My Profile
Active Members
TodayLast 7 Days
more...
Awards & Gifts
Online Exams
Fresher Jobs
Our fresher job section is exclusively for fresh graduates! Find jobs for freshers in major Indian
cities including Bangalore, Chennai, Hyderabad, Pune or Kochi
Resources
Find educational articles, blogs, discussion threads and other resources.
Colleges
Find details about any college in India or search for courses.
|
Download Model question papers & previous years question papers
|
Posted Date: 21 Dec 2008 Posted By: Nilesh Panchal Member Level: Platinum
|
2008 Association of Mutual Funds in India (AMFI) AMFI Advisor Module AMFI AMFI Model Mock Sample Test O University Question paper
1.The annual yield on RBI Relief Bonds (2000-01) is
a. 9.5%
b. 9.5% before tax
c. 8.5% before tax
d. 8.5% after tax
2.Individual investors do not normally invest in Government Securities because
a. Individual investors are not allowed to invest in Government Securities
b. The amount required for investment is very large
c. Safety of principal is not guaranteed
d. None of the above
3.The amount an insurance company would pay to the nominee if a policyholder died is known as the
a. Premium
b. Sum assured
c. Face value
d. Real value
4.Dividends distributed by mutual funds are
a. Taxed at source
b. Taxed in the hands on the investors
c. Are subject to capital gains tax
d. Are tax-free in the hands of the investor
5.Investing through mutual fund is a better option than investing directly in the stock market because
a. Identifying stocks is a difficult process
b. Agents get commissions on mutual fund investment
c. Returned are guaranteed by mutual funds
d. All of the above
6.A small investor can build a diversified portfolio by
a. Buying one share each of all listed companies
b. Investing in a mutual fund
c. Borrowing enough money to buy shares of well-managed companies
d. None of the above
7.Which of the following is not an advantage of mutual fund investment over direct investment
a. Higher liquidity
b. Lower transaction costs
c. Greater convenience
d. Guaranteed returns
8.There is no contractual guarantee for repayment of principal or interest to an investor in
a. Bank deposit
b. Debt fund
c. Secured debentures
d. All of the above
9.Which of the following debt investments is not rated
a. Corporate bonds
b. Commercial paper
c. Company deposit
d. Debt fund
10.Gold and real estate are attractive investment options only in high inflation economies
a. True
b. False
11.Direct investment in stock market can be a better option than investing through mutual funds if the investor
a. Wants better returns than those offered by mutual fund
b. Have large capital, knowledge and resources for research
c. Has identified a bullish phase in the stock market
d. Wants to invest for the long term
12.Deciding on strategies such as long-term compounding, cost averaging, value averaging, active switching, all depend on the
a. Stock market situation on date
b. Amount of money to be invested
c. Investor's risk tolerance
d. Phase through which the economy is passing
13.Financial planning involves
a. Studying financial management
b. Managing the risk of investment
c. Financing the client's investments
d. None of the above.
14.Greater returns come only from assuming higher risks, and a higher risk portfolio guarantees higher returns
a. True
b. False
15.The risk tolerance of an investor is independent of
a. His age
b. His income
c. The stock market movements
d. His job security
16.A sector fund is a
a. Low risk fund
b. Moderate risk fund
c. High risk fund
d. Low-to-moderate risk fund
17.International funds invest in various countries and so are low risk funds.
a. True
b. False
18.Investment in gold is a hedge against inflation but investment in a precious metal fund falls in the high-risk category
a. True
b. False
19.By their very nature, growth funds are considered as high risk funds
a. True
b. False
20.Short term bond funds are
a. Low risk funds
b. Moderate risk funds
c. High risk
d. Of the above depending on the market
21.The risk level of commodity fund is
a. High risk category
b. Determined by the commodity price movements
c. Cannot be specified
d. Low risk category
22.As compared to a fund with fluctuating total returns, a fund with stable positive earnings
a. Gives higher returns
b. Is less risky
c. Gives lower returns
d. Is more risky
23."risk" is equated with
a. Volatility of earnings
b. Level of earnings
c. The number of investors in a fund
d. The number of schemes of a fund family
24.Volatility of an equity fund portfolio is independent of the
a. Kind of stocks in the portfolio
b. Degree of diversification of the portfolio
c. Fund manager's success at market timing
d. Number of investors in the scheme
25.Equity price risks are
a. Company specific
b. Market level
c. Sector specific
d. All of the above
26.Diversification reduces
a. Company specific risk
b. Market level risk
c. Both of the above
d. None of the above
27.Which of the following is most risky
a. Investing in a money market mutual fund
b. Investing in an index fund
c. Short term investment in an equity fund
d. Long term investment in an equity fund
28.A fund with a high beta coefficient gives greater returns in a rising market, and is more risky in a falling market
a. True
b. False
29.Which of the following is a disadvantage of standard deviation as a measure of risk
a. Standard deviation measures total risk, not just market risk
b. It is based on past returns, which does not necessarily indicate further performance
c. It is an independent number
d. All types of fund can be measured with standard deviation
30.The role of an agent is to
a. Point out the features and benefits of various investment options
b. Help the investor develop the right approach to investing
c. Recommend some investment option available
d. Offer adhoc advise whenever the investor has surplus money available
31.One of the most effective ways to invest through mutual fund is to
a. Develop a model portfolio
b. Buy a few units of every mutual fund scheme available
c. Invest all the money in one fund scheme
d. Invest all the money in different schemes of the same fund family
32.Mutual fund should be advised to expect
a. Low post tax returns
b. Dramatic results
c. Better returns than every other available option
d. Only realistic wealth accumulation goals
33.Asset allocation is
a. Keeping certificates of the physical securities in proper places
b. Allocating the available money to all the securities available
c. Allocating the right proportion of funds to equity, debt and money market securities
d. None of the above
34.Once a financial advisor works out ideal asset allocation, it can be used for all investor whom he/she advises
a. True
b. False
35.Asset distribution among equity debt and money market securities should correspond to the investors' need for capital growth, income and liquidity
a. True
b. False
36.The liquidity needs of an investor are met through
a. Equity funds
b. Index funds
c. Money market funds
d. Sector funds
37.A retired person generally needs a greater proportion of
a. Debt funds
b. Equity funds
c. Money market funds
d. All of the above
38.To satisfy a young investor's need for growth, a greater proportion of investment should be advised in
a. Gilt funds
b. Income funds
c. Equity growth fund
d. All of the above
39.A very high proportion of investment in all types of equity funds is advisable for investors
a. In distribution phase
b. In accumulation phase
c. In transition phase
d. Who are wealth preserving affluent individuals
40.The transition phase of an investor's wealth cycle is when
a. The financial goals have been already met
b. The investor has retired
c. Financial goals are approaching
d. Investor suddenly gets a windfall
41.A high proportion of investment in income funds is required by
a. Accumulating investors
b. Affluent investors
c. Investors in the inter-generational transfer phase
d. Investors in the distribution phase
42.Retired investor should
a. Not draw down on their capital
b. Not invest in securities, which bear risk of capital erosion
c. Continue holding a major portion of their holding in equity growth funds
d. Never invest in equity
43.For older investors who want to transfer their wealth
a. No financial planning is required
b. The right investment strategy depends upon who the beneficiaries are
c. The right investment strategy depends upon the state of the stock market
d. All the funds can be invested in aggressive equity funds
44.Investors who acquire sudden wealth
a. Can speculate with all the acquired money in the stock markets
b. Should not use any of the new wealth to invest in equity
c. Should take the effect of taxes into account
d. Need not pay any taxes on the newly acquired wealth as it is not a part of their regular income
45.If a specialty offshore fund has consistently given very good performance, it can be considered for investment by a retiree
a. True
b. False
46.Past performance should not be solely relied on for selecting a fund
a. True
b. False
47.Between the past performance of the fund and its suitability for an investor, past performance is more important
a. True
b. False
48.Structural characterizations of an equity fund include
a. Costs of investing
b. The specific securities in which the fund has invested
c. The number of employees of the AMC
d. All of the above
49.An equity fund's age and size are irrelevant when selecting a fund for investment
a. True
b. False
50.The charge to an investor at the time of he redeems his units from the fund is known as
a. Recovery charge
b. Repurchase load
c. Redemption weight
d. Exit load
51.The load amount charged to a scheme over a period of time is called
a. Entry load
b. Exit load
c. Deferred load
d. No-load
52.Contingent deferred sales charge (CDSC)
a. Is higher for investors who stay invested in the scheme longer
b. Is lower for investors who stay invested in the scheme longer
c. Is the same for all investors irrespective of how long they stay invested
d. Is not allowed to be charged to mutual fund investors in India
53.A fund's declared NAV does not include loads
a. True
b. False
54.Which of the following fund types are comparable
a. An aggressive equity fund and a money market mutual fund
b. A value fund and government securities fund
c. A bond fund and a debt fund
d. A diversified equity fund and a debt fund
55.Who is the primary guardian of unit holders' funds/assets
a. The AMC
b. The trustees
c. The registrars
d. The custodians
56.In case of a fund merger or take-over
a. High court approval may not be necessary
b. SEBI approval is a must
c. All unit holders must be informed
d. All of the above
57.Units of a money market mutual fund can be issued to
a. Individuals
b. Banks
c. Trusts
d. All of the above
58.Though Indian mutual funds have restrictions on borrowings (only 20% of net assets and for six months only) which are to meet cash needs for redemption only, UTI is allowed to borrow within more relaxed norms
a. True
b. False
59.An equity fund can be said to be concentrated when
a. When it invests in two or three stocks
b. When it invests in many companies of the same sector
c. When top ten holdings account for more than 50% of net assets invested
d. When top ten holdings account for more that 25% net assets invested
60.The size of the market capitalisation of a fund's equity holdings is inversely proportional to the returns that
a. Can be expected from the fund
b. Level of risk assumed by the fund
c. State of the stock market
d. All of the above
61.A steady holding of investments in an equity fund's portfolio indicates
a. Long-term orientation
b. Lower transaction costs
c. Both the above
d. None of the above
62.Ex-mark of an equity fund measures its
a. Performance
b. Risk
c. Both the above
d. None of the above
63.Beta of an equity fund measures its
a. Performance
b. Risk
c. Both the above
d. None of the above
64.The best equity fund, relative to others, would have
a. Higher ex marks, lower beta and higher gross dividend yield
b. Higher ex marks, higher beta and higher gross dividend yield
c. Lower ex marks, lower beta and lower gross dividend yield
d. Lower ex marks, higher beta and higher gross dividend yield
65.When selecting equity funds for investing, those at the top of the performance ranking need not be automatically selected
a. True
b. False
66.A debt fund's age and size are not important when selecting a fund for investment
a. True
b. False
67.Debt schemes are popular because
a. The Indian stock market is always going down
b. The returns are more predictable
c. Most investors are always in debt
d. All of the above
68.Yield-to-maturity of a debt fund's portfolio is more important when the investment objective is
a. Current income
b. Total return
c. Liquidity
d. All of the above
69.Compared to equity funds, income margins for debt funds are
a. Narrow
b. Higher
c. The same
d. Almost nil
Return to question paper search
|
|
|
Submit Previous Years University Question Papers and make money from adsense revenue sharing program
Are you preparing for a university examination? Download model question papers
and practise before you write the exam.
|
Advertise Here
|