1.

A Debt Fund that invests in all available

types of debt securities issued by entities 11. What is the duty of the custodian?
across all industries & sectors is a:
a) Marketing various schemes through
a) Focused debt fund agent’s network.
b) Diversified debt fund b) Handling securities in terms of physical
c) Assured return fund delivery & eventual safekeeping.
d) High yield debt fund c) Issuing & redeeming units of the fund.
d) Receiving the proceeds on sale of
2. Some close - end funds sell at a discount investments & discharging its obligations
to their NAV because towards operating expenses.
a) The repurchase price fixed by the fund is 12. Which one of the following is not a
lower than its NAV
specialty fund?
b) Of the inherent risk prevalent in close - a) Growth Fund
end funds
c) Investors expect their future potential b) Small- Cap Equity Fund
to be unable to sustain their current c) Offshore Fund
NAV d) Sectoral Fund
d) Of high expense ratio.
13. Direct investments in stock markets can
3. The AMC is required to be approved & be better option over investing through
registered with SEBI with a net worth of: mutual funds if:

a) Rs. 20 Crores b) Rs. 100 Crores a) The investor wants better returns than
c) Rs. 50 Crores d) Rs. 10 Crores those offered by mutual funds.
b) The investor has identified bullish phase
4. The sponsor of a mutual fund may be in the stock market.
compared to: c) The investor wants to invest for the long
run.
a) An equity shareholder in a company d) The investor has large capital,
b) The Chief Executive of a company knowledge & resources for research.
c) The promoter of a company
d) A director in a company 14. Which is the High-Risk fund?

5. Money Market Funds are regulated by: a) Money Market Fund

b) Sector Fund
a) Trustee c) Index Fund
b) AMC d) Balanced Fund
c) SEBI
d) RBI 15. Offer Document is required by Mutual
Fund:
6. An investor in need of regular income
should invest: a) As a AMC requirement
b) As a SEBI requirement
a) A Debt (Income) fund c) As an investor requirement
b) PPF d) All of the above
c) Bank Fixed Deposit
d) Equity growth fund 16. The ownership of Mutual Fund belongs to:

7. Which is the High Risk Fund from the a) Sponsor

following? b) AMC
c) Unit-Holders
a) Index Fund d) Board of Trustee
b) Short-term Bond Fund
c) Intermediate Bond Fund 17. What is the criticism of the Rupee
d) International Fund Average costing?

8. The scheme wise Annual Report of a a) It has no shortcomings

Mutual Fund shall be published or mailed b) Investment is for the same amount every
to unit holders not later then: month
a) 3 Months
c) It does not guide you when to buy, sell
or switch from one scheme to another
b) 6 Months
d) In the long run, the average per share
c) 12 Months price will be more than guessing the highs
d) None of the above & lows
9. The trustees appoint AMC with the prior 18. On which of the following incomes
approval of: investor can't claim rebate U/s 88?
a) SEBI b) Stock Exchange a) Winning from state lotteries
c) AMFI d) None of the above b) Long-term capital gains
c) Speculation business
10. Which is the self-regulatory authority d) Income from house property
from the following?
a) AMFI b) RBI 19. What is the feature of the Passive Fund?
c) SEBI d) Bombay Stock Exchange
 a) A passive fund matches the performance c) Take decision of keeping. Liquidating or
of the index acquiring mutual fund
b) A passive fund tracks the index d) None of the above
c) A passive fund selects the stocks that are
present in the index 29. Which of the following sales practices is
d) All of the above prescribed by regulation?
a) AMFI code of Ethics
20. The AMFI objectives does not include the b) SEBI Advertising code
following: c) AMFI's code of Agents
a) To emphasize on ethical & moral trade d) None of the above
practices
b) To create awareness about mutual funds 30. What portfolio mixed would you
c) To regulate the stock markets along recommend to the 56 years old client?
with SEBI in tandem a) 40% in Equity & 60 % in Debt funds
d) To improve the standards of mutual fund b) 20% Equity, 20% in Liquid & 60% in Debt
industry funds
c) 40% in Equity & 60% in Balanced funds
21. NAV is d) 100% in Monthly Income schemes
a) Asset value divided by all shares sold
since the fund was initiated 31. The first time investor would be well
b) Total number of shares divided by asset advised to refer to:
value a) Detailed offer document
c) Total value of assets held by the fund b) Key information memorandum
divided by the number of outstanding c) Either of the above
units d) None of the above
d) Total value of assets held by the annual
revenue 32. Commission are not paid to distributors
for
22. The Mutual Fund in India is constituted
as: a) Any out of pocket expenses incurred
which attracting investors
a) Investment Company b) For bringing in investors to the fund
b) Trust c) To provide extra returns to the
c) Company investors
d) None of the above d) all of the above
23. A mutual fund is owned by 33. In case of the closes end scheme what is
a) SEBI b) Investors the periodicity of amortization of Issue
c) Govt. of India d) AMFI expenses.
a) Weekly b) Quarterly
24. How UTI different from other mutual c) Half yearly d) Yearly
funds?
a) can hire, lease 34. Which of the following is not a balanced
b) underwriting fund?
c) can borrow internally & abroad a) 50% equity 50% debt
d) all of the above b) 65% equity 35% debt
c) 35% equity 65% debt
25. The advantage of mutual fund is d) 90% equity 10% debt
a) Diversified risk
b) Professional management 35. AMFI code of ethics broadly covers the
c) Small amount of investment following areas.
d) All of the above a) Management of the fund ought to be in
the interest of the unit-holders.
26. The mutual fund industry began in
b) High standards of service are expected
a) 1969 b) 1963
from funds.
c) 1972 d) 1973
c) Both a and b.
27. A good agent will never sale on d) Neither a nor b.
consideration of
36. Which of the following are important
a) Comparative features of other funds criteria for comparison of fund
b) Can assure rate of dividend performance?
c) Past record of the scheme
d) None of the above a) Portfolio composition
b) Maturity profile
28. Investor should track mutual funds in c) Fund size
which he has invested because d) None of the above.
a) He comes to know the performance of the 37. Jacob's 4 step program includes
fund
b) The annual reports inform him about the a) work with investors to develop long term
NAV of the fund goals
 b) determine asset allocation of investment 47. Distributors can be appointed by
portfolio
a) AMC b) Trustee
c) neither of the above
c) Sponsor d) Custodian
d) both a and b
48. Of the following types of equity funds,
38. Maximum permissible investment by a
the highest potential risk is with
mutual fund in money market securities
a) diversified funds b) sector funds
during the first 6 months from allotment
c) growth funds d) index funds
of units in an IPO is -
a) 100 % b) 60 % c) 50 % 49. NAV of a scheme has gone up from Rs.10
d) Depends on whether it is an equity to Rs.11.50 in 15 months. The CAGR is -
scheme or a debt scheme 12 per cent
a) (11.5 / 10)^(12/15) -1
39. Which of the following statements is true?
b) (11.5 / 10)^(15/12) -1
a) Open-end schemes have variable unit
c) (10 / 11.5)^(15/12) -1
capital.
d) (10 / 11.5)^(12/15) -1
b) Open end schemes can be listed in the
stock market.
50. The position on tax benefit under section
c) Closed-end schemes can offer re-purchase
88 for investment in units of pension
facility.
scheme floated by a mutual fund is -
d) All the above.
e) Only (a) and (c) a) benefit not available
b) available upto a cap of Rs.10,000, but
40. A debenture with a face value of Rs. 1000 within overall limit of Rs.60,000 for all
and a 2 year term to maturity has yield to section 88 investments
maturity (YTM) of 9 per cent. The coupon c) available without cap, but within overall
rate is 12 per cent per annum, payable limit of Rs.60,000 for all section 88
half-annually. What is its price? investments
d) available upto Rs.80,000
a) Rs. 1000.00 b) Rs. 995.35
c) Rs. 990.10 d) Rs. 1052.80
51. Mutual funds in India can invest in -
41. What is the best combination for a high a) Transferable securities in the capital
yield - low risk investment? and money markets
b) Gold
a) Ex-Marks: 70% Beta:0.9 Dividend Yield:10%
c) Real-estate
b) Ex-Marks: 70% Beta:0.8 Dividend Yield:11%
d) Only (a) and (c)
c) Ex-Marks: 80% Beta:0.9 Dividend Yield:12%
e) (a), (b) and (c)
d) Ex-Marks:90% Beta:0.8 Dividend Yield:13%
52. The unit capital of a mutual fund scheme
42. The following are the characteristics of is Rs.20 million. The market value of
bonds except investments is Rs.55 million. If the
a) Par value b) Coupon number of units outstanding is 1 million,
c) Maturity d) Technical analysis what is the NAV per unit?
43. Offer document may not contain a) Rs. 20 b) Rs. 75
following c) Rs. 55 d) cannot be determined
a) Open End – Close End 53. A scheme can be launched by
b) Investment Pattern
c) Sponsor & Trustees Address a) The trustees b) The sponsor
d) Registrars Address c) The AMC
e) none of the above d) AMC on behalf of the trustees

44. "Load" is 54. The most significant risk in a well-

diversified debt scheme is -
a) Charge borne by Fund
b) Charge borne by AMC a) Re-investment risk b) Credit risk
c) Charge borne by investor c) Interest rate risk d) Liquidity risk
d) Charged borne by Trustees
55. A Systematic Investment Plan is the best
45. Recurring Expenses include example of
a) Rupee Cost Averaging
a) Penalties and fines b) Value averaging
b) Interest on delayed payment to unit
c) Buy & Hold
holders
d) none of the above
c) Depreciation on fixed assets
d) Marketing and selling expenses of a
56. Indira Vikas Patra is liked because of -
scheme
a) Good returns
46. What is the risk profile of a fund having b) Tax-free returns
35% exposure to equities? c) No record of identity of investors
d) All of the above
a) Low b) Moderate
c) Aggressive d) Very Aggressive
57. The Statutory auditor of the mutual fund
should not be associated with the auditor
of
a) The trustee Company
b) The Asset management Company
c) The Sponsor
d) All of the Above
58. What does AMFI stands for?
a) Association of Mutual Funds in India
b) Association of Market Federation of India
c) Association of Money Funds in India
d) Association of Money Federation of India

59. The concept of Distribution companies

has been accepted internationally to (a)
avoid administrative costs (b) to get more
sophisticated distributors (c) to get
institutional money (d) to get niche
marketing
a) A only
b) b only
c) c only
d) d only
e) All of the above
f) None of the above

60. The appointment of AMC of the Mutual

Fund can be terminated by
a) Managing Director
b) Chairman
c) 60% of the Unitholders
d) 45% of the Unitholders
e) 75% of the Unitholders
f) 50% of the Unitholders

61. Investor's rights are available in which of

the following documents:
a) Application form
b) Offer Document
c) AMFI directory
d) SEBI
e) UTI

62. What is Mark to Market?

a) Valuing investments at cost price
b) Valuing investments at market price
c) Valuing investments at cost or market
price whichever is lower
d) Valuing investments at cost or market
price whichever is higher

63. Information about a scheme can be found

out from
a) Newspaper
b) Magazine
c) Offer document
d) Newsletter