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What is the advantage of G-Sec?


No Credit Risk
High Return
A
Return ,Risk and Performance of Funds
Same day NAV is applicable for application submitted before 3 PM in the following case
Rs. 5 Lakh investment in Equity Fund
Rs. 1.50 Lakh in Debt Fund
Rs. 50,000 in Liquid Fund
Any scheme
B
Investor service
For Rs. 5 Lakhs invested in GILT fund @ 4 PM, what NAV is applicable?
Same Day NAV
Next Day NAV
NAV of the business day on which the funds are available for utilization before cut-off time
C
Investor service
Life Insurance is meant for
Investment
Tax Saving
Liquidity
Risk Coverage
D
Helping Investors with financial planning
The following distribution channel is not likely to have wide network for distribution
Banks
IFA
Regional Distributor
Post Office
B
Fund Distribution and channel management practices
Free risk profiling tool is available with following companies websites
AMC
Distribution Agencies
Research Agencies
All of the above
D
Recommending Model portfolios and financial plans
Appointment of AMC can be terminated by_____
Central Government
75% of Unit Holders
Trusties
Any of the above
B
Fund Structure and constituent
Money markets are regulated by
RBI
SEBI
AMFI
Central Government
A
Legal and Regulatory Environment
Financial Planner should not give alternative plan to the client as the client may get confused with many options.
TRUE
FALSE
B
Recommending Model portfolios and financial plans
When share market corrects, altering the investment strategy is called
Tactical Allocation
Strategic Allocation
Market Allocation
None of the above
A
Recommending Model portfolios and financial plans
Who manages the pension fund under NPS?
Pension Fund Managers
Mutual Funds
Insurance Companies
As per the choice of Investor
A
Selecting Right Investment product for investors
Nomination is not possible in the following asset
Gold
Gold ETF
Gold Sector Fund
Shares of Gold Mining Companies
A
Investor Service

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Redemption of units in Stock Exchange can be done provided the units are held in
Physical Mode
Demat Mode
B
Investor Service
Certificate of Deposits are issued by banks for a period of
3 Years
Any Period
91 to 365 Days
As required by the investor
C
Return ,Risk and Performance of Funds
Childhood stage in Life Cycle and Wealth Cycle are same.
TRUE
FALSE
B
Helping Investors with financial planning
What is the compound rate of return in case of an investment made at an NAV of Rs. 10.50 and redeemed at an NAV of Rs. 12.50
after a period of 3 years?
5.98%
5.89%
Data Not sufficient
None of the above
A
Return ,Risk and Performance of Funds
What is the Sharpe Ratio of an investment which has given a return of 6% having a Standard Deviation of 0.5 and the risk free
return at 5% ?
2.00%
2.50%
1.50%
1.00%
A
Return ,Risk and Performance of Funds
Under AGNI, the distributor has the right to appeal against order of AMFI when his license is canceled.
TRUE
FALSE
B
Legal and Regulatory Environment
Format of KIM is prescribed by
SEBI
Trustees
AMC
Custodian
A
Offer Document
Basic Rate of DDT for Corporate investor is ______
10%
25%
30%
As per the tax slab of the investor
C
Accounting,Valuation and Taxation
What is the market price of a stock having a P/E Ratio of 10 and EPS of 5?
50
2
500
None of the above
A
Return ,Risk and Performance of Funds
Process of offering MF Schemes to the investors for the first time is known as
IPO
FPO
NFO
ESOP
C
concept and role of a mutual fund
Offer Document should contain the data of number of complaints received
TRUE
FALSE
A
Offer Document
What is/are the benefit/s of Demat?
Paperless Transaction
Direct credit of dividend
None of the above
All of the above
D
Investor Service
Impact on existing insurance coverage on new child birth in respect of Young Married Couples
Additional Insurance required
No Changes required
Insurance needs to be decreased

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More investment required


A
Helping Investors with financial planning
Time stamping is done at
Distributors Office
Banks
Point of Service
Point of Acceptance
D
Investor Service
Mutual Fund holders don't have the same rights as a share holders.
TRUE
FALSE
A
Legal and Regulatory Environment
NAV represents value per unit in terms of ________
Market Value
Unit Capital
Unit Value
As prescribed by SEBI
A
concept and role of a mutual fund
SAI needs to be updated
Once in a year
Within 3 months from the closure of Financial Year
Every 6 months
No need to update
B
Offer Document
What is the NAV of a scheme which is having a market value of Rs. 5 Crores, Current Liability of Rs. 1 Crore and Outstanding units
of 1 Crores?
4
5
6
Data Insufficient
A
Accounting,Valuation and Taxation
Dividend re-invest option gives better return as compared to Growth Option since it has more number of units.
TRUE
FALSE
B
Investor Service
AMC may charge Service Tax in respect of Investment Management and Advisory to the scheme.
TRUE
FALSE
B
Accounting,Valuation and Taxation
Distributors are appointed by
AMFI
AMC
Trustees
Sponsor
B
Fund Distribution and channel management practices
Mutual Funds in India are structured as
Trust
Companies
Firms
Societies
A
Fund Structure and constituent
Listing and Depository fees can't be charged to scheme expenses.
TRUE
FALSE
B
Accounting,Valuation and Taxation
SEBI prescribes maximum exit load.
TRUE
FALSE
A
Accounting,Valuation and Taxation
What is the book value of a stock which is having a share capital of Rs. 1300 Crores, Reserve and Surplus of Rs. 100 Crores and
having outstanding shares of 100 crores?
14
12
140
16
A
Return ,Risk and Performance of Funds
What is the NAV of a scheme which is having stocks worth Rs. 100 Crores, Dividend receivable of Rs. 2.07 Crores, Interest
Receivable of Rs. 1.36 Crores and Fees payable of Rs. 0.25 Crore and Outstanding units of 75 Lakhs?
137.57

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173.33
13.75
1375.3
A
Accounting,Valuation and Taxation
Statement of investment done by investor doesn't contain
Transaction period
Latest NAV
Unit balance
When money invested
A
Investor Service
Investor for high liquidity prefer should opt for FMP
TRUE
FALSE
B
Return ,Risk and Performance of Funds
If Mr. X wants to invest Rs. 75000, then Is KYC needed?
Yes
No
A
Investor Service
Diversified Equity funds is safer than diversified Debt funds.
TRUE
FALSE
B
Return ,Risk and Performance of Funds
Winning lottery is an example of
Sudden Wealth
Wealth Distribution
Wealth Reaping
A
Helping Investors with financial planning
Conservative investor does not invest in
Sector Fund
Large size fund
Balance Fund
Arbitrage fund
A
scheme selection
Generally balanced funds are more riskier than GILT fund.
TRUE
FALSE
A
Return ,Risk and Performance of Funds
Tier I account in new pension scheme (NPS) is called pension account.
FALSE
TRUE
B
Selecting Right Investment product for investors
Value funds are generally more suitable than Growth funds in
stable market
bullish market
bearish market
All of the above
C
scheme selection
DDT( Dividend Distribution Tax) in debt fund is?
25.00%
13.00%
20.00%
10.00%
A
Accounting,Valuation and Taxation
Closed ended fund has
Assured Dividend
Fixed AUM
Fixed NAV
Fixed Unit Capital
D
concept and role of a mutual fund
Individual investor can't pledge Mutual fund Units.
TRUE
FALSE
B
Legal and Regulatory Environment
KIM is attached with _____
Application Form
Transaction slip
OD
All of the above

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A
Offer Document
Mr. X has 1000 shares of XYZ ltd. , company declares 1:2 bonus, how many additional shares will he get?
1000
2000
500
3000
C
Accounting,Valuation and Taxation
Mrs. XYZ invests Rs. 50,000 in equity fund, the NAV=22 and the Face value is Rs. 100. How many units will she get?
500
2200
2800.5
2272.7
D
concept and role of a mutual fund
Investment objective is closely linked to _____
scheme
plan
option
sip
A
Legal and Regulatory Environment
Investment objective defines the broad investment charter
TRUE
FALSE
A
Legal and Regulatory Environment
Statement of Account post NFO for an on going scheme to be sent to the investors within
3 Days
7 Days
10 Days
15 Days
C
Investor Service
Offer Documents are approved by trustees and prepared by AMC.
TRUE
FALSE
A
Offer Document
KIM has to be updated every ______
6 months
1 year
End of 1st quarter
Need based
D
Offer Document
Every application form to be attached with
Offer Document
SAI
KIM
Investment Report
C
Offer Document
KIM should contain fund performance returns for the past
3 years
5 years
1 years
Need not contain fund performance report
D
Offer Document
The fastest fund transfer option is _____
RTGS
NEFT
ECS
SIP
A
Investor Service
the commissions received on the basis of the assets under the broker held as long as the investment is ________
Upfront
Trail
Fee
Upfront Fee
B
Fund Distribution and channel management practices
institutional distributors build reach through
EMPLOYEES
AGENTS
SUB BROKERS
any of the above
D
Fund Distribution and channel management practices

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76
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distributor can charge fee from the investor


TRUE
FALSE
A
Fund Distribution and channel management practices
trail commissions are linked to valuation of portfolio in the market
TRUE
FALSE
A
Fund Distribution and channel management practices
if fund has a capital of 75 crores, expenses of 2.5 cr, valutaion losses of 2.5 cr, and 10 cr outstanding units, then what will be the
nav?
70
90
2.5544
1.36
A
Accounting,Valuation and Taxation
tds on mutual funds is _________
10%
25%
Nil
13.50%
C
Accounting,Valuation and Taxation
dividends in the hands of the investor is exempt from tax
TRUE
FALSE
A
Accounting,Valuation and Taxation
HUF Karta can be female
TRUE
FALSE
B
Investor Service
A person can invest in mutual fund without pan card for a limit of_______per AMC
100000
50000
20000
Not permited
B
Investor Service
ASBA is available for investors of ________
Stock through MF
Only during NFO in MF
Ongoing schemes
Only closed ended
B
Investor Service
If a person submits 50,00,000 cheque at 2.30 pm on wednesday in a liquid fund which nav is he eligible for?
NAV of the day preceeding, day of funds available for utilization
thursday NAV
NAV of the day preceeding day, of the day of application
NAV of the application day
A
Investor Service
what will be the sharpe ratio, if gilt return is 4%, portfolio return 7%, and std dev is 0.5%?
6
9
1.3444
2.5
A
Return ,Risk and Performance of Funds
Trenor ratio will be, if gilt fund return is 4%, portfolio return is 7%, and beta is 0.5%
9
3
6
1.343
C
Return ,Risk and Performance of Funds
if a person submits outstation cheque of rs 50000/- at 2.30 pm which NAV will he get?
NAV of the day preceeding, day of funds available for utilization
NAV of the day of cheque realization if before cut off time
NAV of the application
preceeding day nav of application
B
Investor Service
Time stamping of online transactions is considered as
Time of the web site
Time of the PC
Time mentioned of web brouser, at order punched
Time with investor

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89
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C
Investor Service
In growht option, the units ___________
increase as dividends announced
Total fund performance is captured
NAV comes down to the extent of dividend
DDT
B
Investor Service
stp is a combination of
on time investment and systematic redemption there on
sip and stp
swp and sip
sip and redemptions
C
concept and role of a mutual fund
if EPS is 6, P/E ratio is 25, then what should be the price of the stock
150
3.22
180
30
A
Return ,Risk and Performance of Funds
for a young call centre employee who is un married, the wealth cycle phase would be
Accumulation
Distribution stage
Reaping Stage
A
Recommending Model portfolios and financial plans
Portfolio of a middle class person for retirement planning should not be high on equity as there the risk is also high.
TRUE
FALSE
B
Recommending Model portfolios and financial plans
Retired couple without child , can invest into debt up to
70% Equity
10% debt, 70% equity
10% equity
50%Equity and 50% Debt
A
Recommending Model portfolios and financial plans
if somebody wants to diversify his portfolio,he has to invest into
GOLD, Real Estate, EQUITY AND DEBT
Only Gold and Debt
Only Equity and Debt
Only Real estate,Gold and E quity
A
Recommending Model portfolios and financial plans
The monthly Income Plan tracks index of
LIBOR
LIQUIFEX
MIPINDEX
DEBT HYBRID INDEX
C
Return ,Risk and Performance of Funds
Portfolio of Gold ETF and gold sector funds wll be same
TRUE
FALSE
B
Return ,Risk and Performance of Funds
Fund size is more important in selecting
EQUITY FUND
DEBT FUND
LIQUID FUND
GILT
A
scheme selection
Selecting a liquid fund following is important parameter
fund expenses and exit loads
commissions to distributors
initial issue expenses
All of the above
A
scheme selection
More than 50% of the wealth of indians are in financial assets
TRUE
FALSE
B
Selecting Right Investment product for investors
Under the new pension scheme, tier || account is a savings account.
TRUE
FALSE

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A
Selecting Right Investment product for investors
Interest on public providend fund ( PPF ) is tax free.
TRUE
FALSE
A
Selecting Right Investment product for investors
return on portfolio is 6%, risk free return is 3% and beta is 0.5. calculate the treneyor ratio.
3
6
4
5
B
Return ,Risk and Performance of Funds
Return on portfolio is 6%, risk free return is 2% and Standard Deviation is 0.5. Calculate the treneyor ratio.
6
8
4
5
B
Return ,Risk and Performance of Funds
20% exposure limit in derivatives is an example of :
Investment Policy
Investment Objective
A
Legal and Regulatory Environment
Financial planners should be able to understand the concept of tax planning.
TRUE
FALSE
A
Helping Investors with financial planning
Deposit Insurance is applicable in case of Mutual Funds.
Up to 1 lakh
Up to 10 lakh
Nil
C
Selecting Right Investment product for investors
Which of the following would limit the investment opportunity ?
500 Cr. In Index Fund
500 Cr. In Gilt Fund
500 Cr. In Diversified Fund
500 Cr. In Sector Fund
D
Legal and Regulatory Environment
Any amount related to unclaimed dividend and redemption can be attributed to an investor
TRUE
FALSE
A
Legal and Regulatory Environment
PAN Card is required for :
First Transaction
All Transactions
Additional Transactions
None of the above
B
Investor Service
KYC is required for :
For amount greater than 20,000
For amount greater than 50,000
For any amount
C
Investor Service
Middle-age investors should not go for tactical asset allocation for the retirement planning :
TRUE
FALSE
B
Recommending Model portfolios and financial plans
Tactical asset allocation can be risky.
TRUE
FALSE
A
Recommending Model portfolios and financial plans
An investor should consider equity investment less risky in the long-term as compared to short-term.
TRUE
FALSE
A
Recommending Model portfolios and financial plans
Inheritance stage is equivalent to :
Inter-generational stage
Distribution stage
Accumulation stage
A

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Helping Investors with financial planning


Asset allocation should be done according to :
Investment needs
Financial goals
Insurance needs
B
Recommending Model portfolios and financial plans
AMFI code of conduct for intermediaries is given by
SEBI
RBI
AMFI
IRDA
C
Fund Distribution and channel management practices
The PE of a share is 30 and the EPS is 10.What is the market price?
15
300
1.5
300
B
Return ,Risk and Performance of Funds
The average net assets of a fund is 500 Cr. And the total buying and selling is 1000 Cr.What is the portfolio turnover ratio
20 Times
2 Times
0.5 Times
10 Times
B
scheme selection
A minor cannot invest in mutual funds directly or otherwise.
TRUE
FALSE
B
Investor Service
Standard deviation can be calculated in excel with the help of which of the following formulas?
Std
Cov
Var
STDEV
D
Return ,Risk and Performance of Funds
What is the CAGR on the portfolio where the fund was purchased at 10.5% and sold at 12.5% after 3 years
5.98%
10.75%
6.95%
8.50%
A
Return ,Risk and Performance of Funds
What is the absolute return on the fund which had an NAV of 13.8 after the NFO launch at the face value of 10?
2800 times
280%
28%
380%
B
Return ,Risk and Performance of Funds
Which of the following is considered to be a part of institutional category ?
FII
HUF
PIO
A
Fund Distribution and channel management practices
Is it necessary for a trust to have beneficiaries?
Yes
No
A
Fund Structure and constituent
Distribution of an investor's portfolio between different asset classes is called Asset Allocation.
TRUE
FALSE
A
Recommending Model portfolios and financial plans
Fund Age is more important parameter for equity scheme than debt scheme.
TRUE
FALSE
A
scheme selection
Feeder Funds used for investing internationally, can invest in
Any kind of International investments subject to meet scheme objectives
Only International Bonds
Only International Stocks
Only International Equity Derivatives
A
concept and role of a mutual fund

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c)
Right Answer
Chapter Name
125
a)
b)
c)
d)
Right Answer
Chapter Name
126
a)
b)
c)
d)
Right Answer
Chapter Name
127
a)
b)
c)
d)
Right Answer
Chapter Name
128
a)
b)
Right Answer
Chapter Name
129
a)
b)
c)
d)
Right Answer
Chapter Name

Withholding tax on income earned by NRI depends on nature of income, nature of Investment, nature of Investors and their country
of domicile.
TRUE
FALSE
A
Accounting,Valuation and Taxation
Investors looking to select hybrid funds with tax benefit must choose
Conservative MIP
Debt orriented Balance Fund
Equity Oriented Balance Fund
Aggressive MIP
C
scheme selection
Which amongst following intermediaries is responsible for implementing uniform KYC ?
KYC Registration Agencies
Depository Participants
Mutual Funds
Registrar and Transfer Agents
A
Investor Service
SEBI does not allow payment of commission
Investors
Distributors
Bank
A
Legal and Regulatory Environment
Some pension funds are limited by charter to take equity exposure only through Index Funds.
TRUE
FALSE
B
Legal and Regulatory Environment
____Defines broad investment charter for a scheme
Investment Objective
Investment Strategy
Investment Policy
A
Legal and Regulatory Environment
For listed units, MF can choose to comply with the rule of any one of the recognized exchange
TRUE
FALSE
B
Legal and Regulatory Environment
Face Value per unit is usually
Rs.10
Rs.1000
Rs.100
A
concept and role of a mutual fund
Institutional distribution channel operates through
Sub broker
AMC Employees
Branches
All of the above
D
Fund Distribution and channel management practices
Which among these documents is not a source of information about investors eligible to invest in MF Scheme ?
OD
SID
Scheme Annual Report
KIM
C
Offer Document
Last Step of developing model portfolio is
Identify Risk
Scheme Selection
Investor Profile
Setting Financial Goals
B
Helping Investors with financial planning
No advertisement shall directly /indirectly discredit other advertisements or make unfair comparison.
TRUE
FALSE
A
Legal and Regulatory Environment
Mr. X has invested in equity scheme on Jan 31, NAV was Rs.10.50. On May 31, NAV was Rs.10.32. Calculate simple return on
scheme in this period ?
-1.71%
-19.82%
-2.04%
-0.02%
A
Return ,Risk and Performance of Funds

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131
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132
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133
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136
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Chapter Name
137
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Right Answer
Chapter Name
138
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b)
c)
Right Answer
Chapter Name
139
a)
b)
Right Answer
Chapter Name
140
a)
b)
c)
d)
Right Answer
Chapter Name
141
a)
b)
Right Answer
Chapter Name
142
a)
b)
c)
d)
Right Answer
Chapter Name
143
a)

Expense limit including management fees for index schemes including exchange traded funds is 2.5% of average net asset.
TRUE
FALSE
B
Accounting,Valuation and Taxation
Trust deed is signed between trustees & _______
AMC
RTA
CEO of AMC
Sponsors
D
Fund Structure and constituent
Tier || account in New Pension Scheme ( NPS ) is called pension account.
TRUE
FALSE
B
Selecting Right Investment product for investors
Financial asset included
Real Estate
Gold
Capital Market Securities
All of the above
C
Selecting Right Investment product for investors
SEBI's advertisement code lays down guidelines to be followed by
AMC
Distributors
Investors
A
Legal and Regulatory Environment
Calculate NAV. Market price of Stock -95 Cr, Market price of Money market instrument 6.44 Cr, Dividend accrued but not received
-1.99 Cr and Fees payable 0.25 Cr. Out standing Units -75 Lakh
137.5733
132.26
138.24
A
Accounting,Valuation and Taxation
Formula of calculating the future cost of Rs.25 lacs today after 5 years with inflation of 8%
25 lacs * ( 1+0.08) ^ 5
25 lacs / ( 1+0.08) ^ 5
25 lacs / ( 1+0.08) * 5
A
Return ,Risk and Performance of Funds
Mr. X has invested at an NAV of Rs. 10 in MF and it became Rs.18 after 3 years. What is CAGR Return?
21.64%
30.22%
80.00%
26.66%
A
Return ,Risk and Performance of Funds
Short Term Capital Loss can be sett off against :
Only Short Term Capital Gain
Short and long term capital gain both
Only long term capital gain
B
Accounting,Valuation and Taxation
While Running new fund offer, investor can invest in existing schemes of AMC subsequently
TRUE
FALSE
A
concept and role of a mutual fund
Which amongst the following approaches where the investor invests constant amounts at regular intervals?
SIP
STP
SWP
Switch
A
concept and role of a mutual fund
Mr. X has invested in equity scheme at an NAV of Rs.10.50, Current NAV is Rs.12. Which kind of gain is it ?
Notional Gain
Valuation Gain
B
Accounting,Valuation and Taxation
Which amongst following funds have higher risk ?
Sector Fund
Liquid Fund
MIP
Income Fund
A
scheme selection
Which of the following is not a rating agency ?
ICICI

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Chapter Name
144
a)
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Chapter Name
145
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146
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147
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Chapter Name
148
a)
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Chapter Name
149
a)
b)
c)
d)
Right Answer
Chapter Name
150
a)
b)
Right Answer
Chapter Name
151
a)
b)
Right Answer
Chapter Name
152
a)
b)
Right Answer
Chapter Name
153
a)
b)
Right Answer
Chapter Name
154
a)
b)
Right Answer
Chapter Name
155
a)
b)
c)
Right Answer
Chapter Name
156
a)
b)
c)
d)
Right Answer
Chapter Name
157
a)

Fitch
ICRA
CRISIL
A
Return ,Risk and Performance of Funds
Investors can buy gold deposits through mutual funds and Banks.
TRUE
FALSE
B
Selecting Right Investment product for investors
After getting retirement, Investor should invest only in Liquid funds.
TRUE
FALSE
B
Recommending Model portfolios and financial plans
Which amongst the following funds have lower risk ?
Sector Fund
Liquid Fund
MIP
Income Fund
B
scheme selection
If Investor wants to invest in Gold for long term then which is the ideal product ?
Gold ETF
Gold Futures
Jewelery
Gold Funds
A
Selecting Right Investment product for investors
ETF offers advantage of buy and sell their units in the stock exchange at various prices during the day that closely track the market
at that time.
TRUE
FALSE
A
Investor Service
Which of the fund offers mix of different assets ?
Equity Funds
Liquid Fund
Balance Fund
Debt Fund
C
Recommending Model portfolios and financial plans
Anyone who is aggrieved by a ruling of SEBI, can file an appeal with the Securities Appellate Tribunal (SAT) .
TRUE
FALSE
A
Legal and Regulatory Environment
AMFI disseminates information on Mutual Fund Industry and to undertake studies and research directly.
TRUE
FALSE
A
Legal and Regulatory Environment
Full Form of AGNI
AMFI Guidelines and Norms for intermediaries
AMFI Guidelines and Norms for investors
A
Legal and Regulatory Environment
AMFI develops a cadre of a well-trained Agent distributors and to implement a programme of training and certification.
TRUE
FALSE
A
Fund Distribution and channel management practices
Every application form is to be accompanied by the KIM.
TRUE
FALSE
A
Offer Document
Scheme Information documents should be updated
Yearly
Quarter
Monthly
A
Offer Document
KYC registration is required for
Any kind of MF transaction
For Redemption
For Switch
1st Time purchase
D
Investor Service
A bank issues Foreign Inward Remittance Certificate (FIRC) for money coming from abroad.
TRUE

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Chapter Name
158
a)
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159
a)
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c)
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Chapter Name
160
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Chapter Name
161
a)
b)
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Chapter Name
162
a)
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Chapter Name
163
a)
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d)
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Chapter Name
164
a)
b)
c)
Right Answer
Chapter Name
165
a)
b)
Right Answer
Chapter Name
166
a)
b)
c)
Right Answer
Chapter Name
167
a)
b)
Right Answer
Chapter Name
168
a)
b)
Right Answer
Chapter Name
169
a)
b)
c)
Right Answer
Chapter Name
170
a)
b)
c)
d)
Right Answer
Chapter Name
171
a)
b)
c)
d)

FALSE
A
Investor Service
The daily time stamping of application does not start with serial 1.
TRUE
FALSE
A
Investor Service
An Investor who is looking for price appreciation in long term should opt for which plan?
Growth
Dividend Payout
Dividend Reinvest
A
concept and role of a mutual fund
Mid Cap funds have higher risk in _______
Recession Period
Boom Period
A
scheme selection
Beta of Index Fund is
Equal to 1
More than 1
Less than 1
A
Return ,Risk and Performance of Funds
Appreciation in the investment portfolio is a _________.
Valuation Gain
Notional Gain
A
Accounting,Valuation and Taxation
Which amongst the following recurring expenses attributes to any Mutual Fund schemes
Marketing expenses
Fund Accounting Fees
Depreciation of fixed Assets
None of the above
B
Accounting,Valuation and Taxation
For Long term Capital gain investment in debt, Mutual Fund should be
1 Year
3 Years
2 Years
B
Accounting,Valuation and Taxation
Capital loss can not be set off against any head of income.
TRUE
FALSE
A
Accounting,Valuation and Taxation
Investments in Mutual Fund units are exempted from
Capital Gain Tax
Wealth Tax
Dividend Distribution Tax
B
Accounting,Valuation and Taxation
Arbitrage fund helps to investors who want to participate in equity market
0
1
A
scheme selection
Real Estate is under control of investor who draws psychological comfort.
TRUE
FALSE
A
Selecting Right Investment product for investors
Which of the following asset class is riskier asset in New Pension Scheme ( NPS ) ?
Asset Class E
Asset Class C
Asset Class G
A
Selecting Right Investment product for investors
Which of the following family information has influence on Risk Appetite
Earning Members
Dependent Members
Life Expectancy
All of the above
D
Recommending Model portfolios and financial plans
Risk free rate is 6% and portfolio return is 8%. Beta of portfolio is 2. Calculate Treynor Ratio
1
2
4
8

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Chapter Name
172
a)
b)
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Chapter Name
173
a)
b)
c)
d)
Right Answer
Chapter Name
174
a)
b)
Right Answer
Chapter Name

A
Return ,Risk and Performance of Funds
Risk free rate is 6% and portfolio return is 8%. Standard deviation of portfolio is 2. Calculate Sharpe Ratio.
1
2
4
8
A
Return ,Risk and Performance of Funds
In the event of turmoil, value of gold ________
Increases
Decreases
Remains Constant
None of the above
A
Selecting Right Investment product for investors
Open ended funds are mandatorily listed on stock exchanges
TRUE
FALSE
B
concept and role of a mutual fund

175
a)
b)
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d)
Right Answer
Chapter Name
176
a)
b)
c)
d)
Right Answer
Chapter Name
177
a)
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Chapter Name
178
a)
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Chapter Name
179
a)
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c)
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Chapter Name
180
a)
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c)
d)
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Chapter Name
181
a)
b)
Right Answer
Chapter Name
182
a)
b)
c)
d)
Right Answer
Chapter Name
183
a)
b)
c)
d)
Right Answer

Units having face value of Rs 10 issued are 1500. NAV is Rs 15 per unit and applicable exit load is 2%. Calculate redemption NAV
14.3
14.7
15
14.9
B
Accounting,Valuation and Taxation
Junk bonds invest in _____
T- Bills
Gilts
Low yield bonds
High Yield bonds
D
scheme selection
The agreement between trustees and sponsor is known as
Trust Deed
Investment Management Agreement
Custodial Agreement
None of the above
A
Fund Structure and constituent
P/E ratio is 20. Market price is 150. EPS is
10
7.5
20
25
B
Return ,Risk and Performance of Funds
Which of the following is not required to be registered with SEBI?
R&T agent
Custodian
Fund Accountant
None of the above
C
Fund Structure and constituent
An account is treated as dormant if it is not operated for more than
6 months
12 Months
24 Months
3 months
A
Legal and Regulatory Environment
For young unmarried call center male employee, model portfolio is 100 % equities
TRUE
FALSE
B
Recommending Model portfolios and financial plans
If dividend is not paid within 30 days from date of declaration, interest is charged at rate of
18.00%
24.00%
12.00%
15.00%
D
Legal and Regulatory Environment
Units are to be allotted within ___days after close of NFO.
5 days
10 days
15 days
7 days
A

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Chapter Name
184
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Chapter Name
185
a)
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Chapter Name
186
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Chapter Name
187
a)
b)
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Chapter Name
188
a)
b)
c)
d)
Right Answer
Chapter Name
189
a)
b)
Right Answer
Chapter Name
190
a)
b)
c)
d)
Right Answer
Chapter Name
191
a)
b)
c)
d)
Right Answer
Chapter Name
192
a)
b)
c)
d)
Right Answer
Chapter Name
193
a)
b)
c)
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Right Answer
Chapter Name
194
a)
b)
c)
d)
Right Answer
Chapter Name
195
a)
b)
Right Answer
Chapter Name
196

Legal and Regulatory Environment


One of the benefit of holding units in demat form is
Direct credit of bonus units
Easy to sell
Transparency
All of the above
A
Investor Service
The person to whom units are pledged is known as :
Pledgor
Pledgee
Lender
Broker
B
Investor Service
In international Fund, domestic fund is also known as :
Feeder Fund
Host Fund
Fund of Fund
None of the above
A
concept and role of a mutual fund
Bottom up approach is also known as :
Stock picking approach
Country selection approach
Sector selection approach
All of the above
A
Return ,Risk and Performance of Funds
Arbitrage funds are taxed as :
Equity funds
Debt funds
Hybrid Funds
Balanced Funds
A
scheme selection
As per provisions of Income Tax Act, 1961, Losses under Capital gains can be set off with other heads of income.
TRUE
FALSE
B
Accounting,Valuation and Taxation
Under NPS, Tier II account is opened for
Pension Account
Savings Account
Both of the above
None of the above
B
Selecting Right Investment product for investors
Every distributor must be allotted:
ARN
ARN and EUIN
EUIN
None of the above
B
Fund Distribution and channel management practices
_________ is an example of Self Regulatory Organization ( SRO)
BSE
SBI
AMFI
None of the above
A
Legal and Regulatory Environment
Equity oriented funds invest in __________ % in equities
50.00%
More than 50%
60.00%
65% & above
D
scheme selection
First time investor should read :
SID
SAI
KIM
Offer document
D
Offer Document
AMCs can charge interest on delayed payments to scheme.
TRUE
FALSE
B
Legal and Regulatory Environment
STT is payable on :

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197
a)
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Chapter Name
198
a)
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Chapter Name
199
a)
b)
c)
d)
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Chapter Name
200
a)
b)
c)
d)
Right Answer
Chapter Name
201
a)
b)
c)
d)
Right Answer
Chapter Name
202
a)
b)
c)
d)
Right Answer
Chapter Name
203
a)
b)
c)
d)
Right Answer
Chapter Name
204
a)
b)
c)
d)
Right Answer
Chapter Name
205
a)
b)
c)
d)
Right Answer
Chapter Name
206
a)
b)
Right Answer
Chapter Name
207
a)
b)
c)
d)
Right Answer
Chapter Name
208
a)
b)

Equities
Equity futures
Equity oriented Mutual Funds
All of the above
D
Accounting,Valuation and Taxation
A distributor does not get commission on his own business.
TRUE
FALSE
A
Fund Distribution and channel management practices
Client approaches the Financial Planner for getting a housing loan. The financial planner should do all of the below except:
Advise the client against loan as it is unethical to borrow
put client in touch with concerned people for getting the loan
Arrange for financiers for the client
Advise client on terms and conditions of the loan
A
Helping Investors with financial planning
Investor reached peak of earning capacity in :
Accumulation phase
Pre-retirement phase
Distribution phase
Sudden Wealth stage
B
Helping Investors with financial planning
Risk can be measured by :
Variance
Standard deviation
Beta
Any of the above
D
Return ,Risk and Performance of Funds
Fund of funds invest in
NAV of other funds
Equity Securities
Debt Securities
None of the above
A
scheme selection
If return of the fund is 4 and the Beta is 0.5 and risk free return is 2 . Treynor ratio will be
4
6
8
2
A
Return ,Risk and Performance of Funds
If return of the fund is 7 and the standard deviation is 2 and risk free return is 5 . Sharpe ratio will be
2
1
4
0
B
Return ,Risk and Performance of Funds
Securities in Mutual fund is with
Custodian
RTA
Trust
AMC
A
Fund Structure and constituent
Long term capital loss can be adjusted against
Short term capital Gain
Long term or Short term Gain
Long term capital Gain only
Can not be adjusted
C
Accounting,Valuation and Taxation
In Debt Funds, Long term Capital Gain is after holding period of 3 years.
TRUE
FALSE
A
Accounting,Valuation and Taxation
If a company has a share capital of 80 crores and Reserves of 20 crores, number of shares holders 8 crores, Book value will be
10
12.5
2.5
8
B
Return ,Risk and Performance of Funds
If you buy at NAV of 10 and sell at NAV of 12.5. Calculate the simple return
25.00%
0.25%

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Chapter Name
209
a)
b)
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Chapter Name
210
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c)
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Chapter Name
211
a)
b)
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Chapter Name
212
a)
b)
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Chapter Name
213
a)
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Chapter Name
214
a)
b)
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Chapter Name
215
a)
b)
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d)
Right Answer
Chapter Name
216
a)
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Right Answer
Chapter Name
217
a)
b)
c)
d)
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Chapter Name
218
a)
b)
Right Answer
Chapter Name
219
a)
b)
c)
d)
Right Answer
Chapter Name
220
a)
b)
Right Answer
Chapter Name
221
a)
b)

6.25%
A
Return ,Risk and Performance of Funds
EPS is Rs 8 , PE ratio is Rs 15 . What will be the Market Price
150
120
100
200
B
Return ,Risk and Performance of Funds
If NAV at time of Purchase was 10.50 and after 400 Days sold at NAV of Rs 13.20.What is the Compound Annual growth rate
25.78%
57.00%
26.67%
None of the above
A
Return ,Risk and Performance of Funds
KIM is abridged version of Offer Document.
TRUE
FALSE
A
Offer Document
Index funds ( Along with Investment Management Fees ) ,recurring expenses are upto 2.5%.
TRUE
FALSE
B
Accounting,Valuation and Taxation
Calculate NAV. Equity Valuation Rs 240 crore, Money Market Value Rs 8 crore, Dividend Accrued Rs 4 crore. Expenses 6 crore.
Unit Capital 200 crore ( Face value is Rs 10)
11.9
12.3
12.4
13.2
B
Accounting,Valuation and Taxation
Foreigner can not invest in Mutual funds even after completing KYC.
TRUE
FALSE
A
Investor Service
Investors would be incentivized to hold their units longer, by reducing the load as the unit holding period increased. This is known as
Exit Load
Entry Load
Contingent Deferred sales charge
None of the above
A
Accounting,Valuation and Taxation
The mutual fund trust is exempted from tax.
TRUE
FALSE
A
Accounting,Valuation and Taxation
Any capital loss from the transaction would not be allowed to be set off against other capital gains of the investor up to the value of
the dividend income exempted. If __________
Investor buys units within 3 months prior to the record date for a dividend
Sells those units within 9 months after the record date
Both of the above
None of the above
C
Accounting,Valuation and Taxation
Junk bond schemes are high yield bond schemes.
TRUE
FALSE
A
scheme selection
Who is the Regulatory Authority of Mutual funds In India?
IRDA
RBI
SEBI
PFRDA
C
Legal and Regulatory Environment
While the SEBI Code of Conduct lays down broad principles, the AMFI code of ethics (ACE) sets more Sticker standards for AMCs
and Trustees.
TRUE
FALSE
A
Legal and Regulatory Environment
NAV and re-purchase price are to be updated in the website of AMFI and the mutual fund in the case of Fund of Funds by 3 PM
same Day.
TRUE
FALSE

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Chapter Name
223
a)
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Chapter Name
224
a)
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Chapter Name
225
a)
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Chapter Name
226
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Chapter Name
227
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Chapter Name
228
a)
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c)
d)
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Chapter Name
229
a)
b)
Right Answer
Chapter Name
230
a)
b)
Right Answer
Chapter Name
231
a)
b)
Right Answer
Chapter Name
232
a)
b)
Right Answer
Chapter Name
233
a)
b)
Right Answer
Chapter Name
234
a)
b)
c)
d)
Right Answer
Chapter Name
235
a)
b)

B
Investor Service
Unit-holders have proportionate right to the beneficial ownership of the assets of the scheme.
TRUE
FALSE
A
Legal and Regulatory Environment
Investors can hold their units even in a fraction of 1 unit.
TRUE
FALSE
A
concept and role of a mutual fund
If an investor make a purchase of Rs 1.5 cr in Gilt Fund with Local Cheque. NAV applicable will be
Same Day NAV
Next Business Day NAV
NAV of the business day on which the funds are available for utilization before the cut-off time of that day is applicable
None of the above
C
Investor Service
Which of the following has the highest risk ?
High Yield Debt Fund
Income Fund
Gilt Fund
Liquid Fund
A
scheme selection
Which of the following is a physical asset ?
Building
Gold ETF
MF
FD
A
Selecting Right Investment product for investors
Which does not pull the return down ?
Tax
Expenses
Yield
All of the above
C
concept and role of a mutual fund
Asset Allocation can vary because of which reason
Change in market
change in interest rate
Both of the above
None of the above
C
Recommending Model portfolios and financial plans
AMC processes the KYC.
TRUE
FALSE
B
Investor Service
All AMC have same commission structure.
TRUE
FALSE
B
Fund Distribution and channel management practices
On redemption of Equity fund STT is applicable.
TRUE
FALSE
A
Accounting,Valuation and Taxation
Software development expense can be charged to the scheme.
TRUE
FALSE
B
Accounting,Valuation and Taxation
Distribution of investment portfolio in different assets is called asset allocation.
TRUE
FALSE
A
Recommending Model portfolios and financial plans
During economic turmoil it can be risky to invest in ________
Mid & Small Cap
Large Cap
Diversified Equity fund
Growth Fund
A
scheme selection
Where do you get the benefit of deposit insurance?
On invest for one fund in MF
on invest in liquid fund

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236
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Chapter Name
240
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Chapter Name
241
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242
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Chapter Name
243
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Chapter Name
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Right Answer
Chapter Name
246
a)
b)
Right Answer
Chapter Name
247
a)
b)
c)
d)
Right Answer
Chapter Name
248
a)
b)
Right Answer

on invest in gilt fund


no deposit insurance is available in MF
D
Selecting Right Investment product for investors
DDT is applicable in Debt Mutual Funds
TRUE
FALSE
A
Accounting,Valuation and Taxation
Who can appoint a trustee?
AMC
SEBI
Sponsor
Custodian
C
Fund Structure and constituent
Investor have a right to see custodian annual report.
TRUE
FALSE
A
Legal and Regulatory Environment
Beta of less than one is considered to be
less risky
more risky
no difference
A
Accounting,Valuation and Taxation
Which document is not required to be submitted in case of a company which want to invest?
Board Resolution
PAN Card
AOA & MOA
Balance Sheet
D
Investor Service
You desire the benefit of rupee cost advantage in which of the following?
SIP
SWP
STP
STT
A
concept and role of a mutual fund
Open ended fund has a feature of
variability in unit capital
variability in no of units
Both of the above
None of the above
C
concept and role of a mutual fund
Scheme other than ELSS and RGESS can remain open for subscription for maximum of _____
10 days
15 Days
8 Days
2 Days
B
Legal and Regulatory Environment
Fund of Fund has a cut off time for declaring NAV at 9 pm the same day.
TRUE
FALSE
B
Investor Service
Offer document consists of the following
SID + SAI
SID + KIM
SAAI + KIM
A
Offer Document
Distributors have got a new distribution channel by offering MF on the stock market to their investors.
TRUE
FALSE
A
Fund Distribution and channel management practices
Which group of people are allowed to invest in Mutual funds?
Minor
HUF
NRI
All of the above
D
Fund Distribution and channel management practices
Full form of ASBA
Application supported by block amount
Application supported by booked amount
A

Page 19

New Format
Chapter Name
249
a)
b)
Right Answer
Chapter Name
250
a)
b)
c)
d)
Right Answer
Chapter Name
251
a)
b)
Right Answer
Chapter Name
252
a)
b)
Right Answer
Chapter Name
253
a)
b)
c)
d)
Right Answer
Chapter Name
254
a)
b)
Right Answer
Chapter Name
255
a)
b)
c)
d)
Right Answer
Chapter Name
256
a)
b)
Right Answer
Chapter Name
257
a)
b)
Right Answer
Chapter Name
258
a)
b)
Right Answer
Chapter Name
259
a)
b)
c)
Right Answer
Chapter Name
260
a)
b)
c)
d)
Right Answer
Chapter Name
261
a)
b)
c)
d)
Right Answer
Chapter Name
262
a)
b)
Right Answer
Chapter Name

Investor Service
In case of dividend reinvest, NAV declares to the extent of dividend and DDT.
TRUE
FALSE
A
Accounting,Valuation and Taxation
Annual Report needs to be published in ______
at least 2 daily newspaper
Website of AMC
Website of AMFI
All of the above
D
Legal and Regulatory Environment
Unit certificate is not useful for transferring and pledging the unit of Mutual Fund.
TRUE
FALSE
B
Investor Service
FMP suffers Interest Rate Risk.
TRUE
FALSE
B
scheme selection
A sector fund should have a minimum of ___ equity in that particular sector.
65.00%
75.00%
50.00%
100.00%
A
scheme selection
Since Gold ETF is a closed ended fund its holding are for perpetual.
TRUE
FALSE
B
scheme selection
Units of_____________ must be listed on the stock exchange.
Sector Fund
Liquid Fund
close ended fund
open ended fund
C
concept and role of a mutual fund
Open-ended schemes generally offer exit option to investors through a stock exchange.
TRUE
FALSE
B
concept and role of a mutual fund
Sector funds invest in a diverse range of sectors
TRUE
FALSE
B
concept and role of a mutual fund
High yield bond schemes invest in junk bonds
TRUE
FALSE
A
concept and role of a mutual fund
Investment objective is closely linked to ________
scheme
Option
Plan
A
concept and role of a mutual fund
The assets of the mutual fund are held by ______
AMC
Trustees
Custodian
Registrar
C
Fund Structure and constituent
Minimum networth requirement for a new AMC is _______
Rs.50 Cr
Rs. 5 Cr
Rs. 4 Cr
Rs.10 Cr
A
Fund Structure and constituent
AMC directors are appointed with the permission of Trustees
TRUE
FALSE
A
Fund Structure and constituent

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New Format
263
a)
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d)
Right Answer
Chapter Name
264
a)
b)
Right Answer
Chapter Name
265
a)
b)
c)
d)
Right Answer
Chapter Name
266
a)
b)
Right Answer
Chapter Name
267
a)
b)
c)
d)
Right Answer
Chapter Name
268
a)
b)
c)
d)
Right Answer
Chapter Name
269
a)
b)
Right Answer
Chapter Name
270
a)
b)
Right Answer
Chapter Name
271
a)
b)
Right Answer
Chapter Name
272
a)
b)
Right Answer
Chapter Name
273
a)
b)
c)
d)
Right Answer
Chapter Name
274
a)
b)
c)
d)
Right Answer
Chapter Name
275
a)
b)
Right Answer
Chapter Name
276
a)
b)
Right Answer
Chapter Name

Most investor service centres are offices of _______


Trustees
Registrar
Custodian
Fund Account
B
Fund Structure and constituent
Fund accounting activity of a scheme is to be compulsorily outsourced
TRUE
FALSE
B
Fund Structure and constituent
SEBI regulates __________
Mutual Funds
Depositories
Registrar and Transfer Agents
All of the above
D
Legal and Regulatory Environment
Investment objective defines the broad investment charter.
TRUE
FALSE
A
Legal and Regulatory Environment
Statement of Account is to be sent to investors within ___ days of NFO closure
3
5
7
15
B
Legal and Regulatory Environment
Within ___ days of dividend declaration, warrants will have to be sent to investors
7
10
15
30
D
Legal and Regulatory Environment
Unit holders can hold their units in demat form
TRUE
FALSE
A
Legal and Regulatory Environment
Legally, SAI is part of the SID
TRUE
FALSE
A
Offer Document
Offer documents of mutual fund schemes are approved by SEBI
TRUE
FALSE
B
Offer Document
KIM has to be updated every 6 months
TRUE
FALSE
B
Offer Document
Institutional distributors build reach through ______
EMPLOYEES
AGENTS
SUB BROKERS
Any of the above
D
Fund Distribution and channel management practices
The maximum initial commission that a scheme can pay to distributors is ____
Nil
0.05%
1.00%
2.00%
A
Fund Distribution and channel management practices
The distributor can charge a fee from the investor
TRUE
FALSE
A
Fund Distribution and channel management practices
Stock exchange brokers are permitted to distribute mutual funds without the requirement of passing the certifying test.
TRUE
FALSE
B
Fund Distribution and channel management practices

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New Format
277
a)
b)
Right Answer
Chapter Name
278
a)
b)
Right Answer
Chapter Name
279
a)
b)
c)
d)
Right Answer
Chapter Name
280
a)
b)
c)
d)
Right Answer
Chapter Name
281
a)
b)
Right Answer
Chapter Name
282
a)
b)
Right Answer
Chapter Name
283
a)
b)
c)
d)
Right Answer
Chapter Name
284
a)
b)
Right Answer
Chapter Name

Trail commissions are linked to valuation of portfolio in the market


TRUE
FALSE
A
Fund Distribution and channel management practices
Net assets of a scheme are nothing but its investment portfolio
TRUE
FALSE
B
Accounting,Valuation and Taxation
The difference between NAV and re-purchase price is _______
Entry Load
Exit Load
Expenses
Dividend Stripping
B
Accounting,Valuation and Taxation
NAV of income funds is to be calculated upto ___ decimals
4
3
2
1
A
Accounting,Valuation and Taxation
Securities Transaction Tax is applicable to Equity Schemes
TRUE
FALSE
A
Accounting,Valuation and Taxation
Wealth tax is payable at the applicable rates on equity mutual fund units
TRUE
FALSE
B
Accounting,Valuation and Taxation
For a debt scheme with corpus of Rs. 250 cr, what is the maximum amount that can be charged by the AMC as recurring expense,
if all moneys have come from the Top 15 cities ?
5.625 Cr
5 Cr
4.625 Cr
5.25 Cr
D
Accounting,Valuation and Taxation
As per SEBI regulations, foreign nationals are permitted to invest in Indian mutual funds, subject to KYC
TRUE
FALSE
A
Investor Service

285
a)
b)
Right Answer
Chapter Name
286
a)
b)
c)
d)
Right Answer
Chapter Name
287
a)
b)
c)
d)
Right Answer
Chapter Name
288
a)
b)
Right Answer
Chapter Name
289
a)
b)
c)
d)
Right Answer
Chapter Name
290
a)
b)

PAN Card is not required for mutual fund investments below Rs 20,000 per mutual fund per financial year, where payment is in cash
TRUE
FALSE
A
Investor Service
Investments in mutual fund can be made using _____
Cheque /DD
Remittance
ASBA
Any of the above
D
Investor Service
Cut-off timing guidelines are not applicable for _____
NFOs
International Funds
Both of the above
None of the above
C
Investor Service
STP is a combination of SIP and SWP
TRUE
FALSE
A
Investor Service
Investors KYC details are stored in the server of _____
AMC
AMFI
SEBI
KRA
D
Investor Service
Fundamental analysis is evaluation of the strength of the companys price-volume charts
TRUE
FALSE

Page 22

New Format
Right Answer
Chapter Name
291
a)
b)
Right Answer
Chapter Name
292
a)
b)
c)
d)
Right Answer
Chapter Name
293
a)
b)
Right Answer
Chapter Name
294
a)
b)
c)
d)
Right Answer
Chapter Name
295
a)
b)
Right Answer
Chapter Name
296
a)
b)
Right Answer
Chapter Name
297
a)
b)
c)
d)
Right Answer
Chapter Name
298
a)
b)
c)
d)
Right Answer
Chapter Name
299
a)
b)
Right Answer
Chapter Name
300
a)
b)
Right Answer
Chapter Name
301
a)
b)
Right Answer
Chapter Name
302
a)
b)
Right Answer
Chapter Name
303
a)
b)
c)
d)
Right Answer
Chapter Name
304
a)
b)
c)
d)

B
Return ,Risk and Performance of Funds
In a top-down approach, sector allocation precedes stock selection
TRUE
FALSE
A
Return ,Risk and Performance of Funds
Which of the following is a truly international asset class?
Real Estate
EQUITY
Gold
Debt
C
Return ,Risk and Performance of Funds
Loads and taxes may account for the difference between scheme returns and investor returns
TRUE
FALSE
A
Return ,Risk and Performance of Funds
The most appropriate measure of returns for a scheme in existence for several years is __.
Simple Return
Dividend Return
Annualized Return
CAGR
D
Return ,Risk and Performance of Funds
Equity markets are more predictable in the long term than the short
TRUE
FALSE
A
scheme selection
Arbitrage funds are meant to give better equity risk exposure
TRUE
FALSE
B
scheme selection
The comparable for a liquid scheme is _______
Equity Scheme
Balanced Scheme
Gilt Fund
Saving Bank Account
D
scheme selection
Which of the following aspects of portfolio would an investor in a debt scheme give most importance?
Sector Selection
Stock Selection
Weighted Average Maturity
No of securities in portfolio
C
scheme selection
Mutual fund ranking and rating amount to the same
TRUE
FALSE
B
scheme selection
More than 50% of the wealth of Indians is held in physical assets
TRUE
FALSE
A
Selecting Right Investment product for investors
Gold Futures are superior to ETF Gold as a vehicle for life-long investment in gold
TRUE
FALSE
B
Selecting Right Investment product for investors
As regards wealth tax, ETF Gold is superior to physical gold
TRUE
FALSE
A
Selecting Right Investment product for investors
The National Pension System is regulated by ______
SEBI
IRDA
PFRDA
AMFI
C
Selecting Right Investment product for investors
An investor under the National Pension System can choose which of the following asset classes ?
Equities
Corporate Debt
Government Securities
All of the above

Page 23

New Format
Right Answer
Chapter Name
305
a)
b)
c)
d)
Right Answer
Chapter Name
306
a)
b)
c)
d)
Right Answer
Chapter Name
307
a)
b)
c)
d)
Right Answer
Chapter Name
308
a)
b)
c)
d)
Right Answer
Chapter Name
309
a)
b)
Right Answer
Chapter Name
310
a)
b)
c)
d)
Right Answer
Chapter Name
311
a)
b)
Right Answer
Chapter Name
312
a)
b)
c)
d)
Right Answer
Chapter Name
313
a)
b)
Right Answer
Chapter Name
314
a)
b)
c)
d)
Right Answer
Chapter Name
315
a)
b)
c)
d)
Right Answer
Chapter Name
316
a)
b)
c)
d)
Right Answer
Chapter Name

D
Selecting Right Investment product for investors
Todays costs can be translated into future requirement of funds using the formula:
A = P X (1 + i)^n
A = P / (1 + i)^n
P = A^ n X (1 + i)
P = A^ n X (1 + i)
A
Helping Investors with financial planning
Providing funds for a daughters marriage is an example of _______.
Goal-oriented Financial Plan
Comprehensive Financial Plan
Financial goal
None of the above
C
Helping Investors with financial planning
According to the Certified Financial Planner Board of Standards (USA), the first stage in financial planning is _____.
Analyse and Evaluate Clients Financial Status
Establish and Define the Client-Planner Relationship
Gather Client Data, Define Client Goals
Develop and Present Financial Planning Recommendations and / or Options
B
Helping Investors with financial planning
Investor can get into long term investment commitments in ________.
Distribution Phase
Transition Phase
Inter-generational Phase
Accumulation Phase
D
Helping Investors with financial planning
Distribution phase of Wealth Cycle is a parallel of Retirement phase of Life Cycle
TRUE
FALSE
A
Helping Investors with financial planning
Risk appetite of investors is assessed through _______
Risk Appetizers
Asset Allocators
Risk Profilers
Financial Plan
C
Recommending Model portfolios and financial plans
The objective of asset allocation is risk management
TRUE
FALSE
A
Recommending Model portfolios and financial plans
The asset allocation that is worked out for an investor based on risk profiling is called___.
Tactical Asset Allocation
Fixed Asset Allocation
Flexible Asset Allocation
Strategic Asset Allocation
D
Recommending Model portfolios and financial plans
Model portfolios are a waste of time for financial planners
TRUE
FALSE
B
Recommending Model portfolios and financial plans
How much equity would you suggest for a young well settled unmarried individual
100.00%
80.00%
60.00%
40.00%
B
Recommending Model portfolios and financial plans
Capital Gain from Debt Mutual Fund Investment are classified as a short term capital gain / loss, if the investments is sold
within_____
9 months
12 Months
36 months
18 months
C
Accounting,Valuation and Taxation
Capital Gain from Equity Mutual Fund Investment are classified as a short term capital gain / loss, if the investments is sold
within_____
9 months
12 Months
36 months
18 months
B
Accounting,Valuation and Taxation

Page 24