Professional Documents
Culture Documents
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
Q5. Of the following fund types, the highest risk is associated with
Your Answer : Correct Answers : Equity Growth Funds Equity Growth Funds
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
Correct Answers :
the expenses incurred by the AMC for marketing a mutual fund scheme
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
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
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
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
Correct Answers :
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
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
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
Q66. The most important link between Mutual Fund and Investors is
Your Answer : Correct Answers : SEBI Fund distributors
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
Q74. Past performance of a sponsor / AMC mutual fund is not indicative of the future performance of the scheme. This is
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
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
Q80. Mutual Funds often use their own employees to mobilise funds from
Your Answer : Correct Answers : all investors all investors
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 :
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
AV AV
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
Q101. Open-ended schemes generally offer exit option to investors through a stock exchange
Your Answer : Correct Answers : False False
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
Q115. NFOs other than ELSS can be open for a maximum of:
Your Answer : Correct Answers : 30 days 15 days
Q121. The maximum initial commission that an AMC can pay to distributors is:
Your Answer : Correct Answers : 0.05% il
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
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
Q135. Fundamental analysis is a evaluation of the strength of the companys pricevolume charts.
Your Answer : Correct Answers : False False
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
Q141. Equity markets are more predictable in the long term than the short.
True True
Q142. Arbitrage funds are meant to give better equity risk exposure
Your Answer : Correct Answers : False False
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
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
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
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