S.

No Questions

1 PIO stands for :

2 While computing the returns of Liquid fund, one can use

3 Can investors buy the close ended funds during NFO

4 Which of the following about growth stock is true ?

5 What is issued in Mutual Funds for the balance confirmation
6 Is it true that all mutual funds distributors are members of AMFI
7 Is NAV affected by accured income
8 Gold is said to be good investment and the returns from gold depends upon :
9 KYC is not complusory for mutual fund investments in case of :
10 If any fund declares the bonus in the ratio 1:3, then investor is alloted

11 For the equity oriented scheme the assets allocation in equity has to be atleast 65%
How much is the amount required to buy 1000 units of Reliance Gold Fund having an
12 entry load of 1.5% and having a NAV of Rs.20

13 As per SEBI regulations Listing fees and Depostiory fees is an allowable expense
14 Turnover rates would be most relevant to analyze the performance of :

15 As a unit holders of any fund house they don't have right to…………..

16 The AMFI code of ethics covers :

If any investors who has invested the money in close ended schemes and seeks liquidity
17 in that case he can :

18 In a PPF investment a investors cannot exceeds his investment more than 70000
19 Sponsor's financial history for 3 yrs is to be provided in the SAI
20 If any equity scheme is 90 days old, then to compute yield we can use :

21 Mutual Fund offers wide range of portfolio choices than National Pension Scheme
Calculate the Treynor Ratio if risk free return of the scheme is 5%, with Beta of 1.2
22 earned a return of 8% ?
Calculate the Simple annualised return if the NAV of a SBI Scheme has gone up from
23 Rs.10 to Rs.12.75 in 18 months?
24 Is it mandatory to provide the bank details while processing the redemption
If any disputes arises then in that case the unit holders can initates the legal proceeding
25 with whom ?
26 Is it true that in India the mutual fund AUM is hardly 10% of bank deposits
Which approach is done where we take all the financial goals of a person are take
27 together, and the investment strategies worked out on that basis.
In which of the scheme/services the investors has a better control on his buying and
28 selling of the securities on his behalf :
 Offer document prepared for the NFO needs to be approved by Trustees and Directors
29 of AMC
If an investor in a scheme when the NAV is Rs.12 and at the time of redemption the NAV
30 was Rs.15.Calculate the simple return ?
31 Information in the _______ Is common to all schemes of a Mutual Funds
32 What is the help as an investor gets from Credit Rating agency to judge the
33 If the interest rate goes up, then yield of bonds will go down.

34 eTF units bought at the stock exchange is allotted through

35 Variance is a risk measure is used for :
The services of the AMC can be terminated if 75% of unit holders jointly decided to do
36 so
Is it possible that the Auditors need to be same for both if Fund accounts & AMC
37 accounts are distinct
38 The key personnel of the AMC their names and backgrounds
What are the benefits can an investor have if he is using the demat A/c for the buying
39 and selling of MF
40 ETF units bought at the stock exchange is allotted through

41 What will be the repurchase price if NAV of the scheme is Rs.11 and exit load is 1%
42 If interest rates rise, then what will be the impact on bond prices
43 From the following who are not eligible to invest in mutual funds
What will be the dividend payout if in a particular scheme in which the NAV is Rs.100
44 .Face value is Rs.10. And 20% dividend was declared
If NAV applicable for an investment in a GILT fund using a cheque for Rs.1 cr at 2:30 PM
45 would be :

46 On what basis we can assessed the relative size of mutual fund

47 KYC documentation is mandatory for
48 All the initial issue expenses has to be bear by AMC

49 What is the main reason of creating a mutual fund trading platform on a stock exchange

50 The Board of Trustees of a mutual fund

What is the portfolio you will recommend to an 55yrs old client who plans to retire at
51 the age of 60?

52 What are the features of Equity Linked Saving Scheme fund ?

Which of the following ratio will tell the investors how much profit the company earned
53 for each equity share that they own ?
54 Returns can be annualized and compounded only if the scheme has completed
55 Whenever an investor buy mutual fund units for the first time he uses :
Loads and taxes may account for the difference between scheme returns and investor
56 returns :

57 Investment in Derivatives
If an investor gives any instruction for the process of redemption it goes through the
58 third party
59 For the purpose of taxation Arbitrage Funds are classified as
In which phase there will be a greate allocation to equity which can be recommended to
60 an investor
All the funds ranking which are based on public information disclosed by Funds from
61 time to time

62 In the event of breach of the Code of Conduct by an intermediary, AMFI

63 Generally which type of debt securities bought at an discount to their face value
64 While investment in mutual funds what enable us to reduce the risk
65 The limit of the expenses which can be charged to a fund is decided by :

66 Is AMFI is responsible to develop a cadre of well trained agents and distributors

A growth stock refers to shares of a Company whose earnings ar projected to grow at
67 the normal market rates
68 Is commodity Sector Funds are a kind of equity fund

69 What are the features of compliance officer of an AMC

The feature of Balanced scheme is to offer the benefit and to bring the diversity among
70 Equity and debt assets classes within the scheme

71 Long term capital loss from equity schemes can be :

72 Is the offer documents of mutual fund schemes are approved by SEBI
73 Mutual Funds are permitted to use derivatives for :
As per the ETF's these are open ended funds that can bought at prices, which vary
74 during the day and operate with low expenses

One of the client Mr.A having 2000 units, and in the scheme it is declared as 1 :4 bonus.
Ex bonus NAV is Rs.20. How much Mr.A needs to pay for the additional units issued by
75 AMC ?
76 High yield bond schemes invest in junk bonds
As the number of stocks in a fund increases, their relative contribution to return
77 decreases

78 Of the following which is incorrect ?

In the annual report of the AMC it should be clearly mentioned the unclaimed amount
79 and the number of suck investors for each scheme
In the price what is affected if the unit holder offers his unit re-purchase in an open
80 ended scheme
81 Mutual Funds invest in a portfolio of Marketable securities
82 Conversion of demat units into physical form is called as
All the money which are invested in financial assets can be productive for the economy
83 of any country
10-year government securities 10% and a 10-year fixed corporate Bond 12%,theyield
84 spread is :
85 Treynor ratio measures risk premium per unit of risk for
An entity that is not an Indian resident, as per FEMA except FII registered with SEBI can
86 invest in Mutual Funds
 If the scheme on offer is the first scheme of the mutual fund, this has to be stated as a
87 scheme specific risk factor.
Sharpe ratio are the bases to evaluate a find manager's performance based on risk-
88 adjusted returns
If an investor gives the Liquid Fund application at 11:30 A.M Funds are not available for
89 utilisation on the same day. The NAV applicable will be :
90 If the assets allocation is not frequently revised it means that it is a
91 The difference between a scheme's actual return snd itsoptimal is called as
92 Is there any limit on the expenses that can be charged to a scheme
93 Purchse transaction in Equity Scheme for Rs.1 cr at 11 A.M
94 Is it true that Sponsors have unlimited liablilty towards unit holders
What is common between the offer documents of two schemes of the same mutual
95 fund

96 Which of the following is false about Mutual Fund

97 A debt fund that invests in all available types of debt securities is a :

A father wants his son to be an engineer and for that the current education cost is
Rs.500000.How to calculate the education cost after 3 yrs given the inflation rate as 10%
98 and investment rate is 12%.
Pending investor complaints can be a ground for SEBI to refuse permission to the AMC
99 to launch new schemes
100 Trail commission are linked to valuation of portfolio in the market
 a b
Person of International Origin Person of International Organisations
Compunded annualised returns for period Simple annualised returns for period less
greater than 1 year than 30 days
1 0
High capital appreciation but high dividend High capital appreciation but low dividend
yield yield
Demat Account statement Unit Certificate
Yes No
True 0
Strength of Indian Rupee Global price of gold
Foreign Investors Minor
1 unit of every three units hold 2 unit for every one units held

True 0

Rs. 20,000 Rs. 19,700

True 0
Growth Funds Equity Funds

obtain from the trustees any information

having an adverse effect of their
inspect major documents of a fund investments

Members or any of their directors, officers

Adequate disclosure should be made to the or employees shall mot indulge in front
investors running

Redeem units at ISCs not redeem units before maturity

True 0
True 0
Absolute Return Compounded annualized return

True 0

3.5 5.2

17% 18%
True 0

Trust Trustees
Yes No

Stategic Financial Planning Goal Oriented Financial Planning

Funds of Funds A mutual Fund scheme

 True 0

20% 50%
KIM SID
Duration of loan Risk of default by borrower
True 0

Market value of the invested amount Minimum value of the invested amount
Debt Schemes Equity Schemes

True 0

Yes No
need to be disclosed to investors are of no relevance as they may change
Direct credit of bonus and rights units into
Less paperwork in buying or selling the units the investors demat A/c
SoA Issue of Unit Certificates

12 11.11
also rise fall
Insurance Companies Banks

Rs. 20 Rs. 2

NAV of application day NAV of fund realization day

Assets Under Management No. of distributors empanelled with them

Individual only Individual & HUF
True 0

Increase the number of products Increase the number of investors

Act as protector of investors interests Directly manage the portfolio of securties

40% in equity schemes 60% in debt 40% in equity 60% in balanced

Entitles the investor to claim income tax Requires the investment to be locked in for
rebate a period of 3 yrs

Earning per share Price to Earning ratio

30 days 12 months
Statement Acoount

True 0

To be specified in OD No such special approval is required

True 0
 Balanced funds Debt funds

Transition phase Reaping phase

True 0

cancel the AMFI registration and intimate all

the AMC ask for an explanation within 3 weeks

interest bearing zero coupon bonds

Market timing Diversification
SEBI AMC

True 0
True 0

Belongs to SEBI Cannot be appointed by the AMC

True 0
Set off against any short term or long term
gain Set off against long term gain only
True 0
Hedging against risk Re-balancing the portfolio

0 1

Rs. 40,000 Rs. 160,000

True 0

True 0
A sector fund invests in the shares of An equity fund would invest in Equity Shares
companies in a particular industry of a Company

0 1

NAV-Entry Load NAV + Exit Load

0 1
Dematerialisation Unit Certificate

True 0

4% 8%
Debt Schemes all type of schemes

0 1
 True 0

0 1
Closing NAV of day immediately preceding
Closing NAV of preceding day next business day
Tactical Allocation Floating Allocation
Beta CAGR
Yes No
Same day NAV NAV of fund realization day
Yes No

MIN SAI
A company that manages an investment A portfolio of stocks bonds and other
portfolio securities
Focused debt fund Assured debt fund

Education Cost = 500000 + (1+10%)^3 Education Cost = 500000 * (1+10%)^3

True 0
True 0
 Options
c d
Person of Indian origin Persons of International Origin

Both the above None of the above

- -
Steady capital appreciation and steady dividend
yield Steady capital appreciation and high dividend yield
Statement of Account None of the above

Both of the above None of the above

Rurual Investors Micro SIP
3 unit for every one units held 4 units for every one units held

Rs. 20,300 None of the above

Debt Funds Value Funds

receive of a copy of the annual financial

statements of the fund approve investment decisions of the fund

Funds should be managed in accordance with

stated investment obejectivesq All of the above

sell the units on a stock exchange redeem units with the fund

- -
- -
Simple annualized return Any of these

2.5 Data not sufficient

18.50% Invalid Data

- -

AMC -

Comprehensive Financial Planning -

Portfolio Management Services All of the above

 15% 25%
SoA SAI
Risk of default by the lender Intrest rate risk

Original investment done Face value of the invested amount.

All type of schemes Used to calculate Standard Deviation

are disclosed in the offer document are declared in newspaper advertisements

Easy Change of address or other details All of the above

Credit to Demat A/c Credit to Electronic Unit A/c

10 10.89
are not effected fluctuate either up or down
Foreign Companies All of the above

Data not sufficient

NAV of Next business day NAV applicable at 2 :30 PM

No. of schemes launched in the past

Only institutional investors All investors

Increase the reach of mutual funds products Increase the cost of distribution

Do not have the right to dismiss the AMC Cannot supervise and direct the working of the AMC

20% in equity 20% in liquid 60% in debt 100% in monthly income schemes
Automatically leads to investment in equity
shares All of the above

Book value per share Price to book value

6 months 24 months
Application Form Transaction slip

Approval of investors is required to invest in

derivatives if not mentioned in SD Only 1 and 3
 Equity funds liquid funds

Accumulation phase Distribution phase

issue a warning letter stating that any

subsequent violation will result in cancellation of
AMFI registration All of the above

paying interest at a floating rate None of the above

Stock selection Sector selection
Trustee -

Stands guarantee to the information contained Cannot certify that the AMCs legal and procedual
in the offer document obligations are fulfilled

Set off against gains from Non-Equity Schemes Cannot be set off against any other gain

Leveraging Only 1 and 2

Rs. 200,000 Nil

An index fund is indexed to inflation index A bond fund would invest in Bond & Debentures

NAV - Exit Load Exit Load

Physical Delivery request Rematerialisation

2%
None of the above
 Closing NAV of day immediately preceding the day on
Closing NAV of next business day which funds are available for utilisation
Flexible Allocation Fixed Allocation
Holding period return Alpha

Next business Day NAV Investor cannot invest Rs. 1 cr in a single day

SID KIM
A pool of funds used to purchase securities on
behalf of investors A collective investment vehicle
Diversified debt fund High yield debt fund

Education Cost = 500000 + (1+12%)^3 Education Cost = 500000 * (1+10%)^3

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