AMFI Exam

The prospectus of a close-ended fund is issued

1 Mark(s)

Every year
Only once at the time of issue
Every quarter
Every six months

As per SEBI, mutual funds can borrow for short term to the extent of

1 Mark(s)

Total net assets
50% of net assets
25% of net assets
20% of net assets

Short terms bond funds are

1 Mark(s)

Low risk funds
Moderate risk funds
High risk
Of the above depending on the market

Emerging of new channel for distributors marketing of Mutual Fund in India is

1 Mark(s)

Insurance Companies
Banks
Qualified Mutual Fund agents
Direct Sales agents of respective mutual funds

A money market mutual fund is most likely to invest in

1 Mark(s)

Corporate bonds
Equity shares
Government securities with maturity less than 1 year
All of the above

A mutual funds investments are guides by the

1 Mark(s)

AMC
Board of Trustee
Investment objectives
Unit holders

Buy their very nature, growth funds are considered as high risk funds

1 Mark(s)

1
None of these
All of the above

SEBI restricts mutul fund investment in companies forming part of the same group as the AMC. This is:

1 Mark(s)

Not true
In the interest of investor protection
Applied only to some mutual funds, not all
Not favourable to investor at all

The code of ethics for mutual funds published by AMFI

1 Mark(s)

Is manadatory
Is in the form of recommended practices
Is unfavourable to investors
Does not cover distribution and selling practies

Which of the following about Public providend fund (PPF) are untrue

1 Mark(s)

50% of the balance of the 4th year can be withdraw in the 7th year
The interst is tax free
The rate of interest is 12% p.a
Contribution upto Rs.60000 are eligible for tax rebate

A compliance offer

1 Mark(s)

Stands guarantee to the information contained in the offer document
belongs to SEBI
Cannot certify that the AMC's legal and procedural obligations are fulfiled
Cannot be appointed by the AMC

When comparing a fund's performance with that of its peer group, the following cannot be compared

1 Mark(s)

Two debt funds with 5 year maturities
A broad-based quity fund with an IT Sector Fund
A bond fund with a bond
A governmemt securities fund with a governmemt security

A growth manager looks for

1 Mark(s)

High current income
Undervalued stocks
Above average earning growth
None of the above

While computing the Expenses Ratio for a fund. brokerage commission on the fund's transactions are not included in the fund expenses

1 Mark(s)

1
None of these
All of the above

Which of the following of is a disadvantage suffered by a mutual fund investor?

1 Mark(s)

High liquidity
Diversification
No tailor made portfolio
Low investment

A fund's investment at market value total Rs.700 crores, Total liablities stand at Rs 50 lacs and the number of units outstanding is Rs.28 Crores. What is the NAV

1 Mark(s)

Rs. 30.19
Rs. 24.98
Rs. 32.15
Rs. 40.49

Which of the following do not apply to the term maturity of a debt security?

1 Mark(s)

The date on which the certificates becomes old
The term of the bond
The date of redemption
The date on which the issue has to repay the amount

Financial plans do not alter in any way the amount of tax an investor pays as the tax is on his income

1 Mark(s)

1
None of these
All of the above

Interest Rate Risk for an Indian debt fund can be reduced by using

1 Mark(s)

Futures
Options
Interest Rate Swaps
None of the above

A mutual fund manager is not allowed to sell short when he expects a crash in the market

1 Mark(s)

1
None of these
All of the above

Of the following, which type of fund would have higher P.E multiple in comparison to the average market multiple

1 Mark(s)

A Value fund
A Growth fund
An index fund
Could be any of the above three, one cannot generalise

An equity fund's age abd size are irrelevant when selecting a fund for investment

1 Mark(s)

1
None of these
All of the above

The largest corpus of investable funds in India is with

1 Mark(s)

Bank-owned mutual funds
Private Sector mutual funds
UTI
Insurance Companies

Which of the following are not true for Equity Linked Savings Scheme?

1 Mark(s)

Investors can claim an income tax rebate
There is a lock-in before investment can be withdrawn
There are not specific restrictions on investment objectives for the fund manafres
These funds cannot invest in equity

A fixed Term plan Series is

1 Mark(s)

An open-ended fund
A close-ended fund
A fixed term bank deposit
A fixed term corporate bond

When interest rates for similar maturities bonds are 11%, bond with a 9% coupon rate will sell

1 Mark(s)

Above per
Below Per
At par
At a price unrelated to the interest rates for similar securities

Derivatives cannot be based on market indices

1 Mark(s)

1
None of these
All of the above

In India, individual investors do not have direct access to

1 Mark(s)

Capital market instruments
Real estate
Bullion
Money market instruments

The structure which is required to be followed by mutual funds in India is laid down by

1 Mark(s)

Financial Ministry
Securities & Exchange Board of India (SEBI)
Fund Sponsor
Association of Mutual Funds of India (AMFI)

The most suitable measure of fund performance for all fund types is

1 Mark(s)

NAV Change
Total Return
Total Return with reinvestment
None of the above

AMFI Exam : Question 1 of 30