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What do you mean by Net Asset Value (NA V)? Discuss how to calculate
NAV of a fund

Discuss rights of an investors in mutual fund.

Write a note on Load structure.

Write down the advantages of investing through a mutual fund.

Describe the structure of Mutual Funds.

1. Discuss the Role of an Offer Document.


2. Discuss various distribution channels through which mutual fund
schemes reach the investors.
3. What do you mean by portfolio management? Develop a model
portfolio for a young call centre / BPO employee with no dependents.

Question No: 1
A mutual fund cannot have ________ liabilities on its balance sheet.

Long Term
Short Term
Contingent

Current

Question No: 2
All investments of Rs _______ and above need to comply with KYC Documentation

1,00,000
5,00,000
10,000
50,000

Question No: 3
An investors holding in a mutual fund is denoted in _________.

Shares
Bonds
Units
Debentures

Question No: 4
The value of the unit goes up or down depending on the ______________ .

Underlying securities
Sensex
Nifty

Inflation

Question No: 5
The AUM of the fund is the market value of its portfolio. This less the fund raising expenses and
_________ of the fund is the Net Assets of the fund.

Long Term
Short Term
Contingent
Current

Question No: 6
Mutual Fund agents/distributors are not allowed to sell Financial Products other than Mutual
Funds

True
False
.
.

Question No: 7
Dividends distributed by mutual funds are

Taxed at source
Taxed in the hands of the investors

Are subject to capital gains tax


Are tax-free in the hands of the investor

Question No: 8
Which of the following is not a characteristic of company fixed deposits

A higher rate of interest


higher risk
unfavourable effect of tax
very high liquidity

Question No: 9
An equity oriented scheme has at least ______% of assets in equity.

85
80
65
60

Question No: 10
Liquid funds have more than ____% invested in instruments with maturities of less than one
year

100

90
95
98

Question No: 11
The _______ are responsible for protecting the interest of the investors in the mutual fund.

Sponsors
Trustees
Fund Managers
Custodians

Question No: 12
At least _______ of the trustees must be independent of the sponsor.

2/3rd
1/3rd

All

Question No: 13
The functioning of the AMC is overseen by the _______.

Sponsors

Trustees
Fund Managers
Custodians

Question No: 14
An AMC must have a minimum net worth of __________ at all times.

Rs 10 Crores
Rs 100 Crores
Rs 1000 Crores
Rs 25 Crores

Question No: 15
The Apex regulator of the securities markets is ________.

SEBI
RBI
RTA
AMFI

Question No: 16
________ insists on the registration of market participants under the specific regulations.

SEBI

RBI
RTA
AMFI

Question No: 17
The securities that a fund invests in depend upon its ________.

AMC
Corpus
Fund Manager
Investment objective

Question No: 18
Marking to market is the process of valuing the security at ______.

Book value
Market value
Face value
Net value

Question No: 19
The type of expenses that can be charged to a fund and the limit is decided by _______.

SEBI

RBI
RTA
AMFI

Question No: 20
Mutual funds have lower risks because of ________ & _______.

Diversification & Professional management


Large no. of investors, AMFI regulations
AMFI regulations, Professional management
Custodian, Professional management

Question No: 21
The expenses are charged to the fund on a ______ basis.

Daily
Monthly
Yearly
Quarterly

Question No: 22
The NAV of a mutual fund :

is always constant

keeps going up at a steady rate


fluctuates with market price movements
cannot go down at all

Question No: 23
An open-ended mutual fund is one that has :

an option to invest in any kind of security


units available for sale and repurchase at all times
an upper limit on its NAV
a fixed fund size

Question No: 24
An investor in a close-ended mutual fund can get his/her money back by selling his/her units:

back to the fund


to a special trust at NAV
on a stock exchange where the fund is listed
to the agent through which he/she subscribed to the units of the fund

Question No: 25
The "load" charged to an investor in a mutual fund is

entry fee

cost of the paper on which the unit certificates are printed

the fee the agent charges to the investor


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

Question No: 26
Units from an open-ended mutual fund are bought

on a stock exchange
from the fund itself
from AMFI
from a stock broker

Question No: 27
"Load" cannot be recovered

from the investor


as a fixed amount each year
at the time the investor exits the fund
from the fund's distribution agent

Question No: 28
The most important advantage of a money market mutual fund is

quick capital appreciation

high regular income


safety of principal
no loads

Question No: 29
Some close-ended funds are quoted at a discount to their NAV because

of high expense ratios


investors do not expect the current NAV to be sustained in future
the repurchase price fixed by the fund in lower than the NAV
of the inherent risk involved in investing in such type of funds

Question No: 30
The greatest potential for growth in capital is offered by

debt funds
gilt funds
growth funds
balanced funds

Question No: 31
A Systematic Withdrawal Plan, allows investors to get back the principal amounts invested in
addition to the income on investment

True

False
.
.

Question No: 32
Constraints imposed by most funds on check writing are:

Account balance should not fall below the minimum capital required
Checks issued must be for at least the minimum amount specified
Number of checks per month must not exceed a specified number
Both a & b above

Question No: 33
The performance of a fund is largely measured by the success of

the marketing function


the operations function
the portfolio market function
none of the above

Question No: 34
Generally invest in

unlisted

market-traded
thinly traded
privately placed

Question No: 35
Which of the following is not an equity instrument

preference shares
equity warrants
ordinary debentures
convertible debentures

Question No: 36
The drawback of an ordinary share is

possibility of capital appreciation


ownership privilege of the company
guaranteed dividend income
no guaranteed income or security

Question No: 37
The amount of authority enjoyed by a self-regulatory organisation is defined by

The apex regulatory authority

AMC
Its own members
RBI

Question No: 38
The role of AMFI in the mutual funds industry is not to

Promote the interests of the unit holders


Set a Code of Ethics
Regulate mutual funds
Increase public awareness of mutual funds in the country

Question No: 39
The rights of investors in a mutual fund scheme are laid down in

the Offer Document of that scheme


Quarterly Reports
Annual Reports
marketing brochures

Question No: 40
After dividend declaration, unit-holders are entitled to receive dividend within

one week

one month
42 days
six weeks