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: 08 Jan 2009 Posted By: Nilesh Panchal Member Level: Platinum
|
2008 Association of Mutual Funds in India (AMFI) AMFI Advisor Module AMFI AMFI Model Mock Sample Test S University Question paper
1 . Which of the following is untrue of an automatic reinvestment plan
a. The plan allows for automatic reinvestment of all income and capital gains
b. Automatic reinvestment allows for accumulation of additional units of the fund
c. The major benefit of automatic reinvestment is compounding
d. The benefit of automatic reinvestment is often lost on account of the heavy load charge on the reinvestment
2 . In order to decide an appropriate index as benchmark for an actively traded fund, one should consider
a. Fund size and portfolio composition
b. Whether the fund is broad based or focused on specific type of securities
c. Investment objective of the fund
d. All of the above
3 . The KIM of a mutual fund scheme is available
a. At the AMC office
b. At the offices of authorized agents
c. At the branches of all banks
d. Only a and b
4 . As per wealth cycle guide, during the accumulation stage
a. The client looks to build wealth
b. The clients’ goals are approaching
c. Client cashes out
d. Client feels the need to take care of the next generation
5 . The jurisdiction for resolving legal disputes concerning a mutual fund is
a. Given in the offer document
b. Stated in the stock exchanges
c. Decided by company law board
d. Decided by BSE
6 . A portfolio turnover of 200% implies that an average security stays in a portfolio for
a. 6 months
b. 12 months
c. 48 months
d. 36 months
7 . Procedure for redemption or repurchase need not
a. Be described in the offer document
b. Include how redemption or repurchase price of units would be determined
c. Include names of centers where redemption can be effected
d. Indicate the redemption or repurchase price as at the end of the current fiscal year
8 . Trail commission means paying
a. No commission at all
b. The entire commission up-front
c. Part of the commission up-front and the balance in phases
d. The entire commission after five years
9 . To sell funds effectively, an agent need not
a. Be fully aware of the important characteristics of the scheme
b. Know his/her client's risk profile
c. Give after sales service
d. Offer large investment rebates
10 . Documents available to investors for inspection do not include
a. Memorandum and Articles of Association of AMC
b. Consent of auditors and legal advisors
c. Investment management reports
d. Reports based on which actual investments are made
11 . Are Overseas Corporate Bodies allowed to invest in Mutual Funds?
a. No
b. Yes
c. If Ministry of Finance approves
d. If AMFI approves
12 . Which Mutual Fund has majority of the agents selling its Mutual Fund units in India
a. LIC Mutual Fund
b. UTI Mutual Fund
c. SBI Mutual Fund
d. None of the above
13 . The following need not be covered in a Key Information Memorandum
a. Risk Factors
b. Opening, Closing and earliest Closing Date of the offer
c. Disclaimer Clause
d. Functions and responsibilities of the sponsor, trustees, AMC and custodian responsibilities
14 . If the AMC is managing a fund for the first time, this information can be found in
a. Newspapers
b. SEBI
c. AMFI Newsletter
d. Offer document
15 . In developed countries, an important Mutual Fund marketing channel is through
a. Insurance Companies
b. Banks
c. Non-Banking Finance Companies
d. Retail Distributors
16 . Sales Practices cover the following areas
a. Desirable marketing practices
b. Agents responsibilities to the investor
c. Ethical code of conduct
d. All of the above
17 . The biggest disadvantage of the investment in the real estate is
a. Less potential for the capital appreciation
b. High purchase price
c. Depreciation in the value as the time passes.
d. Value gets eroded due to inflation.
18 . Compounding of the interest is best explained by
a. Balanced fund
b. Growth fund
c. Value fund
d. Income fund.
19 . The transition phase of an investor’s wealth cycle is when the
a. Financial goals have been already met.
b. The investor has retired.
c. Financial goals are approaching
d. Investor suddenly gets a windfall
20 . Which of the following funds should a risk averse investor chose
a. Gross div yield 15% beta 1.5 ex – marks 90
b. Gross div yield 10% beta 1.0 ex – marks 70
c. Gross div yield 11% beta 0.9 ex – marks 80
d. Gross div yield 12% beta 1.2 ex – marks 80
21 . A mutual fund declares Re 1 as distribution. The income in the hands of the unit holders is
a. Taxable at 20%
b. Not taxable in the hands of the unit holders
c. Inadequate information
d. Income tax will be assessed as per unit holder’s liabilities
22 . The valuation norm for non-investment grade, performing assets is done:
a. On YTM basis using the CRISIL valuation methodology
b. On YTM basis with 25% discount
c. At 25% discount to the face value.
d. At face value.
23 . Which of the following is false
a. ROI is a measure similar to total return with the reinvestment of distribution
b. Total return with the reinvestment of the distributions assumes reinvestment at NAV on the distribution date
c. As a measure of performance, total returns with reinvestment of distribution seeks to overcome the shortcomings of simple total returns
d. Because of its simplicity, simple total return is preferred in practice to total return with reinvestment of distribution.
24 . In case of Borrowings by Mutual Fund, the potential risk of loss is presented to
a. AMC
b. AMC and its Unit holders
c. SEBI
d. AMFI
25 . When compared to Government Securities, the credit risk on corporate bonds is
a. Higher
b. Lower
c. Same
d. The two are not related
26 . Unit capital of a MF scheme is Rs 20 million; the market value of the investments is Rs 55 million. The No of units are! Million. The NAV is
a. Rs 20
b. Rs 75
c. Rs 55
d. Not possible to say.
27 . Choose the correct statement-Alternative Investment Plans offered by the fund allows investors
a. Freedom with respect to investing one time or at regular intervals
b. Making transfers to different schemes with the same fund family.
c. Receiving income at specified intervals or accumulating distributions.
d. All of above.
28 . Technical analysis tries to predict future movement of stock price by analyzing
a. The financial workings of a company
b. The stock price movements of a company
c. Both of the above
d. None of the above
29 . Returns can be annualized and compounded only if the scheme has completed
a. 30 days
b. 12 Months
c. 6 months
d. 24 Months
30 . A criticism of rupee cost averaging is
a. Investment is for the same amount at regular intervals.
b. Over a period of time average per share price will be more then guessing the highs and lows.
c. It does not tell you when to buy, sell or switch from scheme to scheme
d. Rupee cost averaging has no serious shortcomings.
31 . An investor in need of the regular income should not select
a. A bank deposit
b. A debt fund
c. An equity growth fund
d. PPF
32 . Ex Marks (or R-squared factor) of a fund measures
a. How much of a fund’s NAV movement is due to the market index movement
b. How a fund’s NAV movement relates to the market index movement.
c. How much of a fluctuation has occurred in a fund’s NAV over a historical period
d. How many marks a credit rating agency accords to a fund.
33 . Gift funds invest in
a. IT sector
b. AAA securities
c. Money market securities
d. Government bonds
34 . Which of the following is true for assured return schemes
a. Name and net worth of guarantor to be given
b. Performance of past-assured return schemes to be given
c. Whether assurance in earlier scheme was met to be stated
d. All of the above
35 . A fund manager who believes in the growth philosophy looks for companies with
a. Above average earnings growth
b. Large equity base
c. Likely to go for public issue
d. All of the above
36 . Which are the benchmarks used to evaluate fund performance
a. Return on benchmarks like S&P and Sensex
b. Return on other funds
c. Return on comparable instruments
d. All of the above
37 . Mutual funds are described as ___________ in the SEBI Regulations, 1996
a. Companies
b. AMCs
c. Trusts
d. Agencies
38 . A mutual fund cannot invest more than ____ % of its net assets in un-rated debt of one issuer. Total investments in un-rated debt cannot exceed _____ % of net assets
a. 10; 20
b. 15; 25
c. 10; 25
d. 15; 20
39 . Which of the following will not require financial planning
a. A 40 years old doctor with substantial savings
b. A retiree who is currently getting an income of 4,000 but would want Rs. 10,000 a month
c. An old person wanting to transfer all his wealth to his grandchildren
d. A young professional aged 26 years
40 . Which of the following is true for closed ended funds
a. The fund offers to buy and sell units at NAV
b. The corpus of the fund is constant
c. The net assets of fund does not change
d. None of the above
41 . Mutual funds can lend funds in the form of
a. Loans
b. Promissory notes
c. Securities
d. None of the above
42 . If a fund’s NAV is Rs.12, what is the maximum sale price it can charge,according to SEBI regulations
a. Rs.12.70
b. Rs.12.84
c. Rs.13.68
d. Rs. 11.16
43 . Which of the following mutual funds was not set up within the phase 2 : 1987-1993?
a. Canbank Mutual Fund
b. Kothari Pioneer Mutual fund.
c. SBI Mutual fund
d. LIC Mutual fund
44 . The Sponsor of a mutual fund may be compared to
a. A director in a company
b. The chief executive of the company
c. The promoter of a company
d. An equity shareholder of a company
45 . Mutual funds in India are set up as a
a. Company
b. Trust
c. Partnership
d. Association of persons
46 . Who needs to sign the trust deed with the trustee?
a. AMC
b. Sponsor
c. Custodian
d. All the above.
47 . In the case of a dispute, against whom can the unit holders initiate the legal proceedings?
a. Trust
b. Trustees
c. AMC
d. None of the above
48 . The abridged offer document contains the address of the following
a. The trustees of the mutual fund
b. The directors of the AMC
c. The Registrars and Transfer agents.
d. A & B
49 . To A prospective investor the reliable source of pertinent information about a scheme is
a. Financial Press
b. Offer document
c. AMFI website
d. Advice from the distributor
50 . An NRI hold units in a mutual fund. What should he do with his holding if he takes up a foreign citizenship?
a. He redeems
b. He continues
c. he transfers the units to his mother, who resides in India
d. None of the above
51 . A closed-end equity fund has average weekly net assets of Rs. 200 crores. As per SEBI’s regulations, the AMC can charge the fund with investment and advisory fees upto.
a. Rs.2.25 crores
b. Rs.2 crores
c. Rs.2.5 crores
d. Rs. 3 crores
52 . For which of the following funds would you consider “average maturity” as an important factor in selecting the right one for the investor.
a. A debt fund
b. A balanced fund
c. A money market or liquid fund.
d. Both A & B above.
53 . The strategy advisable for an investor to maximize investment return in the long run is
a. Buy and hold on to investments for a long time
b. Liquidate poorly performing investments from time to time
c. Liquidate good performing investments from time to time.
d. Switch from poor performers to good performers.
54 . Distributors or agents
a. Can distribute several mutual funds simultaneously
b. Cannot appoint the sub agents or the sub brokers
c. Should be only individuals not the Companies or the banks.
d. Should not be an employee or the associate of the AMC
55 . Contingent deferred sales charge (CDSC)
a. Is higher for the investors who stay invested in the scheme longer.
b. Is lower for the investors who stay invested in the scheme longer.
c. Is the same for all investor irrespective of how long they stay invested.
d. Is not allowed to be charged to the mutual fund investors in India
56 . A value manager does not look for
a. Stocks that are currently undervalued in the market
b. Stocks whose worth will be recognized by the market in the long term
c. High current yield
d. Long term capital appreciation
57 . Liabilities in the balance sheet of a mutual fund are
a. In the form of long term loans
b. Strictly short term in nature
c. Combination of the long term and the short term
d. Not allowed as per the regulations.
58 . An actively managed equity fund expects to
a. Be able to beat the benchmark
b. Earns the same returns as the benchmark
c. Have no benchmark
d. Under perform when compared with the benchmark.
59 . The most suitable measure of a fund’s performance for all fund types is
a. NAV change
b. Total returns
c. Total return with reinvestment
d. NONE
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
|