstanding shares by
Your Answer : Correct Answers : Current market value of each share Current market value of each share

Q48. The Price / Earnings (P / E") Ratio is an important measure of a company"s anticipated performance. It is calculated using
Your Answer : Correct Answers : Market price and earning per share(EPS) Market price and earning per share(EPS)

Q49. A company whose earnings are strongly related to the state of economy is known as
Your Answer : Correct Answers : Economy stocks Cyclical Stocks

Q50. Which of the following is generally true for a growth stock?

Your Answer : Correct Answers : High capital appreciation and high dividend yield High capital appreciation but low dividend yield

Q51. Shares of companies with larger market capitalisation

Your Answer : Correct Answers : have greater growth potential are more liquid

Q52. Dividend yield for a stock is

Your Answer : Correct Answers : dividend per share Equity of private companies

Q53. Value stocks

Your Answer : Correct Answers : yield high growth in earnings are currently under valued

Q54. A better performance than the benchmark index is given by

Your Answer : Correct Answers : an active fund manager an active fund manager

Q55. When comparing a fund"s performance with that of its peer group, the following cannot be compared.
Your Answer : Correct Answers : A government securities fund with a government security Two debt funds with 5 year maturities

Q56. The investment objectives of the fund an investor selects for investment
Your Answer : Correct Answers : should be the same as his own investment objectives should be the same as his own investment objectives

Q57. The names and background of key personnel of the AMC

Your Answer : Correct Answers : are disclosed in the offer document are disclosed in the offer document

Q58. The following do not form a part of the investment procedure described in an offer document.
Your Answer : Correct Answers : Details of other competing mutual funds Details of other competing mutual funds

Q59. Mutual funds are allowed to borrow

Your Answer : Correct Answers : only to meet redemption demands only to meet redemption demands

Q60. Valuation norms for non-traded securities should be disclosed

Your Answer : Correct Answers : every quarter in the offer document at the time of launch of the scheme

Q61. Procedure for redemption or repurchase need not

Your Answer : Correct Answers : include how redemption or repurchase price of units would be determined indicate the redemption or repurchase price as at the end of the current fiscal year

Q62. The accounting policies of a fund should be in accordance with

Your Answer : Correct Answers : American GAAP SEBI regulations

Q63. Tax treatment of investments does not

Your Answer : Correct Answers : form a section in the key information memorandum offer tax advice to investors

Q64. Documents available to investors for inspection do not include

Your Answer : Correct Answers : Memorandum and Articles of Association of AMC reports based on which actual investments are made

Q65. Investors" rights under a scheme are

Your Answer : Correct Answers :

listed in the offer document listed in the offer document

Q66. The most important link between Mutual Fund and Investors is
Your Answer : Correct Answers : SEBI Fund distributors

Q67. Who among the following are not Institutional Investors?

Your Answer : Correct Answers : Provident Funds Resident Individuals

Q68. Generally, which category of investors need advice for Investing in Mutual Funds?
Your Answer : Correct Answers : Individuals Foreign Institutional Investors

Q69. Commission rates or loads applicable to big investors and small investors are
Your Answer : Correct Answers : same different

Q70. What document Mutual Fund distributors need to refer for finding out eligible category of investors in a particular Mutual Fund Scheme?
Your Answer : Correct Answers : AMFI booklet Offer document

Q71. The legal responsibility for the accuracy of the statements made in the offer document lies with
Your Answer : Correct Answers : the Company Law Board the AMC

Q72. The following need not be covered in a Key Information Memorandum.

Your Answer : Correct Answers : Functions and responsibilities of the sponsor, trustees, AMC and Custodian responsibilities Functions and responsibilities of the sponsor, trustees, AMC and Custodian responsibilities

Q73. The front page of an offer document need not cover

Your Answer : Correct Answers : opening, closing and earliest closing date of the offer legal and regulator compliance

Q74. Past performance of a sponsor / AMC mutual fund is not indicative of the future performance of the scheme. This is

Your Answer : Correct Answers :

not true a standard risk factor for all schemes

Q75. Risk arising from a scheme"s investment objective / strategy and proposed asset allocation is
Your Answer : Correct Answers : specific to that scheme specific to that scheme

Q76. If the AMC is managing a fund for the first time, this information can be found in
Your Answer : Correct Answers : Offer document Offer document

Q77. A Compliance Officer

Your Answer : Correct Answers : belongs to SEBI stands guarantee to the information contained in the offer document

Q78. The due diligence certificate that must be submitted to SEBI along with the draft offer document cannot be signed by
Your Answer : Correct Answers : Investor relations officer Investor relations officer

Q79. A due diligence certificate does not certify that

Your Answer : Correct Answers : the AMC guarantees a good performance the AMC guarantees a good performance

Q80. Mutual Funds often use their own employees to mobilise funds from
Your Answer : Correct Answers : all investors all investors

Q81. "Sales Practices" cover the following areas.

Your Answer : Correct Answers : All of the above All of the above

Q82. The following are not termed as "sales practices".

Your Answer : Correct Answers : Before-and after-sales service to investors Stock broking

Q83. Agents are compensated by mutual funds

Your Answer : Correct Answers : through commissions through commissions

Q84. Lowest commissions are paid on

Your Answer : Correct Answers : debt funds debt funds

Q85. Excess distribution expenses are to be borne by the

Your Answer : Correct Answers : AMC AMC

Q86. Trail commission means paying

Your Answer : Correct Answers : the entire commission up-front part of the commission up-front and the balance in phases

Q87. Along with the application, it is mandatory to distribute

Your Answer : Correct Answers : offer document key information memorandum

Q88. To sell funds effectively, an agent need not

Your Answer : Correct Answers : be fully aware of the important characteristics of the scheme offer large investment rebates

Q89. For investors to correctly compare performance of different funds SEBI"s advertising codes include
Your Answer : Correct Answers : all of the above all of the above

Q90. SEBI"s advertising code mandate that all performance calculations in a fund"s advertisement should be based on
Your Answer : Correct Answers :

Q91. An agent can offer and sell a fund"s units at

Your Answer : Correct Answers : the public offering price currently in effect the public offering price currently in effect

Q92. When an agent purchases, offers or sells units, ensuring compliance with applicable regulations is the responsibility of
Your Answer : Correct Answers : SEBI the agent

Q93. The code of ethics for mutual funds published by AMFI

AV AV

Your Answer : Correct Answers :

is in the form of recommended practices is in the form of recommended practices

Q94. The AMFI code of ethics does not cover the following prescriptions.
Your Answer : Correct Answers : Each investment decision should be approved by investors Each investment decision should be approved by investors

Q95. Which of the following distribution channels is preferred by private mutual funds?
Your Answer : Correct Answers : Individual Agents Established distribution companies

Q96. Which of the following sales practices is prescribed by regulation?

Your Answer : Correct Answers : AMFI"s Code for Agents SEBI Advertising

Q97. In a mutual fund investors" subscriptions are accounted for as

Your Answer : Correct Answers : unit capital unit capital

Q98. Investments made by a mutual fund on behalf of investors are accounted as

Your Answer : Correct Answers : liabilities assets

Q99. Liabilities in the balance sheet of a mutual fund are

Your Answer : Correct Answers : combination of long term and short term strictly short term in nature

Q100. The number of mutual fund schemes in India is about:

Your Answer : Correct Answers : 800 800

Q101. Open-ended schemes generally offer exit option to investors through a stock exchange
Your Answer : Correct Answers : False False

Q102. Sector funds invest in a diverse range of sectors

Your Answer : Correct Answers : False False

Q103. High yield bond schemes invest in junk bonds

Your Answer : Correct Answers : True True

Q104. Investment objective is closely linked to

Your Answer : Correct Answers : Plan Scheme

Q105. The assets of the mutual fund are held by

Your Answer : Correct Answers : Custodian Custodian

Q106. Minimum networth requirement for AMC is

Your Answer : Correct Answers : Rs 10 crore Rs 10 crore

Q107. AMC directors are appointed with the permission of Trustees

Your Answer : Correct Answers : True True

Q108. Most investor service centres are offices of

Your Answer : Correct Answers : Registrar Registrar

Q109. Fund accounting activity of a scheme is to be compulsorily outsourced

Your Answer : Correct Answers : False False

Q110. SEBI regulates

Your Answer : Correct Answers : All the above All the above

Q111. Investment objective defines the broad investment charter

Your Answer : Correct Answers : True True

Q112. Statement of Account is to be sent to investors within ___ days of NFO closure
Your Answer : 15

Correct Answers :

Q113. Within ___ days of dividend declaration, warrants will have to be sent to investors.
Your Answer : Correct Answers : 30 30

Q114. Unit holders can hold their units in demat form

Your Answer : Correct Answers : True True

Q115. NFOs other than ELSS can be open for a maximum of:
Your Answer : Correct Answers : 30 days 15 days

Q116. Legally, SAI is part of the SID

Your Answer : Correct Answers : True True

Q117. Offer documents of mutual fund schemes are approved by SEBI

Your Answer : Correct Answers : True False

Q118. Application form is attached to

Your Answer : Correct Answers : SID KIM

Q119. KIM has to be updated every 6 months

Your Answer : Correct Answers : True False

Q120. Institutional distributors build reach through

Your Answer : Correct Answers : Any of the above Any of the above

Q121. The maximum initial commission that an AMC can pay to distributors is:
Your Answer : Correct Answers : 0.05% il

Q122. The distributor can charge a fee from the investor.

Your Answer : Correct Answers :

True True

Q123. Stock exchange brokers are permitted to distribute mutual funds without the requirement of passing the certifying test
Your Answer : Correct Answers : False False

Q124. Trail commissions are linked to valuation of portfolio in the market

Your Answer : Correct Answers : True True

Q125. Net assets of a scheme is nothing but its investment portfolio

Your Answer : Correct Answers : True False

Q126. The difference between NAV and re-purchase price is

Your Answer : Correct Answers : Entry Load Exit Load

Q127. NAV of income funds is to be calculated upto ___ decimals

Your Answer : Correct Answers : 2 4

Q128. Securities Transaction Tax is applicable to Equity Schemes

Your Answer : Correct Answers : True True

Q129. Wealth tax is payable at the applicable rates on equity mutual fund units
Your Answer : Correct Answers : True False

Q130. Foreign nationals are freely permitted to invest in Indian mutual funds
Your Answer : Correct Answers : False False

Q131. PAN Card is compulsory for all mutual fund investments above Rs 50,000, including SIPs
Your Answer : Correct Answers : True True

Q132. Investments in mutual fund can be made using

Your Answer : Correct Answers : Any of the above Any of the above

Q133. Cut-off timing guidelines are not applicable for

Your Answer : Correct Answers : Both the above Both the above

Q134. STP is a combination of SIP and SWP

Your Answer : Correct Answers : True True

Q135. Fundamental analysis is a evaluation of the strength of the companys pricevolume charts.
Your Answer : Correct Answers : False False

Q136. In a top-down approach, sector allocation precedes stock selection

Your Answer : Correct Answers : True True

Q137. Which of the following is a truly international asset class

Your Answer : Correct Answers : Gold Gold

Q138. Loads and taxes may account for the difference between scheme returns and investor returns.
Your Answer : Correct Answers : True True

Q139. The most appropriate measure of returns for a scheme in existence for several years is:
Your Answer : Correct Answers : CAGR CAGR

Q140. Risk can be measured by

Your Answer : Correct Answers : Any of the above Any of the above

Q141. Equity markets are more predictable in the long term than the short.

Your Answer : Correct Answers :

True True

Q142. Arbitrage funds are meant to give better equity risk exposure
Your Answer : Correct Answers : False False

Q143. The comparable for a liquid scheme is

Your Answer : Correct Answers : Savings Bank account Savings Bank account

Q144. Which of the following aspects of portfolio would an investor in a debt scheme give most importance
Your Answer : Correct Answers : Weighted Average Maturity Weighted Average Maturity

Q145. Mutual fund ranking and rating amount to the same.

Your Answer : Correct Answers : False False

Q146. More than 50% of the wealth of Indians is held in physical assets
Your Answer : Correct Answers : True True

Q147. Gold Futures are superior to ETF Gold as a vehicle for life-long investment in gold.
Your Answer : Correct Answers : True False

Q148. The New Pension Scheme is regulated by

Your Answer : Correct Answers : PFRDA PFRDA

Q149. An investor under the new pension scheme can choose which of the following asset classes
Your Answer : Correct Answers : Any of the above Any of the above

Q150. Todays costs can be translated into future requirement of funds using the formula:
Your Answer : A = P X (1 + i)n

Correct Answers :

A = P X (1 + i)n

Q151. Providing funds for a daughters marriage is an example of

Your Answer : Correct Answers : Goal-oriented Financial Plan Financial goal

Q152. According to the Certified Financial Planner Board of Standards (USA), the first stage in financial planning is
Your Answer : Correct Answers : Establish and Define the Client-Planner Relationship Establish and Define the Client-Planner Relationship

Q153. Investor can get into long term investment commitments in

Your Answer : Correct Answers : Accumulation Phase Accumulation Phase