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15. In India , Mutual Fund scheme are not permitted to invest in commodities ?
a) True
b) false .
23. . Are funds where the funds manager has the flexibility to choose the investment portfolio
a) Actively managed Funds.
b) Flexible asset Allocation Funds .
c) Fixed diversified allocation funds .
d) Diversified funds.
25. A NAV of equity Income / dividend yield scheme tends to fluctuate higher than other equity scheme
?
a) True
b) false
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B
B
C
D
C
D
B
B
A
D
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A
D
C
B
A
B
B
B
B
B
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B
B
A
B
B
B
19. The fund Sponsor should have a sound financial track record of ..
a) 7 years
b) 12 Month
c) 5 years
d) 3 years.
20. As per SEBI regulation , who acts as the protector of unit holder interest ?
a) Trustee
b) SEBI
c) Ministry of Finance
d) Compliance officer
21. To Transfer the management of a scheme one AMC to another , the consent of the following is
required ..
a) SEBI
b) Unit Holder
c) Both SEBI and Unit Holder
d) None of the these .
22. Distribution channel are critical element in the distribution of Mutual Fund in India .
a) True
b) False
23. XYZ ltd a custodian has 20 shareholder out of which ABC ltd a sponsor company holds 60%
share . Can XYZ ltd be appointed for ABC ltd Mutual Fund operation ?
a) Yes
b) No
25. Sponsor of a Mutual Fund has no direct or indirect interest in the AMC of the said fund ?
a) True
b) False
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A
D
A
C
C
A
B
D
D
D
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A
A
D
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D
B
B
D
C
A
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C
A
B
A
B
2. Distributors are required to abide by a code of conduct as prescribed by SEBI , this code is based on
..
a) AGNI
b) AMFI
c) ARN
d) ACE
3. In case of ongoing transaction (Other than NFO) statement of account is to be sent to investor within
4. NAV and repurchase price of a Mutual fund other than FOF scheme , are to be updated in AMFI and
Mutual Fund website within
a) 9 PM the same day
b) 9 AM next day
c) 12 noon next day .
d) 7 PM same day .
6. In case of delay in despatching dividend warrants/ redemption cheques beyond the time limit
prescribed , the AMC has to pay the investor
a) Penalty of Rs 5000 Each .
b) Interest @15%
c) Rs 100 extra as late fee.
d) Interest @ 1%.
10. If Investor claim unclaimed dividend / redemption proceeds within a period of 3 years , they get the
payment based on .
a) NAv at the time claiming the amount .
b) face value of unit or NAV at the time of claiming the amount whichever is less.
c) Prevailing NAV i.e after adding the income earned on the unclaimed money .
d) Amount determined by the AMC.
11. Investor of a Mutual fund scheme already matured are not entitled to any proceeds of illiquid
security recovered later at any point of time ?
a) True
b) False .
13. Buying or selling of any security by the key personnel of the Mutual Fund ahead of transaction of
the fund , with access to insider information is called ..
a) Self trading
b) Insider trading
c) Front Trading
d) Self dealing
14. The AMC should encourage concentration of investment transaction through very few selected
brokers .
a) True
b) false
16. The NAv of each scheme should be updated on AMFI web sites .
a) Every Quarter .
b) Every Month
c) Every Hour
d) Every day
17. When a Scheme name implies investment in a particular kind of security or sector then it should
invest at least . Of its corpus in that security or sector ?
a) 90%
b) 80%
c) 65%
d) 40%
18. An entity holding 5 % or more of the total corpus of any mutual fund scheme are called ..
a) Sponsors
b) Preferred investor
c) Dominant Unit Holders
d) Significant Unit Holders
19. Mutual Fund house can also vanish with no protection being available to investor ?
a) True
b) False
20. Guaranteed return Mutual fund Scheme are permissible if ..
a) Stated in the offer document .
b) Offer document is approved by SEBI containing such Guaranteed return .
c) Adequate resource are maintained to fulfil the guarantee.
d) All of the above .
21. Investor can appoint up to nominee for any mutual fund scheme ?
a) Two
b) three
c) five
d) One .
22. Dividend or redemption proceeds once not claimed can not be claimed further by the investor ?
a) True
b) false
25. NAv and repurchase price of FOF mutual fund scheme are to be updated in AMFI and Mutual fund
web site within ..
a) 9 PM same day
b) 8 PM same day
c) 3 Pm same day
d) 10 Am next day .
26. In case of a mutual fund transaction , statement of account at the request of investor is to be sent
within
a) 10 Working days of the investment
b) 5 Business days of closure of the NFO
c) 5 working days
d) 10 business days of closure of the NFO
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C
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A
A
B
B
A
C
D
C
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B
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B
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D
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D
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B
C
C
D
C
2. Detailed information regarding any Mutual Fund scheme is available from the ..
a) AMC head office
b) SEBI
c) Offer document of the Scheme
d) Advertisement of the scheme .
3. SID in a Mutual industry means .
a) Saving investment Distribution.
b) Systematic investment and distribution .
c) Scheme ID.
d) Scheme Information document .
4. the due diligence certificate that must be submitted to SEBI along with the draft offer document can
not be signed by .
a) The managing Director of the AMC
b) The executive director of the AMC
c) The compliance Officer
d) The investor relation officer
6. Through SID and SAI are two separate document , but in legal technically SAI is part of the SID
a) True
b) False
9) The ideal source of information on investment plans and investor relation services offered by the
fund is .
a) SID and SAI
b) Advertisement about the scheme
c) Financial Journal
d) The scheme annual report .
10) Already exiting Mutual fund , launching a new scheme should furnish condensed financial
information in SAI for
a) Scheme launched prior to this new scheme .
b) Scheme launched in last 3 financial year .
c) Scheme launched in last 5 financial year .
d) Scheme launched in the last 18 month .
12. Any Change in SID other than for change in the fundamental attributes should be immediately
.
a) Updated in SID within 3 Month .
b) Updated in SID within 3 month from the end of financial year .
c) Attached as addendum and distributed along with SID until the SID is updated .
d) Updated in SID before the end of financial year .
13. Specific disclosure is required for regarding the guarantee given by AMC or Sponsor to
distribute income at the assured rate , and to redeem the capital invested to the unit holder .
a) Close ended Scheme
b) Monthly income scheme
c) Dividend yield Scheme
d) Assured return scheme
14. The offer document of a Mutual fund is vetted by SEBI but not actually approved.
a) True
b) False
15. If a scheme is launched in the first 6 month of the financial year then the first update of the SID is
due within .
a) 6 month from the end of financial year .
b) the end of the financial year .
c) 3 month form the end of financial year .
d) 6 month from the end of next financial year .
16. If a scheme is launched in the second 6 month of the financial year then the first update of the SID
is due within .
a) 3 month from the end of financial year .
b) 6 month from the end of next financial year .
c) 6 month from the end of financial year .
d) 3 month from the end of next financial year .
18. A mutual fund scheme was launched on February 2010 , then the first updates of SID is due within
.
a) June 2010
b) September 2010
c) March 2011
d) June 2011
23. The minimum number of investor requirement for an open ended scheme shall be complied
a) Only During NFO
b) during NFO or if not complied within such extended stipulated period .
c) Within each subsequent calendar quarter thereafter on an average basis .
d) Both b and c
24. If an investor of an open ended Mutual Fund scheme holds 25% or more of the corpus of the
scheme , the maximum time limit he should get to rebalance his holding is
a) 1 Month
b) 15 days
c) 1 month normal times plus 15 days notice period thereafter .
d) No time limit allowed .
25. Penalties or action taken against the foreign sponsor shall be disclosed in the SID .
a) Only to the extent of jurisdiction of the country Where principal activities of the sponsor is carried
out .
b) Only to the extent of Jurisdiction of the country where the headquarter of the sponsor is situated .
c) Only to the extent of top 10 monetary penalties during last 3 years .
d) All of the above .
26. The function and responsibility of the sponsor , AMC , trustee and custodian of the Mutual Fund
are listed in
a) Statement of Additional Information. (SAI)
b) Key information Memorandum (KIM)
c) Both SAI and KIM
d) Scheme information document
27. Which of the following is not the fundamental attributes of a Mutual Fund Scheme ?
a) Liquidity provision such as listing , repurchase , redemption.
b) Portfolio break up with minimum and maximum asset allocation.
c) Name and contact detail of the key personnel .
d) Type of the scheme open ended / close ended / Interval Scheme.
28. If an investor of an open ended mutual fund scheme holds 25% or more of the corps of the scheme ,
he should .
a) Exit from the scheme .
b) Rebalance his holding to bring it down below 25%.
c) Buy the balance of the corpus of the scheme th make up holding 100%
d) do nothing
30. In case of change in the fundamental attributes , the SID has to be updated
a) 3 month from the end of financial year .
b) 3 month from the end of next financial year .
c) 6 month from the end of financial year .
d) Immediately after the lapse of 30 days exit window given to investor to exit the scheme .
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D
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B
D
D
2. In display advertisement the statutory disclaimer Mutual fund is subject to market risk Should be
5. In which of the following advertisement type risk factor of Mutual fund investment may not be
mentioned ?
a) Audio visual Advertisement
b) Display advertisement
c) Product launch Advertisement
d) Tombstone advertisement
6. According to SEBO advertisement code for fund that have been in existence for more than a year ,
annualized return has to be furnished for .
a) 1 yr , 3 yr , 5 yr and since launch .
b) 1 yr , 5 yr and since launch.
c) 1 yr , 3 yr and since launch
d) 1 yr, 3 yr and 5 yr .
8. A ranking entity , which is a subsidiary of the AMC of Mutual fund can provide ranking of AMC
scheme in performance advertisement ..
a) True
b) false
10. .. of Mutual fund shall not be used other than launching or re launching of scheme ..
a) Product launch advertisement
b) Display advertisement
c) Audio Advertisement
d) Tombstone advertisement
11. To empanel with the AMC or to become agent of a distributor who is already empanelled with
AMC is compulsory in order to sell Mutual fund products .
a) True
b) False
12. An AMC of a Mutual fund is bound by the act of its distributor or agent
a) True
b) false
13. AMC pay a trail commission for the period the investment is held in the scheme ?
a) True
b) False
14. A mutual fund advisor cannot advertise or issue publicity material other than that provided by the
AMC or pre approved by the AMC .
a) True
b) False
15. SEBI regulate the minimum and maximum commission that the distributor can earn
a) True
b) false
17. In performance advertisement the compounded annualized return shall be shown for .
a) The last three successive year .
b) The last year only .
c) The last 1 year , 2 year and since launch .
d) The last 1 year , 3 year and 5 year and since launch .
18. Trail commission takes into account valuation gained earned on units .
a) True
b) False .
19. Every AMC follow one specific commission structure and do not vary between schemes or plans ..
a) True
b) False
20. Distributor can claim upfront commission directly from the investor
a) True
b) False .
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A
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7. The maximum entry load that could be charged by a Mutual Fund scheme is ..
a) 6%
b) 7%
c) 2.25%
d) SEBI has banned the entry load .
8. The NAV of an equity fund 36. The fund charged 1% as exit load . If an investor wants to withdraw
Rs 100000 from the Fund , What is the Number of Units he will repurchase ?
a) 2750.2750
b) 2777.7778
c) 2690.9955
d) 2805.8361
9. All expense and income accrued up to valuation date shall be considered for valuation . Some minor
expenses needs not to be so accrued , provided their affect on the NAV is not more than
a) 2%
b) 1.5%
c) 0.5%
d) 1%
10. Short term capital gains tax arises if investment in Mutual fund units are held for a period of
a) Less than 3 years .
b) One year or more
c) Three year or more
d) Less than 1 year .
11. The basic rate of dividend distribution tax on debt funds (Other than liquid Fund ) payable for
investor other than individual/ HUF is .
a) 20%
b) 15%
c) 12.5%
d) 25%
12. TDS on the dividend distribution or repurchase proceed to non resident investor is payable at the
rate of
a) As prescribed in Income tax act where DTAA applicable at lower of IT Rate or DTAA rate.
b) As prescribed in income Tax
c) As prescribed in DTAA
d) No TDS on non resident investor .
13. .. for valuation of not traded / thinly traded securities when such securities represents
more than 5% of the net asset of a scheme ?
a) An independent valuer has to be appointed.
b) Valuation of peer group companies is to be considered.
c) Book value is to be considered .
d) Face value is to be considered .
14. For the purpose of valuing a Mutual fund portfolio , Equity share which are not traded / thinly
traded are valued on the basis of ..
a) Earning per share .
b) Book value
c) Valuation of peer group companies.
d) All of the above .
17. NAV for index funds liquid funds and other debt funds is to be calculated up to
decimal point .
a) Maximum 4
b) At least 2
c) Maximum 2
d) At least 4
19. Mutual Fund scheme are permitted to keep repurchase price lower than the NAV ?
a) True
b) False
20. A fund of fund do not charge recurring expense more than .. of the net average asset of
the scheme ?
a) 2%
b) 1.5%
c) .75%
d) 3%
22. The maximum load that a fund can charge is determined by the
a) AMC
b) SEBI
c) AMFI
d) distribution agent based n demand for the fund .
24. A liquid fund has average weekly net asset of Rs 800 Cr . As per SEBI regulation the AMC can
charge the fund with management fee upto
a) 2.25 Cr
b) 2 Cr
c) 2.5 Cr
d) NIL.
Wrong answer .
25. An index scheme cannot charge recurring expense more than of the net average assets of
the scheme .
a) 2.25%
b) 2%
c) 1.75%
d) 1.5%
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A
D
D
D
D
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A
A
D
D
D
A
B
A
C
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B
D
D
D
3. The applicable NAV for a sale transaction of liquid fund where application has been received within
12 noon would be assuming funds available for utilization on the same day ..
a) Closing NAV of the day preceding next Business day .
b) Closing NAV of the day preceding the day on which funds are available for utilization.
c) Closing NAV of the day immediately preceding the date of application.
d) Closing NAV of day application is received .
4. The applicable NAV for a sale transaction of equity fund accounting to Rs 1 Cr or less where
application has been received after 3 PM with local cheque / DD would be
a) Closing NAV of day funds are available for utilization.
b) Closing NAV of day preceding next Business day .
c) Closing NAV of next Business day .
d) Closing NAV of day application is received .
5. Option available to Mutual Fund Investor is / are .
a) Dividend Pay out option.
b) Dividend reinvestment option.
c) Growth Option
d) All of the above .
10. . Option enables investor to give standing instruction to the fund to initiate a
transaction when a condition is met ?
a) ECS
b) SIP
c) Trigger
d) SWP
11. Which of the following measure are not taken by SEBI for protecting investor of Mutual Fund ?
a) Mandating minimum level of diversification for Mutual fund .
b) Ensuing that the funds are not used to favour a few companies .
c) Tracking the security that each fund has invested in
d) Ensuring that the funds are invested in approved securities only .
12. Foreign entities can invest in Mutual fund of India Through ..route ?
a) OCB route.
b) FII
c) Either of the above
d) None of the above .
13. In case of death of unit holder , the units get transferred to the nominee automatically without
calling for any evidence ?
a) True
b) False
14. Person in high tax bracket are better off in choosing dividend payout option than those in lower tax
bracket for debt funds ?
a) True
b) False
16. In a dividend re investment option of a mutual fund scheme , new units are allowed to investor at
a) Ex dividend NAV
b) Cum dividend NAV
c) NAV prevailing prior to dividend declaration.
d) NAV prevailing on the date of declaration of dividend .
18. The applicable NAV for a sale transaction of equity fund amounting to Rs 1 Cr or above would be
.
a) Closing NAV of day funds are available for utilization .
b) Closing NAV of day preceding next Business day .
c) Closing NAV of next Business day .
d) Closing NAV of the day .
21. The need for regular income is better met through a systematic withdrawal plan than dividend
payout option ?
a) True
b) False .
22. A switch transaction is not a sale transaction under the income tax regulation ?
a) True
b) False
23. In option of a Mutual fund scheme the NAv capture the full value of Portfolio gains ?
a) Dividend
b) Dividend re investment
c) Growth
d) Bonus
24. The NAv of a Mutual fund scheme post dividend declaration but prior to its payment is
a) Ex dividend NAV
b) Cum dividend NAV
c) Ex declaration NAv
d) Cum declaration NAV
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B
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D
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D
D
C
C
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B
B
A
D
A
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A
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D
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B
C
B
A
2. . Stock tends to grow faster than the economy and in correction phase falls faster too
a) Volatile
b) Emerging
c) Growth
d) Value .
6. Simple total return takes into account the reinvestment of the dividend ..
a) True
b) False
7. A growth Stock refer to a share of a company whose earning are projected to grow at the normal
market rates
a) True
b) False
11. When expecting a fall in the price , fund manager can reduce the loss in portfolio value by ..
a) Speculating
b) Abstaining from market for some days .
c) using equity derivative .
d) Selling the entire holding .
15. Sharpe ratio of a equity scheme can be compared with the Sharpe ratio of debt Fund ?
a) True
b) false
16. An investor buy a mutual fund units at 24.65 . he subsequently receives a dividend of 13.25% ,
Which he reinvest in fund at the prevailing NAV of Rs 24.35. At the end of the year NAv of the fund
is Rs 25.75. What is the rate of return to the investor ?
a) 11.13%
b) 15.67%
c) 13.79%
d) 10.155
17. Which of the following is the disadvantage of standard deviation as a measure of Risk?
a) Standard deviation measure total risk , not just market risk.
b) It is based on past return , Which does not necessarily indicate further performance c) It is an
independent number .
d) All type of funds can be measured with standard deviation .
18. Scheme return and investor return from the scheme may differ due to ..
a) Loads
b) taxes
c) Both of the above .
d) Never ever .
21. What would be suitable benchmark to evaluate a close ended debt fund ?
a) BSE Sensex.
b) I sec Si bex
c) Crisil Composite Bond Index.
d) S & P CNX Nifty.
24. The Risk of a Scheme NAV moving up or down on the basis of capital market movement is
a) An investment attribute
b) Scheme specific risk.
c) Standard Risk
d) Credit Risk .
30. For choosing an appropriate benchmark to measure a scheme performance , all of the following are
required .
a) The composition and size of the portfolio .
b) The investment objectivity
c) Historical data of fund performance .
d) The nature of investment .
32. If a Bond cannot be sold at a price near its value , it means that investment in this bond has ..
a) High liquidity risk
b) High default risk
c) Low liquidity risk
d) Inflation risk.
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7
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11
D
D
D
D
B
B
B
D
D
D
C
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22
B
D
D
B
D
B
C
D
C
C
C
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33
A
C
C
D
C
D
D
C
D
B
D
9. Investor looking for regular income from equity scheme are better off in investing in dividend
payout plan than investing in growth plan with systematic withdrawal plan , due to .
a) Cumbersome and time taken process of repurchase .
b) Chance of incurring capital Loss is more for SWP.
c) the money don`t grow with SWP.
d) Tax effect , as dividend is tax free whereas the redemption from equity scheme attracts STT as well
capital gains .
10. A close ended Scheme is quoted on the Stock exchange at discount to its NAv when ..
a) The market Are bearish.
b) Investor perceive that the fund will be unable to maintain the NAv
c) the asset of the fund are undervalued .
d) None of the above .
11. The maximum exit load that could be charged to investor as per SEBI regulation is
a) 5%
b) 1%
c) 7%
d) 2%
14. Debt fund with long term investment carry higher risk of capital loss .
a) True
b) false
15. An investor buys units in a fund that has given excellent return in the past , but his expectation are
not met . as the fund does not perform well this year , the Investor can ,,,,
a) Sue the AMc
b) Sue the trustee
c) Sue the agent/ distributor
d) None of the above .
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2
3
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5
6
7
8
9
10
B
B
D
D
D
A
D
D
D
B
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12
13
14
15
16
C
D
C
A
D
B
2. While choosing between a Bank deposit and a debt income fund , the investor must consider ?
a) Credit rating of a bank.
b) Quality of a Mutual Fund scheme .
c) His investment objectivity and risk appetite.
d) All of these .
4. Gold and real estate are attractive investment option only in high inflation economies ?
a) True
b) False
6. Gold feature are considered to be an alternative and superior route of investing in gold then Gold
ETF .
a) True
b) False
1
2
B
D
3
4
D
A
5
6
B
B
3. A 55 year old investor Who is employed and earning well , can be said to be in
a) Accumulation phase
b) Transition stage
c) Distribution stage
d) Inter generational wealth transfer stage .
4. An investor who gets sudden wealth should ideally invest the sum immediately into ..
a) Stock exchange
b) Bank fixed deposit
c) diversified equity scheme of Mutual Fund .
d) Liquid Scheme of Mutual Fund .
6. Person needs to get into the habit of saving from Young unmarried stage itself
a) True
b) false
7. if an investor keeps investing a fixed amount at regular interval the average cost of his purchase
will always be less than if he makes investment at irregular periods
a) true
b) false
wrong choice .
12. To ensure that the right amount of money is available at the right time to meet the various financial
goal of the investor , one should make appropriate ..
a) saving
b) Systematic investment plan.
c) Lump Sum investment
d) Financial Planning .
13. A comprehensive financial plan set out needs no further review or monitoring as it is a one time
exercise .
a) True
b) False .
14. Which of the following strategies is an example of the combined approach of Rupee cost and value
averaging .
a) When Investor sets a target value for his investment in an equity fund .
b) When investor invest a fixed sum each month in a liquid fund .
c) When the investor invest regularly in liquid fund .
d) When the investor invest regularly in liquid fund , sets a target for an equity fund , then invest more
in equity fund , if its value decline and book profit when its value exceeds the target value .
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C
B
B
D
A
A
A
D
D
B
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15
B
D
B
D
B
2. A very high proportion of investment in all type of equity fund is advisable for investors .
a) In distribution phase .
b) In accumulation phase .
c) In transition Phase .
d) Who are wealth preserving affluent individual .
Answer
1
c
2
b
3
B