NiSM Questionzss

1
Chapters
Concept and Role of a Mutual Fund
Topics
Describe concept and advantages of a
mutual fund
Describe in brief the history of mutual
funds in India
Understand and differentiate between
various types of funds
Fund Structure and Constituents

Understand the legal structure of mutual
funds in India
List other Fund Constituents
Legal and Regulatory Environment

Describe role of regulators in India
Know investment restrictions and related
regulation
Understand Investors rights and
obligations
Offer Document
Understand regulatory aspects of an offer
document
Understand regulatory aspects of a Key
Information Memorandum (KIM)
Fund Distribution and Sales Practices

Understand who can invest and types of
investors
Describe various distribution channels for
mutual funds
Detail existing sales practices and
commission structure
Accounting, Valuation and Taxation

Understand accounting and expenses
Explain in brief the valuation process
carried out by mutual funds
Understand applicability of various taxes
and know related regulations
Investor Services
Describe purchase and redemption
transactions in a mutual fund
Describe investment plans and services
Risk, return and performance of funds

Understand the concept of return on
investment
Explain risks in fund Investing with a focus
on investors
Define and describe benchmarking of
performance
Scheme Selection
Understand how to select mutual fund

schemes
Identify the sources of data to track
mutual fund performance
Selecting
10
the Right Investment products for Investors
Identify financial and physical assets
11 Helping Investors with Financial Planning
Understand basics of financial planning
Define and describe life cycle and wealth
cycle in financial planning
Recommending
12
Model Portfolios and Financial Plans
Define and describe risk profiling
Understand asset allocation

Describe the steps in developing a model
portfolio
No
1
Chapters
4
5
Offer Document
6
7
8
9

Investor Services
Scheme Selection
10
Selecting the Right Investment products for Investors
11
12
Helping Investors with Financial Planning

Recommending Model Portfolios and Financial Plans
No of Questions Weitage
Marks
1
Rank
Easy
Medium
Difficult
tEST-Concept and Role of a MF

TEST Fund Structure and Constituents
TEST Legal and Regulatory
TEST Offer Document
TEST Fund Distribution and Sales
TEST Accounting, Valuation and Taxation
TEST Investor Services
TEST Risk, return and performance of funds
TEST Scheme Selection
TEST Selecting the Right Investment products
TEST Helping Investors with Financial Planning
TEST Recommending Model Portfolios
TEST Full Length 1

TEST Full Length 2
TEST Full Length 3
TEST Full Length 4
TEST Full Length 5
TEST Full Length 6
Test Name
TEST Risk,
return and
performance
of funds
Q. No
Question Details
Option A
Most of the Arbitrage Funds take

Contrary Position of Futures and
Option
1
2
3
1
The Offshore Fund is also known as
Feeder Fund
The 'Most Investor Service Centre' are
offices of
The Objective of AMFI is
4
5
6
1
Trustee
Providing
Training to all
Distributor
1
PAN and KYC are mandatory in Ant

Mutual Fund
The SAI is relevant for all the schemes
1
offered by the same Mutual Fund
TRAIL Commission is calculated
A Percentage of
net asset value
of unit holder
7
8
Differed Load is only charged in close

1
end schemes
The investor cannot set off the Capital He is redeeming
Loss if
the investment
within 9 months
9
10
11
Remittance can be done in Mutual

Fund through
NEAT MFSS is open from
RTGS and NEFT
If there are any changes in the

fundamental attributes of a scheme,
the AMC must issue
Addendum
If an Indian MF sectors sees potential

in making investment in China, it will
tie up with chinese fund. In India this
will be known as Feeder, while in
China it will be called
China made
portfolio
Investment objective is closely linked

to
The useful downloads of all circulars
up to last year, which are updated on
the website of SEBI, are known as
Scheme
9 am to 3 pm
12
13
14
15
Circular
If the explanation is not sent to AMFI Cancels the ARN

in case of any breach of conduct by
of distributor
then distributor, then AMFI
16
17
18
19
20
21
Offer Document of MF is approved by

SEBI
An institutional distributor builds
reach through
In audio and video advertisements,
the disclaimer clause must
An investor invested in Gilt Fund for
Rs 20,000 for a period of 18 month
and at the time of redemption the
value of the fund was at Rs 50,000.
Find the capital gain tax (ignoring the
indexation)
Investor needs to pay wealth tax if he
is investing in gold ETF
For online transactions, MF allot
1
Employees
Display on
screen for 5
seconds
Rs 3,000
1
IPIN and user
name to existing
investor only
22
23
24
25
26
27
28
Which of the following has the least

risk in the Mutual Funds
Rating and ranking is one and the
same thing
A bonds rating indicates its
Fundamental Analyst is also known as
Chartist
Who amongst the following will help
to find the perfect company to invest
Stock picking is
Who cannot invest in Mutual Fund
Money market
mutual fund
1
Reinvestment
risk
1
Fundamental
Analysis
Top Down
approach
Foreign
companies
29
30
The highest rating given by CRISIL is
AAA
Unit Capital is
No. of units*
face value
Which of the following investment

products do not give guarantee for
return or capital
Bank deposits
31
32
33
34
35
36
37
All fund have significant similarities

except one
MIP
All are the commodities except
Gold
MIP is a debt fund
Mutual fund is constituted as
Trust
FMP is mostly a closed end fund
Units are repurchase in closed end

fund at
Higher than NAV
A trustee company function through
Board of trustee
The function of distributor and RTA is
Updated NAV
38
39
40
41
42
43
44
45
Sponsor
trust deed are contract between
Trustee and ___________
KYC application form are accepted
Point of Service
at_______________
Appointment of distributor by fund is
AMC
basis between distributor
Though AGNI is mandate, there is no
1
penalities in case of breach of code.
Benchmark for Money market mutual CRISIL CompBEX
fund
Benchmark for Money market mutual CRISIL CompBEX
fund
- Composite
Bond Index
46
Benchmark for MIP
CRISIL CompBEX
- Composite
Bond Index
SEBI has stop charging
Initial Issue
expenses
SEBI has banned Entry load in Mutual

Fund from 1st August, 2009
Quality of bond can be made out of
47
48
49
50
YTM
NAV of funds are rounded off
In equity fund
upto 2 decimal
STT is leived on Re-purchase of unit

from mutual fund
Mutual fund is liable to fare for
0.125%
To convert the physical into Demat,

investor must approach to
An investor asks you in what order he
should list the following
schemes,going from the scheme with
the least risk to the one with the
highest risk -1.balanced fund, 2.A
stock index, 3.A Liquid fund,
4.Pharmaceutical sector fund.
Depository
Debt funds are exposed to ?
Market specific
risks
Standard deviation measures ?
Fluctuations of a
fund result
around a mean
level.
Which of this is not a part of high-risk

funds ?
Which of these strategies is best to
reduce company specific risk ?
Aggressive
growth funds
Holding largely
diversified
portfolio.
For which of the following funds

would you consider average maturity
as an important factor in selecting the
right one for the investor ?
A debt fund
Which of this is not a criteria for

consideration while selecting equity
funds ?
Classify the
schemes
Which of this statement is true ?
Selecting a
money market
fund is easier
than selecting a
bond or equity
fund.
51
52
53
54
55
56
Income
1,2,3,4.
57
58
59
60
61
62
Which of this statement about

balanced fund is true ?
Balanced fund is
exactly 50%
equity and 50%
debt.
For young investors doing retirement

planning ?
Monthly Income
schemes are
appropriate
63
64
Why should a fund distributor become
Because of
a financial planner ?
Strong Potential
for such services
65
Which of the following are true ?
Its the duty of

the client to set
mearsurable
financial goals
Risk tolerence is ?
Is the abnormal
loss, which the
investor is ready
ti incur
portfolio rebalancing is ?
A one time
process
Which of this is not a step in the

financial planning process ?
Determine the
shape and risk
tolerence level
of the client
Which of these is not the clients

responsibilities ?
Set measurable
financial goals
66
67
68
69
70
The Strategy advisable for an investor Buy and hold on
to maximize investment return in the to investments
long run is?
for a long time
71
The rupee-cost averaging talks

about ?
Investments for
the same
amount at
regular intervals
If you maintain a flexible ratio of

asset allocation, would you?
Rebalance the
Debt/Equity
allocation
periodically
72
73
74
Which of the asset allocation

Fixed vs.Flexible
principles talks about adjusting the asset allocation.
percentages for each group of
investors after taking account of their
age ?
What is active switching ?
Using telephone
swithing method
to actively move
and out of
different
schemes of
different fund
complex
Direct investments in stock markets

can be a better option over investing
through mutual funds if ?
The investor
wants better
returns than
those offered by
mutual funds
75
76
77
An investor in need of regular income A bank deposits

should not select ?
The without profit insurance policy The sum assured
promices to pays ?
and the bonus
declared by LIC
from year to
year
78
Which of the following statements is
not true about mutual funds ?
Investing In MF
divesify
portfolios.
79
80
81
Investors do not always look for

Mutual Funds
returns while investing in ?
G-Sec papers are normally issued on a Short term basis
?
82
83
Relief bonds issued by government

are?
Which of these instruments is not
issued by the corporates ?
Interval Funds are
84
85
86
87
88
Highly risky
Fixed Deposits
Largely openended but
convert into
close-ended at
pre-specified
intervals
NAV after dividend payment is called
Re-investment
Individual Investor cannot pledge

their units
If a financial advisor gives alternate
plans for investment , investor might
get confused
Redemption is
KYC is not required incase of minors?
NAV minus exit

load
This statement
is true
89
90
91
92
Who enables the collection and

payment of investments?
Winning lottery is an example of
In India the first mutual fund was
established in
Distributor while getting empanelled
also fill self declaration stating that?
Registrar
Sudden Wealth
1963
They should
receive
commission on
time
93
Mutual Funds shall be recommended
as
A get rich quick

investment
option
Black Swan is referred as
A kind of Offer
Document
94
95
Investments in an Equity Linked

Savings (ELSS)
Entitles the
investor to claim
income tax
rebate
Which of the following statement is

true?
Growth and Risk

are associated
with equity
funds
Dividend distribution tax paid on

money market instruments is ?
Investor have right to inspect except
25%
96
97
98
99
100
The new platform for trading in NSE

and BSE are called as
Switch is
Compliance
Report
NEAT MFSS
Not allowed in
mutual fund
101
102
If investor has made a subscription in Nav of the same

Rel Gilt Fund at 2:30 pm with a local
day of
cheque which NAV would be
application
applicable?
Benefits of Demat A/C are
Direct credit of
bonus units
Selected branches/Offices of mutual

fund registrars and large distributors
serve as __________ for KYC
documentation?
Point of Sale
Who cannot invest in MF?
NRI
Time stamping is mandatory at
All offices of
AMC
At the time of turmoil gold prices
Changes
Randomly
Stock picking is ____approach
Top Down
Approach
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
The difference between the yield on

Gilt and the yield on a nongovernment Debt security is called
The head of expenses are decided by
YTM
SEBI
A conservative investor will invest in

__________
_____ is used to measure fluctuation of
fund
_____ is not a credit rating agency
Diversified
Equity
Sharpe Ratio
In case of post-NFO investor should

receive a/c statement in _____ ?
____ fees cannot be charged to a
scheme
10 working days
If an investors regular income

improves then his risk appetite will
also
Which of the following is an
international asset class?
____ is an approach to understand the
risk appetite of investor?
During the recessionary situation in
______ equity markets in many
countries fared poorly, but gold prices
went up?
Increase
Gradually
Morning Star
Service Tax
Real Estate
Risk Handling
2007-09
The distribution of an investors

portfolio between different asset
classes is called _____?
As the person grows older, the debt
component of the portfolio keeps
increasing. This is an example of
______
Asset Allocation
_______ is suitable only for seasoned

investors operating with large
investibles surpluses?
Investment advice is dependent on
understanding
Model Portfolios
SAI needs to be updated regularly by

the end of ______________
every 3 months
SID
127
As per SEBI regulations, every

application form needs to be
accompanied by
KIM does not include which of the
following
KIM needs to be updated every
128
Post the initial update, the SID needs

to be update ___________
120
121
122
Tactical Asset
Allocation.
Risk appetite of
the investor
123
124
125
126
Risk profile of
the scheme
3 months
every 3 months
129
For a scheme launched in March 2010,

Apr-10
the first update of the SID would be
due by
Any change in the scheme needs to mentioned in an
be
addendum
130
131
132
133
134
135
136
SID contains the condensed financial

inforamtion of the schemes launched
in the last ____ years by the AMC
Clearing the certifying examination
and getting SEBI's permission are
mandatory before a person/
institution can start selling mutual
funds
3 years
Though CIO has investment right it

plays limited role in investing in
market
If investor buy 7% debentures and
companies rating came from AA to
AAA In what price will investor sell
In which of the following NFO details
will be mentioned
Can a mutual fund invest as per the
board resolution, though not as per
the rules of Memorendum of
Association
At premium
KIM only
1
NFO for ELSS is for
15 days
Code of conduct of AMC given in

which schedule
SEBI stop charging.
First Schedule
137
138
139
What would be the NAV if an investor

invest in a gilt fund Rs. 1 crore at
3:30 PM by a local cheque.
Initial Issue
expenses
Same days NAV
140
141
Rematerialisatio
The investor also has the option to
n
convert the demat unit into physical
form is
Individuals who want to bulid their
Old investor
wealth and are ready to take the risks
are ?
142
143
144
145
Which of the following is not a

commodity
TDS on Dividend in Mutual Fund is
Food crops
25%
+surcharge+ces
Custodian
Who handles the securities of Mutual
Fund
146
If an Investor is investing Rs. 10 Lacs

at 4.00 PM in NFO. NAV on that day is
Rs. 15. Find the units alloted to the
investor
66666.6666667
147
If an investor has given the request

for redemption of 1000 units at the
NAV of Rs. 12 and Face Value is Rs.
10. Find the amount that investor will
receive
DTAA means,
Rs. 12000
Dividend tax
Authorised
Association
148
149
Withholding tax applicable to the non Lower of the rate

residential investor is ______ according
to DTAA
Financial planning isInvesting funds
to receive the
higest rate of
return possible
150
151
152
An Investor with Double-Income in

Late forties with no children DebtEquity Portfolio would be?
The NPS consists of
--------------------------Which of the following about public
provident fund (PPF) are untrue
153
154
155
156
50 50
Asset Class G
50% of the
balance of the
4th year can be
withdrawn in the
7th year
Which of the following is untrue for

Public Provident Fund Schemes
The interest is
tax-free
Finance Acts of 2000 and 2001 have

reduced tax-free interest on Public
Provident Fund to
Annual contribution to Public
Provident Fund should be
12%
Rs.10000.00
Sharpe ratio computes.
Risk premium of
a fund as
difference
between the
funds average
return an risk
free return
divided by beta
of the fund.
Low risk (conservative portfolio)

consists of ?
Portfolio 40%
Growth an
income funds+
30% Govt.Bond
funds
+20%Growth
funds +10%
index funds.
157
158
Which type of portfolio asset mix
40% in equity an
would you recommend to your 55 year 60% in balanced
old client who plans to retire at age
funds
58? Choose a portfolio that is closest
match to the investors needs ?
159
160
A retired investor needs to generate

income for a comfortable post
retirement life.Which phase is the
investor in ?
Transition Phase
Your client has won Rs.1crore in

Invest the entire
"Kaun Banega Crorepati".What would amount without
your suggestion be?
any delay in "old
economy"
stocks-since
they are back in
favor
161
162
Which of the life cycle stage is

mention here "couple
becomesinterdependent with shared
responsibility for the achivement of
future goal" ?
Childhood stage
The rupee-cost averaging talks

about ?
Investments for
the same
amount at
regular intervals
Which of the following is true about

PPF?
Assured Tax free

interest
Childhood stage and transition stage

are examples of Wealth Cycle and Life
Cycle?
Tier I pension account is
withdrawable
The asset allocation
that is worked
163
164
165
166
167
168
out for an investor based on risk

profiling is called
How much equity would you suggest
for a single income family with grown
up children
who are yet to settle
down?
1
Tactical Asset
Allocation
0.5
The Lead of family in the HUF is
Karta
Which of the following can invest
Foreign citizen
The investor needs to attach the

doccuments from Notary Public &
Gazeted officer for KYC
documentation
The place of Know Your Client

documentation is
Which is the having low risk
POS PointOf
Service
Income Fund
On which of the following shall an

investor invest for high returns
Only primary holder needs to be KYC
doccumented in case of any one or
survivor
Micro SIP is not available for
Bank F.D.
CVL
180
The KYC documentation has to be

done only with
A female member of the family can
karta in HUF
The investor an give post dated
cheque for additional purchase
Remittance can be quickly done with
181
If an investor dealing with 12000

units & company declared 1:3 bonus.
How much units investor will get
169
170
171
172
173
174
175
176
177
178
179
Minor
1
1
RTGS
400 units
1250 units.
182
Dubey ji invested Rs.10000 at NAV of

12 on 1st july,2008. The MF declared
1:2 bonus on 31st December 2008.
How much extra units Dubeji will get
Rs.15000/-
183
If the investor has 1,000 Units in

aggressive growth fund. He has given
the redemption on 1st July,2008 at
the NAV of Rs.15/- the MF charge 1%
exit load find out the amount he will
get.
Signatory Authority is mentioned in
Board Resolution
Whether the company eligible to
invest in mutual fund is mentioned in
184
185
186
Memorundum &
article of
assoiation
Same Days Nav
If an investor given the request in an

equity fund for purchase at 2.30pm
which days NAV will be applicable
If the investor make the online
According to the
inestment which NAV will be
time mention in
applicable
his PC.
187
If an investor give outstation payout
of Rs.50,000/- in MIP which days NAV
will be applicable.
Preceding Days
NAV of next
working Days.
188
189
190
If an investor made the online

Thursday's NAV
transation of Rs.2 lac at 2.30 am on
wednesday in FOF which days NAV will
be applicable.
If an inestor make the inestment
request of Rs.50,000/- at 2:30pm in
Gilt fund which days NAV will be
applicable
same days NAV
An AMC launches a new scheme in the The performance

market, based on
of its last
scheme
191
192
193
194
The offer document is prepared by

the Trustees
The Offer Document is prepared by
the Trustees and approved by the
AMC
the AMC and approved by the
Trustees.
1
1
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
An SID canot be issued in the market

until and unless it has been approved
by the Trustees.
Observations made by SEBI on the
Offer Document need to be filed in a
separate document.
An Offer Document has to be filed
with SEBI; Any advertising campaign
taken for that particular scheme need
to comply with SEBI's advertising
NFO Open Date code.
and Scheme Re-open
Both the
statements are
true
Partially true
date are one and the same thing.
NFO close date is the date after which
Both the
the units will not be available for sale; statements are
NFO close date is the date after which
true
the units will be available for sale at
the prevailing NAV.
Close ended schemes have and NFO
open date and NFO close date; Close
ended schemes do not have Scheme
re-opening date.
Both the
statements are
true
Any NFO launched by the AMC can

remain open for a maximum of 15
days.
Allotment of units or refund of money
needs to be done as per the time
mentioned in the Offer Document of
that particular scheme.
Fundamental aspects of a scheme do

not include which of the following
Change in fundamental attributes of a
scheme require the permission of the
Trustees as well as the investors
The offer document is a legal
document
The offer documents becomes
redundent post the investment
Which of the following principles is
applicable on the mutual fund
investments
Investment in mutual funds should be
done based on which of the following
principles
SID or the Statement of Additional
Information contains the statutory
information about the mutual fund
that is offering the scheme.
Address of the
Custodian
Partially true
Individual AMCs create their own SID

and SAI documents.
SAI and SID are applicable on specific
schemes offered by the AMC
If an investor wants income and can't
bear risk at all, then he should opt for
1
1
Principle of
utmost good
faith
Ubraime fides
1
Gilt fund
213
214
215
216
217
218
In legal parlance, SID and SIA are two

separate documents
The AMC should include all the
disclosures that are material to the
investment risk
Offer Documents need SEBI approval
Offer Document need to be vetted

and verified by SEBI
The Draft SID is available for viewing
in the AMFI's website for 21 days.
When SEBI's observations are
incorporated into the Draft SID, then
it needs to be hosted on AMFI's
website two days before the issue
opens.
A bond with a coupon of 9% when

interest rates for similar maturities
are 11% will sell
Above par
If an investor taking high risk

appetite for long term investment and
high capital appreciation in which
type of fund will investor invest
Real estate
Young unmaried prefer regular

recurring deposit scheme except
PPF
Which of the following is the safe

investment
The maturity period of RBI Relief
Bonds is
The tenure of an Indira Vikas Patra is
PPF
1
1
219
220
221
222
223
224
225
226
227
228
5 years
7 years
The current yield on Indira Vikas Patra

10.50%
works out to
The annual yield on RBI Relief Bonds
9.50%
is
Indira Vikas Patra is an investment
Rural investors
product popular with
Find NAV. Investment amount is Rs.
100 crore, deivedend accrued but not
received 207 crore, bills payable Rs.
55 lacs. No. of units issued to the
investor is 1 crore
Rs. 371.5
NAV of Mutual Fund
Mutual fund do
not received
income in
interest
Mutual fund distributor get

commission be selling mutual fund as
a product and stock broker also get
commission by selling same product.
229
230
231
232
233
234
What is essential for Micro SIP except

Which of the following is
international agency
An investor will get maximum
exposure to gold be investing
If an investor investing in closed end
fund, whether Demat A/c is necessary
KYC documentation is necessary for
Photo
identification
CRISIL
Gold ETF
1
Individual only
235
interest rates for similar maturities
are 11% will sell
At premium
In which commodity mutual fund

cannot invest
Mutual fund offer wider range of
portfolio than NPS
If number of dependant increases in
family, risk appetite
Age bar of risk appetite are under-
Gold
236
237
238
239
240
241
242
1
Increases
PPF are contributed upto
Family
information
Rs. 70,000/-
ARN number is alloted by
AMFI
Transaction slip are required by
Existing investor
Who invest in Sector fund?
Newly maried
Most individuals invest in life

insurance policies for
The amount an insurance company
would pay to the nominee if a
policyholder died is known as the
Why should one buy an insurance
policy
Risk protection
Who cannot act as a distributor
AMC employees
SEBI cannot pay commission to
Sponsor
distributor
1
243
244
245
246
Premium
It gives high
current returns
247
248
249
250
The Draft SID should not be made

available to the public
251
252
For schemes launched within the first

6 months of the financial year, the
first update of the SID is due within
______ of the end of the financial year.
3 months
For a scheme launched in April 2008,

the first update of the SID would be
due by
Minor can earn income from
Apr-08
Offered Gifts
253
254
255
256
SIP is possible through

If an investor wants monthly income
then he should opt for,
If an investor as an earning having
very less income should invest in
equity - Debt ratio as
30: 70 Ratio in equity - debt is for
257
258
259
Standing
Instruction
SIP
50 : 50
Young unmarried
stage
If gold market is down gold future

investment will,
Authorised Signatory is required in
case of
________________ can sale schemes of
only one mutual fund.
Go up
____________ schemes have to re-open

for sale/ repurchase within 5 business
days of the allotment.
Concentration risk can be in
investment of
Characterstics of scheme can be
known through
Open-ended
NRI
IFA
260
261
262
Sector fund
Poftfolio of
Scheme
263
In joint holding mode when fist holder Units transfer to
dies
nominee
264
265
266
In mutual fund maximum joint holder

can be
To show the performance of scheme
or fund, the Mutual fund should
Model portfolio is a
267
268
Clearing the certifying examination

and getting SEBI's permission are
mandatory before an agent can start
selling mutual funds
2
CAGR
Flexible Asset
Allocation
1
ARN stands for

269
270
The Synopsis of Offer Document is
Agency
Registration
Number
KIM
AMFI stands for
Association of
Mutual Fund in
India
Riskiest fund in equity is :
Sector Fund.
In India are tend to invest in physical

Assets
If an investor is submiting the
application form along with the
cheque of Rs. 1 lac in an equity Fund
at 2 PM, But there is insuficient
balance in his Account, which days
NAV will he get
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
Same days NAV
Where will a person invest if he wants

to invest in gold for short term.
New pention Scheme is managed by
Gold
To be able to sell mutual fund

schemes and earn commissions, a
person should
Information regarding the minumum
and maximum commission to be given
to the distributors have been laid
down by SEBI
have an ARN
number
Any excess to the total expense in a

scheme as laid down by SEBI is
To be borne by
the AMC
Different AMCs charge different

commissions; Same AMC charges
different commissions for different
schemes
Totally True
Initial or Upfront commission is

decided by
Trail commission is calculated by the
investor as per the service provided
by the distributor
Trail commission is usually paid on a
_______ basis
Trail commission is calculated on the
net assets attributable to the units
sold by the distributor
Initial commission and trail
commission are calculated on the
same formula
Mutual Fund commissions are paid for
a limited number of years; Mutual
Fund commissions are paid for as long
as the investor's money is held in the
fund
AMC
SEBI
Monthly
1
Totally True
Totally True
287
288
AMC is bound by the acts of the

distributor, or its agents or subbrokers
ACE stands for
AGNI stands for
AMFI Code of
excellence
AMFI's
guidelines &
norms
289
290
291
292
293
294
295
296
Commission is payable to distributors both statements

on investment made through them by
are right
their clients; Commission is payable
to distributors on their own
investmentthe distributor
As per SEBI guidelines,
1
need not disclose the commission to
the investor
As per __________, offering rebate to
investors is banned
As mutual fund investment is subject
to market risk, the AMC can make
assumptions in its advertisements.
Each AMC is required to display the
disclaimer in a particular format and
font as decided by its marketing
team.of the disclaimer
The minimum height
statement on hoardings/ posters
should be _______
The disclaimer should be written on a
__________ background.
ACE
1
18 inches
black
0.05
298
The disclaimer should cover atleast

_____ of the display area on a
hoarding/ poster.
In audio-visual media, the disclaimer
is either required to be displayed on
the screen for atleast 5 seconds or
communicated through a voice over.
20/80
299
In an audio-visual, the disclaimer

should cover ____of the screen, while
the rest ____can be used by the name
of the mutual fund or the logo, etc
In audio advertisments, the
disclaimer needs to be read out over
Which of the following informations
cannot be included in a tombstone
advertisement?
Which of the following informations
can be included in a tombstone
advertisement?
2.5 seconds
297
300
301
302
Logo or
trademark
Scheme
literature
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
Risk factors need to be mandatorily both statements

mentioned in the tomb
are right
advertisements; A general statement
to refer to the SID for details needs to
be mandatorily mentioned in the
tomb advertisements.
Any statement if mentioned in the
Product Launch advertisement
explicitly, need not be substantiated
in the SID & SIA
The maximum initial commission that

an AMC can pay to distributors is
__________
The distributor can charge a fee from
the investor
Stock exchange brokers are permitted
to distribute mutual funds without
the requirement of passing the
certifying test.
0.05%
Trail commissions are linked to

valuation of portfolio in the market
international asset?
Investment objective defines the
broad investment charter
Age come under
1
1
Real Estate
1
Family
information
Risk Appetizers
Risk appetite of investors is assessed

through
A person working with TCS as a CEO
1
have more risk appetite than a person
working as a CSR in TCS
An adventurious and daring person
1
can bear more risk
In recessionary period gold gives
1
better return than any other financial
product
According to strategic asset
60% Debt, 40%
allocation, a 60 year old retired
equity
person from a government job, would
invest
in
A person working
in BPO,
the planner
Equity
would advice to invest in
The psychological need to having an
asset under one's possession,
provides the customer with
____________ because of which they
prefer physical assets.
Comfort
Gold future contracts have an

unlimited contract period.
Gold future contracts can be renewed
at the expiry of the contract period,
with no renewal cost.
1
1
321
322
323
324
325
326
327
328
Gold ETF is an open end scheme; Gold Both statements

ETF has a fixed maturity period.
are right
Investors who buy ETF can hold on to
1
their position indefinitely.
Gold holdings, including that used for
1
personal use, attracts Wealth Tax.
Gold linked mutual fund schemes are Both statements
exempted from Wealth tax; Gold
are right
deposit schemes are exempted from
Wealth tax.
Real estate is an illiquid market; Gold Both statements
has the advantage of liquidity.
are right
Under the Deposit Insurance Scheme
of the govt, upto Rs _______ per
depositor in a bank is paid by the
insurer, incase the bank fails to pay
the depositor's money.
2 lakhs
Pre-mature closure of a fixed deposit

attracts a penalty.
Interest earned in a bank deposit is
taxable each year.
PRAN stands for
1
1
Provisional
Registration
Account Number
329
330
331
Under new NPS scheme, Tier I is the

1
Pension account while Tier II is a
Savings account
The Pension account is withdrawable; Both statements
Tier II is non-withdrawable
are right
The Life cycle fund under NPS will
invest the investor's money into
Equity market
instruments
332
333
334
335
336
337
Gold futures are superior to ETF Gold

1
as a vehicle for life-long investment in
gold
As regards wealth tax, ETF Gold is
1
superior to physical gold.
The New Pension Scheme is regulated
SEBI
by
An investor under the new pension
Equity
scheme can choose which of the
following asset classes
Tangible assets can also be called as Physical assets
______________
338
339
340
A share certificate is a physical asset; both statements

A Share certificate is not the asset
are right
but only the evidence supporting the
benefit that the investor is entitled
to.
A gold bar and a share certificate of
gold exchage fund are both examples
of physical assets.
Majority of the wealth of Indians is
locked in _________
Physical assets
MCX stands for ___________________
Multi commodity
Exchange
In the formula A=P*(1+I)n, P stands

for
Principle
Which of the following might be worth

considering while doing a financial
planning
Inflation
345
An equity portfolio is not a viable

investment option to meet short term
financial needs
A comprehensive financial plan takes
into account all the financial goals of
a person together, and then
startegises the investment plan.
Goal-oriented
Financial plan
346
___________captures the estimated

inflows from various sources and
estimated outlfows for various
financial goals, including postretirement living expenses.
The comprehensive financial plan
includes
Gather Client
data, define
client goals
341
342
343
344
347
348
349
A goal oriented financial plan includes

1
taking a perspective on the Life Cycle
and Wealth Cycle of the investor
Equity exposure suits which of these Young Unmarried
Life Cycle the most
Life insurance becomes absolutely
critical for
350
young married
working couple
351
352
353
Premiums for Term insurance policies

1
are generally higher than those of the
Unit linked policies
Starting with a health insurance
Low premium
policy early is the best antidote
against the __________ clause.
Health insurance policy claims are
1
generally settled through
reimbursement or on cashless basis
The Accumulation phase of the wealth childhood to precycle correspondes with which of the
retirement
life cycle phase/s
354
355
356
357
358
359
360
361
362
363
In the ________phase of the wealth

cycle, the investors tend to increase
the proportion of their portfolio in
liquid assets viz money in the bank,
liquid schemes etc
Accumulation
__________ phase of the Wealth cycle is

Transition
the parallel of the retirement phase
of the Life cycle
The Inter-generational transfer phase
40
should not be postponed beyond
_________ years of age
Regular money is required during the
Reaping
_____________ phase.
equity
During the sudden wealth phase, it is
advisable to initially block the money
by investing in a ________ scheme
Term life insurance policies are the
1
cheapest form of insurance
1
Money back life insurance policies
help with regular inflow of cash at
periodic intervals
Today's costs can be translated into
A=P* (1+I)^n
future requirement of funds using the
formula
Providing funds for a daughter's
Goal-oriented
marriage is an example of
Financial plan
According to the Certified Financial
Analyse and
Planner - Board of Standards (USA),
evaluae client's
the first stage in financial planning is financial status
364
365
Investors can get into long term

investment commitments in
_____________________
Distribution
phase
Portfolio turnover rate of a fund

measure the
Size of the
fund's portfolio
An Investor with Double-Income in

Late forties with no children DebtEquity Portfolio would be?
Black Swan means,
50:50
366
367
Opposite of
white swan
368
Riskiest fund in balanced fund is :
369
Capital
Protection
Scheme.
The investor cannot set off the Capital He is redeeming
Loss if
the investment
within 9 months
370
371
372
The size of a fund has no bearing on

1
its performance
As per SEBI, mutual funds can borrow Total net assets
for short term to the extent of
Which of the following is of no
The performance
relevance in evaluating fund's
of the stock
performance
market as a
whole
373
374
375
376
377
378
379
The choice of an appropriate

benchmark for evaluating a fund's
performance depends on
Investing real estate fund has an
advantage except :
The fund
manager
Diversified
Portfolio.
For evaluating funds, the preferred

benchmark would be the
BSE Sensex
To evaluate a close-ended debt-fund,

a suitable benchmark would be
When comparing performance of two
funds, the following need not be
similar
Financial goals do not include
BSE Sensex
Risk profiles
Buying a home
Financial planning allows a person
To become a
billionaire
380
381
382
383
Financial plans do not alter in any way

1
the amount of tax an investor pays as
the tax is on his income
Tax Advisor
Which of the following works with an
investor on his overall financial
situation
A Financial planner takes
1
responsibility for the financial well
being of his/her clients
Financial planners and their clients
Allocating funds
should focus on
to asset classes
(e.g.debt,equity
etc.)
384
Financial Planning comprises
Defining a
client's profile
and goals
385
386
387
388
389
390
391
392
393
Financial planning is relevant only for

1
high networth individuals
Financial planning does work for older
1
clients
1
Financial planning is primarily tax
planning
In financial planning, all responsibility
1
ends with the financial planner and
the client has no responsibilities
The constraint on financial planning
Decreasing the
due to insufficient investable
standard of
resources can be remedied to some
living
extent by
Which of the following is the least risk
in the mutual fund
If an investor keeps investing a fixed
amount at regular intervals, the
average cost of his purchases will
always be less than if he makes
investment at irregular periods
Money market
mutual fund
1
Which of the following lets an

investor book profits in rising market
and increase holdings in a falling
market
Fixed Rates of
Asset Allocation
The strategy advisable for an investor Buy and hold on

to maximise investment return in the to investments
long run is
for a long time
394
395
In India, individual investors do not

have direct access to
396
Which of the following investment
products do not give guarantee for
return or capital
Capital market
instruments
Providing
Training to all
Distributor
Bank deposits
397
398
399
Investor can do the day transaction in

Open end equity fund
The biggest disadvantage of
investment in real estate is
400
401
402
403
404
Listing of shares at a stock exchange

ensures
1
Less potential
for capital
appreciation
Providing
Training to all
Distributor
Guaranteed
returns
The SAI is relevant for all the scheme

1
offered by Same Mutual Fund
Which of the following is not a
A higher rate of
characteristic of company fixed
interest
deposits
Deffered Loan only charged in close
1
end scheme
Individual investors do not normally
Individual
invest in Government Securities
investors are not
because
allowed to invest
in Government
Securities
405
406
407
If the investor cannot pay the

1
premium he can go for term plan in
insurance policy
Dividends distributed by mutual funds Taxed at source
are
Investing through mutual fund is a
better option than investing directly
in the stock market because
Identifying
stocks is a
difficult process
409
Interest rate risk is :
Financial Loss.
410
Which of the following debt

investments is not rated
Corporate bonds
408
411
412
Gold and real estate are attractive

1
investment options only in high
inflation economies
Deciding on strategies such as longStock market
term compounding, cost averaging, situation on date
value averaging, active switching, all
depend on the
Financial planning involves
413
414
415
416
Studying
financial
management
SEBI
It is _______ objective to develop a

cadre of well trained agent
distributors.
Capital protected schemes invest zero
1
coupon bond
There is at least 3 board of trustee
1
required in Mutual Funds
The appointment of AMC can
75% unit holder
terminated by majority of board of
trustee
417
418
419
In NPS the investor can invest in life

cycle fund
Tier II pension account is
withdrawable
The benefit of application by blocked
amount is
1
1
The amount will
debited only
when units will
be allotted
420
Indexation means
Capital gain
421
422
Which of the following is prohibited in Contact details

Tombstone Advertisement
of AMC and RTA
In liquid fund returns can be
advertised in
1 yrs, 3yrs, 5yrs,

and since
inception
423
Volatility of an equity fund portfolio is Kind of stocks in
independent of the
the portfolio
424
425
426
Equity price risks are

Diversification reduces
Company
specific
Company
specific risk
If the investor is not comfortable with

any change then
He can redeem
his investment
at prevailing
NAV
A fund with a high beta coefficient

gives greater returns in a rising
market, and is more risky in a falling
market
Which of the following is a

disadvantage of standard deviation as
a measure of risk
Standard
deviation
measures total
risk, not just
market risk
The role of an agent is to
Point out the

features and
benefits of
various
investment
options
One of the most effective ways to

invest through mutual fund is to
Develop a model
portfolio
what is the maximum time period for

investing in NFO of equity linked
saving fund is,
Asset allocation is
15 days
427
428
429
430
431
432
Keeping
certificates of
the physical
securities in
proper places
433
434
435
436
437
Gold sector fund invest in gold
Which of the following aspects would Sector Selection

an investor in a debt scheme give
most importance
A retired person generally needs a
Debt funds
greater proportion of
To satisfy a young investor's need for
Gilt funds
growth, a greater proportion of
investment should be advised in
A very high proportion of investment

in all types of equity funds is
advisable for investors
In distribution
phase
The transition phase of an investor's

wealth cycle is when
The financial
goals have been
already met
A high proportion of investment in

income funds is required by
Accumulating
investors
Retired investor should
Not draw down

on their capital
For older investors who want to

transfer their wealth
No financial
planning is
required
Investors who acquire sudden wealth
Can speculate
with all the
acquired money
in the stock
markets
Only if a specialty offshore fund has

consistently given very good
performance, it can be considered for
investment by a retiree
438
439
440
441
442
443
444
445
446
447
Past performance should not be solely

1
relied on for selecting a fund
Between the past performance of the
1
fund and its suitability for an investor,
past performance is more important
What is the excel formula of standard S.D=STDEV(rang
deviation
e of cells where
the periodic
returns are
calculated)
What is the fourth step of financial

planning as per Certified Financial
Planner-Board of Standards (USA)?
Gather Client
Data
For which of the following would you

consider average maturity as an
important factor in selecting the right
one for the investor?
A Debt fund
How many time KIM needs to be

updated :
If beta is higher than 1, the fund is:
Twice in Growth.
Sharpe and Treynor Ratios are

measures of:
Average return
448
451
452
453
454
Less volatile
than market
A criticism of rupee-cost averaging is Investment is for

the same
amount at
regular intervals
455
If you maintain a flexible ratio of
asset allocation, would you
Rebalance the
Debt/Equity
allocation
periodically?
While deciding on an asset allocation

strategy, the investor must
consider.
Which of the following is the best
investment option for the purpose of
getting the maximum benefits of
compounding?
The stage of his

life
Asset allocation of a portfolio should

be re-evaluated every time there is a
change in the
Family size and

requirement
Code of ethics should be followed by

distributors as:
It is required by
AMFI
456
457
458
12% interest
paid yearly
459
460
What is insider trading?
Buying and
selling securities
ahead of doing
the same
transaction for
the fund
The detailed version of SEBI circular

regarding code of conduct for
distributors given by AMFI is known
as:
Ethics code
The regulation of Personal trading is

applicable to:
Key Personnel of
the AMC
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
0
A person working as a CEO in TCS has
more risk appetite than a small
business man.
Daring, adventurous and mentally
0
strong people has less risk appetite
Equity
Investing in the __________funds is
recommendable in case the
investment horizon is long.
An investment horizon if ____________
5 and less than
makes the probability of losing money
5 years
in equities negligible
Index funds are usually considered to
1
be passive funds
An Investor with an objective of
Equity fund
having an equity growth component
in his portfolio should invest in
1
The NAV of an Index fund is directly
propotional to the benchmark index.
Liqidity is the most important
1
differentiater between a Close ended
and an Open ended fund.
The price of units of a closed-end
same as the
scheme in the stock exchange tends
to be ____________NAV.
Units of an open-ended scheme can
NAV less Entry
be bought back by the scheme at
load
__________
0.02
The maximum exit load as per SEBI
legislations is ____
Exit load is informed to the investor
1
at the time of his making the
investment.
Liquid assets
476
To provide the facility of liquidity to

the investors, a part of the openended schemes are maintained in
___________
477
Close ended schemes are subject to

the risk of large fluctuations in net
assets, on account of heavy sales or
re-purchase.
478
479
480
481
482
483
484

Equity
recommendable in case the
investment horizon is long.
An investment horizon if ____________
5 and less than
makes the probability of losing money
5 years
in equities increases
If the open end fund is in profit its
1
advisable to wrinkage the investment
An investor make transaction on
12 Noon.
internet which time can be a cut off
time :
Individual needs
disadvantage in LIC
to pay a fixed
premium
The interst and surrender value in
1
PPF is tax free
The price of units of a closed-end
same as the
scheme in the stock exchange is to be
____________NAV.
Black swan is refered as,
A kind of offer
Document
485
486
487
488
489
Close ended schemes are subject to

the risk of large fluctuations in net
assets, on account of heavy sales or
re-purchase.
A Diversified fund is less risk prone

then a Sector fund
It can be risky to invest in ________
during periods of economic turmoil
Growth funds offer good returns in
the initial phases of a bull run; Value
funds yield benefits over large
holding periods.
1
Large-cap
Both statements
are right
If an Indian investor invests in the US, He would benefit

then
if the US $
becomes
stronger
490
491
MIP are perfect investment options

for investors who do not wish to take
any equity exposure.
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
For a predictable return, an investor

MIP
should invest in a
Non-government securities offer
1
higher yields and are not subject to
credit risks.
Longer term debt securities fluctuate
1
more than shorter term debt
securities
1
NAV of a long term debt fund might
be more volatile than that of a short
term debt fund
Incase the interest rates in the
Long Term debt
market are expected to go up, then
fund
investment would be best made in a
Use of the term 'liquid plus' as a fund
1
type has been banned by SEBI
Balanced schemes invest in a mix of
1
equity and debt securities
Gold ETF and Gold Sector Funds are
1
one and the same thing
Most AMC share the portfolio of all
Daily
their schemes in their website on a
_______basis
While deciding to select an AMC for
Fund age
investment, the investor can look out
for
Dividend payout option has the
Both statements
benefit of money flow to the investor;
are right
Growth option has the benefit of
letting the money grow in the fund on
gross basis
Re-purchase transactions in equity
schemes are subject to STT
Equity schemes attract dividend
distribution tax
It might be better to receive money in
an equity scheme in the form of
dividend, rather then re-purchase of
units
If an investor does not want any tax

liability he should invest in
Debt fund
growth option
Asset Allocation means,
Don't keep all

the egg in one
basket
Arbitrage funds enjoy all the tax

exemption which is applicable in
Equity Fund
Insurance is more critical for,
Physical Assets
Which of these cannot be distributor
RBI Branch
1
1
507
508
509
510
511
512
513
514
515
516
517
Investor invest Rs12,000 where NAV

is Rs. 23.45. Face value is Rs. 10 as
per the current load. How much unit
will be aloted.
510 units
Which of the following is physical

assets
Which of the following is not a good
selection for investment purpose
Which of the following is not a reason
to invest in Gold Fund
Which of the following is not a reason
to invest in Real estate fund
Asset Allocation in Asset Class C is,
Real estate
Equity Fund
Professional
management
Professional
management
Equity
The returns of gold fund is depend on
Global price of
gold
Which of the following is comparable? Equity Fund and
PF
518
519
520
521
522
523
524
525
526

product for long term investment
product for short term investment
Which of the following is tax free
investment
Which of the following cannot invest
in Mutual Fund
Initial Stage of life is known as
accumulation stage,
Mutual Fund can invest in Liquid plus
fund
There is no need to have insurace
policy of the nominee
If the employer providing medical
policies to the employee of its
company then employee no need to
keep their personal medical cover
Gold ETF
Gold ETF
PPF
Common Man
1
1
1
1
529
The retired client never invest in

equity
Foreign nationals are freely permitted
to invest in Indian Mutual Funds
STP is a combination of SIP and SWP
530
Switch = Repurchase + Sale
Profit/loss earned/incurred by a mutual

fund scheme___________.
shared by AMC
and the
investors
according to preagreed ratio
527
528
531
1
1
532
In case of losses in a mutual funa scheme,

investors may have to bear amount higher
than that invested.
533
The pool of money mobilized by mutual

fund houses to accommodate investors
varied preferences is called_________.
unit capital
534
Which of the following is/are the

advantages of mutual fund-
wealth
generation
through
professional
management
535
Funds that combine the feature of closeended and open-ended funds are
called_____________.
flexible funds
536
beat the return

of the index
537
Passive fund is expected toGold funds and gold sector funds are the
same type of funds.
538
Thematic fund is a variant to_________.
diversified fund
539
Investors in interational funds invest in a

__________ which is re-invested in a
__________.
feeder fund,
host fund
540
541
542
543
544
545
In which of the following do debt funds not

government
investdebt instruments
Funds, which invest only in the stocks
comprising an index and aim to give
returns commenurate with the index
returns, are called__________.
Mutual funds can be defined asA mutual funds' investments are guided by
the-
Gilt funds In india, mutual fund schemes are not

permitted to invest in commodities.
index funds
a link between
the saving public
and the capital
markets
AMC
have no risk at
all
1
that are open for

sale and repurchase by the
fund anytime
547
Exchange traded funds are open-ended

funds_______________.
Commodity sector funds are not permitted
to operate in india.
548
A closed-end mutual fund has a fixed-
NAV
549
An open-ended mutual fund is one that

has:
An option to
invest in any
kind of security
546
550
551
552
553
554
Gold sector funds are a type of

_____________.
Monthly income plans have to declare a
dividend every month.
Floating rate debt securities

means_____________.
gold funds
1
debt securities
whose rating
changes from
time to time
___________are funds where the manager

has the flexibility to choose the investment
actively
portfolio.
managed funds
Of these, which is an example of a passive
duration
fund management strategy?
management
555
A Nav of equity incom/dividend yield

scheme tends to fluctuate higher than
other equity schemes.
556
Fixed maturity plans are___________.
1
open-ended
funds
557
raise the
maximum
possible amount
of assets in each
The following is not a duty of the board of scheme floated
trustees of a mutual fundby the fund
558
Which of the following can be a sponsor of

a mutual fund?
indian public
sector banks
Prior approval of _________is required

before a person is appointed as director on
the board of the AMC.
Appointment of an AMC can be terminated
by__________.
trustee
majority of the
trustees
559
560
562
The AMC should have a minimum net

worth of___________.
The auditor of a scheme of mutual fund
and the AMC has to be different.
563
XYZ Ltd., a custodian has 4 directors out of

which 1 director is also a director of the
sponsor company and another director is
50% shareholder of sponsor's associate
company. Can XYZ lit., be appointed for
the sponsor mutual fund?
yes
564
If a sponsor controls________or more shares

of a custodian, then they cannot be
appointed for the mutual fund operation of
the sponsor.
20%
565
The trust that manages a mutual fund is

appointed by
ministry of
finance
566
A transfer in the management of a closeended scheme does not require the

consent of-
unit holders
561
567
Rs. 100 Crore

1
act as a
protector of
investors'
interests
568
The board of trustees of a mutual fund:

There can be multiple custodian of a
mutual fund scheme.
569
An AMC cannot invest in its own scheme

without disclosing it__________.
to the trustees
570
Atleast 50% of the director in the AMC

should be independent of________________.
sponsors
571
A mutual fund scheme can be launched by-
the trustees
572
573
574
575
The agreement between the trustees and

the AMC ?
How much % of unit holders is needed for
termination of AMC?
Transfer agents of a mutual of a mutual

fund are not responsible forThe fund sponsors should have a sound
financial track record of-
trust deed
51%
issuing and
redeeming units
to the mutual
fund
7 years
576
As per SEBI (mutual fund) regulation, who

acts as the protector of unit-holder's
interest?
trustees
577
To transfer the management of a scheme

from one AMC to another, the consent of
the following isrequired-
SEBI
578
Distribution channels are a critical element

in the distribution of mutual funds in india.
580
XYZ ltd., a custodian has 20 shareholders

out of which, ABC ltd., a sponsorcompany
holds 60% shares Can XYZ., be appointed
for ABC ltd mutual fund operation?
AMC usually appoints all the other
consitiuents, except custodians.
581
Sponsor of a mutual fund has no direct or

indirect in the AMC of the said fund.
582
The AMFI Code of ethics has been framed

to be followed by the______________.
mutual fund
investors
583
Distributors are required to abide by a

code of conduct as prescribed by SEBI.
This code is based on-
AGNI
579
584
yes
1
In case of ongoing transaction (other than 10 working days

NFO), statement of account is to be sent to
of the
investors within___________.
investment
NAV and re-purchase price of a mutual
fund other than FoF schemes, are to be
updated in AMFI and mutual fund website
within______________.
9.00 PM the
same day
586
The term"self dealing" in mutual fund

means__________.
buying or selling
of any securities
ahead of
transaction of
the fund, with
access to insider
information
587
In case of delay in dispatching dividend

warrants/redemption cheques beyond the
time limit prescribed, the AMC has to pay
the investor____________.
penalty of
Rs.5000 each
588
Scheme portfolio statement should be

published within_____________.
within 1 month
from the close of
each half year
585
590
An open-ended scheme can change its

fundmental attributesInvestors of a mutual fund scheme cannot
sue the __________.
591
If investors claim unclaimed

dividend/redemption proceeds within a
period of 3 years, they get the payment
based on__________.
589
by obtaining the
consent of at
least 75% of
unit-holders
trustees
NAV at the time

claiming the
amount
593
Investors of a mutual fund scheme already

matured are not entitled to any proceeds
of illiquid securities recovered later at any
point of time.
Guaranteed returns mutual fund scheme is
not permissible.
594
Buying or selling of any securities by the

key personnel of the mutual fund ahead of
transaction of the fund, with access to
insider information is called__________.
self trading
595
The AMC should encourage concentration

of investment transaction through very few
selected brokers.
592
1
1
597
obtaining from
the trustees any
information
having an
adverse effect
Unit holders' right to information does not
on their
includeinvestments
The NAV of each scheme should be
updated on AMFI websiteevery quarter
598
When a scheme's name implies

investment in a particular kind of security
or sector then it should invest at
least__________of its corpus in that security
or sector.
596
90%
599
An entity holding 5% or more of the total

corpus of any mutual fund scheme are
called______________.
sponsors
600
Mutual fund houses can also vanish with

no protection being available to investors.
601
Guaranteed returns mutual fund scheme

are permissible if-
stated in the
offer document
602
Investors can appoint

upto__________nominees for any mutual
fund schemes.
two
603
Dividends or redemption proceeds once

not claimed cannot be claimed further
further by the investors.
604
has the same

status as a unitholder of a fund
605
A prospective investorWhat is the periodicity for submitting the

report by AMCs to trustees?
606
NAV and re-purchase price of a FoF mutual

fund scheme, are to be updated in AMFI
and mutual fund website
within_____________.
9.00 PM the
same day
607
In case of mutual fund transaction,

statement of account at the request of
investor is to be sent within___________.
10 working days
of the
investment
608
The AMC announces the_____________from

the scheme Re-opening date.
Dividend
609
Detailed information regarding any mutual

fund scheme is available from
the______________.
AMC Head office
monthly
610
SID in a mutual fund industry

means__________.
savingsinvestmentdistribution
611
The due diligence certificate that must be

submitted to SEBI along with the draft offer
document cannot be signed by-
the managing
director of the
AMC
Cover page of the SID does not contains-
name &contact
information of
the sponsor
612
613
Though SID and SAI are two separate

documents, but in legal technicality SAI is
part of the SID
True
614
Which of the following is not true of key

information memorandum?
It is an abridged
version of offer
document
615
For any chang in fundamental attributes,

AMC needs to advertise________________
in television
616
The ideal source of information on

investment plans &investor services
offered by the fund is-
SID & SAI
617
Already existing mutual fund launching a

new scheme should furnish condensed
financial information in SAI for
schemes
launched prior to
this new scheme
618
summarised form of SID and SAI is

called______________
Abridged SID
and SAI
619
Any change in SID other than for change in

the fundamental attributes should be
updated in SID
immediately_____________.
within 3 months
620
Specific disclosure is required

for_____________ regarding the guarantee
given by AMC or sponsor to distribute
income at the assured rate, and to redeem
the capital invested, to the unit holder.
closed-ended
schemes
621
The offer document of a mutual fund is

vetted by SEBI but not actually approved.
True
622
623
624
625
626
If a scheme is launched in the first 6

months of the financial year then the first
update of the SID is due within__________.
6 months from
the end of
financial year
If a scheme is launched in thet second 6

months of the financial year then the first
update of the SID is due within__________.
Draft SID is available for viewing in SEBI's
website for ________________.
3 months from
the end of
financial year
A mutual fund scheme was launched on

february 2010, then the first up date of SID
is due within______________.
Whether the scheme is open or closeended is a fundamental attribute.
15 working days
Jun-10
True
627
Standaed risk factors are the ones-
which are
uniformly
applicable for
any mutual fund
scheme
628
Any pending cases or penalties levied on

the sponsors or AMC should be disclosed in
the offer document.
True
629
Which of the following is not a valid

information in SAI?
Profiles of key
personnel
630
The minimum number of investor

requirement for an open-ended scheme
shall be complied:
only during NFO
631
If an investor of an open-ended mutual

fund scheme holds 25% or more of the
corpus of the scheme, the maximum time
limit he dhould get to rebalance his holding
is________.
1 month
632
Penalties or action taken against the

foreign sponsor(s) shall be disclosed in the
SID
only to the
extent of
jurisdiction of
the country
where the
principal
activities of the
sponsor(s) are
carried out
633
The functions and responsibilities of the

sponsor, AMC, trustees and custodian of
the mutual fund are listed in-
statement of
additional
information (SAI)
634
Which of the following in not the

fundamental attributes of a mutual fund
scheme-
liquidity
provisions such
as listing,
repurchase,
redemption
635
If an investor of an open-ended mutual

fund scheme holds 25% or more of the
corpus of the scheme,he should:
exit from the

scheme
636
Any change in SID should be-
advertised in an
english
newspaper
having nationwide circulation
637
In case of change in the fundamental

attributes, the SID has to be
updated_______________
3 months from
the end of
financial year
638
For investors to correctly compare

performance of different funds SEBI's
advertising codes include-
uniform
computation of
yields
639
In display advertisement' the statutory

disclaimer "mutual funds investmentis is
subject to market risk.." should
be________________.
displayed in
black letters of
at least 8 inches
height in white
background
_____________can only give basic

information about a mutual fund registered
with SEBI.
Display
advertisement
641
MF regulation precribe-
The minimum
commission of
the distributor
642
In which of the following advertisement

tpye "risk factors" of mutual fund
investment may not be mentioned?
Audio-visual
advertisement
640
644
According to SEBI's advertising code, for

fund that have been in existence for more
then a year, annualized returns have to be 1 yr, 3 yr, 5yr,
furnished forand sine launch
Commission paid by AMC (S) to distributors
upfront
consists ofcommission
645
A ranking entity, which is a subsidiary of

the AMC of mutual fund can provide
ranking of AMC(s) scheme in performance.
True
646
In performance advertisements, the return

calculation should be made on__________.
absolute basis
647
_____________of mutual fund shall not be

used other than launching or re-launching
of scheme.
product launch
advertisement
643
649
To empanel with the AMC or to become

agents of a distributor who is already
empanelled with AMC is compulsory in
order to sell mutual fund products.
An AMC of a mutual fund is bound by the
act its distributor or agents.
650
AMC pay a trail commission for the period

the investment is held in the scheme.
True
651
A mutual fund advisor cannot advertise or

issue publicity material other than that
provided by the AMC or pre-approved by
the AMC.
True
652
SEBI regulates the minimum pr maximum

commission that the distributors can earn.
True
653
Distributors cannot claim commission on

their own investments.
True
648
True
True
655
In performance advertisements, the

compounded annualized return shall be
shown for_________.
Trail commission takes into account
valuation gains earned on units.
656
Every AMC follow one specific commission

structure and do not vary between
schemes or plans.
True
657
Distributors can claim upfront commission

directly from the investors.
True
State which of the following statement in

false?
higher the
appreciation in
the investment
portfolio, higher
would be the
NAV
654
658
659
660
What is mark to market?

Exit loads applicable to big investors and
small investors are-
661
Initial issue expense of the mutual fund

scheme has to be borne by the ___________.
the last 3
successive years
True
valuing
investment at
cost price
same
investors
663
Which of the following recurring expenses

cannot be charged to the scheme?
A fund's declared NAV does not include
loads-
664
The maximum entry load that could be

charged by a mutual fund scheme os-
6.00%
665
The NAV of an equity fund was 36.00.The

fund charged 1.00% as exit load. If an
investor wants to withdraw Rs. 100000
from the fund, what is the number of units
he eill repurchase?
2750.275
666
All expenses and income accrued upto the

valuation date shall be considered for
valuation. Some minor expenses need not
be so accrued, providedtheir affect on the
NAV is not more than:
2.00%
662
service tax
True
667
Short-term capital gains tax arises if

investments in mutual fund units are held
for a period ofless than 3 years
668
The basic rate of dividend distribution tax

on debt funds (other than liquid funds)
payable for investors other than
individual/HuF is-
20%
669
TDS on the dividend distribution or repurchase proceeds to non-resident

investors is payable at the rate of:
As prescribed in
income tax act
and where DTAA
applicable at
lower of IT rate
or DTAA rate
670
________________For valuation of not

traded/thinly-traded securities when such
secrities represent more than 5% of the
net assets of a scheme.
an independent
valuer has to be
appointed
671
For the purpose of valuing a mutual fund

portfolio, equity shares which are not
traded/thinly traded are valued on the
basis of-
Earnings per
share
672
A fund's NAV is affected by-
purchase and
sale of
investment
securities
673
NAV for_________is to be calculated up to 4

decimal places.
equity and
balanced funds
674
NAV for index funds, liquid funds and other

debt funds is to be calculated up to
__________decimal places.
maximum 4
675
Annual report has to be published within

____months of accounts closing date.
four
676
Mutual fund scheme are permitted to keep

re-purchase price lower than the NAV.
True
677
A fund of fund scheme cannot charge

recurring expenses more than _________of
the net average assets of the scheme.
2.00%
678
As per SEBI guideline dividends can be

paid ___________.
out of accrued
profits
679
The maximum load that a fund can charge

is determined by the:
AMC
680
Exit load charged to investors in excess of

1% should be_______________.
repaid to
investors on
whom it is
charged
681
A liquid fund has average weekly net

assets of Rs. 800 crores. As per SEBI's
regulations, the AMC can charge the fund
with management fees upto:-
Rs. 2.25 crore
682
An index scheme cannot charge reurring

expenses more than _________of the net
average assets of the scheme.
2.25%
683
PAN Card is not compulsory for__________.
micro SIP
684
NRI/PIO mutual fund application on

repatriable basis should be by cheques
drawn on ___________.
Reserve bank of
india
685
the applicable NAV for a sale transaction of

liquid fund where ion has been received
within 12 noon would be (assuming funds
available for utilization on the same day)-
closing NAV of
the day
preceding next
business day
686

equity fund amounting to Rs. 1 crore or
less where application has been received
after 3 pm with local cheque/dd would be-
closing NAV of
day funds are
available for
utilization
687
Options available to mutual fund investor

is/are-
dividend payout
option
688
Which of the following is TRUE of an

automatic reinvestment (or a growth)
plan?
the growth plan

allows for the
automatic
reinvestment of
all income and
capital gains
689
Debt fund investors who is in need of cash

at regular intervals is better off by
choosing-
Daily dividend
payout plan
690
NAV of a scheme helps in deciding an

investor whether he should go
for___________.
Automatic
reinvestment
plans
691
What is difference between SIP and VAP?
SIP is systematic
investment plan
and VAP is value
averaging plan
692
___________option enable investors to give

standing instruction to the fund to initiate
a transaction when a condition is met.
ECS
693
694
mandating
Which of the following measures are not
minimum levels
taken by SEBI for protecting investors of of diversification
mutual funds?
for mutual funds
Foreign entities can invest in mutual funds
of india through_______route.
OCB
695
In case of death of unit-holder, the units

get transferred to the nominee
automatically without calling for any
evidence.
True
696
Persons in high tax bracket are better off in

choosing dividend payout option than
those in lower tax bracket for debt funds.
True
697
Documents available to investors for

inspection do not include
memorandum
and articles of
association of
AMC
698
In a dividend re-investment option of a

mutual fund scheme, new units are
allotted to investors at-
ex-dividend NAV
699
A systematic withdrawal plan is ideal for:
investors with
growth as the
main investment
objective
700
The applicable NAV for a sale transaction

of equity fund amounting to Rs. 1 crore or
above would be_
closing NAV of
day funds are
available for
utilization
701
A scheme's policy on dividends and

distribution-
is decided by the
fund manager as
per is market
outlook
702
it allows
investors to
make systematic
Which of the following is true of systematic withdrawal from
withdrawal plan(SWP)?
his fund
703
The need for regular income is better met

through a systematic withdrawal plan than
dividend payout option.
True
704
A "switch" transaction is not a sale

transaction under the income tax
regulation.
True
705
In _____________option of a mutual fund

scheme, the NAV captures the full value of
portfolio gains.
dividend
706
The NAV of a mutual fund scheme post

diviend declaration but prior to its
payment is:
ex-dividend NAV
707

dividend payment is:
ex-dividend NAV
The historical price of a share is calculated

by using the formula-
average
earnings of last
5 years / no. of
ordinary shares
outstanding
708
709
710
711
_______________stocks tends to grow faster

than the economy and in correction phase
falls faster too.
The bottom-up approach of portfolio
building is also called_________.
Money market securities have a meturity
period of_______________.
volatile
value investing
3 years
713
The difference between the yield on gilt

and the yield on a non-government debt
security is called its______________.
Simple total return takes into account the
reinvestment of the dividend.
714
A growth stock refers to shares of a

company whose earnings are projected to
grow at the normal market rates
True
715
The SEBI prescribed means of measuring

return is-
simple return
712
premium
True
716
The real estate price shoots up when-
the economy
improves
717
__________are applicable for debt schemes.
modified
duration
718
When expecting a fall in market price, fund

managers can reduce the loss in portfolio
value by-
speclating
719
Non-systematic risk in an equity portfolio

can be___________.
managed by
adopting good
stock picking
technique
720
Volatility in a mutual fund portfolio is

caused by_______________.
investment in
blue chip stocks
721
Which of the following is not true ?
standard
deviation
measures the
fluctuations of a
funds returns
around a mean
level
722
Sarpe ratio of an equity scheme can be

compared with the sharpe ratio of debt
scheme.
True
723
An investor buys a mutual fund unit at Rs.

24.65. He subsequently receives a
dividend of 13.25%, which he reinvests in
the fund, at the then prevailing NAV of
Rs.24.35. At the end of the year, the NAV
of the fund is Rs.25.75. What is the rate of
return to the investor?
11.13%
725
Which of the following is a disadvantage of

standard deviation as a measure of risk?
Scheme's return and investor's return from
the scheme may differ due to-
726
Alpha measures the___________.
724
standard
deviation
measures total
risk, not just
market risk
loads
Scheme's return
727
__________________helps in assessing under

performance or out-performance.
beta
728
What would be a suitable benchmark to

evaluate a closed-end debt fund?
BSE sensex
729
international
money market
730
MIBOR is based on __________.

Higher the sharpe ratio, better is the
scheme's performance.
731
The risk of a scheme's NAV moving up or

down on the basis of capital market
movements is
an investment
attribute
732
Benchmark of a mutual fund scheme can

be changed by__________.
the sponsors

true?
In a floater, when the market yield goes
up, the issuer__________.
interest rate
sensitivity of a
debt security is
lower if the
maturity period
is higher
redeems the
security
State which of the following statement is

false?
In a floater,
when the market
yield goes up,
the issuer pays
higher interest

true?
there is a direct
relationship
between yields
and value of
debt securities
733
734
735
736
737
True
For choosing an appropriate benchmark to The composition

measure a scheme's performance, all of
and size of the
the following are required exceptportfolio
738
739
740
Which of the following statements is an

adequate description of reality?
when compared
to gilt funds,
securities in
diversified debt
funds have
higher risk of
default
If a bond cannot be sold at a price near its

value, it means that investment in this
bond has
high liquidity risk
Mutual funds are permitted to use
derivative forleveraging
741
The Nav of close-ended schemes are

usually quoted____________at the stock
exchange.
at a premium to
NAV
742
Passive funds are expected to offer

returns__________.
above the
market returns
743
Portfolio turnover ratio is:
total dales / net

assets
744
A high portfolio turnover in an equity fund

means-
the fund is very

active in market
745
A better Gold ETF is the one

which__________.
gives decent
returns
consistently
746
A portfolio turnover of 200% implies that

an average security stays in a portfolio for-
747
A debt fund investor should give

moreattention to__________before selecting
a debt scheme.
748
investing with a
short term
Market risk can be effectively managed by:
horizon
6 months
fund house
reputation and
track record
749
Investors looking for regular income from

equity schemes are better off in investing
in dividend payout plans than investing in
growth plans with systematic withdrawal
plan, due to-
cumbersome
and time taking
process of repurchase
750
A close-ended scheme is quoted on the

stock exchange at a discount to its NAV
when-
the market are

bearish
751
The maximum exit load that sould be

charged to investors as per SEBI
regulations is ___________.
5%
752
Arbitrage funds is suitable for-
limiting the risk

associated with
equity markets
753
A high portfolio turnover for a fund

indicates-
that the fundis

active
754
Debt funds with long-term investments

carry higher risk of capital loss-
True
755
An investor buys units in a fund that has

given excellent returns in the past, but his
expectations are not met, as the fund does
not perform well this year. The investor
can-
sue the AMC
756
ratio of purchase
or sales to the
net assets of the
fund
757
Portfolio turnover ratio refers toThe new pension scheme is managed by

_____________fund managers.
758
While choosing between a bank deposit

and a debt income fund, the investor must
consider/
Credit rating of
bank
759
The biggest advantage of investment in

gold is-
high returns
one
761

investment options only in high inflation
economies
The new pension scheme don't offer equity
investment product.
762
Gold futures are considered to be an

alternative and superior route of investing
in gold than Gold ETF.
760
True
True
True
A 40 years old
doctor with
substantial
savings
764
Which of the following will not require

financial planningInvestors in_______________ stage prefer
long-term risky investments.
765
a 55 year old investor, who is employed

and earning well, can be said to be in-
accumulation
stage
766
An investor who gets sudden wealth

should ideally invest the sum immediately
into-
stock market
767
As per wealth cycle guide, during the

accumulation stage-
the client looks

to build wealth
768
Persons need to get into the habit of

savings from "young unmarried" stage
itself.
True
769
if an investor keeps investing a fixed

amount at regular intervals, the average
cost of his purchases will always be less
than if he makes investment at irregular
periods-
True
770
Which of the following represents the

transition phase?
investor has no
need for
investment
income
771
accumulation wealth cycle approach is

best for following class of investors-
retirement stage
Financial planninf involves-
studying
financial
management
763
772
transition
773
Long-term investment commitments

should be started from-
transition
774
To ensure that the right amount of money

is available at the right time to meet the
various financial goals of the investor, one
should make appropriate____________.
savings
775
A comprehensive financial plan set out

needs no further review or monitoring as it
is a one-time exercise.
True
Which of the following strategies is an

example of the combined approach of
rupee cost and value averaging ?
when the
investor sets a
target value for
his investments
in an equity fund
777
Asset allocation for a financial planner

means-
Determining how
much is to be
invested in each
security
778
Risk appetite of an investor can be

understood through:
risk analysis
779
A very high proportion of investment in all

types of equity funds is advisable for
investors-
in distribution
phase
776
Retired investors should-
not draw down

on their capital
782
The correct description of a mutural fund

is:
Who is author of the book "The intelligent
investor"?
it is a company
Benjamin
Graham
783
When investors sale their units in mutual

fund scheme, it is called _____________ .
sale transaction
784
Gilt funds invest in ______________.
treasury bills
785
Capital Protected Schemes are usually

structured to ___________ .
guarantee the
principal
repayment
780
781
786
787
788
789
790
791
AMFI is a self-regulatory organization.

Who needs to sign the trust deed with the
trustee ?
The minimum and maximum stake that a
single sponsor can have in an asset
management company is respectivelyIssuing and redeeming units of a mutual
fund is the role ofSEBI Regulations for Mutual Funds were
formulated in-

true ?
793
The guideline and code of conduct framed

by AMFI for mutual fund intermediaries is
termedAn investor of a mutual fund scheme
cannot invest directly.
794
NAV of a mutual fund scheme has to be

published____________.
792
1
AMC
40% and 100%

The custodian
1992
Sponsor needs
to have a
minimum 50%
share holding in
the capital of
thhe AMC
ACE
1
once a week in a
national level
newspaper
795
PAN no. and KYC documentation is

compulsory for mutual fund investments
except in case of __________.
SIP
796
Dividend warrants have to be dispatched

to investors within___________.
60 days of board
of trustee
meeting
797
open-ended schemes, other than ELSS,

have to re-open for ongoing sale / repurchase within_____.
5 business days
from the closure
of NFO
798
Units of mutual funds can be held in

dematerialized form at the discretion of
the investor.
799
The first level grievance redressal forum

for mutual fund investor is________.
Consumer forum
800
Which of the following does not constitute

the fundamental attributes of a scheme ?
the scheme is
income bearing
801
Which is the most appropriate position

under MF regulations ?
Buyer beware
802
Investors of a winded up mutual fund

scheme are entitled to the proceeds of
illuquid securities if it is substantial and
recovered________.
any time
thereafter
804
The circumstances under which a scheme

shall be wound up are to be described in
the offer document at the time of the
initial launch of the scheme itself.
Dormant investors are not entitled to
ststement of accounts.
805
The offer document issued by mutual

funds does not serve the purpose of:
803
1
1
Announcing the
launch of the
scheme
806
the opening date

Scheme Re-Opening Date of a mutual fund after the scheme
scheme means_____________.
interim closure
807
NFO other than ELSS can remain open for

subscription for a maximum
of_______________.
30 days
808
In SID "unit & offer" describes the nature

and significant attributes of the units under
offer. which of the following is not covered
under this ?
Minimum
amount to be
raised
809
Tax and Legal issues and general

information of a mutual fund can be
obtained from_______.
SAI
810
811
The following is not a standard risk factorA mutual fund scheme shall have a
minimum of ________ investors.
812
Which of the following are fundamental

attributes of a mutual fund scheme-
Investments are
subject to
market risks
10
Miain objective
of the scheme
The type of
securities in
which the
scheme will
invest principally
814
The investment policies listed out in the

offer document of a fund do not includeThe most important link between mutual
fund and investors is
815
Trial commission is
calculated______________.
on the fund
mobilized by the
distributors
816
The upper limit of initial commission that

an AMC can pay to distributors is:
5%
813
Government
817
Which of the following information is

prohibited for Tombstone advertisement ?
Logo or
trademark or
corporate
symbol, if any
818
In the past, sale prices of mutual fund

schemes were higher than NAV due to
__________.
AMC policy
819
Calibrated load structure is usually

called__________.
Calibrated Exit
Load
820
_____________charged to investors in excess

of 1% should be credited back to the
scheme.
entry load
821

cannot be charged to the scheme ?
Listing fees and

Depository fees
822
The maximum amount of recurring

expenses that could be charged by an
equity scheme having "average net
assets" of Rs. 500 crore is-
Rs.6 crore
823
NAV for________is to be calculated up to at

least 2 decimal places.
equity funds
824
When trading in an equity / equity related

security in a month is less than ________, it
shall be considered as thinly traded.
Rs.5 lacs and

50000 shares
825
Investors are totally exempt from any tax

on the dividend income they from mutual
funds.
826
KYC documentation is reqired to be

complied every time an investor enters
into a mutual fund transaction.
827
The applicablie NAV for a sale transaction

of liquid fund where application has been
Closing NAV of
received after 12 noon would be (assuming
the day
funds available for utilization on the same preceding next
day) business day
829
The name and address of the mutual

fund`s POA can be obtained fromIn the growth option, number of units held
by an investor vares.
830
Rupee cost averaging can be done

through-
828
SID of the
mutual fund
scheme
1
Systematic
Investment Plan
831
832
833
834
835
Investors` right under a scheme areAMC(s) need not maintain records in

support of each investment decision-
Which of the following is no relevance in

evaluating a fund`s performance ?
P/E Ratio is calculated as__________.

If yield Spread is higher, credit risk is
higher.
Uniform for all

schemesof all
funds
1
The performance
of the stock
market as a
whole
Market price per

share / No. of
ordinary shares
outstanding
1
Sate which of the following statement is

correct?
If interest rates
go down, price
of bonds will go
up
Goal oriented investing means-
Setting broad
financial targets
and investing as
per risk
preference of
the individual
838
Coupon of a debt security rreferd to-
A piece of paper
attached to the
certificate
839
Nav of a scheme has gone up from Rs. 10

to Rs. 11.50 in 15 months. The CAGR is-
(11.5 /
10)^<12/15)- 1
840
A unit of open-end fund was purchased

when its NAV was Rs.20. At year-end its
NAV was Rs.22. In the interim period, the
fund made a distribution of Rs.4 per unit
when its NAV was Rs.21. what was the
simple Total Return of the found?
25%
836
837
841

20.75. He subsequently receives a
dividend of 15.5%, which he reinvests in
the fund, at the then prevailing NAV of Rs.
21.25. On completion of one year from the
date of purchase of original units, the NAV
stood at Rs.22.65. What is the rate of
return to the investor, using the CAGR
Method?
11.24%
842
Liquidity of a portfolio and presence of

liquid assets in a portfolio means the same
thing.
843
Return can be annualized and compounded

only if the scheme has copleted-
30 days
844
Call or put provisions are used to modify

the fixed maturity of debt securities-
845
Sector funds have_______risk.
Iiquidity
846
__________ has a high risk of misjudgment.
Arbitrage funds
847
Switches
portfolio
allocation
between debt
and equity
depending on
market
perception
848
Flexible asset allocation schemesBeta as a measure of risk is relevant for

both equity and debt schemes.
849
Information on performance of a scheme

as compared to its benchmark can be
found in the-
Key information
Memorandum
850
A scheme with standard deviation of 0.5

earned a return of 7%. If the risk free of
return is 5%, calculate the Sharpe Ratio.
6.00%
851
Fixed Maturity plans are not suitable for

invertors who-
Wants to invest
in less risky
funds
852
The regulator of the "New Pension

Scheme" is-
SEBI
853
Financial plannuing for two Persons within

the same life-cycle stage should not be
same due to-
different
financial status
854
A high proportion of investment in income

funds is required by-
Accumulating
investors
855

investment option for the purpose of
getting the maximum benefits of
compounding ?
12% interest
paid yearly
856
857
858
859
860
861
862
Which of the following is/are not the

advantages of mutual fundface value of units of a mutual fund
scheme has to beClose-ended funds have a fixed maturity
and can be bought and sold__________.
Junk bond schemes invest in companies
that are________.
What is an "Equity Warrant?"
employment
generation
Rs. 1
among investors
de-listed
It is nothing but
an Equity share
of a company
Should be in
State which of the following statement
financial service
is"True" about a sponsor eligibility criterion business for the
?
last 10 years
The appointment of the AMC for the
mutual fund can be terminated by-
Majority of
directors of the
trustees
863
state which of the following is legally

permissible?
51% directors of
ABC ltd., an AMC
is also directors
of XYZ ltd., a
sponsor
company
864
Distributors can be appointed by-
AMC
865
Continuous tracking of the companies in

which a mutual fund has invested is done
by-
Fund managers
866
The AMFI Code of conduct is a substitute of

code of conduct set out in SEBI (Mutual
Funds) Regulation.
867
In case of SIP/STP/SWP initial transaction,

staement of account is to be sent to
investors within__________.
10 working days
of the
investment
868
The minimum amount to be raised, and

the maximum target amount-
Are not known

before the offer
is concluded
869
Investor can change the distributor

through which he has invested after
obtaining No Objection Certificate from
him.
870
Mutual funds have to publish complete

within 1 month
staement of the scheme portfolio and the from the close of
un-audited financial results_________.
each half year
Unit-holders are entitled to copy of AMC

Annual Report_____________.
on request
872
Which of the following is a fundamental

attribute of a mutual fund scheme?
The names and

addresses of the
registrars and
custodians
873
In case of misrepresentation in offer

document a proposed investor has legal
recourse to-
SEBI
874
Buying or selling of securities, knowingly,

by the AMC of a mutual fund from/to the
director, officer, employee of the AMC is
violation of:
Terms laid down

in the Offer
Document
871
The term "front running" in mutual fund

means________.
doing personal
trading with the
investments of
the mutual fund
scheme
876
Which of the following ststement is false?
All mutual fund

schemesshould
have minimum
25 investor
877
A scheme , AB steel Industries fund of AB

Mutual fund shall have an investment
policy to invest________ of the value of its
total assets in steel sector.
maximum 51%
875
878
SEBI does not require the following to be

Details of the
included in the offer document issued by a sponsor and the
mutual fundAMC
879
Qualifying a certification exam to sell and

distrbute mutual fund products is required
Independent
for:
financial advisor
880
SEBI Advertising code mandate that all

performance calculations in a fund`s
advertisement should be bassed on-
NAV
881
Product launch advertisement of mutual

fund shall not be used other
than______________.
launching of
schemes
882
Which of the following "Ranking Entities"

ranking can be used by a Mutual fund in
performance advertisements?
an entity who is
independent of
the AMC(s) or
Mutual fund its
affili.ates
884
Given the following details about a mutual

fund, calculate the net assets:(a)
investments: Rs.475crore (b) Other assets:
Rs. 55crore ( c) Accrued Expenses: Rs.
18crore (d) Accrued Income: Rs. 12.75
crore (e) Current liabilities: Rs. 4.75crore
(f) Other liabilities: Rs. 10.06crore.
Investors can buy mutual fund units even
in a fraction of 1 unit.
885
For the purpose of valuing a mutual fund

portfolio, debt securities which are not
traded are valued on the basis of-
Yield to maturity
886
Which of the following entity(s) is/are

exempt from tax-
Mutual fund
trustee/trustee
company
887
Securities Transaction Tax (STT) is not

payable by equity-oriented mutual funds
on F&O transactions.
888
The basic rate of Dividend Distribution Tax

on Debt funds (other than liquid funds)
payable for investors who are
individual/HUF is-
10%
889
One of your Indian friends who have

invested in a mutual fund is about to get
Australian citizenship. What would you
advise?
He should
transfer the
investment to
his relative
890
If units are held by 3 investor`s jointly,

redemption proceeds are payable
to__________.
first holder
883
485.00 crore
1
891
While entering into a re-purchase

transaction, an investor has to specify-
re-purchase
amount
Closing NAV of
the day
immediately
preceding the
date of
application
893
The applicable NAV for a re-purchase

transaction of liquid fund where application
has been received after 3 pm would beLower dividend yield indicates a Bull
market.
894
The responsibility of settlement guarantee

for mutual fund transactions through stock
exchange is ofStock Exchange
895
Systematic withdrawal plans are more tax

efficient than dividend payout plans for
debt funds.
896
BSE`s platform for mutual fund transaction BSE Mutual fund

is called_________________.
system
897
Fundamental analysis involves-
Checking the
foundations of
the company`s
factory building
898
A high P/E Ratio does not always mean the

company is expensive vis a vis a low P/E
Ratio does not mean the company is
cheap.
899
Return on Total Asset is equal to

_____________.
Gross
Income/Average
Total Asset
900
The maximum amount of management fee

that could be charged by an equity scheme
having "average net assets"of Rs. 400
crore is-
Rs. 2.25 crore
901
A fund`s investments at market value

total Rs.700 crores, Total liabilities stand at
Rs. 50 lacs and the number of units
outstanding is 28 crores. What is the NAV ?
Rs. 30.19
The cut off time applicable for transaction

request submission is:
The time when

the investor
submit the
application to
distributor
892
902
903
904
905
What do you mean by Portfolio ReBalancing ?

The following are the characteristics of
bonds exceptCredit risk and yield on adebt security is
inversely related.
Changing the
asset allocation
of the portfolio
Par value
1
907
"Duration" refers toIn a floater, when the market yield goes

down, the issuer____________.
Change in
valuation of debt
securities with
respect to
change in
interest rates
redeems the
security
908
The nav of a fund on January 2011 was Rs.

18.8825. 6 months later, the NAV had
grown to Rs.19.9995. Find out the
annualised return.
10.24%
A put provision in a debt issue allows-
Investor to put
away the
certificates in
safe deposit
vaults
Which of the following is not true for Index

Funds ?
These funds
invests in the
shares that
constitute a
specific index
906
909
910
911
912
Fixed Term plans have characteristic asAn independent director of an AMC can be
a director of another AMC.
Having short and

fixed tenure
1
913
XYZ Ltd., a custodian has 4 directors out of

which 1 director is also a director of the
sponsor company. Can XYZ ltd., be
appointed for the sponsor `s mutual fund/
yes
914
Benchmark of a mutual fund scheme is

decided by_______________.
the sponsors
915
Li-Bex, a sub indices of sovereign Bond

Index(I-bex) is composed of government
securities having maturity of-
Above 7 years
916
Sharpe and Treynor Ratios are measures

of:
Average return
919
A Scheme with a beat of 1.2 earned a

return of 8%. If the rate of return is 5%,
calculate the treynor Ratio.
In a bottom-up approach, sector allocation
precedes stock .
Investment horizons for equity funds
should be normally______________.
920
The rule of 72 is used to-
on request
Investing in foreign equities means-
Taking exposure
in International
equity market
917
918
921
922
3.20%
1
Low
A gold ETF fund should be selected based

how well they
ontrack gold prices
923

consider______________.
The stage of his

life
924
Which of the following does not generally

guarantee return or capital ?
Bank Deposit
925
926
Allocating funds
to asset classes
Financial planners and their clients should (e.g.debt, equity
focus onetc.)
The right life-cycle stage to start investig
in equity isYoung Married
________________ stage is parallel of

retirement stage of life-cycle.
Reaping
928
Value averaging means-
Keeping the
target value of
investment
constant by
investing the
amount by
which the
investment
value has gone
down
929
The risk tolerance of an investor is

independent of-
His age
930
For older investors who want to transfer

their wealth-
No financial
planning is
required
931
The investment objectives of a mutual

fund scheme-
Are of no
relevance to the
investor
932
Unit capital is found in the-
Liability side of
scheme`s
balance sheet
933
The reative size of mutual fund companies

is assessed by their______________.
net worth

True?
Passive funds
don`t tend to
outperform the
index it tracks
927
934
935
936
An investor in a close-ended mutual fund

can get his/her money back by selling
his/her units:
The AMC can be structured as a private
limited company.
Back to the fund

1
937
938
who registers the mutual fund with the

SEBI ?
AMC
A custodian handles the following

activities?
Delivery and
safe-keeping of
investments of
the fund
940
Investors can
Which of the following is not true for Equity claim an income
Linked Savings Schemes?
tax benefit
The appointment of AMC of the mutual
60% of the unit
fund can be terminated by
holders
941
Auditor of an AMC is appointed by the

___________.
Sponsor needs
to have a
minimum 50%
share holding in
the capital of
thhe AMC
942
Who has been given power to regulate the

criteria and procedures for admission of its
members, and determine professional
rules and bylaws of associations?
SRO
943
Debt oriented schemes should disclose

their portfolio to unit-holders monthly, by
the 3rd working day of the succeeding
month.
944
half-yearly un-audited Financial statement

and scheme portfolio statement should be
published in___________.
AMFI website
939
945
The fundamental attributes of a scheme

can be changed if:
Written
communication
about the
proposed
change is sent to
all unit-holders
946
AMC can charge an investment

management and advisory fee on
unclaimed amount from unit-holders to the
extent of ________.
0.50% p.a
947

dividend/redemption proceeds after a
period of 3 years, they get the payment
based on _______________.
NAV at the time

claiming the
amount
948
engaging into transaction with the mutual

fund to get unfair benefits at the cost of
unit-holders money is called_________.
self dealing
950
The code of ethice for mutual funds

published by AMFI
SEBI should approve the offer document of
NFO filed by AMC.
951
Close-ended schemes have an NFO Open

Date and NFO close Date but no scheme
Re-opening Date.
952
In case of change in the fundamental

attributes, the SID has to be updated
immediately after the lapse of 30 days exit
window given to investors to exit the
scheme.
953
Material changes in SAI have to be

updated________.
on a quarterly
basis
954
KIM means______________.
Key Investment
Memorandum
949
Is mandatory
1
956
Investors can buy or sale units only from

the mutual fund.
The investmemt pattern of a scheme has
to be disclosed on the cover page.
957
Shortfalls in the assured returns schemes

are met-
By sponsors of
such schemes
958
Which of the following is NOT required to

be disclosed in the offer document?
Details of
sponsor/Trustees
959
In order to be eligible to sell or market

mutual funds, individual needs to pass the
certifying Examination prescribed
by____________.
AMFI

True?
an equityoriented mutual
fund scheme
investor would
not bear any STT
955
960
961
1
1
Buy the units

more than 3
To get the benefit of dividend stripping the months prior to
investor in units of mutual fund would
the record date
need tofor the dividend
962
A facility where investment can be made

by blocking the amount kept at the bank
account without transferring the entire
application money is called_____________.
BLOC
963

of equity fund amounting to Rs. 1 crore or
less where application has been received
within 3 pm with local cheque/dd would
be-
Closing NAV of
day funds are
available for
utilization
964
965
Additional investments in the same mutual

fund does not necessitate filling of full
application form.
Equity schemes are subject to dividend
distribution tax.
1
1
966
Reduction in the
share transfer
Which of the following problems have been
time of the
eliminated by depositories ?
buyer
967
Historical data
Which of the following is not considered for on the company'
technical analysis ?
share price
968
969
970
971
The_______________is an indicator, which

calculates how much the share market is
prepared to pay for each share of the
company, as compared to its book value.
Value investment style entails investing
in_________
Market price per

share / Earning
per Share
Valuable Stocks
Companies with
above average
profits and
Fund manager with investment philosophy
growth in
of growth investing, loos for:
earnings
Certificate of Depostits are issued
by___________
Banks
972
Which of the following do not apply to the

term 'maturity' of a det security ?
The date on
which the
certificates
becomes old
973
If the portfolio manager expects interest

rates to rise, then a debt portfolio is
______________
Sold off
974
975
A five year deep discount bond wouldSEBI norms require that returns be
compuws on CAGR basis.
976
Presence of high proportion of liquid

assests in a scheme give lowe return in
bull market and vice versa.
Pay interest on
ayerly basis
1
977
978
The NAV of a fund on march 31, 2010 was

Rs.16.75.3 months later, the NAV had
Grown to Rs. 18.25. find out the annualised
return.
8.27%
Borrow 10% of
the net assets of
To meet redemption payments the mutual the Scheme for
fund can ?
1 year
980
The additional yield required to account for

the risk of default by the borrower is
known asSchemes, whose beta is ___________, are
more risk than the market.
more than 1
981
_______________ measures the sensitivity of

value of a debt security to changes in
interest rates.
beta
982
Offer document of a mutual fund scheme

does not mention the benchmark of the
scheme.
983
A fund sells 100 units of face value Rs. 10/at an NAV of Rs. 12.25. How much would
be credited to unit capital?
Rs. 1225
984
Arbitrage funds are not meant to lock into

a better risk-return relationship than liquid
funds and get the tax benefit of equity
funds.
985
The practice of taking larger positions

based on margin payments is
called_______.
arbitraging
986
Investing in Gold EFT is advantageous as

compared to physical gold due to-
physical gold
has high storage
cost
987
Financial planning is-
investing assets
to receive the
highest rate of
return possible
988
Liquid assets are more required in

______________ stage of wealth-cycle.
reaping
979
Yield plus
989
Strategic assets allocation worked out for

an investor is based on ______________.
risk analyzing
990
Risk appetite of an investor is not required

to be considered while rendering
investment advice.
991
SWP is tax effective for debt funds than

equity funds because-
debt funds have

no capital gains
tax
992
Debt schemes are popular because-
the indian stock

market is always
going down
993

earned a return of 9%. If the risk free rate
of return is 4%, a calculated the Sharpe
Ratio.
5.00%
994
An investor who has invested Rs.300, after

7 yrs the value grows to Rs.600. What is
his annualized compounded rate of return?
995
Volatility of an equity fund portfolio is

independent of the-
kind of stock in
the portfolio
996
MIBOR stands for _____________.
money interbank offered

rate
997
For evaluating sectoral funds, the preferred

benchmark would be the-
BSE sensex
998
Lower modified duration implies higher

interest sensitive risk in a debt portfolio.
999
Since derivative is a security as per law, no

prior permission is required from investors
nor it is required to mention in the offer
document to invest in derivatives
A systematic investment plan-
requires the
investor to
invest a fixed
sum periodically
1000

transaction of equity fund where
application has been received within 3 pm
would be -
Closing NAV of
the day
immediately
preceding the
date of
application
1002
A domestic company/trust is eligible to

invest in mutual funds subject to-
approval from
shareholders/benefici
aries
1003
For investment of _____________and above

it is necessary of have KYC compliance.
Rs.100000
1004
Mutual funds schemes in India follow

accounting policies laid down by-
SEBI
1005
Short term capital gains on equity-oriented

schemes is charged at:
20%
1006
Differential expectations between

investors within a scheme can be
addressed by offering-
dend payout
option
1007
Open-ended funds do have___________.
sale re-purchase
facility
1008
______________invest in securities whose

price fluctuate less but which offers higher
dividend.
balanced funds
1009
Monthly income plans are a form of-
equity funds
1010
1011
If a mutual fund scheme name implies

investment in any particular kind of
security or sector___________.
Who is thr primary guardian of unit
holders' funds/assets-
1012
Where the profitability metric of a scheme

is positive,___________.
net asset value

goes up
1013
The auditor of the mutual fund should not

be associated with the auditor of-
the trustee
company
1014
What is the minimum stake that a sponsor

needs to hold in the assed management
company?
no stake
required
1015
Mutual funds in India are governed

by_____________.
AMFI
1001
not less than

90%
the AMC
1016
1017
1018
A self-regulatory organization can

regulate-
all entities in the

market
cannot be
Unclaimed dividend or redemption amount deployed by the
from unit-holders__________.
mutual fund
following should not necessary be on
NFO starting
frontpage of offer documentdate
1019
A single "statement of additional

Information (SID)" is relevant for all
schemes of a mutual fund.
1020
SEBI permission is required before a

distributor of a mutual fund is appointed
1022
Are mutual fund agents/distributors in

India required to pass any examination to
qualify to sell mutual fund units.
Trail commissions depend on _____________
of the investor.
investable fund
1023
the maximum load that can be charged by

the AMC for paying initial issue expenses-
7%
1024

23.75.. He subsequently receives a
dividend of 20%, which he reinvests in the
fund, at the then prevailing NAV of Rs.
24.50. On completion of one year from the
date of purchase of original units, the NAV
stood at Rs. 25.10. What is the rate of
return to the investor, using the CAGR
method?
19.27%
1025
The maximum amount of management fee

that could be charged by anindex scheme
having "average net assets"of Rs. 500
crore is-
Rs. 7.50 crore
1021
yes, a test
conducted by
AMFI
What document mutual fund distributors

need to refer for finding out eligible
category of investors in a particular mutual SEBI Regulations
1026
fund scheme?
manual
1027
The value of floating rate securities

fluctuates less than fixed rate securities.
1028
G-Sec or gilt securities are issued

by___________.
government
1029
The _____________debt securities tend to

hold their value, despite changes in yield
in the debt market.
Fixed rate
1030
Recurring expenses include-
Penalties and
fines
1031
Gilt funds are safest among all debt funds.
1032
Nifty has a beta of_______.
1033
Interest rate sensitivity of a debt security

is higher if the maturity period is higher.
1034
Tracking error is-
Error in
calculating the
NAV
1035
Investor has right to-
Access to
information
Micro SIP means_______________.
SIP where
monthly
investment does
to exceed
Rs.100
1036
1037
1038
1039
1040
equity markets are more predictable in the short term than

________.
the long term
An investor is better off by switching to
best performing schemes at periodic.
Investors can buy units of a close-ended
scheme, only during its NFO.
Where would you place a 53 years old
executive planning to retire at age 60?
1
1
sudden wealth
stage
1041
A scheme with a beta of 1.5 earned a

return of 11%. If the risk free rate of return
is 8%, calculate the treynor ratio.
4.27%
1042
Beta of an equity fund measures its-
performance
Taking a position of higher amount than

that is available to an investor can be done recognized stock
1043
by investing throughbrokers
The mutual fund trust is created by the
1044
trustee
_____________.
1045
Application with SEBI for registration of a

mutual fund scheme is done by___________.
trustee
1046
The units of a scheme being sold and

repurchases as per the procedure laid
down is one of the fundamental attributes
of a scheme-
1047
The role of AMFI in the mutual funds

industry is not to-
promote the
interests of the
unit holders
1048
Dormant investors are investors who have

not transacted for the last___________.
3 months
1049
The role of a AMC is to act as-
promoters
1050
The transition phase of an investor`s

wealth cycle is when-
the financial
goals have been
already met
1051
Turnover rates would be most relevant to

analyze the performance of-
equity funds
1052
An investor purchased an open-end fund

when its was Rs.20. 16 months later, its
NAV stood at Rs.22. The percentage NAV
change in the fund was:
8.00%
1053
The risk of mutual fund scheme includes:
portfolio risk
1055
Distribution tax should be taken into

account when computing net returns fromThe unit-holders` funds in the scheme, is
known as__________.
1056
Units of mutual funds are subject to wealth

tax of-
1054
equity funds
unit capital
1% on market
value
1058
TDS on the dividend distribution or repurchase proceeds to resident investors is

payable at the rate of:
Dividend distribution tax payable on
equity-oriented mutual fund is-
10%
1059
A foreign citizen of indian origin cannot

invest in mutual funds of India.
1057
1060
1061
1062
open-ended schemes, other than ELSS,

have to re-open for ongoing sale / repurchase within_____of allotment.
A registrar & transfer agent is appointed
by______________.
5%
3 business days
Sponsor
marketing
various schemes
through agent`s
network
1064
What is the duty of the custodian?

Which of the following entities is under the
regulation of SEBI?
Which of the following are responsibilites
of trustees?
1065
After dividend declaration, unit-holders are

entitled to receive dividend within-
one week
1066
Memorandum & articles of association of

the AMC can be inspected by the unitholders.
1067
Exit load charged to

investors________should be credited back
to the scheme.
in excess of 1%
1063
1068
1069
1070
1071
Trail commission is normally paid to

distributors by the_______________.
Management fees cannot be charged
by______________.
Financial planning isDuring reaping phase, the investor looks

forward to:
mutual funds
general due
diligence
Investors
iiquid schemes
investing funds
to receive the
highest rate of
return possible
Building wealth
1072
The organization responsible for a

comprehensive set of regulations for all
mutual funds in India is-
RBI
1073
Issuance of unit certificate to unit holders

by the AMC______________.
is mandatory
1074
What does AMFI stands for?
Association of
mutual funds in
India
1075
Cash and securities of a mutual fund

should be segregated and maintained
scheme-wise.
1076
Which of the following have no role to play

in the NFO of a mutual fund?
asset
management
company
1077
What is the maximum time given to the

asset management company to give their
reply after the observations made by SEBI
to a new fund scheme filed with it?
1078
SID and SAI are a part of _________.
2 months
Investment
agreement
1079
Draft SID is not a public document.
1080
Which of the following person(s) cannot

invest in mutual funds:
minors
1081
Mutual fund mobilizes money from

investor`s to-
form a mutual
benefit fund
1082
The performance of_____________ tends to

mirror a specific index, which it tracks.
1083
Which of the following has the lowest risk?
actively
managed funds
liquid fund
(MMMF)
1084
Which of the following is incrrect?
An equity fund
would invest in
ordinary shares,
perference
shares and
warrants
1085
_____________are funds which invest in

shares of companies engaged in gold
mining and processing.
A better performance than the return on
index is given by-
1086
gold funds
passive funds
_________________ can be appointed as

trustees.
Mnumber of trustee to be appointed by the
1088
sponsor is_________________.
1087
individuals
Three
1089
Minimum number of independent directors

on the board of asset management
company is-
50%
1090
The asset Management company shall

make investment decisions solely in the
interest of
the sponsors
1091
Which of the following entities is under the

regulation of SEBI?
mutual funds
1093
Mutual fund schemes, other than ELSS,

should allot units or refund moneys
within________________of closure of the
NFO.
Issuance of unit certificate to unit holders
is mandatory.
1094
Regular update of SAI is to be done by the

end of________________of every financial
year.
6 months
KIM is ___________.
information
memorandum of
key personnel of
the mutual fund
1096
The liability of the sponsor of a mutual

fund scheme is______________.
limited to the
extent of Rs. 100
crore or AUM of
the scheme,
whichever is less
1097
For assured return schemes information

about the guarantor`s net worth which
justifies the guarantor`s ability to meet
any shortfalls in the returns assured under
the scheme can be found in
offer document
1098
A mutual fund scheme shall have a

minimum of ________ investors and no
single investor shall account for more than
___________of the corpus of the scheme.
1099
The new age distribution channel includes:
1092
1095
5 business days
1
10,10%
institutional
channels
1100
Trail commission is paid-
for a limited
number of years
1101
Appreciation/Depreciation in the
investment portfolio is not includable in
"net assets".
1102
Exit loads above 1% are available to AMC

to meet selling expenses of the scheme.
1103

expenses that could be charged by a debt
scheme having "average net assets" of Rs.
600 crore is-
Rs. 3.20crore
The maximum ceiling on management fee

that could be charged on a debt/equity
scheme by a mutual fund is-
2% on the first
Rs. 100crore of
average net
assets & 1% on
the balance
1105
Which of the following person (s) cannot

invest in mutual funds:
lnternational
multilateral
agencies
approved by GOI
1106
When a dividend is paid by mutual fund,

the NAV of the units falls to that extent.
1107
Depositories are like banks for secrities.
1108
The most suitable measure for a fund's

performance does not depend on the-
type of fund
1104
Review of
companies'
financials
government
borrowings
1109
Fundamental analysis means-
1110
What factor/s affect the interest rate?

____________is important in bottom up
approach of investing.
stock selection
1112
commercial paper is issued by corporate

bodies-
to meet shortterm working

capital
requirements
1113
Current yield relates interest on a security

to-
lts current
market price
1111
1114
The price of gold in india depends

on_____________.
international
price of gold
1115
CAGR technique is used for calculating

returns of mutual fund schemes-
offering growth
option
1116

true?
MIP is less riskier

than regular
debt funds
1117
1118
A high credit rating does not meanA benchmark once selected for mutual
fund scheme cannot be changed later.
high yield spread

1
income funds
with dividend
option
long-term
orientation
1120
The power of compounding is best realized

by investing in:
A steady holding of investments in an
equity funds portfolio indicates-
1121
A fund which is otherwise considered as

debt fund but have an element of equity in
it isArbitrage funds
1122
asset allocation
sector
In developing a fund portfolio for any
distribution,
investor, the following steps are involved. selection of fund
The order in which these steps are to be
managers and
followed isscheme
1119
1123
Financial planning comprises-
defining a
client`s profile
and goals
1124
The accumulation stage covers the lifecycle stage(s)-
Childhood to
married with
older childern
Risk appetite of an investor depends on:
earning
members in the
family
1125
Investment objective of a mutual fund

scheme can be different between investors
1126
in a scheme.
______________invests only in securities

which do not have credit risk.
money market
funds
1129
________________are more diversified and

broad based than a sector fund but
narrower than a diversified fund.
Units from an open-ended mutual fund are
bought:
equity income
funds
on a stock
exchange
1130
A mutual fund is:
a partnership
1127
1128
What would you recommend to an investor

1131 who does not want to take any credit risk?
A custodian is appointed by
1132
the______________.
deposit with a
chit fund
company
trustees
1133
A fund manager of an AMC can manage

schemes of two different mutual funds.
1134
Investors can inspect the following

documents-
trust deed
1135
The amount of authority enjoyed by a selfregulatory organization is defines by-
the apex
regulatory
authority
1136
facility to buy or
The following characteristic is not present sell back units to
in an open end fundthe fund
lnvestors in mutual fund have the option to

avail unit certificate in lieu of statement of
1137
account.
1138
What is key information memorandum?
it is an abridged
version of the
offer document
and is provided
with application
form
1139
An open-end fund with 10,000 units

outstanding had the following items in its
balance sheet: investment at market value
Rs.1,00,000 current assets Rs. 20,000
current liabilities Rs.25,000 calculate the
fund`s NAV per unit.
Rs. 9.50
Mutual funds cannot pay dividend out of

un-realised profits.
Who among the following are not

institutional investors?
The provisions of cut off timing is not
applicable to-
banks
Re-purchase
transaction
1143
Systematic transfer plan allows investors

to-
transfer amount
from one mutual
fund to another
mutual fund at
regular intervals
1144
Fluctuation of NAV is lower in-
gilt schemes
1140
1141
1142
purpose and
As a part of borrowing policy the following circumstances of
1145 need not be disclosed in an offer document
borrowing
Rupee cost averaging and value averaging
can be recommended to an investor who is
1146
in
accumulation
phase
1147
An offer document contains an AMC(s)

investor grievance`s history for the past-
1 fiscal year
1148
Financial planning is a long-term exercise

so it needs lonh-term relationship
betweem the investor and the financial
planner.
1149
The maximum ceiling on recurring

expenses that could be charged by an
index scheme having "average net assets"
of Rs.600 crore is-
Rs.6.00 crore
1150
lf a unit-holder does not agree to the

merger of his fund with another, he has no
exit option-
1151
Statutory information about the mutual

fund that is offering a scheme can be
found from_______.
SAI
Cover page of SID does not contains-
The expected
date of maiden
dividend
1152
A bond scheme of a mutual fund has

weekly average net assets of Rs.200 crore.
It can charge maximum investment
1153
management fee of-
4.25 crore
1154
1155
Re-purchase price of mutual fund schemes

are lower than NAV due to_____________.
The______________ is the main driver of
returns in a mutual fund scheme.
AMC policy
Fund managers
Differential payment expectation between

investors in a scheme cannot be addressed
1156
from one single scheme.
Investors in_______________can enter or exit

the fund, at any point of time even after
1157
NFO period.
open-ended
funds
Which of the following are important

criteria for comparison of fund
performance?
Growth investment style entails investing
in_______.
portfolio
composition
high growth
stocks
Which of the following is incorrect?
A value fund
tries to seek out
fundamentally
sound
companies
whose shares
are currently
overpriced in the
market
1161
Yield spread means-
the additional
yield on a
government
security as
compared to the
rate of inflation
1162
When interest rates risk bond prices-
also risk
1163
A bond having coupon rate 9% when

current coupons for bonds of similar
maturities are 11% will sell-
At a price which
is not related to
interest rates for
similar
maturities
1164
An equity fund`s age and size are

irrelevant when selecting a fund for
investment-
1165
Financial planning allows a person-
to become a
billionaire
1158
1159
1160
1166
Deciding on strategies succh as long-term

compounding, cost averaging, value
averaging, active switching, all depend on
stock market
thesituation on date
1167
Risk profile of a
client remainns
constant through
Which of the following statements is True?
the llife cycle
1168
1169
1170
1171
1172
1173
1174
1175
Mutual funds should be recommended as

__________.
Minors are not eligible to invest in mutual
funds.
Securities analysis is an important aspect
for_______________.
If current yield has fallen, interest rates
have gone up.
investments to
achieve long
term goals
1
actively
managed
schemes
1
A value manager does not look for-
Stocks that are

currently
undervalued in
the market
What is incorrect of the following?
value funds
invest in
overpriced
stocks
______________.are short-term securities

(upto 1 year) issued by companies.
In open-ended funds the pool of money
remains constant.
certificate of
deposits
1
1176
number of
securities in the
Volatility of a mutual fund is influenced byportfolio
1177
There is no need
to benchmark an
How would you measure the performance
equity index
of an equity index fund?
fund
1178
The treynor ratio user___________ as

compared to__________ in sharpe ratio.
standard
deviation, beta
1179
An investment has doubled in 6 years.the

annualized compounded returns is:
16.67%
1180
Which of the following document, one

should refer to find out eligible category of
investors in a particular Mutual fund
SEBI Regulations
scheme?
manual
If may not be possible to reinvest interest

received at the same rate as principal. This
1181
is known as-
reinvestment
risk
In India, law does not perscribe the

minimum or maximum commissions
payable to distributors.

expenses that chould be charged by an
equity scheme having "average net
assets" of Rs.900 crore isThe day on which NAV is calculated by a
fund is known as-
Rs.18.75 crore
Computation
date
1186
The net assets of a mutual fund scheme

includesMutual fund schemes are first offered to
investors through__________.
amounts
invested
private
placement
1187
The AMC announces sale and re-purchase

prices of a mutual fund scheme from the
scheme_____________.
re-opening date
1182
1183
1184
1185
one month
before the issue
opens
1189
Final SID has to be hosted in AMFI`s

website___________.
Pledging of mutual fund units is not
permissible.
1190
If a scheme has limited liquidity, this has

to be stated as a standard risk factor.
An open-ended mutual fund scheme:
shall have
minimum of 20
investors
1188
1191
1192
In case an NFO fails to raise the minimum

target amount, the application money
received from investors should be
refunded within____________.
1 month frome
the closure of
NFO
1193
KIM is to be update at least___________.
quarterly
1194
Init-holders are entitle to scheme-wise

annual report from the mutual fund
within________.
1 month from
the end of every
quarter
1195
Dissenting unit-holders against changes in

fundamental attributes of a scheme are
givenan option to exit at prevailing NAV
for_________.
maximum 5
business days
1196
1197
In case of NFO, statement of account is to

be sent to investors within_________
A proposed investor can sue an AMC on
the grounds of negligence.
10 working days
of the
investment
1
if 75% of unitholder pass a

resolution
1198
A scheme can be wound up ifThe operations of the mutual fund trust are
1199
governed by___________.
SEBI Regulations
The structure of mutual fund is governed
1200
SEBI
by______________.
Safekeeping of physical securities is the
1201
role ofThe custodian
1202
1203
Which of the following is true?

What is not an advantage in investing in
mutual funds against equity?
A fund sponsor
can contribute to
the intital corpus
of the trust
professional
management
When a scheme is first made available for

investment, it called a_________.
initial public
offer
1205
Investor`s acquires new units of a mutual

fund scheme through___________.
a purchase
transaction at
purchase price
of the scheme
1206
Funds,which are normally close-ended, but

become open-ended at per-specified
intervals, are called_______.
periodic funds
1204
1207
1208
Arbitrage funds take contary positions

in_________.
The nav of gold sector funds does not
closely mirror gold prices.
two different
exchanges viz.
NSE and BSE
1
The following do not form a part of the

investment procedure described in an offer
1209
document-
Various plans
under the
scheme
(e.g.dividend
reinvestment
plant)
The offer document and key information

memorandum contain financial information
1210
for-
similar schemes
of all mutual
funds in the
capital market
1211
A mutual fund advisor after passing the

SEBI prescribed certification exam-
can start selling

mutual fund
products
1212
Income not realised but relates to the

period are not taken into account while
valuing mutual funds net assets.
1213
expenses on
investment
management/ge
neral
can be charged to the scheme ?
management
A closed-end equity fund has average

weekly net assets of Rs. 200 crore. As per
SEBI`s regulations, the AMC can charge
the fund with investment and advisory fees
1214
upto:-
Rs.2.25 crores
1216
The accounts of mutual fund schemes

need to be maintained distinct from the
accounts of the AMC.
Reviewing of company`s financial
statements is done for-
1
technical
analysis
1217
A growth manager looks for-
high current
incomt income
1215
1218 If YTM increases, bond prices will decrease.

The yield on gilt is generally the lowest
1219
due to_____________.
1
no interest risk
The domestic price of gold rises when the

foreign exchange rate________________.
gets strenghen
1221
Floating rate securities means

securities_____________.
which pays
interest higher
than the g-sec
securities taking
interest on g-sec
securities as the
base
1222
An equity scheme is 90 days old.To

compute its yield, it can use-
absolute return
1223
__________are a variation of sector funds.
Diversified funds
1220
In a_____________asset allocation as the

person grows older, the debt component of
1224
the portfolio keeps increasing.
Offer document of a NFO is not required to
1225
be filed with SEBI.
1226
Modified duration assess how much a debt

security is likely to fluctuate in response to
changes in interes rates.
The difference between a scheme's actual

1227 return and its optimal return is its_________.
Sharp & treynor ratio calculation is useful
1228
in
tactical
1
beta
risk permium
risk
1229
The current NAV of a fund is

Rs.24.00.Three months earlier, the NAV
was Rs.22.00. Find out the annualised
return.
22.45%
1230
An investor buys a mutual fund unit at

Rs.25.75. He subsequentlt receives a
fund, at the then prevailing NAV of
Rs.26.00. At the end of 2 years, the NAV of
the fund is Rs.28.10. What is the rate of
9.28%
Identify yhe CORRECT statements?
Investing on a
mutual fund is
likey to be less
risky compared
to directly
investing in the
market
1231
1232
1233
1234
Which of the following is/are the

advantages of mutual fundopen-ended funds do not have a time
frame for closing the fund.
The greatest potenital for growth in capital
is offered by-
Offers
systematic
approach to
investment
1
debt funds
1235
A gilt fund is atype of fund that invests:
in very high
quality equity
only
1236
Interest paid to investors on delayed

payment can be charged off to the mutual
fund scheme.
1237

true about a sponsor eligibility criterion?
net worth should

be less than
ANC's capital
1238
Atleast _________of the trustee in the

trustee board should not be associated
with the sponsors.
two-fifth
1239
Prior approval of _______is/are required for

making any changes in the constitution of
AMC.
SEBI
Mutual funds are described

1240 as_____________in the SEBI regulation, 1996
Companies
There is a
change in the
AMC of the
schemes that
are taken over
bombay stock
exchange
1242
If a schemes a mutual fund is taken over

by another mutual fund, which of the
following is false?
Which of the following are self regulatory
organizations?
1243
Provisions regarding minimum number of

investors are scheme specific information
in SID.
1244
The mutual fund in India is constituted as:
1
Investment
company
1245
Unit-holders not consenting to change in

fundamental attributes__________.
can exit at the

prevailing NAV,
without any exit
load
1246
The principle of "caveat emptor"

i.e.,______________applies to mutual fund
investments.
lets the buyer

beware
1247
Key personnel involved directly with

investment operation of a mutual fund
scheme should disclose their personal
investment transactions to the
_____________.
AMC board of
directors
1248
The structure, that is required to be

followed by mutual funds in India, is laid
down by-
ministry of
finance
1249
Which of the following floats a mutual fund

scheme to the market?
Sponsor
1250
Which of the following mutual fund

schemes have no scheme Re-opening
date?
open-ended
schemes
1241
1251
1252
Sai means_________.
A systematic investment plan is the best
example of-
Systematic
appraisal of
investments
rupee cost
averaging
should pass the

Which of the following is compulsory for a SEBI prescribed
person who wish to sell mutual fund
certification
1253
productexam
tributors commission as prescribed by SEBI
1254
is_____________.
1%
1255
In audio visual advertisement, the

statutory disclaimer "mutual funds
displayed on the
investments are subject to market risk ."
screen for at
should be__________.
least 5 seconds
1256
Net assets of a mutual fund are valued

following the_____________.
accrual basis of
accounting
1257
Which of the following expenses cannot be

charged to the scheme
audit fees
1258
The celing on recurring expenses charged

by exchange traded schemes is:
2.50%
1259
1260
1261
1262
The fund need not describe its accounting

policies in the offer document as these are
of no use to an investor.
Long-term capital gains tax on debtoriented mutual fund nil.
Units of mutual funds which is bought

within a period of 3 months prior to the
record date of bonus/dividend and sold
within a period of 9 months after the
record date of bonus/dividendInvestor's right are available in which of
the following documents:
1
1
Cannot set off

capital loss on
such units aginst
any capital gains
to the extent of
dividend recived
Application form
_________is a process whereby an investor's

investments in physical form are converted
1263
into a digital record.
rematerialisation
1264
1265
1266
1267
1268
1269
1270
1271
1272
Quantitative analysis is more likely to be

done to evaluate a particular sector or
industry rather than any specific stock.

transaction of equity fund where
application has been received within 3 pm
would be -
Closing NAV of
the day
immediately
preceding the
date of
application
Steady capital
appreciation and
Which of the following is generally true for steady dividends
a growth stock?
yields
Better the credit quality of a debt security,
lower is the yield spread.
1
Change in NAV method does not account
for divided.
1
Yield and price of a bond move-
in opposite
direction
State which of the following staement is

true?
There is no
maximum
ceiling on the
borrowings by
mutual fund
scheme
A fund with higher sharpe ratio than the

market is outperforming the market.
Debt funds do not have portfolio
concentration risk.
1
1
1273anThe
equity
rulefund
of 20:25
should
asnot
stipulated
invest in
bynot
SEBI
more
is - tham 25 companies out of which 20 companie
1274
1275
The choice of an appropriate benchmark

for evaluating a fund's performance
depends onWhich of the following are sub-indices of IBox?
the fund
manager
Si-Bex
1276
A funds with a high beta coefficient gives

greater returns in a rising market, and
more risky in a falling market-
1277
The size of the market capitalization of a

fund's equity holdings in inversely
proportional to the returns that-
can be
expectted from
the fund
1278
high transaction
costs
1279
A high turnover rate for a fund indicatesCapital protected schemes offer

guaranteed income.
1280
The biggest disadvantage of investment in

real estate is-
less potential for

capital
appreciation
How does a financial planner help his

client/
by picking up
cheques and
application
forms the client
1281
1282
1283
1284
1285
1286
1287

scheme is___________.
During NFO investors buy units of a
scheme at_________.
The difference between debenture and

bond is:
Listing of close-ended fund
is________________.
Of the following fund types, the highest
risk is associated with:
announced after
mobilizing funds
from investors
book value
bonds are issued

by corporations
and debentures
are issued by
PSUs
discretionary
balanced funds
default by issuer
on payment of
Which of the following risks do not affect a
interest or
debt fund?
principal
1288
Mutual funds in India are created as a/an-
association of
persons
1289
Sponsor must have at least

____________years of business interest in
financial markets.
1290

true?
Atleast twothirds of the

trustee in the
trustee board
needs to be
independent
1291
Custodian is appointed by-
sponsor
1292
A person can stat selling mutual fund

products immediately after passing the
SEBI prescribed certification exam.
1293
Technical analysis tries to predict future

movement of stock price by analyzine:
The stock price

movements of a
company
1294
1295
_______________are short-term debt

instruments issued by RBI on behalf of the
government of India.
debt funds with long-term investment
carry higher risk of capital loss.
1296 Deep discount bonds are well explained as-
1297
1298
gilt securities
1
having 5 year
tenure
The mutual funds can borrow for:
paying dividends
Dividend yield funds________.
offers high
dividend
payments to
investors

26.15.He subsequently receives a dividend
of 16.75%, which he reinvests in the fund,
at the then prevailing NAV of Rs.26.50. At
the end of the year, the NAV of the fund is
Rs.27.25.What is the rate of retun to the
1299
investor?
12.82%
1300
sharpe ratio
divides risk
premium by the
fund's standard
deviation
1301

true?
equity schemes
are subject to
STT
1302
A scheme with 1000 unit holders has the

following items in its balance sheet-unit
capital Rs.10,000; investments at market
value Rs.25,000; other assets Rs.4,000;
oyher liabilities Rs.2,000;reserves
Rs.17,000.what is the scheme's NAV per
unit?
Rs.27
1303
A mutual fund has 18 crore units and net

assets of Rs. 558crore. Of these net
assets,Rs.162 crore represents realised
gains and Rs.216 crore represent
unrealised gain. What is the NAV per unit?
Rs.31
1305

Rs.18.6 months later, the NAV had Grown
to Rs.21. find out the annualised return.
Schemes, whose beta is ___________, are
more than 1
1306
Investment that an investor makes in a

mutual fund scheme is issued__________of
the scheme.
certificates
1304
18.36%
re-purchase
transaction at
Investors can sell their units to the scheme their re-purchase
1307
through______________.
price
1308
___________usually invests in debt

securities where the interest rate payable
by the issuer changes in line with the
market.
Floating rate
funds
1309
Fund of funds invest in____________.
Exchange traded
fund
1310
For a person to quality as a sponsor, he

must-
Contribute at
least 40% of the
AMC's net worth
1311
Which of the following are not true for

ELSS?
Investor can
claim an income
tax benefit
1312
Mutual funds in India are permitted to

invest in__________.
securities
1313
A sponsor should have a minimum of

__________share holding in AMC capital.
20%
1314
A custodian cannot be appointed for

mutual fund operation if-
sponsor or its
associates
control atleast
50% shares of
the custodian
1315
What proportion of a mutual fund trustees

have to be independent form the sponsor?
50%
1316
promote the
interests of
AMFI was set up in 1995with the objective
mutual funds
to:
and unit holders
1317
A sector fund should have minimum

investment in that particular sector of not
less than____________.
50%
1318
Debt oriented, close-ended schemes

should disclose thir portffolio in their
website__________________.
quarterly, by the
5th working day
of succeeding
month
1319
Unit -holders of mutual fund are not

entitled to protection under the companies
Act' 1956.
1320
Offer document of a NFO is prepared by

the ___________.
sponsors
Allotment of unit/refund of money after the

closure of mutual fund NFO should be done
1321
within_____________.
15 days
1322
Due diligence certificate of a mutual fund

scheme is issued by_____________.
SEBI
1323
Application form of mutual fund scheme

should be accompanied by_________.
SAI
1324
When a scheme with assured returns is

being launched, which of the following
need not be published in the offer
document?
means of
fulfilling the
guarantee
1325
Even a call center employee selling a

mutual fund is required to qualify the SEBI
prescribed certification exam.
1326
Risk factors may not be mentioned in-
product launch
advertisement
1327
1328
1329
Expenses not paid off but relates to the

period are not takeninto account while
valuing mutual funds net assets.
previously, initial issue expenses wereThe management fee of index schemes

cannot exceed___________.
1
allowed to the
extent of 5% to
be charged to
the scheme
1.00%
1331
NAV for equity and balanced funds is to be

calculated up to__________decimal places.
at least 4
Investors cannot buy fractional units of
mutual funds throughindividual agents
1332
An "exchange-traded fund" has average

weekly net assets of Rs.350 crore. As per
SEBI's regulations, the AMC can charge the
fund with management fees upto:-
Rs.2.25 crores
1333
NRI / PIO resident abroad have the facility

of investing in mutual funds on nonrepatriable basis only.
1330
1334
1335
The units allotted to investors in mutual

fund scheme increases inP/E ratio and dividend yield are in inverse
proportion.
dividend payout
option
1
1336
Value stocks-
have high
current dividend
yield
1337
Treasury bills are issued by__________.
listed companies
1338
To compare bonds with different coupon

rates, maturities and prices, investors
would use:
current yield
when interest rate falls a debt portfolio

manager_______________.
increases
exposure to long
term floating
rate debt
securities
1340
Under the CAGR technique of measuring

return it is assumed that_________.
dividend would
be re-invested in
the same
scheme at the
ex-dividend NAV
1341
A call provision in a debt issue allows the

issuer to-
call out the

names of the
investors
1339
1342
Monthly income plans offer fixed

guaranteed dividend.
1343
Interest rate sensitivity of a debt portfolio

is measured by-
modified
duration
An arbitrage fund though an equity fund is

appropriate to benchmark against money
1344
market index.
1345
"Risk" is equated with-

Rs.25.75. At the end of the year,the NAV of
1346
return toreturn to the investor?
1
volatility of
earnings
6.57%
1347
A debt fund's age and size are not

important when selecting a fund for
investment-
1348
A high portfolio turnover ratio indicative of

better performance of the fund.
1349
An investor who wish to invest in gold is

better of by investing through-
reginstered gold
merchants
1350
The constraint on financial planning due to

insufficient investable resources can
remedied to some extent by-
decreasing the
standard of
living
A "comprehensive financial" is a plan:
Where various
alternative
financial plans
are worked so
that if one
doesn'swork
other could be
opted
1351
1352
1353
1354
1355
1356
1357
Tactical asset allocation is suitable for:
low income
earners
Unit capital of a mutual fund scheme is
number of units
multiplied by its
face value
The unit capital of a close-ended

fund______________.
_____________take contrary positions in
different markets or securities.
Custody of a mutual fund scheme vests
with the____________.
Sponsors have unlimited liability towards
unit holders.
varies with the

ongoing sale and
re-purchase of
units by the fund
fund of funds
trustees
1
1358
Role of the custodian is:
Managing the
fund's
distribution
channel
1359
Which of the following is not the object of

AMFI ?
To promote
interest of
mutual funds
An investor has opted for a systematic

transferplan. This means
he can transfer
on a periodic
basis a specified
amount from
one scheme to
another
1360
1361
1362
If investor seeks a unit certificate, it should

be issued within______________.
15 working days
Un-audited financial statement should be

published within______________.
within 1 month
from the close of
each half year
The scheme wise annual report of a mutual

fund shall be published or mailed to unit
1363
holders not later then:
1364

means_______________.
An investor holds 2200 units in a gilt fund.

The current NAV is Rs. 10.75. He would like
to switch his holdings to an equity
fund,whose NAV is Rs. 13.95. If the entry
and exit load for the gilt fund are 0% and
1% respectively and the entry and exit
load for the equity fund are 0% and 0.50%
respectively, what is the equity fund, after
1365
the switch?
1366
1367
Dividend distributed to unit-holders by a

debt fund is liable to dividend distribution
tax.
3 months
lets the buyer
beware
1695.3405
1368
Mutual funds cannot use derivatives.

In____________approach of investing sector
allocation is the key decision.
top-down
1369
The most important factor one should look

for when investing in a corporate fixed
deposit is the-
yield
1370
In uncertain or gloomy economic condition,

the real estate price___________.
shoots up
A bond with a coupon of 9% when interest

rates for similar maturities are 11% will
1371
sell
Systematic risk of an equity portfolio arises
1372
out-
above par
inflation
1374
Appropriate benchmark foll all types of

diversified equity schemes should be
either BSE sensex or NSE nifty.
The document '(s) required for KYC
compliance includes-
proof of identity
1375
The number of units an investor is entitled

to receive on a buy transaction depends
on-
investment
amount
1376
The NAV of an equity fund was 40.15. The

fund charged 1.00% as exit load. If an
investor wants to withdraw Rs.22000 from
the fund what is the number of units he
will repurchase?
547.9452
1373
1377
1378
1379
Which of the following would you look at

while selecting a money market mutual
fund?
cost
The asset class (s) available to an investor

in NPS (new pension scheme) is/areequity securities
The offer document of a NFO is filed to
SEBI for___________.
approval
1381
define the clientplanner

relationship;
Define client
Goals ; Evaluate
financial status;
Develop
financial
plannimg
The following is a recommended financial recommendation
planning sequences
Ownership of unit holders in mutual funds
isMutual
1382
When the profitability metric of a scheme

is negative,_______________
1380
Net Asset Value

goes up
1384
An investor holds 2000unit in a bond fund.

The current NAV is Rs.11.50. He would like
to switch his holdings to an equity fund,
whose NAV is Rs.20.35. If the exit load for
the bond fund is 0.25% and the entry load
for the equity fund is nil, what is the unit
holding in the equity fund after the switch?
Assured return or guaranteed monthly
income plans are essentially-
hybrid funds
1385
Liquid schemes invest only in debt

securities of less than_________maturity.
365 days
1386
___________can be bought and sold

through-out the day from the stock
exchange.
gold funds
1383
1575.2025
investment in an equity linked savings

scheme (ELSS)
entitles the
investor to claim
income tax
rebate
1389
The investment management agreement

defining the responsibilities of AMC is
executed by___________.
A sponsor should have a positive net
worth___________.
trustees
in each of the
last 5 years
1390
The AMC is required to be approved &

registered with SEBI with a net worth of:
Rs.20 Crores
1387
1388
Rs.1crore
1392
The minimum investment that a single

sponsor needs to make in an asset
management company is
Dematerialisation of mutual fund units is
compulsory.
1393
Code of conduct for mutual fund given by-
ANMI
1394
The net worth of an asset management

company should be-
Rs.100 Crores
1395
In case of SIP/STP/SWP ongoing

transaction, statement of account is to be
sent to investors within__________.
10 working days
of each
investment
1396

fundamental attributes of a
scheme_________.
has a right to
stop such
proposed
changes
1397
within 5
scheme re-opening date of an open-ended business days of
mutual fund scheme should be__________.
the allotment
1391
1398
Final SID has to be hosted in __________.
AMFI's website
1399
Investors can buy units of a close-ended

scheme, from the fund, only during its
NFO.
1400
Meterial changes in SAI have to be

updated______________.
within 3 month
from the end of
financial year
1401
1402
Securities Transaction Tax (STT) is not

payable by equity-oriented mutual funds
on F&O purchase transactions.
Mutual fund schemes should have sale
price equal to the Nav.
1
1
1404
While calculating distributable reserves,

valuation gains are to be ignored but
valuation losses needs to be taken into
account.
compliance does not includes-
1
marital status
proof
1405
NRI/PIO mutual fund applications on nonrepatriable basis should be by cheques

drawn on ___________.
NRO Account
1406
The cut off time applicable for online

transaction request is:
the time as per

the web server
to which the
instruction goes
1407
Fundamental analysis froms the basis to

decide-
when to buy a
given share
1403
1408
1409
Dividend yield for a stock isThe current yield of bond increases if the
interest rate falls.
1410
_____________are stocks that have an

inherent intrinsic value which is not
reflected in the market price of shares but
have the potentiality to unlock in the long
run.
dividend per
share
1
under-valued
stocks
1411

Rs.22.10. At the end of 2 year,the NAV of
return toreturn to the investor?
8.28%
1412
When compared to government securities,

the credit risk on corporate bonds is-
higher
1413
1414
1415
Alpha, the measure of fund managers

performance has applicability inTreynor ratio of calculating risk-adjusted
return is best suited forSovereign bond index (l-Bex) is developed
by-
all types of
equity schemes
balanced funds
SEBI
1416
An index fund managers tries-
to beat the
market by
superior stock
selection
1417
Higher modified duration implies higher

Which of the following investment is not

made by debt funds
ICICI securities' sovereign bond index is
based on-
government
debt instruments
government
securities
1418
1419
1420
choice of
investment
universe
1422
choice of bebchmark depends onFinancial planning is relevant only for high

net worth individuals________is a phase when financial goals are
in the horizon.
distribution
1423
A planned and systematic approach to

provide for the financial goals to meet
one's aspiration is-
Systematic
Investment Plan
1421
Indians are more comfortable in investing

in physical assets rather than financial
1424
assets.
Compared to equity funds, income margins
1425
for debt funds are-
1
narrow
1426
Gold sector funds invest in_________.
1427
The NAV of an equity fund was 42.00. The

fund charged 1.00% as exit load.What
would be the re-purchase price?
41.58
1428
In case of mutual fund investments by an

investor through a POA holder, KYC is
required to be complied by-
the investor
1429
1430
The online trading platform facilitates

buying and selling of mutual fund unitsDividend payout changes the number of
units held by the investor.
physical gold
through the
stock exchange
brokers
1
1431
Which of the following is untrue of

systematic investment plan?
lf allows investor
to invest a fixed
amount on a
monthly basis
1432
Technical analysis guides the decision on-
whether to buy
or sell
1433
______________is a study of price and

volume whichbelieves that the price
behaviour of a share and its volume is a
reflection of investors sentiment.
qualitave
analysis
1434
1435
An "exchange-traded fund" has average

weekly net assets of Rs.350 crore. As per
SEBI's regulations, the AMC can charge the
fund with management fees upto:A lower P/E ratio is indicative of a bull
market.
A person who is taking investment decision

by studying company & its operation is
1436
called as
Rs.4.50 Crores
1
chartist
if equity market
move up, P/E
ratios will move
down
1438
state which of the following statement is

correct?
In top-down approach of investing,
___________is the key decision.
1439
A fund manager who believes in the

growth philosophy looks for companies
with-
above average
earnings growth
1441
The provcess of making changes in asset

allocation and specific investments is
known asbonds/debentures have a
maturity_________.
financial
planning
of not less than
10 years
1442

growth, a greater proportion of investment
should be advised in-
gilt funds
1437
1440
A debt security of shoter maturity would

fluctuate a lot more, as compared to longer
1443
tenor securities.
Credit quality of the portfolio is important
for__________.
1444
1449

investment options ina mutual fund scheme cannot borrow more
than_______of its net assets.
There is no restriction on borrowings by
mutual funds.
Liquidity risk is high in case
of_____________.
Higher the credit risk, higher is likely to be
the yield on the debt security.
1450
Which of the following is not required to

pass the SEBI prescribed examination?
1445
1446
1447
1448
1451
1452
What is the full form of ARN?

Offer document of a NFO should be
approved by_____________.
1453
An AMC can explain adverse variations

between expense estimates for the
scheme on offer and actual expenses for
past schemes on other medium than the
offer documents.
timing
1
gilt schemes
high inflation
economies
40%
1
sector
1
distributors
Agent
registration
number
SEBI
1454
1455
offer document is prepared following the

format___________.
1456
Cover page of the SID containsDetails of the fund manager managing a

scheme can bbe found in__________.
1457
An offer document contains the summary

of expenses history of all schemes for the
past-
prescribed by
SEBI
name & contact

information of
the AMC And
trustee company
SAI
1 fiscal year
1459
the draft SID

forwarded to
SEBI is in
A due diligence certificate does not certify accordance with
thatSEBI regulations
The type of income earned by a mutual
fund scheme includesinterest
1460
If a scheme of a mutual fund has positive

profitability metric, the _______.
AUM goes down

true?
investors can
buy units of
close-ended
scheme, from
the fund only
during its NFO
1462
Fixed maturity plans are_____________.
Schemes which
invests in debt
securities for a
fixed limited
period
1463
Debt funds which is/are considered to be of

lowest risk is/are:
gilt funds
1464
Gold funds invest in gold only.
1458
1461
1465
1466
1467
Which of the following is true for closed

ended funds?
Maintenance of records of investors in
mutual fund scheme is done by__________.
Prior approval of __________is needed to
appoint a trustee.
The fund offers

to buy and sell
units at NAV
AMC
sponsor
1469
The AMC should maintain records of all

activities and transaction for
_______________.
Auditor of a mutual fund scheme is
appointed by the__________.
1470
The trust deed is executed between -
the sponsor and

trust
1471
The requirement of independent directors

in an asset management company is-
one-half of all
directors
1472
A change in the following key people does

not meterially impact the performance of
the fund-
fund sponsors
1468
a maximum of 5
years
sponsor
1474

expenses that could be charged by a debt
scheme having "average net assets" of Rs.
1100 crore isRs. 22.25 Crore
at purchase
Mutual funds value their investmentsprice
1475
The basic rate of dividend distribution tax

on liquid debt funds is-
1476
They are hold for

not more then
twelve months
Units of mutual fund are short-term capital proceeding the
assets ifdate of transfer
1473
1477
1478
10%
Non-traded seciurities are to be excluded

while calculating the NAN. True or False?

true?
short-term
capital loss can
be set off
against other
head of income
1479
1480
1481
1482
1483
Nav isRecurring expenses cannot be charged by

________________.
If a singhle unit holder holds more
than___________% of assets, the number of
such unit holders and their percentage
holding in the net assets have to be
disclosed.
Offer document has to be vetted
by_________.
Details of a mutual fund scheme can be
found from___________.
Asset valu
divided by all
shares sold since
the fund was
initiated
liquid schemes
50%
sponsor
SAI
1485
Fundamental attributes of a mutual fund

scheme can be changed at the discretion
of the AMC or trustees.
Every mutual fund scheme should have an
appropriate benchmark.
1486
An investor holds 4000 units in a bond

fund. The current NAV is Rs.9.50. He would
like to switch his holding to an equity fund,
whose NAV is Rs.14.80. If the exit load for
the bond fund is 0.50% and the entry load
for the equity fund is nil, what is the unit
holding in the equity fund after the
switch ?
2120.3028
1487
Earning per share (EPS) are calculated

as________________.
Gross profit / No.

of equity
shareholders
1488
Redemption / re-purchase cheques must

be dispatched to investors Within
_____________from the date of receipt of
request.
30 working days
1484
1
1
1489 If duration is high, interest rate risk is high.
In _________approach of investing, sector

allocation is a result of the stock selection
1490
decisions.
The return that an investor earns on a debt
1491
security called its_____.
top-down
yield
1493
There is an inverse relationship between

yields and value of debt securities.
Return for periods less than a year cannot
be annualized.
1494
Liabilities in the balance sheet of a mutual

fund are-
In the form of
long-term loans
Equity derivative instruments areSystematic risk of a portfolio can be

avoided.
shares
1492
1495
1496
1
1
1498
If yields fall, a debt fund manager will do

all of the following exceptThe most significant risk in a welldiversified debt scheme is-
sell short
maturity
securities and
buy long
maturity
securities
re investment
risk
1499
less volatile than

market
1500

Rs.24.65. He subsequently receves a
dividend of 13.25%, which the reinvests in
the fund, at the then prevailing NAV of Rs.
24.35. At the end of 550 days the NAV of
the fund is Rs. 25.75. What is the rate of
6.61%
1501
Physical gold is subject to wealth tax

beyond threshold limit whereas gold ETF is
not.
1497
1502
1503

Mutual fund investments cannot be made
by paying through cash.
financial
planning is
equivalent to tax
planning
1
1504
A criticism of rupee-cost averaging is-
investment is for
the same
amount at
regular intervals
1505
Yield-to-maturity of a debt funds portfolio

is more important when the investment
objective is-
current income
1506
Dividend Distribution tax is tax effective

for-
pensioners
1507
The custodian of a mutual fund:
is appointed for
issuing and
redeeming units
of the mutual
fund
1508
The following is the least important skill

that a financial planner to possess
ability to build
client trust

of liquid fund where funds are not available
for utilization on same day would be same
irrespective of whether funds are received
1509
befor or after 12 noon.
1510
Dividend distribution tax is applicable for

debt mutual fund scheme
having_____________.
1
dividend reinvestment optin
1512
The investor canot plead ignorance of

procedures while investing in a mutual
fund becauseAn "STP" transaction consists of a buy as
well a sale transaction.
1513
Nomination is only an authorization for the

mutual fund to transfer the units to the
nominee in the event of demise of the
unit-holder.
1511
1514
mutual fund is a
risky investment
1
1517
Mutual funds are allowed to lendNSE's platform for mutual fund transaction
is called__________.
Who published "making mutual funds work
for you- The investors guide"
Trail commission is normally paid to the
AMC on a ________basis.
QUARTERLY
1518
The distributor is not bound to disclose the

amount of commission received by him to
its investors.
1519
In performance advertisements, where

scheme are in existence for lees than a
year, the returns calculation should be
made on_____________.
total return basis
1520
Which of the following entities need not

pass the SEBI examination for selling
mutual funds?
stock exchange
brokers
1521
The NAV of a fund is 24.20. The fund

charged 1.00% as exit load.If an investor
wants to withdraw Rs. 60000 from the
fund, what is the number of units he will
repurchase ?
2504.1736
1522
The AMFI objectives does not include the

following:
to emphasize on
ethical & moral
trade practices
1515
1516
money
NSE MFSS
AMFI
1523
_______________funds do not have a fixed

date of redemption.
open ended
funds
1524
Sending physical ststement of accounts at

specified interval is mandatory even if the
investor has mandate e-mail statement.
1525
No separate statement of account is

required to be issued by the AMCof mutual
fund if investors hold units in
dematerialized from.
From whom can a unit holder seek

redressal if his complaint is not entertained
1526
by the mutual fund ?
A mutual fund scheme can be terminated
1527
by_______________.
AMC
51% of unitholders
1528
Unit-holder of a mutual fund scheme

cannot seek legal protection on the
grounds of _____________.
AMC has acted

negligently to
manage the
scheme
1529
Investors get the unclaimed dividend /

redemption proceeds at prevailing NAV i.e.
after adding the income earned on the
unclaimed money when they cliam the
same_____________.
within 5 years
1530 Offer document is required by Mutual fund:
As a AMC
requirement
Correct Option
A
A
0
0
RTA
Custodian
Implement the
Certification
Programme
0
To develop the
Cadre of Agent
Fund
Accountant
All of These
B
D
A
0
At Investment
amount
A
Will not get
any
Commission
Fixed
Percentage
according to
SEBI
Regulations.
He is redeeming He is investing
within 9 months
within 3
after record date months prior
of Dividend
to the record
Date of
Dividend
IFCR
MICR
24 hrs
10am to 4 pm
Addendum in any Addendum in

2 news paper
one English
news paper
and one local
news paper of
AMCs head
office
Both B & C
NRE and NRO

A/C
None of These
Not issue any

notice
Arbitrage fund
Host fund
Offshore fund
Option
Plan
SIP
Master circular
Addendum
All of these
Can empanel the Can cancel the

distributor
ARN of that
distributor and
inform to all
AMCs
Suspend the
distributor
Agents
Sub-brokers
All of these
Need to cover
50% of screen
Both a and b
Need not to be
disclose
Rs 6,000
Nil
None of these
0
IPN to existing
investor only
Equity fund
B
IPIN and user
No need any
name to all facility for doing
new investors the transaction
Growth fund
Gilt fund
0
Default risk
B
Inflation risk
Interest-rate
risk
Tactical fund
manager
Bottom-up
approach
Institutional
investor
Technical
Analysis
Technical
approach
Foreign
Individual
Passive Fund
Manager
Fundamental
approach
The trust
where, more
than 60% if the
beneficial
interests is held
by NRI
ABB
AAA*
A++
No. of units
No. of units
outstanding* face
issued*
value
current market
price
Public Provident
Fund (PPF)
National
Savings
Certificates
(NSC)
NAV * face
value
Units of a
mutual fund
B
B
Both 3 and 4
A
B
Balance fund
Capital
protected fund
sector fund
Crops
Industrial
metal
Real estate
Financial
intermediary
NBFC
B
A
Lower than NAV
Whatever the
price higher
than NAV or
lower than
NAV
At NAV price
only
Board of directors
Trust
0
Company
0
Maintain the
records of the
investor
Board of
directors of the
company
Issuing and reSending the
purchasing
Annual account
transaction of
statement of
units
Mutual Fund
A
C
B
C
AMC
SEBI
Investors
Point of
Acceptance
Investor
RTA
NSDL
SEBI
AMFI
CRISIL LiquiFEX
NSE's MIBOR
Both B and C
CRISIL MIPEX
CRISIL
Banking Index
CRISIL Debt
Hybrid Index
CRISIL MIPEX
CRISIL STBEX Short-Term

Bond Index
CRISIL Debt
Hybrid Index
Exit Load
Deffered Load
Management
fees in liquid
fund
0
Credit rating
A
Yield Matrix
Yield Quality
Except than
In liquid fund
In debt fund
equity other
upto 4
upto 4 decimals
funds are
decimals and
rounded offupto 4
other than
decimals
liquid upto 4
decimals
0.015%
0.25%
0.017%
Dividend
Capital Gain
NSDL
1,3,4,2.
Depository
Participant
3,1,2,4.
Dividend
Distribution
CDSL
2,3,1,4.
Sector specific
risks
Company
specifis risks
Credit risk
Sensitivity of a
funds returns to
changes in
market index.
Weighted
Risk premium of
average P/E
the fund.
ratios of all
stocks held in
portfolio.
Sector funds
Income funds
Holding more
number of
sectors in a
portfolio.
By hedging
with futures
an options.
A Balanced fund
Money market
fund
Both 1& 2
above
Evaluate past
returns
Choose
Strategies
Reviewing funds
structural
charateristics
Specialized
funds
None of above
Selecting a bond
Selecting a
None of above
fund is easier
equity fund is
than selecting a
easier than
money market
selecting a
fund
money market
fund
Cost
Balanced fund is Balanced fund Balanced fund

exactly 40%
is rarely
is exactly 60%
equity and 60%
exactly 50% equity and 40%
debt.
equity and
debt.
50% debt.
Long term bond

funds are
appropriate
Money market
funds are
appropriate
Because of
Because of the
Limited supply of
kind of the
financial planner
money this
business
offers
None of above
Only 1&2
Only 1&3
Its the financial

planners duty to
set mearsurable
financial goals for
his clients
Both the
clients and
financial
planners
should
together set
mearsurable
financial goals
None of the
above
Is the extent of
loss the client
can tolerate
psychologically
and financially
Is the normal
loss of an
invesment
category
None of the
above
Has to be done in
once in fortnight
An indefinite
continous
process
Portfolio
rebalancing
Has to done
once in a year
Managing the
clients finances
Gather and
analyze data
Define the clients

goals
Re-evaluate the Have realistic

financial situation expectations
periodically
Liquidate poorly Liquidate good

Switch from
performing
performing poor performers
investments from investments
to good
time to time
from time to
performers
time
When to buy, sell Disgarding the All of the above

or switch from
nonone scheme to
performers
another
and keeping
the good
performers
Rebalance the
Debt/Equity
allocation very
periodically
Generally
Keep fixed
avoid portfolio percentages of
rebalaning
equity & debt
investments at
all times
Strategic asset
allocation.
Tactical asset
Benjanin
allocation
Graham's 50-50
Balance
Using telephone
Using
Using telephone
swithing method
telephone
switching
to actively move
switching
method to
and out of
method to
atively move
different schemes atively move and out of the
of same fund
and out of the same scheme
complex
same scheme of the different
of the same
fund complex
fund complex
The investor has

large capital,
knowledge and
resources for
research
The investor
has identified
a bullish
phase in the
stock market
The investor
wants to invest
for the long
term
A debt fund
An Equity
growth fund
None of the
above
PPF
BothA and B
Certain sum of
money to the
survivor of the
policy taken in
the event of
death within the
term of the policy
Investing In MF
offer liquidity
Inesting In MF
increases
transaction
cost
MF offer
professional
management
Real Estate
Gold
Bank Deposits
Medium term
basis
Long term
basis
Very short term

basis
Moderate risky
Commercial
Paper
Largely closeended but
convert into
open-ended at
pre-specified
intervals
Cum Dividend
Vertually risk
free
Debentures
None of the
above
Bonds
Always openended
None of the
above
Ex-Dividend
None of the
above
NAV plus exit

load
KYC of minor is
mandatory
NAV Plus entry

Load
KYC of
guardian is
require incase
if investment
is in minors
name
NAV minus
entry load
KYC is not
mandatory in
MF
SEBI
AMFI
RBI
Transition stage
Wealth Cycle
Life Cycle
1964
1987
1993
None of the
above
All employees
Shall abide
who are engaged with Sebi code
in the sale and
of ethics
distribution shall
obtain ARN
Investments to
achieve long
term goals
Guaranteed
returns
Direct
investment in
capital market
When the market

can behave in a
manner not seem
in the past
Black
marketing
Opposite of
White Swan
Requires the
Automatically
investment to be
leads to
locked in for a
investment in
period of 3 years equity shares
Stability is
associated with
debt funds
NIL
Custodial
agreement
BSE Star Mutual
Fund
Is equal to a
purchase
transaction
Nav of the
immediate next
working day
Both 1 & 2
All of these
None of the
above
25%
20%
+surcharge+c +surcharge+ce
ess
ss
Trust
deed
Investment
report of the
fund manager
Both 1 and 2
NEAT MMF
C
D
C
Is a
repurchase
from one
scheme and
purchase in
another
scheme with 1
request
None of the
above
Nav of the
same working
day.
None of the
above
Making available Single point of All of the above

screen based
address
platforms for
change
purchase and
sale of Mutual
Fund Schemes
Point of Service
Point of
Acceptance
All of the above
HUF
FII
Foreign citizen
Offices of AMC
and point of
acceptance
wherever
applications are
accepted
Custodians
Office
All of the above
Goes down
Goes upwards
steady
Remains
Constant
Bottom up
Approach
Growth Style
Blended Style
Yield Spread
Call to Yield
Floating Rate
AMC
Trustees
Stock Exchange
Mid Cap
Small Cap
Arbitrage Funds
Treynor Ratio
Standard
Deviation
Credence
Alpha
Crisil
7 working
days
Registrar and
transfer fees
3 working days
B
A
CDSL
5 working days
Listing fees and
Depository Fees
Increase rapidly
Increase
slowly
Software
development
fees
Remain
constant
Equity
Debt
Gold
Risk Approach
Risk Profiling
Risk Taking
2008-10
2009
None of the
above
Asset
Management
Asset
Framework
None of the
above
Strategic Asset
Allocation.
Model
Portfolios
None of the
above.
Strategic Asset
Allocation.
Tactical Asset
Allocation.
None of the
above.
Risk level of the

investment
options being
considered.
Both of the
above
None of the
above
every 6 months
every 3
every 6 months
months of
of every
every financial financial year
year
D
A
SAI
Offer
Document
KIM
Bench Mark
Rights of Unit
holders
12 months
Loads &
expenses
need based
every 9
months
every 12
months
6 months
every 6 months
C
D
Jun-11
advertised in a
national english
newspaper
5 years
Jun-12
Mar-11
mentioned in All of the above

the website of
the mutual
fund
3 financial
years
B
None of the
above
since the
inception
At Discount
At par
Does not have

in relation.
SID
SID and KIM
SAI
Monthly
30 days
Date of closure
of NFO
Fourth Schedule
Fifth Schedule
CDSC
RTA
NAV of realisation
date
NAV of
previous day
of realisation
Seventh
Schedule
Recuring
expenses
NAV of next
days
Dematerialisation
Demat
Remat
Investor who is in
Transition phase
Wealth
creating
affluent
investors
Wealth
preserving
affluent
investors
Gold
Currency
Art
NIL
Fund
Accountant
12.5%
20%
+surcharge+cess +surcharge+c
SEBI
AMFI
None of the
above
B
100000
66667
60000
A
Cannot say
anything
Rs. 12500
Rs.10000
Double Taxation
Avoidance
Agreement
Double
Taxation
Acceptance
Agreement
Double Taxation
Authorised
Agreement
Higher of the rate
Same rate
Restoring to tax
planning to keep
tases as low as
possible
Planning for
retirement
with the
maximum
income
possible
Either higher or
lower of the
rate
Process of
solving financial
problems and
reaching
financial goals
60 40
30 70
70 30
Asset Class C
Asset Class E
Life Cycle Fund
The interest is
tax free
The rate of
interest is
12% p.a.
Contribution
upto Rs.60000
are eligible for
tax rebate
Post-tax returns
are attractive
Liquidity is
rather low
None of the
above
10.50%
0.08
0.11
Between 100 and

Rs.6000
Between
Rs.600 and
Rs.1000
None of the
above
Risk premium of Risk premium The fluctuations

a fund as
of a fund as
of funds return
difference
difference
around a mean
between the
between the
level.
funds average funds average
return an risk
return an risk
free return
free return
divided by
divided by P/E
standard
ratio of fund.
deviation of the
fund.
50% Government
securities funds
+ 50% Money
Market Funds.
25%
aggressive
growth funds
+25%
international
funds 25%
Sector funds +
15% High
Yield Bond
funds + 10%
Gold Funds.
40% in equity an 20% in equity

60% in Debt
funds, 20% in
funds
liquid funds ,
and 60% in
debt funds
Distribution or
reaping Phase
Intergeneratio
nal transfer
Phase
100% Liquid
fund
10% in
moonthly
income
schemes
Accumulation
phase
Invest the entire Invest in very

Invest
amount
safe liquid
immdiately in IT
immediately in
investment
stocks, since
an Equity Index
options and
the valuations
Fund-since the
take the time
are now
index is a historic
needed to
considered to
low
work out the be attractively
financial plan
low
Young unmarried Young married

stage
stage
Young married
with childern
stage
Married with
older childern
stage
When to buy, sell Disgarding the All of the above

or switch from
nonone scheme to
performers
another
and keeping
the good
performers
Interest is paid
every year
Can be
withdrawn
after a year
All of the above
Fixed Asset
Allocation
Flexible Asset
Allocation
Strategic Asset
Allocation
0.35
0.75
0.4
inherter
Godfather
None of the
above
Any entity that is OCBs which is OCI card holder.
not an Indian
managed by
resident
foreigners.
0
Corporate Bond
A
B
POA Point Of
Acceptance
Growth Fund
B
D
B
A
D
CDSL
CVL
Money Market
Mutual Fund
Index Fund
Debt
Securities
Equity Shares
Individual
NRI
HUF
CDSL
ONCE
POS
D
A
NEFT
ECS
Both A&B
4000 units
Nil
16000 units
B
B
833 units.
417 units.
416.67 units.
Rs.14850/-
Rs.14000/-
Rs.14810/-
Signatory
Authority
Board
Resolution
Appliation form.
Next Days Nav
Previous Days
Nav
Next working
Days Nav
According to the
time mention in
web browser.
According to
the time
mention in
web server
According to
investment
Amt. & time
mention in web
server.
Following Days Following Days

NAV of
NAV of
application
Preceding Day
day
of application
date.
Preceding Days
NAV of Next
working Day of
fund realisation
Friday's NAV
Wednesday's
NAV
Tuesday's NAV
Preceding Days
NAV
Following
working days
NAV
Next Days NAV.
Only b & c
Inputs from the

Inputs from
CIO on the
the CMO on
investment
the interest in
objectives that the market for
would benefit the
the
investor
investment
objectives
0
Both the
statements are
wrong
Only First Part
Only Second
Part
Partially False
Completely
True
Only Second
statement
False
Completely
False
Only Second
statement True
Only First Part
Only Second
Part
Both the
statements are
wrong
Both the
statements are
wrong
Term
Partially False
Investment
objective
Completely
True
nature of the
scheme
Completely
False
A
C
Principle of
indemnity
Principle of
caveat emptor
Principle of
indemnity
Principle of
Buyer beware
Principle of
insurable
interest
Principle of
insurable
interest
C
C
Income fund
Fixed Deposits
Index Fund
0
0
B
A
Below par
At par
At a price
unrelated to the
prevailing
interest rate
Sector fund
Debt fund
Gold
NSC
Bank Deposits
Betting on
horse (as a
regular income)
RBI Relief Bond
NSC
6 years
7 years
Kisan Vikas
Patra
8 years
6 years
5 years
3 years
0.11
0.1
0.09
C
D
9.5% before tax
8.5% after tax
Investors in high
tax bracket
8.5% before
tax
Urban
investors
Risk taking
investors
Rs. 307
Rs.99
Rs. 207
Interest income is
added to the NAV
Interest
income is
subtratced to
the NAV
None of these
Photo debit card

Morning Star
Gold Fund
Photo credit
card
Lipper
Gold Sector
Fund
Photo employee
id
Credence
Analytics
Gold futures
C
A
D
A
Only HUF
Individual and
HUF
At discount
At par
Art
Property
Only
institutional
investors
At a price
unrelated to the
prevailing
interest rate
Institutional
metal
Decreases
Constant
Drastic change
Personal
information
Rs. 50,000/-
Financial
information
Rs.1,20,000/-
None of these
B
A
SEBI
AMC
Rs. 500 to Rs.

70,000
Trustee
New investor
Married with
older childern
stage
Tax benefits
Both new and

existing
investor
Married with 5
depended
children
Easy liquidity
Newly married
both are
working
High returns
Sum assured
Face value
Real value
Distributotor
It gives capital
It should be All of the above
appreciation over bought due to
its term
the need for
insurance and
not as an
investment
Sponsor
Company
distributor
0
Associate
group of
Sponsor
Investor
A
A
Distributotor
Banks
C
B
6 months
need based
Both 1 & 3
A
Jun-09
Jun-10
Mar-11
B
Parents and
Relatives
Contribution
ECS
Parents
Income
All of the above
PDCs
All of the above
STP
SWP
DTP
25: 75
70 : 30
20: 80
A
D
C
D
Maried with 2
Children stage
Go down
HNI
Distribution
Companies
Close-ended
Just Maried
Call centre
employee
React as per Remains Same

margin
Institutional
Investor
Tinvestor
Institutional
Financial
team member
Planner
of AMC
All the
schemes
None of the
above
Gold fund
Real estate
Golld ETF
Operation of
scheme
Portfolio and
operation of
scheme
None of the
above
Units are legally

transfer to legal
hier
B
B
C
C
A
A
Units are
Units are holds
automatically
or carry by
get redeemed surviving holder
Annualised
Returns
Fixed Asset
Allocation
Absolute
Return
Tactical Asset
Allocation
Simple return
Strategic Asset
Allocation
D
B
A
A
Agent
Registration
Number
SID
AMFI
Registration
Number
SAI
AMFI Regulation
Number
None of these
C
A
Associates of
Mutual Fund in
India
Associates of
Mutual Fund in
Indians
Association of
Mutual
Foundation in
India
Growth Fund.
Diversified
Equity Fund.
Index Fund.
0
Following
Working Days
Nav
Value Fund.
A
A
Preceding
AMC will not
Working Days
process the
NAV
transaction and
he will not get
any units.
A
Bullion
Gold Futures
Gold ETF
IRDA
PFM
AMFI
be empanelled
with an AMC
be NISM
certified
All of the above
C
C
D
B
To be borne by
the investors
Totally False
To be borne by to be borne by
the
SEBI
distributors
Partially True
Partially False
A
SEBI
Investor
Distributor
B
Quarterly
Half yearly
Yearly
A
Totally False
Partially True
Partially False
B
Totally False
Partially True
Partially False
B
AMC code of
ethics
AMFI's Guidelines
& Norms for
Intermediaries
both statements
are wrong
AMFI code of Agent's code of

ethics
ethics
AMC's
AMC's
guidelines &
guidelines &
Norms for
Norms for
Intermediaries
Individuals
only first
statement is
right
only second
statement is
right
B
AGNI
SID
SIA
B
0
B
8 inches
8 centimeters 18 centimeters
B
blue
0.1
white
0.15
as per the
wishes of the
AMC
7.50%
C
A
A
25/75
75/25
80/20
D
5 seconds
10 seconds
7.5 seconds
Name of AMC
Entry and/ or
exit loads
Declaration of
NAV
product
launches
Risk factors
usage of ranking
given by third
party
B
D
A
both statements
are wrong
only first
statement is
right
only second
statement is
right
D
0
B
0.01
0.02
Nil
D
0
B
0
Gold
A
Currency
market
International
Fund
0
Personal
information
Asset Allocators
B
A
Emplyability
Risk Profilers
Financial
information
Financial Plan
B
C
A
0
A
30% liquid, 60%
debt and 10%
equity
Debt
Simplicity
70% debt and

30% equity
100% debt
Entire corpus Large amount

in Equity
in equity throgh
SIP
Feeling of
Advance impact
helping the
on society
economy
A
D
A
0
Both statements
are wrong
Only the 1st

statement is
right
Only the 2nd

statement is
right
0
Both statements
are wrong
Both statements
are wrong
1 lakh
A
Only the 2nd
statement is
right
Only the 1st

statement is
right
Only the 2nd

statement is
right
5 lakhs
Only the 1st

statement is
right
Nothing
A
A
C
0
0
Personal
Retirement
Account Number
A
Personal
Registration
Account
Number
Permanent
Retirement
Account
Number
A
Both statements
are wrong
Debt securities,
other than govt
securities
Only the 1st

Only the 2nd
statement is
statement is
right
right
govt securities any fund as per
any fund as
the investor's
per the
choice
customer's age
B
0
IRDA
PFRDA
AMFI
Corporate debt
govt securities
Any of the
above
Financial assets
Non-physical
assets
C
D
Real assets
both statements
are wrong
only first
statement is
right
only second
statement is
right
D
0
B
Financial assets
Mega commodity
exchange
Profit
Number of years
after which the
expense will
occur
Non-physical
assets
Gold and Real

estate
Multi
Mumbai
consumer
commodity
exchange
exchange
Cost in today's Cost at the end
terms
of the period
when the
expense will be
incurred
Are the
expenses to
be done in
foreign
currency
All of the above
B
0
A
Comprehensive
Financial plan
Staretegic
Financial Plan
Tactical
financial plan
B
analyse &
Implement the
Monitor the
evaluate client's
financial
financial
financial status
planning
planning
recommendati recommendatio
ons
ns
All of the
above
A
Young Married
youn married
couple, with one
spouse working
Childhood
young
unmarried
person
Married with
young children
a child
B
Exclusions
Co-payment
Pre-existing
illness
A
young married to
young
married with
unmarried to
older children
pre-retirement
Sudden wealth
Transition
young
unmarried to
married with
older children
Intergenerational
transfer
C
Accumulation
35
Sudden
Wealth
Reaping
45
50
D
D
Transition
Accumulation
Sudden Wealth
liquid
debt
life insurance
A
B
A
A=P/(1+I)^n
P=A^n*(1+I)
P=A^n*(1+I)
B
Comprehensive financial goal
Financial plan
Establish and
Gather client
Define the client- data, define
planner
client goals
relationship
Transition
Intergenerational
phase
none of the
above
Develop and
present
financial
planning
recommendatio
ns and/ or
options
Accumulation
phase
B
D
Amount of buying
and selling done
by the fund
60:40
The average
number of
units sold by
the fund in
one day
None of the
above
30:70
70:30
B
D
The sentiments
of market
unexpected Fluctuation into

scenario in the
the market
market, which
has not yet
been
performed in
the past
Fixed Asset
Fliexible Asset
Allocation
Allocation Fund.
Fund.
He is redeeming He is investing
Both B & C
within 9 months
within 3
after record date months prior
of Dividend
to the record
Date of
Dividend
MIP.
D
0
50% of net assets
25% of net
20% of net
assets
assets
The performance The returns
The change in
of other mutual given by other wholesale price
funds
comparable
index
financial
products
D
The investment
objective of the
fund
High Ticket Size.
S&P CNX Nifty
I-Sec's I-BEX
Investment
objectives
Winning a sports
gold medal
SEBI
AMFI
B
Professional Domestic Asset.
Management.
BSE 200
CRISIL Debt
Index
Fund size
S&P CNX
Sectoral Indices
S&P CNX Defty
B
D
C
Fund managers
D
Planning for
retirement
Saving for
child's
education
To achieve
financial goals
through proper
management of
finances
To invest in
foreign
countries
None of the
above
B
Financial Planner
Insurance
Agency
Financial
Advisor
A
Allocating funds
to individual
securities
Recommending
appropriate asset
allocation
Tracking
stocks, which
they feel have
potential
None of the
above
Monitoring
All of the above
financial
planning
recommendati
ons
D
B
B
Disciplining
children
Equity fund
Disciplined
monthly
budgeting
None of the
above
Growth fund
Gild fund
C
A
A
Flexible Ratio of
Asset Allocation
Investment
without any
asset
allocation plan
Buy and hold

Strategy
Liquidate poorly Liquidate good

Switch from
performing
performing poor performers
investments from investments
to good
time to time
from time to
performers
time
D
Real estate
Bullion
Implement the To develop the

Certification
Cadre of Agent
Programme
Public Provident
National
Fund (PPF)
Savings
Certificates
(NSC)
Money market
instruments
All of These
D
Units of a
mutual fund
0
High purchase
price
Implement the
Certification
Programme
Long term capital
appreciation
B
Depreciation
in value as
time passes
To develop the
Cadre of Agent
Value gets
eroded due to
inflation
All of These
Low risk
High liquidity
D
A
Unfavourable
effect of tax
Very high
liquidity
0
The amount
required for
investment is
very large
B
D
0
Higher risk
D
B
Safety of
principal is not
guaranteed
None of the
above
B
0
A
Taxed in the
Are subject to
hands on the
capital gains
investors
tax
Agents get
Returned are
commissions on guaranteed by
mutual fund
mutual funds
investment
Are tax-free in
the hands of
the investor
None of the
above
Inflation.
Tax Deferal.
Tax Benefit.
Commercial
paper
Company
deposit
Debt fund
A
B
D
A
Amount of money Investor's risk
to be invested
tolerance
Managing the risk Financing the

of investment
client's
investments
AMFI
RBI
Phase through
which the
economy is
passing
None of the
above.
AMC
B
0
0
Majority of board
of directors
B
Majority of
board of
directors of
AMC
Both a and b
0
The amount will
debited only
when investor
will give the
request
Benefit of
inflation
Entry load and

exit load
15 yrs, 30yrs,
5yrs, and since
inception
Degree of
diversification of
the portfolio
Market level
Market level risk
Both a and c
B
According to
SEBI
regulation
Depends upon
AMCS
employee
A
Cost adjusted the technique
with the
of reducing the
impact of
capital gain tax
inflation
Declaration of Logo or trade
mark
NAV and
performance
7 days, 15
7 days, 15
days, 30 days days, and since
inception
Fund
Number of
manager's
investors in the
success at
scheme
market timing
Sector specific All of the above
Both of the
above
None of the
above
C
C
D
B
A
He can redeem
investment at
prevailing NAV
within 30 days
from the date of
change take
place
Cannot exit at Can exit at face

face valve
valve
A
It is based on
past returns,
which does not
necessarily
indicate further
performance
It is an
independent
number
Help the investor

develop the right
approach to
investing
Recommend
some
investment
option
available
All types of fund

can be
measured with
standard
deviation
B
Offer adhoc
advise
whenever the
investor has
surplus money
available
B
Buy a few units
of every mutual
fund scheme
available
20 days
Allocation the
available money
to all the
securities
available
Invest all the

money in one
fund scheme
Invest all the

money in
different
schemes of the
same fund
family
Up to the last
date of NFO
None of this
Allocating the
right
proportion of
funds to
equity, debt
and money
market
securities
None of the
above
0
Stock selection
Equity funds
Income funds
Weighted
No. of securities
average
in portfolio
Maturity
Money market All of the above
funds
Equity growth All of the above
fund
C
B
C
A
C
In accumulation
phase
In transition
phase
Who are wealth

preserving
affluent
individuals
The investor has Financial goals

Investor
retired
are
suddenly gets a
approaching
windfall
Affluent investors
Not invest in
securities, which
bear risk of
capital erosion
Investors in Investors in the

the interdistribution
generational
phase
transfer phase
Continue
holding a
major portion
of their
holding in
equity growth
funds
Should take
the effect of
taxes into
account
Never invest in
equity
The right
The right
All the funds
investment
investment can be invested
strategy depends
strategy
in aggressive
upon who the
depends upon
equity funds
beneficiaries are
the state of
the stock
market
Should not use
any of the new
wealth to invest
in equity
Need not pay

any taxes on
the newly
acquired wealth
as it is not a
part of their
regular income
B
0
A
0
D
S.D=STDEV
S.D=(range of S.D=STDEV*(ra
cells where
nge of cells
the periodic
where the
returns are
periodic returns
calculated)
are calculated)
Define Goal
A Balanced fund
Establish
Relationship
A Money
market fund
Monitor the
Financial
Planning
Recommendatio
ns
Both a and b
above
A
Every Year.
Quaterly.
Every Month.
More volatile
than market
Equally
volatile than
market
Risk adjusted
return
No relation
Risk
Over a period of It does not tell

time, the average you when to
purchase price
buy, sell or
will work out
switch from
lower than if one one scheme to
tries to guess the
another
market highs and
lows
B
B
Beta of the
portfolio
Rupee cost
averaging has
no serious
shortcomings
C
Rebalance the
Debt/Equity
allocation very
frequently
Generally
Keep fixed
avoid portfolio percentages of
rebalancing? equity and debt
investments at
all times?
C
His risk appetite
6% interest paid
every 6 months
Job of the
investor
It is required by
AMC
The purpose
of making
investment
3% interest
paid every
quarter
All of these
D
1% interest
paid monthly
Dramatic
change in the
market
condition
All of these
Business
increases
All of the above
D
A
Buying and
selling securities
on the basis of
privileged
information
available to the
fund by persons
who are insiders
to the company
Both of the
above
None of the
above
B
AGNI
Front running
None of the
above
B
The directors of
the trustee
company
1
Sponsor of the
fund
Only 1 and 2
D
B
1
Debt
A
Liquid
Money Market
A
5 years and
above
upto 3 years
upto 2 years
0
Debt fund
A
Liquid fund
Index fund
A
0
A
lower than the
NAV
0.03
higher than
the
none of the
above
NAV plus Exit

load
NAV less Exit

load
0.05
0.07
B
B
D
Equity funds
Debt funds
Sector funds
A
0
A
Debt
Liquid
Money Market
A
5 years and
above
upto 3 years
upto 2 years
0
12 Midnight.
Assured policy
surrender value
A
Server time as
Investor's
per the
computer time.
computer.
Low risk
none of the
above
C
D
0
lower than the
When the market

can behave in a
manner not seen
in the past
A
higher than
the
Lower or higher
than NAV
black
marketing
Opposite of
white swan
A
0
Mid-cap
Small-cap
Both B & C
Both statements
are wrong
Only the 1st

statement is
right
Only the 2nd

statement is
right
He would benefit
He would
He would loose
if the Indian
loose if the US
if the Indian
Rupee becomes
$ becomes
Rupee becomes
stronger
stronger
stronger
Both A & B
FMP
Equity Fund
International
Equity Fund
B
0
A
0
A
Short Term Debt
fund
Both of the
above
None of the
above
0
Weekly
B
Monthly
Annual
C
Tracking error
Both statements
are wrong
Scheme
running
expenses
Only the 1st
statement is
right
All of the above
Only 2 & 3
D
Only the 2nd
statement is
right
A
0
A
Any of the
Dividend
Dividend
above.
Reinvestment, Payout of Debt
debt fund.
Fund.
All the corpus
Customer is
Allocate some
investing in one
king
units to every
companies
investor in India
A
Financial Assets
Foreign Bank
Both of the
above
Domestic
Bank
none of the
above
Private
Placement
A
D
1200 units
500 units
600 units
A
Gold fund
ETF
Small Ticket
Small Ticket
Mix of all asset
classes
Interest rate
Equity Shares
and Bonds
Real estate
fund
Life Insurance
Gold ETF
Gold Future
International
Asset
International
Asset
Debt
Safe haven
asset class
Safe haven
asset class
G-Sec.
Rupee cost
averaging
Liquid Fund
and Saving
Bank account
both 1 and 3
A
C
C
C
C
A
Gilt Fund and

SENSEX
Gold Sector fund
Gold
Gold Future
Gold Sector fund
Gold
Gold Future
RBI Relief Bond
G-Sec.
Institutional
Investor
0
NBFC
Kisan Vikas
Patra
LIC
B
D
A
D
A
B
0
B
A
A
0
0
belong to the
investors
shared by the
trustees and
the investors
belong to the
according to
AMC
pre-agreed ratio
mutual fund
corpus
mutual fund
schemes
unit reserve
exposure to wide
range of
securities with
smaller
investment
benefit of
economies of
scale
all of the above
hybrid funds
interval funds balanced funds
furnish the
returns of the
market index
keep the costs

low
both c and d
0
sector fund
balanced fund
equity fund
host fund, feeder

fund
local fund,
international
fund
international
fund, local fund
corporate paper
financial
institutions'
bonds
equity of
private
companies
active funds
dormant funds
none of the
above
all of the above
unit holders
have credit risk,

interest rate
risk and reinvestment risk
an active
participant in
promoting good
corporate
governance,
investor
protection
board of trustees
a participant
that has
brought in
liquidity into
the financial
system
investment
objectives
have interest
raterisk but no
credit risk
have credit
risk but no
interest risk
that trade in the

stock exchange
that trades in
over the
counter
exchange
all of the above
0
Tenure
rate of return
number of
distributors
units available for

sale and
repurchase at all an upper limit
times
on its NAV
a fixed fund size
equity sector
funds
debt funds
equity
diversified
funds
debt securities
where the
interest rate
debt securities
payable by the
which offers
issuer changes in
multiple
debt securities
line with the
interest rate
which have no
market
structure
maturity period
buy and hold
B
B
B
flexible asset
allocation funds
fixed asset
allocation
funds
credit
selection
diversified
funds
prepayment
selection
B
A
B
B
0
close-ended
funds
interval funds
ensure that
investors
interests are
safeguarded
the
ensure the AMC
management
has proper
of the fund is
systemsin accordance priocedures and
with SEBI
key personnel
regulation
in place
hybrid funds
domestic
financial
institutions
foreign
financial
institutions
all of the above
sponsor
75% of the unitholders
SEBI
both of the
above
Unit holders
none of the
above
A
C
Rs. 50 crore
Rs. 10 crore
Rs. 50 lakhs
no
40%
50%
RBI
SEBI
The sponsor of
that mutual
fund
SEBI
trustees
AMC
directly manage
the portfolio of
securities
do not have
the right to
dismiss the
AMC
Cannot
supervise and
diret the
working of the
AMC.
75%
to the sponsors
to the unitholders
in the offer
document
sponsors
including its
subsidiaries
sponsors
including its
subsidiaries or
the trustees
sponsors and
the trustees
the sponsor
The on behalf
of the trustees
investment
management
agreement
agreement to
manage
portolio
AMC
appointment
letter
75%
85%
above (a) only
updating investor
records
preparing
transfer
documents
investing the
funds in
securities
markets
12 months
5 years
3 years
SEBI
ministry of
finance
compliance
officer
unit holders
both SEBI and

unit holders
none of the
above
no
stock market
investors
asset
management
companies
mutual fund
distributors
AMFI
ARN
ACE
5 business days
of closure of the
NFO
10 working
days of the
end of the
quarter
10 business
days of closure
of the NFO
9.00 AM the next

day
12.00 noon
the next day
7.00 PM the
same day
engaging into
doing personal
transaction with
trading with
making
the fund to get
the
personal
unfair benefits at investments of investment with
the cost of unitthe mutual
unit-holders
holders money
fund scheme
money
interest @ 15%
p.a
Rs.100 extra
as late fee
interest @ 1%
per month
within 3 month
from the close of
the financial year
within 1
month from
the close of
the financial
year
within 3 month
from the close
of each half
year
by informing
each unitholders
individually of
the proposed
by allowing unit- change and by
holders to exit
allowing them
the scheme after
to exit the
six months
scheme
after obtaining
without any exit
without any
prior approval
load
exit load
from SEBI
mutual fund
trust
AMC
sponsors
prevailing NAV
face value of
i.e after
units or NAV at
adding the
the time of
income earned
claiming the
on the
amount
amount,
unclaimed
determined by
whichever is less
money
the AMC
insider trading
front running
self dealing
receiving of a
copy of the
annual
approving
inspecting magor
financial
investment
docunents of a statements of decisions of the
fund
that fund
fund
every month
every hour
every day
80%
65%
40%
preferred
investors
dominant unit significant unitholders

holders
0
offer document is
adequate
approved by SEBI resources are
containing such maintained to
guaranteed
fulfill the
returns
guarantee
all of the above
three
five
one
D
B
B
can sue the

AMC/trustee
has no legal
recourse
all of the above
bi-monthly
half yearly
quarterly
8.00 PM the
same day
3.00 PM the
next day
10.00 AM the
next day
5 business days
of closure of the
NFO
5 working
days
10 business
days of closure
of the NFO
portfolio details
financial
results
sale and repurchase prices

of a mutual
fund scheme
SEBI
offer
document of
the scheme
advertisement
of the scheme
systematic
Investment and
Distribution
Scheme ID
Information
Document
the executive
director of the
AMC
the
compliance
officer
the investor
relation officer
face value of the

units being
offered
SID updation
date
standard
clauses
False
It is not issued by
AMC
It is supplied
with
application
form
It contains the
terms of issue
in an english
daily
newspaper
having
nationwide
circulation and
in a
newspaper
published in
the language
of the region
in any local
where the
newspaper where head office of
the head office of
the mutual
no need for
AMC is situated fund is located advertisement
advertisements
about the
scheme
financial
joumals
scheme launched
in last 3 financial
years
scheme
launched in
the last 18
months
the scheme's
annual report
key
information
synopsis of SID
memorandum
and SAI
attached as
addendum
and
updated in SID
distributed
within 3 months along with the updated in SID
from the end of
SID, until the before the end
financial year
SID is updated of financial year
monthly income
schemes
summarised SID
and SAI
False
dividend yield
schemes
assured return
schemes
3 months from 6 months from

the end of
the end of next
the end of financial year
financial year financial year
6 months from
the end of next
financial year
6 months from 3 months from

the end of
the end of next
financial year financial year
21 working
30 working days
days
7 working days
Sep-10
Mar-11
Jun-11
D
C
D
A
False
which is made
by the
different for
"standards
different schemes committee" none of the above
A
A
False
data of opening
and closing
number of
investor
complaints for
previous 2
financial years
within each
subsequent
calendar
during NFO or not
quarter
complied within thereafter, on
such extended
an average
stipulated period
basis
both b and c
1 month
normal time
plus 15 days
notice period
thereafter
no time limit
allowed
contact
information of
service providers
15 days
investment
valuation
norms
only to the extent

of jurisdiction of
only to the
the country
extent of top
where the
10 monetary
headquarter of
penalties
the sponsor(s) is during the last
situated
3 years
all of the above
key information
memorandum
(KIM)
Scheme
information
document (SID)
portfolio break-up
with
name and
minimumand
contach
maximum asset details of the
allocation
key personnel
type of the
scheme- open
ended/close
ended/interval
scheme
buy the
balance of the
corpus of the
rebalance his
scheme to
holding to bring it
make his
down below 25% holding 100%
do nothing
both SAI and

KIM
advertised in a
regional
language
newspaper of the
region where the mentioned in
head office of
the website of
mutual fund is
the mutual
situated
fund
all of the above
3 months from
the end of next
financial year
immediately
after the lapse
of 30 days exit
6 months from window given to
the end of
investors to exit
financial year
the scheme
uniform
presentations of
dividends
ldentical time
periods
all of the above
covering 10% of
the display area
in white
background
either of the
above
both of the
above
tombstone
advertisement
audio-visual
audio
advertisement advertisement
The maximum
commission of
the distributor
The minimum
ae well as the
maximum
commission of
the distributor
neither the
minimum nor
the maximum
commission of
the distributor
Display
advertisement
product launch
tombstone
1ye, 5yr, and

since launch
1 yr, 3 yr, and 1 yr, 3 yr, and 5

since launch
yr
performance
commission all of the above
trail commission
False
compounded
simple average
annualizedbasis quarterly basis
basis
Display
advertisement
Audio
tombstone
B
A
False
False
False
False
False
False
the last 1
the last 1 year,
year, 2 years 3 years, 5 years
and since
and since
the last year only
launch
launch
False
False
False
higher the
interest,
dividend and
lower the
capital gains appreciation in
earned by the the investment
higher the
scheme,
portfolio, lower
expenses, higher higher would
would be the
would be the NAV be the NAV
NAV
different
valuing
investment at
valuing
cost or market investment at
price
cost or market
whichever is price whichever
lower
is higher
not charged to
none of the
either
above
sponsors
AMC
there cannot be
any initial issue
expenses
fees to
trustees
scheme
advertising
expenses
valuing
investment at
market price
software
development
expenses
False
7.00%
2.25%
SEBI has
banned entry
load
2777.7778
2690.9955
2805.8361
1.50%
0.50%
1.00%
one year or more
3 years or
more
less than 1 year
15.00%
12.50%
25%
as prescribed in
income tax act
as prescribed
in DTAA
NO TDS on nonresident
investors
valuation of peer
group companies
is to be
considered
book balue is
to be
considered
face value is to
be considered
book value
valuation pf
peer group
companies
all of the above
valuation of all
investment
securities held
units sold or
redeemed
all of the above
index funds
liquid funds
index funds,
liquid funds and
other debt
funds
at least 2
maximum 2
at lest 4
six
three
nine
B
A
False
1.50%
0.75%
3.00%
out of free
reserves
out of
distributable
reserves
irrespective of
profit or loss
AMFI
Distribution
agents based
on demand for
the fund
SEBI
utilized by
AMC to meet
selling
credited back to
expenses
the scheme
Rs. 2 crores
Rs. 2.5 crores
nil
2.00%
1.75%
1.50%
STP
minors
investment
through power
of attorney
holder
NRRE account
NRO account
closing NAV of
the day
preceding the
day on which
funds are
available for
utilizatione
closing NAV of
the day
immediately
preceding the
date of
application
closing NAV of
next business
day
closing NAV of
day preceding
next business
day
closing NAV of
next business
day
closing NAV of
the day
application is
received
tranferred to
investor
education fund
dividend reinvestment
option
growth option all of the above
automatic
reinvestment
allows for
accumulation of
additional units
of the fund
an investor who
subscribes to
the major
the growth
benefit of
option under a
automatic
scheme can
reinvestment later change to
is
a dividend
compounding
option
monthly dividend
payout plan
systematic
investment
plan
systematic
systematic
withdrawal plans transfer plans
SEBI
all of these
systematic
withdrawal
none of these
no difference
SIP
VAP is
modified
version of SIP
that allows the
investors
flexibility with
SIP is
respect to
systematic
amount and investment and
frequency of
VAP is
investment withdrawal plan
trigger
ensuring that the tracking the

funds are not
securities that
used to favour a each fund has
few companies
invested in
either of the
FII
above
SWP
ensuring that
the funds are
invested in
approved
secrities only
none of the
above
C
B
False
False
consent of
auditors and
legal advisors
reports based
investment
on which actual
management investments are
reports
made
NAV prevailing NAV prevailing

prior to
on the date of
dividend
declaration of
declaration
dividend
investors who
wish to benefit
from market
fluctuations
investors who
prefer a
regular
income stream
investors who
are not sure
about
themselves
closing NAV of
day preceding
next business
day
closing NAV of
next business
day
closing NAV of
the day
cum-dividend
NAV
can be changed
to suit the
requirements of
the AMC
need not be
consistent
it is suitable for SWP is similar

investors seeking
to monthly
regular income
income plan
should be
disclosed at tne
time of initial
launch
only 1& 2
False
False
growth
bonus
cum-dividend
NAV
ex-declaration cum-declaration
NAV
NAV
cum-dividend
NAV
ex-declaration cum-declaration
NAV
NAV
market price per

share / no. of
ordinary shares
outstanding
total
earnings / no.
of ordinary
shares
outstanding
net worth / no.

of ordinary
shares
outstanding
emerging
growth
value
growth investing
stock picking
less than a
year
sector selection
less than a
month
coupon rate
risk premium
6 months
yield spread
False
False
compounded
annualised return
return
compounded
annual growth
rate
the infrastructure
development
takes place
the interest
rate falls
all of the above
weighted
average maturity
yield spread
all of the above
abstaining from
the market for
some days
using equity
derivatives
selling the
entire holdings
minimized by
diversificatio
managed by
minimized by
investing in
good fund
bluechip
management companies only
ldle cash lying

with the fund
investment in
high rated
bonds
none of these
r-squared
measures how
much of a
fund's
standard
fluctuations is
beta of less
deviation is
attributable to than one means
relevant for both movements in that the fund is
debt and equity
the overall
more volatile
funds
market
than the market
False
15.67%
it is based on
past returns,
which does not
necessarily
indicate further
performance
taxes
13.79%
it is an
independent
number
both of the
above
scheme's optimal
return
risk premium
10.15%
all types of
funds can be
measured with
standard
deviation
never differs
fund manager's
performance
CAGR
benchmark
alpha
I-sec's Si-bex
crisil
composite
bond fund
index
S &P CNX nifty
government
short term
corporate bond
securities market money market
market
C
A
False
scheme specific
risk
standard risk
credit risk
SEBI
the AMC in
consultation
with the
trustee
trustee
higher the
weighted
systematic
average
lower modified
risk of an
maturity of a
duration implies equity porfolio debt security is,
higher interest
is measured higher would be
sensitive risk in a by its modified
its interest
debt porfolio
duration
sensitivity
pays lower
pays higher
interest
interest
incur losses
a debt
security with
longer
maturity
fluctuates
more than
short tenor
securities
D
C
the value of
floating rate
securities
fluctuates more
than fixed rate
securities
a debt security of
shorter maturity
would fluctuate a credit risk and
lot more, as
yield on a debt
compared to
security is
longer tenor
inversely
securities
related
higher the
credit risk
would be the
yield spread
historical data
of fund
performance
the nature of
investments
In a floater, when
the market yield
goes down, the
issuer pays
higher interest
the investment
objective
long-term debt
fund have
higher NAV
fluctuation
when
all these
growth and risk
comoared to
statements
are associated
money
describe reality
with equity funds markets funds
adequately
high default risk

hedging against
risk
low liquidity
risk
re-balancing
og portfolio
inflation risk
both b and c
at a discount to
NAV
at par
either of the
above
in line with the

market
below the
market returns
as per
government
bond yield
total purchase /
net assets
total purchase
and sales / net
assets
total purchase
and sales /
average net
assets
transaction costs
are high
the fund may

be quity risky all of the above
is managed by
reputed AMCs
offers facility
of converting
the Gold ETF
to physical
gold
tracks the gold

prices better
12 months
48 months
36 months
portfolio
composition
scheme's
performance
weighted
average
maturity
investing in
high price
shares
investing
regularly with a
long-term
perspective to
smoothen out
the effects of
volatility in
market price
investing in debt
funds
chances of
incurring capital
loss is more for
SWP
the money
don't grow
with SWP
investors
perceive that the
fund will be
the assets of
unable to
the fund are
maintain the NAV undervalued
tax effect, as
dividend is tax
free whereas
redemption
from equity
schemes
attracts STT
aswell capital
gains
none of the
above
1%
7%
2%
getting decent
returns like debt
funds
getting tax
benefits like
equity funds
all of the above
higher
transaction costs
both the
above
none of the
above
C
A
False
sue the
agent/distribut
sue the trustees
or
none of the
above
ratio of sales ratio of sales or

or purchase
purchase
ratio of total
( which ever is ( which ever is
purchase and
lower) to the
higher) to the
sales to the net
net assets of
net assets of
assets of the fund
the fund
the fund
six
three
four
Quality of the
mutual fund
assets
his investment
objective and
risk appetite
all of these
high appreciation
in value
low purchase
price
hedhe against
inflation
False
False
False
A retiree who is
currently getting An old person
an income of
wanting to
4,000 but would transfer all his
want Rs.10,000 a wealth to his
month
grandchildren
A young
professional
aged 26 years
distribution
reaping
transition stage
distribution
stage
intergenerational
wealth transfer
stage
bank fixed
deposits
diversified
equity
schemes of
mutual funds
liquid schemes
of mutual funds
client cashes
out
client feels the

need to take
care of the next
generation
accumulation
the clients' goals

are approaching
False
False
investor has a
long-term horizon
investor
cannot take
risks
investor's
financial goals
are approaching
married with 2
kids
about to
approach
retirement
young married
Managing the
risks of investing
financing the
client's
investments
none of the
above
accumulation
reaping
intergenerational
transfer
systematic
investment plan
lump sum
investment
Planning
financial
Planning
False
when the
investor invests
regularly in a
liquid fund, sets
a target for an
equity fund,
then invests
more in equity
fund if its value
when the
when the
declines and
investor invests a
investor
books profits
fixed sum each
invests
when its value
month in a liquid regularly in a
exceeds the
fund
liquid fund
target value
how the
investment
should be
distributed
how the
between
investment
different
how a fund
should be
mutual funds
manager
distributed
having the
distributes his
between different
same risk
investments
asset classes
profile
within a scheme
risk profiling
evaluation of
socio-economic
conditions
in transition
phase
who are wealth

preserving
affluent
individual
evaluation of
financial status
in accumulation
phase
not invest in
securities, which
bear risk of
capital erosion
it is a
development
financial
institution
Peter Lynch
continue
holding a
major portion
of their
holding in
equity growth
funds
never invest in
equity
it is nonit is a financial banking finance

intermediary
company
John
Templetion
Warren Buffer
C
A
buyback
transaction
government
securities
buy
transaction
re-purchase
transaction
call money
both a and b
guarantee the
return on
investment
ensure the
principal
repayment
ensure the
return on
investment
C
B
0
sponsor
Custodian
All the above
0% and 100%
The transfer
agent
25% and 49%
0% and 49%
The trustees
The bankers
1993
1995
1996
Prior approval
of the sponsor
is required,
Atleast two-thirds AMC should before a person
of the trustee in
have
is appointed as
the trustee board minimum 40% director on the
needs to be
independentdi
board of the
independent
rector
AMC
AMFI
GCCI
AGNI
D
B
daily in atleast 2
newspaper
daily in atleast once a month in

one
all national
newspaper
newspapers
rural investrs
investment
below Rs. 5000
30 days of
declaration
60 days from
the end of the
month in which
it is declared
5 business
days of
5 business days from the closureallotment
of NFO
7 working days
of allotment
micro-SIPs
30 days from the
end of the month
in which it is
declared
0
Investor Service
Centre of AMC
SEBI
the names
and addresses
of the
investment policy registrats and
of the scheme
custodians ?
Ministry of
Finance
none of the
above
Buyer is always
right
Seller is
always right
Seller is guilty
unless proved
right
within one year
within 2 years
within five
years
giving the fund

manager`s
Giving detailed Explaining the
investment
information about risk factors of outlook for the
the scheme
the scheme
next quarter
the date after

the NFO close
date from
the opening date
which an
after the scheme investor can
suspension
re-purchase or
period is over
buy new units
45 days
15 days
the next day

after the NFO
close date
20 days
period under
Circumstances
which refund
under which
Maximum
should be carried refund may
target amount
out
take place
to be raised
SID
KIM
All of the above
Past
Risks
performance associated with If the AMC has
of sponsor /
the use of
no previous
AMC / mutual
derivative
experience in
fund is not
instruments, if
managing a
indicative of
the fund plans
fund, a
NAV can move up
future
to use such
disclosure to
or down
performance
instruments
that effect
D
A
15
20
50
Aggregate fees
and expenses
charged to the
scheme
Investment
pattern
All of the above
The specific
securities in
which the fund
will invest
AMFI
any of the
above
0.50%
Asset allocation
pattern
SEBI
Policy of
diversification
Fund
distributors
on the amount
on the net
redeemed by
assets
investors
attributable to
attributable to
the units sold
the units sold by
by the
the distributors
distributors
1%
No upper limit
Entry and/or exit

loads, if
applicable
comparisons
and usage of
ranking given
Frequency of
by a third
Net Asset Value
party
(NAV) disclosure
Premium on NAV
Exit Load
Entry Load
Contingent
Deferred sales
Charge
Contingent
Deferred Exit
Charge
Calibrated
Deferred sales
Charge
exit load
deferred load
any of the
above
Audit fees of the

scheme
Fund accoing
fees
Expenses on
investor
communication
Rs.5.75 crore
Rs.11.25crore
Rs.10.75 crore
balanced funds
equity and
balanced
funds
index funds,
liquid funds and
other debt
funds
Rs. 5 lacs
50000 shares
None of the
above
Closing NAV of
the day
preceding the
day on which
funds are
available for
utilization
SAI of the mutual
fund scheme
Closing NAV of
the day
immediately
preceding the Closing NAV of
date of
next business
application
day
Mutual fund
website
Both a Aand c
D
B
0
Systematic
withdrawal Plan
Dividend Reinvestment
Plan
Systematic
Transfer Plan
Not defined
Listed in the
offer
document
Available with
stock
exchanges
C
B
0
The returns
given by other
The performance comparable
The Change in
of other mutual
financial
wholesale price
funds
products
index
Total
Earnings / No.
of Ordinary
Book value per
shares
share / Earning
outstanding
per share
Market price per

share / Earning
per share
If the interest
rate goes up,
yield of bonds
will go down
If interest
rates go down,
price of bonds
will also go
down
If the interest
rate goes up,
yield of bonds
will go up
Both A and B
Whatever
Viewing each
money
finacial goal
becomes
distinctly, and
available from
making a specific time to time,
asset allocation to be invested
and investment
as per risk
for each goal
preference
None of the
above
The return on
investor would
earn
The amount
rate of interest
paid on par
value of the
bond
None of the
above
(11.5 /
10)^(15/12)- 1
(10 /
<10 /
11.5)^(15/12) 11.5)^(12/15)-1
1
30%
20%
31%
14.90%
21.37%
17.12%
12 months
6 months
24 months
Ieverage
credit
concentration
A
D
Sector funds
Contra funds
Thematic funds
Switches the
scheme
objectives,
depending on
their view on the
respective
markets
both of the
above
none of the
above
0
Fund
Advertisement
Offer Document
s
All of the above
8.23%
Wants
predictable
returns
4.00%
7.92%
wants return
more than
wants regular or
normal fixed
anytime
deposits
liquidity
RBI
Employees
provident &
Pension Fund
Authority
Pension funds
Regulatory and
Development
Authority
different needs
and aspirations
different
socioeconomic
conditions
all of the above
Investors in
the interInvestors in the
generational
distribution
Affuent investors transfer phase
phase
6% interest paid
every 6 months
3% interest
paid every
quarter
economic
development
decrease in
crime rate
Rs.100
in a stock
exchange
of poor
profitability
1% interest
paid monthly
D
C
Rs.10
improves
government
exchequer
Any amount
fixed by AMC
after lock in
period
of poor track
record
never
of poor credit
quality
None of the
above
It is an
instrument
that gives the
holder the
right to
purchase
It is a debt
equity share in
instrument that a company at
offers fixed
a fixed price in
interest rate
future
Should have
positive net
worth in last 7
years
50% of the unit
holders
Should have
Should have
latest net
earned profit
worth more
after interest
than the
and
capital
depreciation in
contributed in the last 3 years
AMC share
including the
capital
current year
45% of the
unit holders
60% of the unit

holders
C
B
C
A
51% trustees
of the trustee
XYZ ltd., a
board is
sponsor company
associated
has 51% share- with XYZ ltd.,
holding in ABC
a sponsor
ltd., an AMC
company
XYZ ltd., a
sponsor
company
control 51%
share of the
custodian
Trustee
sponsor
Custodian
B
A
Equity Analysts
Portfolio
Managers
Security
Dealers
B
B
0
5 business days
of closure of the
NFO
10 working
days of the
end of the
quarter
10 business
days of closure
of the NFO
Are defined as
Can be decided
per SEBI
based on investor Regulations
Need not be
response to the
before the
disclosed in the
offer
offer is made offer document
within 3 month
from the close of
the financial year
within 1
month from
the close of
the financial
year
within 3
within 6 month
month from
from the end of the end of the
the financial year financial year
within 3 month
from the close
of each half
year
by paying
applicable
charges
The nature of the

scheme being
income bearing
The specified
stocks in the
scheme`s
portfolio
The names and

addresses of
the compliance
officer
AMC
Consumer
Court
Does not have

any
Investment
Objective of the
mutual fund
Investment
Principle of
the mutual
fund
AMFI Code of
Ethics
buying or
selling of any
buying or
secuities
selling of any
ahead of
secuities after
transaction of the transaction
the fund, with
of the fund,
access to
with access to
insider
insider
information
information
if the
requirement of
minimum 20
investors is not
No single
complied within
person shall
the stipulated
hold more
period, the
All open-ended
than 25% of
mutual fund
mutual fund
the corpus of scheme shall be
schemes shall
open-ended
automatically
have 20 investors
schemes
wound up
making personal
investment with
unit-holders
money
minimum 75%
maximum
90%
at least 65%
Description of the
scheme &
investment
objective/strateg
y
Investors`
Rights and
Services
Performance of
other mutual
funds
Investor
Employee of AMC
relations
or distributor
team-member All of the above
NSE Nifty
BSE Sensex
None of the
above
general
information
advertisement
launching or
re-launching
of schemes
competitive
advertising
an entity
whose
services have
not been
procured by
the AMC(s) or
mutual fund or
an entity who
any of its
provides general
affiliates to
information about
assign a
AMC(s) or mutual ranking to the
funds to the
AMC(s) or
public
mutual fund All of the above
691.24 crore
509.94 crore
634.00 crore
Yield matrix
prepared by
Valuation of
authorized
other similar
valuation agency debt securities
Sponsors
any of the
above
Mutual fund
trust
D
B
15%
12.50%
25%
He should
He can
immediately
continue to
redeem his
hold as PIO
investment
are allowed to
since forign
He should get RBI
invest in
citizens are not
approval for
mutual funds
eligible
continuing
in India
investors
All the holders
equally
C
A
AMC of the
mutual fund
Any one of the

holders
Either first or
second holder
C
A
number of units
to be repurchased
Closing NAV of
the day
both of the
above
any of the
above
Closing NAV of
the day
Closing NAV of preceding the
next business next business
day
day
C
A
AMC
Distributors
Clearing
Corporation
B
A
BOLT MF
BOLT MFSS
BSE STAR
Mutual fund
Research into the

operations and
finances of the
company
studying the
company`s
share prices
None of the
above
0
Average total
asset/gross
income
Return on
equity/averag
e total asset
net income
/average total
asset
Rs. 4.25 crore
Rs. 3.50 crore
Rs. 6.50 crore
Rs. 24.98
Rs. 32.15
Rs. 40.49
The time when

the distributor
submit the
application to
POA
The time when

the investor
submit the
application to
POA
both b and c
Changing the
asset
Balancing the
allocation as
portfolio to
per the
ensure
change in
consistency as
financial
per investment of needs, market
the client
conditions
All of the above
Coupon
Maturity
Beta
B
D
B
0
Change in
Change in
valuation of debt valuation of
and equity with debt securities
respect to
with respect to Original tenor of
change in
change in BSE
any debt
interest rates
sensex
instrument
oays lower
pays higher
makes profit
interest
interest
A
B
5.92%
11.83%
18.38%
Investors to
redeem debt
prior to maturity
Issuers to
redeem debt
prior to
maturity
Investors to
extend the
tenure of debt
The investment
These funds
in shares is in the take only the
same proportion overall market These funds are
as in the index
risk
not diversified
Invest in debt
securities
0
Invest in
securities
having
maturity in
line with the
maturity of
the scheme
All of the above
D
A
no
SEBI
the AMC in
consultation
with the
trustee
trustee
Above 10 years
5-10 years
8-15 years
risk
Risk adjusted
return
Beta of the
portfolio
6.00%
5.70%
2.50%
D
B
0
high
very high
very low
calculate the
period in which
an investment
will double at a
given rate of
retum
calculate the
rate at which
money will
grow to double
in a given
period
None of the
above
Taking exposure
in exchange rate
both of the
above
None of the
above
how better
returns they are
offering than the
gold prices
how old the

gold ETF fund
is
how better is
their dividend
paying track
record
His risk appetite
The purpose
of making
investment
All of these
PPF
Units of
mutual fund
NSC
Allocating funds
to individual
securities
Married with
young children
Tracking
stocks, which
they feel have
potential
young
unmarried
None of the
above
Pre-retirement
InterGenerational
Transfer
Transition
Accumulation
Investing the
same amount of
funds regularly
Investing in
one lump sum
amount
none of these
His income
The stock
market
movements
His job secrity
The right
The right
investment
investment
strategy
all the funds
strategy depends depends upon can be invested
upon who the
the sate of the in aggressive
beneficiaries are stock market
equity funds
Should be the
same as his own
investment
objectives
Changes with
market
movements
Changes with
the change in
AMC(s) key
personnel
Asset side of the

balance sheet
Revenue
account
Equalization
account
assets under
management
number of
investors
any of the
above
Fund manager
decides the
composition
and quantum
Passive funds
of investment Running cost of
track BSE-Sensex in passive in
passive funds
or NSE-Nifty only passive funds
are higher
To the agent
through which
he/she
On a stock
subscribed to
exchange where
the units of
the fund is listed
the fund
both a and b
Trustee
Sponsor
Sale and
Control over
redemption of
issue of offer
units by investors documents
Investment
manager
Overall control
over the
operations of
the AMC
There are not

specific
restrictions on
There is a lock-in
investment These funds can
period before
objectives for
not invest in
investment can
the fund
shares of listed
be withdrawn
managers
companies
45% of the unit
75% of the
50% of the unit
holders
unit holders
holders
D
C
Trustee
AMC should
have
minimum 40%
independentdi
rector
any of the
above
government
securities
none of above
Above (a) and

(b)
Mutual fund
website
All national
daily
newspaper
One English
National daily
and one
regional
newspaper
where the head
office of mutual
fund is situated
An advertisement
to that effect is
published in one
English National
daily and One
Dissenting
regional
unit-holders
newspaper where are given an
head office of
option to exit
mutual fund is
at prevailing
situated
NAV
All of the above
1.00% p.a
1.25% p.a
2.25% p.a
Prevailing NAV
Face value of
i.e. after
units or NAV at
adding the
the time of
income earned
claiming the
on the
amount,
unclaimed
NAV at the end
whichever is less
money
of 3 years
insider trading
Is in the form of
recommended
practices
self trading
front running
Does not cover

Is unfavorable distribution and
to investors selling practices
on an ongoing
basis
Key information
Memorandum
by the end of
within one
3 months of month from the
every financial end of every
year
financial year
Key
information
Management
Key information
measures
B
B
Only if the offer

document
specifically
provided such a
guarantee by a
named sponsor
The
Government
of India
Investor`s right
and services
Description of
Performance the scheme and
of the other
investment
Mutual funds
objective
NISM
SEBI
AMFI
AMC
an equityoriented mutual
a debtyfund scheme
a debtoriented mutual
investor would
oriented
fund scheme
bear a tax on
mutual fund
investor would
short term capital
scheme
be exempt from
gains as per the investor would
long-term
investor`s tax
not bear any
capital gains
slab
STT
tax
sell the units

more than 9
months after the
record date for
the dividend
both of the
above
Either of the
above
SIP
RTGS
ASBA
Closing NAV of
day preceding
next business
day
Closing NAV of Closing NAV of

next business day application
day
is received
Risk of stolen,
fake, forged
shares
Stamp duty on
transfer of
shares in
dematerialized
form
All of the above
The company
shares' trading
volume
Current
market
sentiment
Market price per

share / Book
value per share
undervalued
stocks
Book value
per share /
Earning per
share
low value
stocks
The company's
regulatory
environment
Book value per

share / P /E
Ratio
All of the above
Companies
which are
Companies with likely to go for
large equity base public issue All of the above
Financial
State
Institutions
Government
both a and b
A
D
The term of bond
The date of
redemption
The date on
which the issuer
has to repay the
amount]
Switched towards
a higher
proportion of
floating rate
instruments
Switched
towards a
higher
proportion of
fixed rate
kept as it is
Offer yield tak

free
be redeemend
on maturity at
the face value
which is
higher that
the the issue
price with no
pay interest on a
payment in
quarterly basis
between
0
11.25%
8.96%
35.82%
Borrow 15% of Borrow 20% of Borrow 5% of

the net assets of the net assets the net assets
the Scheme for of the Scheme of the Scheme
1.5 years
for 0.5 years
for 2 years
Yield spread
Yield extra
Yield premium
less than 1
one
zero
variance
standard
deviation
modified
duration
D
B
Rs. 225
Rs. 1000
None of the
above
leveraging
hedging
gambling
physical gold has wealth tax is

threat of loss due applicable on
to theft
physical gold All of the above
is a process
aimed at
identifying
financial needs of
a client and
planning
investments that
allows meeting
planning to
future financial keeping taxes retire with the
goals of the
as low as
maximum
investor
possible
income possible
transition
accumlation
intergenerational
transfer
risk assessing
risk profiling
risk screening
0
debt funds are
dividend
not subject to
distribution
STT on
tax is
redemption/withd applicable for
rawal
debt funds
the returns are

more predictable
both b and c
most investors
are always in
debt
All of the above
8.33%
7.00%
6.81%
11.2
10.41
12.46
number of
investor in the
scheme
Mumbai interbank offered rate
monetary
internation
bank offered
rate
None of the
above
S&P CNX Nifty
BSE 200
S&P CNX
sectoral indices
fund
degree of
manager's
diversification of
success at
the portfolio
market timing
enforces saving
in a disciplined
and phased
manner
provides the
benefit of
rupee cost
averaging
all of these
closing NAV of
the day
closing NAV of
next business
day
Closing NAV of
the day
preceding the
next business
day
bye-law of the
company/trust
permits such
investment
a special
resolution is
passed in a
general
meeting
permission from
SEBI
Rs.500000
Any amount
Rs.200000
Institute of
Chartered
Accounts of India
Indian Trust
Act 1882
Association of
Mutual Funds in
India
15%
the marginal
rate of tax of
the investor
30%
option
growth option All of the above
variable NAV
nomination
facility
fixed maturity
equity income
funds
thematic
funds
diversified
equity funds
debt fund
sector fund
balanced fund
B
D
not less than

50%
upto
maximum of
76%
not less than

65%
the trustees
the registrars
the custodians
unit capital goes

down
net asset
value goes
down
unit capital
goes up
the asset
management
company
the sponsor
All of the above
40%
50%
60%
SEBI (mutual
fund) regulations,
1996
ministry of
corporate
affairs
securities
contract
(regulation) act
Only its own

members in a
limited way
Its own
members with
total
jurisdiction
No entity at all
has to be
has to be
has to be
deployed in
reinvested in
transferred to
money market by the scheme
the investor
the mutual fund
itself
education fund
NFO early
approval date of
trustee
NFO ending date closing date
B
D
yes, a test
conducted by
SEBI
A post
graduate
university
course
yes, a test
prescribed by
SEBI
holding period
net-worth
age
6%
5%
nil
12.18%
8.67%
14.31%
Rs. 4.25 crore
Rs. 3.75 crore Rs. 3.50 crore
AMFI booklet
offer
document
RBI Guidelines
Institutions
Floating rate
Private sector
companies
All of the above
High yield
Interest on
delayed payment Depreciation
to unit holders on fixed assets
low yield
marketing and
selling
expenses of a
scheme
D
B
0
1
None of the
above
B
A
0
Error in portfolio
aliocation
a index funds
actual
return/loss
error due to
practical
difficulties
Propotionate
right in the
beneficial
ownership of the
assets of the
scheme
Inspect
documents
All of the above
SIP where
monthly
investment does
to exceed Rs.500
SIP where
annual
investment
does to
exceed
Rs.10000
SIP where
annual
investment
does to exceed
Rs.50000
long term than

the short term
developed
nations
growing
economy
Reaping stage
accumulation
stage
transition stage
2.00%
risk
9.00%
both the
above
3.33%
None of the
above
financial
institutions
mutual funds
futures &
options
AMC
sponsors
unit-holders
any of the
above
sponsor
AMC
set a code of
ethics
regulate
mutual funds
1 year
investment
managers
9 months
distribution
agents
the investor has

retired
increase public
awareness of
mutual funds in
the country
6 months
regulators
financial goals
investor
are
suddenly gets a
approaching
windfall
index funds
debt funds
value funds
7.00%
8.50%
liquidity risk
7.50%
liabilities in
the scheme
All of the above
funds
both the
above
None of the
above
scheme assets
no wealth rax
payable
net assets
2% on cost
portfolio
2% on excess
of market
value over
original cost
2%
10%
no TDS
12.50%
20%
nil
D
B
5 business days
10 working
days
7 working days
trustees
custodians
AMC
receiving the
proceeds on
sale of
investments &
discharging its
obligations
towards
operating
expenses
handling
securities in
Issuing &
terms of physical
redeeming
& eventual
units of the
safekeeping
fund
registrars &
transfer agents
custodians
All of the above
special due
diligence
code of ethics All of the above
30 days
42 days
esix weeks
AMC
fund of fund
schemes
resorting to tax
planning to keep
taxes as low as
possible
cashing out
D
B
A
in excess of 5%
on openended
schemes
on close-ended
schemes
HNI or
institutional
investors only
retail investors
only
index schemes All of the above
planning for
retirement
with the
maximum
income
possible
transferring
wealth
process of
solving financial
problems and
reaching
financial goals
All of the above
SEBI
is discretionary
Association of
market
federation of
India
AMFI
SHCIL
is compulsory
if the investor varies between
request for
schemes
Association of
money funds
in India
Association of
money
federation of
India
A
A
0
chief
marketing
officer
None of the
above
4 months
offer
document
6 months
red herring
prospectus
overseas
corporate bodies
person of
indian origin
association of
persons or body
of Individuals
invest in different
markets and
securities
fund business
houses
working
capital
float ponzi
schemes
sector funds
diversified
debt fund
passive funds
diversified
equity fund
chief investment
officer
3 months
trust deed
0
fixed asset
allocation funds
gilt fund
D
C
B
D
A
a sector fund
invests in the
shares of
a bound fund
an index fund companies in a
would mainly buy is indexed to
particular
debt instruments inflation index
industry
gold exchange
traded funds All of the above
dynamic funds
gold sector funds

avctive funds
tactical funds
trustee company
both a and b
professionally
qualified
individuals only
five
two
four
25%
75%
two-thirds
the trustee
the unit
holders
It`s employees
association of
mutual funds in
india
custodians
depositories
7 working days
30 working
days
15 business
days
1 month
2 months
advertisement
brochure of the
mutual fund
scheme
summarised
form of SID
and SAI
abridged
financial
statements of
the mutual fund
schemes
unlimited
initial
contribution
made by it
towards
setting up the
fund
limited to the
extent of Rs.
1lakh
Key information
Memorandum
both (a) and

(b)
None of the
above
50,5%
100,20%
stock
exchanges
20,25%
All of the above
3 months
internet
as long as the up to one year

investor`s money from the date
is held in the
of mobilization
fund
of fund
indefinitely
Rs 4.25crore
1%on the first Rs.

100crore of
average net
assets & 0.50%
on the balance
scientific and
industrial
research
organizations
Rs.8.50crore
Rs.11.75crore
1% on the
average net
assets
1.25% on the
first Rs.
100crore of
average net
assets & 1% on
the balance
foreign national
(other than
trustees of
PIO/OCI card
private trusts
holder)
lnvestment
objective of the
fund
financial
market
conditions
amount
invested by
investor
Review of
companies' stock
review of
performance in movements in
market
index
All of the above
supply of money
All of the above
diversification
sector selection
lnflation rate
Country
selection
to finance the
acquisition of
long term capital
assets
to retire long
term debt
to pay dividend
lts face value
Its fair value
the current
price of T-Bills
exchange rate
duties and
taxes
All of the above
offering bonus
option
offering
dividend
option
offering
dividend option
and dividend
has been paid
FMP is most
liquid among
debt funds
high perceived
safety
longer-term
debt securities
fluctuate more diversified debt
than shorter
funds don`t
term debt
have a credit
securities
risk
low yield
low risk
spread
premium
C
A
B
0
equity funds with
growth/reinvestm
ent option
er transaction
costs
balanced
funds with
dividend
option
both the
above
None of the
above
None of the
above
monthly income
plans
diversified
debt funds
fixed maturity
plans
B
C
B
selection of
sector
fund
sector
distribution, asset managers/sch distribution,sele
allocation,
eme sector
ction of fund
selection of fund
distribution
managers
managers and
and asset
,asset allocation
scheme
allocation
and schemes
monitoring
financial
recommending
planning
appropriate asset recommendati
allocation
ons
All of the above
married with
young children
young
young unmarried
to preunmarried to
to retirement
retirement
pre retirement
employability
age
All of the above
D
B
debt funds
gilt funds
balanced
funds
hybrid funds
C
D
hybrid funds
from the fund
itself
from AMFI
Thematic funds
from a stock
broker
a pass through
vehicle
a private trust
an association
of persons
deposit with a
local co-operative
bank
a gilt fund
AMC
sponsor
a diversified
debt fund
any of the
above
memorandum
and articles of
association of
agreements with
AMC and
various
trustee
constituents
company
All of the above
lits own
members
a fixed unit
regular
corpus for the life declaration of
of the scheme
NAV
RBI
regular
disclosure of
portfolio
C
A
D
A
B
B
it is a document
it is a document
that contains
that provides
it is issued
key disclosures,
historical
only by
which are not
information about private sector
found in the
the fund
mutual funds offer document
Rs. 12.00
company law
board
Rs. 10.00
Rs. 14.50
0
resident
individuals
NFO
provident
funds
international
schemes
non banking
finance
companies
both b and c
transfer
transfer amount amount from
transfer
from one scheme one scheme to
dividends of
with in the same
his bank
one scheme to
mutual fund
account
another
fixed maturity diversified debt

schemes
schemes
potential risk
to AMC andholders
liquid schemes
regulatory limits
on borrowing
distribution
phase
2 fiscal year
names of
lenders
sudden wealth
phase
transition phase
3 fiscal year
6 months
Rs.9.00 crore
Rs.12.00 crore Rs.19.00 crore
B
B
SID
KIM
None of the
above
name of the
auditor of the
scheme
name &
contact
information of
the sponsor
None of the
above
2.50 crore
2.00 crore
5.00 crore
discount offered
on NAV
entry load
exit load
stock selection
portfolio
asset allocation
C
B
0
close-ended
funds
active funds
None of the
above
All of the above
A growth fund
would invest
A balanced fund in the equity
holds assets
shares of
more or less in
companies
A fund that
equal proportions whose earning invests only in
between
are expected
ASEAN
debt/money
to risk at an
countries is an
market securities above average
example of
and equities
rate
specialty fund
maturity profile
growing stocks
The additional
yield on a bond
as compared to
the yield of a
benchmark
security
interval funds
fund size
low growth
stocks
term structure
of interest
sovereign yield
rates
curve
fall
are not
affected
fluctuate either
up or down
above face value
at face value
below face
value
D
B
0
to achieve
financial goals
through proper
management of
finances
to invest in
foreign
countries
None of the
above
amount of money investor`s risk

to be invested
tolerance
phase through
which the
economy is
passing
two investors
with the same
all wealthy
risk profile would investors have the level of risk
always have
exactly the
tolerance for
identical
same risk
most of the
portfolios
profile
clients is fixed
a rich quick
investment
option
Investments
to take
advantage
from stock
market swings
all of these
none of the
above
statements is
true
A
B
0
passively
managed
schemes
debt schemes equity schemes
A
B
0
stocks whose
worth will be
recognized by the
market in the
long term
high current
yield
long-term
capital
appreciation
value funds
invest inunder
priced stocks
growth funds
invest in
overpriced
stocks
None of the
above
commercial
papers
treasury bills
gilt securities
B
B
nature of
securities in the
portfolio
by comparing it
with return on
government
securities
fund
manager`s
success in
timing the
market
All of the above
by comparing
its
by comparing
performance its performance
with a money with the index it
market mutual isdesigned to
fund
track
beta, standard
deviation
risk-free rate
of return, beta
standard
deviation,
scheme`s
return
12.25%
100%
200%
AMFI booklet
offer
document
RBI Guidelines
inflation risk
interest-rate
risk
call risk
A
A
Rs.11.25 crore
Rs.15.50
crore
valuetion date
record date
profits earned
book building
lssue
Rs.9.80 crore
book closure
date
appreciation in
the value of
investment
portflio
All of the above
NFO
A
B
Public lssue
NFO open date
NFO close
date
allotment date
two days before

the issue opens
within 5
business days
after the issue
opens
within 3 days
after the
allotment of
units
shall not have a

single investor
holding 25% or
more of the
corpus of the
scheme
either of the
above
both of a and b
5 business
6 weeks from the days from the
closure of NFO closure of NFO
half yearly
once a year
3 month from the 3 month from

end of every
the end of
half-year
every quarter
60 days from
the closure of
NFO
once in three
year
B
C
6 month from
the end of
every financial
year
atleast 30 days
atleast 90
days
maximum 15
business days
5 business days
of closure of the
NFO
10 working
days of the
end of the
quarter
10 business
days of closure
of the NFO
B
B
disclosing
reasons of
winding up in
two daily news
papers having
circulation all
over India and
a vernacular
newspaper
circulating at
after repaying
the place
the amount due where mutual
to the unit-holder fund is formed All of the above
sponsor
trust deed
AMC
RBI
The transfer
agent
MCA
Trust deed
sponsor
trustee
A fund sponsor A fund sponsor

can contribute to can invest in
the capital of the his own fund`s
AMC
schemes
All of the above
diversification of
reduction in
tailor made
risk
cost
portfolios
D
D
new fund offer
new scheme
offer
a sale transaction
at prea buy
determined fixed transaction at
price of the
buy price of
scheme
the scheme
initial scheme
offer
a purchase
transaction at
purchase price
of the scheme
flexible funds
interval funds
close-ended
open funds
two different
segments
viz.equity and
F&O
two different
segments
viz.equity and
commodity
both a and b
D
A
minimum initial
details of other
(and subsequent) details of who
competing
investment
can invest
mutual funds
All schemes
launched by the
particular fund
during the last 3
financial years
none of the
schemes
companies in
which
investment is
proposed
should register
himself first with
AMFI and get
AMFI registration
number
should
empanel
himself with
the AMC`s
can launch
mutual fund
schemes
Depreciation on
fixed assets
selling
expenses
including
scheme
expenses on advertising and
general
commission to
administration the distributors
Rs.2 crores
Rs.2.5 crores
Rs.3 crores
0
quantitative
analysis
fundamental
analysis
any of the
above
undervalued
stocks
above average
earnings
growth
None of the
above
0
no investment
risk
no credit risk
no maturity risk
gets weaker
remains
unchanged
turns volatile
whose rates are

different for
different for
different
category of
investors
which pays
interest lower
than the g-sec
securities taking
interest on g-sec
securities as the
base
simple
annualized return
compounded
annualized
return
any of these
fund of funds
contra funds
thematic funds
strategic
fixed
flexible
0
weighted
average maturity
beta, standard
deviation
return
Modified
duration
alpha
risk sdjusted
return
Ex-marks
theta
risk & return
41.63%
38.42%
11.76%
6.54%
7.43%
2.11%
A mutual fund
enables a small
investor build a
diversified
portfolio
investment in
a mutual fund
offers more
liquidity
all are correct
offers poetfolio
customisation
Investors
control is
there to
varied number
control costs of schemes with
of running the varied numbers
scheme
of options
0
gilt funds
in instruments
issued by
companies with a
sound track
record
growth funds
in short-term
securities
balanced funds
in government
securities &
treasury bills
only
D
B
atleast 40% of
net worth
AMC share capital
should be
should be owned
more than
by the sponsors ANC's capital
both b and c
one-third
one-half
two-third
Trustees
Unit-holders
both a and c
AMC
Trusts
Agencies
There is a change
in the sponsor of
the schemes that
are taken over
The scheme
has to be
wound up
compulsorily
The schemes'
offer
documents
have to be
changed and
updated
SEBI
AMFI
RBI
A
A
0
trust
company
None of the
above
can exit at price

fixed by the AMC
can pass a
resolution to
stop changes
in
fundamental
attribute
have to accept
the change
lets the seller

beware
lets the
distributors
beware
All of the above
sponsors
compliance
officer of the
mutual fund
securities &
exchange board
of India (SEBI)
fund sponsor
association of
mutual funds in
India (AMFI)
trustees
AMC
chief marketing
officer of AMC
close-ended
schemrs
fund of fund
schemes
hybrid schemes
trustee board
scheme
allotment
information
statement of
additional
information
value averaging
buy & hold
after passing
become
should register
agents of a
himself with AMFI
distributor
and get AMFI
who is already
registration
empanelled
number
with AMC
2%
2.25%
statement of
accrued income
None of the
above
both a and b
no ceiling
displayed in a
clearly legible
font-size covering accompanied
at least at 80% of by a voicethe total screen
over
space
reiteration
All of the above
realization
method of
accounting
cash basis of
accounting
any of the
method of
accounting
costs related to
investor
communication
winding costts
for
terminating
the scheme
penalties and
fines for
infraction of
laws
1.50%
0.75%
1.00%
Cannot set off

capital loss on
such units aginst
any capital gains
on sale of original
units after bonus
issue
capital loss on
original units
to be treated
as cost of
acquisition of
bonus units All of the above
Offer Document
AMFI directory
SEBI
digitalisation
dematerialisat
ion
depository
closing NAV of
the day
closing NAV of
next business
day
Closing NAV of
the day
preceding the
next business
day
high capital
appreciation and
high dividends
yields
high capital
appreciation
but low
dividends
yields
Steady capital
appreciation but
high dividends
yields
together in the
same direction
in an
unrelated
fashion
in line with the

inflation index
The mutual fund

can borrow for
the borrowing is
purchasing
permitted only
securities or for
mutual fund
to meet the
entering into
can borrow for case flow needs
derivative
any time
of investor
contracts
horizon
servicing
a mutual fund every scheme

the borrowing of
should not
should have at
a mutual fund have not more
least 20
should not
than 25
investors and
exceed 25% of
schemes out
no investor
the net assets
of which debt
should
and each
or equity
represent more
scheme's
schemes
than 25% of net
borroeing should
should not
assets of a
not exceed 20%
exceed 20
scheme
the investment
objective of the
fund
SEBI
AMFI
Li-Bex
Mi-Bex
All of the above
0
level of risk
assumed by the
fund
greater efficiency
state of the
stock market
All of the above
high returns to
the investor
arising market
B
A
B
0
value gets
eroded due to
inflation
by identifying
client needs,
recommending
the correct asset
buy
allocation and
researching
providing him and identifying
service, that
individual
would help
stocks or
by tracking the
investors in
bonds for the
economy and
making
client's
government
investments
portfolio
policies
high purchase
price
depreciation in
value as time
passes
announced prior
to mobilization of
funds from
investors
announced at
the time of
mobilizing
funds from
investors
never
announced
lntrinsic value
market value
face value
bonds are
unsecured and
debentures are
secured
bonds are
backed by
loans
anddebenture
s are backed
by assets
None of the
above
mandatory
gilt funds
price fluctuations
of the debt
securities
depends on depends on the

the type of
period of
scheme
scheme
equity growth
funds
debt funds
share price
movements
interset
volatility
B
C
private company
trust
LLP
sponsor needs
to have a
atleast 50% of minimum 40%
the director in
share holding
the AMC needs to in the capital
be independent
of the AMC
All of the above
trustees
sponsor
directly or
acting through
trustees
unit holders
both of the above
none of the
above
treasury bills
commercial
paper
B
bonds
B
A
having fixed
yearly return
having
quarterly
return
issued at a
discount and
redeemed at
face value & no
income is given
in between
paying
redemption
proceeds
paying off
existing high
interest debts
paying
dividends or
redemption
proceeds
invest in high
dividend paying
companies only
invest in
shares whose
prices
fluctuate less
but offer
attractive
dividends
pays regular
dividends
15.94%
10.79%
12.00%
treynor ratio
divides risk
premium by the
fund's beta
alpha
compares the
fund's actual
results with
what would
have been
expected
given the
fund's beta
and the
market index
performance
a and b
option don't
allow the
equity scheme
money to
are not subject to grow in the
dividend
fund on gross
distribution tax
basis
all of the above
Rs.29
Rs.10
Rs.27,000
a, b and c
Rs.19
Rs.22
Rs.10
15.48%
36.11%
24.95%
less than 1
one
zero
membership
advice
investment
advice
units
sale transaction
at sale price
sale
transaction at
re-purchase
pretransaction at
determined pre-determined
fixed price
fixed price
fiexible income
funds
flexible debt
funds
floating debt
funds
feeder fund
other mutual
fund schemes
host fund
should be
carrying on
business in
financial services shoullhave a
for at least 5
sound
years prior to
financial track
registration
record
All of the above
There are no
specific
restrictions on
There is a lock-in
investment
These funds
period before
objectives for cannot invest in
investment can
fund
shares of listed
be withdrawn
managers
companies
gold or gold
related
instruments
real estate
assets
all of the above
40%
75%
51%
50% or more of
directors of
custodian has
interest in
sponsor or its
associates
either of the
above
both of the
above
2/3rd of trustees
3/4th of the
trustees
60% of the
trustees
Set ethical,
commercial and
professional
standards in the
industry
all of the
above
None of the
above
24%
76%
65%
bi-monthly, by
the 7th
quarterly, by
monthly, by the working day of the 2nd working
3rd working day
the
day of
of the succeeding succeeding
succeeding
month
month
month
B
A
AMC
trustees of
private trusts
any of the
above
10 business days
21 working
days
5 business days
Sponsors of the
fund
trustees of the
fund
compliance
officer of the
AMC
SID
KIM
All of the above
investment
objective
information for all

schemes
comparison
launched by the
with other
fund in the past mutual funds
0
tombstone
advertisement
performance all of the above

0
charged on a
were not
deferral basis to charged to the
the scheme
scheme
very less
0.50%
0.75%
1.25%
at least 2
maximum 5
stock
exchanges
direct application
maximum 3
institutional
distributors
Rs.2.50 crores
Rs.2.625
crores
Rs.3.291 crores
C
B
growth option
rights option
option
D
A
0
yield high growth
in earnings
foreign
companies
are currently
under valued
reserve bank
of india
None of the
above
public sector
banks
technical analysis
yield to
maturity
fundamental
analysis
C
C
C
increases
decreases
increases
exposure to
exposure to
exposure to short
long term
long term fixed
term floating rate fixed rate debt
rate debt
debt securities
securities
securities
dividend would
be re-invested in
the same scheme
dividend
at the cumwould not be
dividend NAV
re-invested
no dividend
would be paid
redeem the
debt before
maturity
redeem the debt

on maturity
Extend the
tenure of the
debt
0
weighted
average maturity
both of the
above
None of the
above
0
the number of
investors in a
level of earnings
fund
7.47%
5.99%
the number of
schemes of
fund family
5.43%
gold deposit
schemes
gold etf
gold sector
funds
disciplining
children
disciplined
monthly
budgeting
None of the
above
where all the

financial goals of where several
a person are
plans are
taken
worked out for
together,and the
all the
investment
members of
strategies worked
the family
out on that basis
together
all of the above
seasoned
investors with
large investible
surplus
number of units
retail investors young investors

number of
units
multiplied by
book value of
units
the scheme's
NAV
varies with the

ongoing sale
and revaries with the
purchase of
ongoing purchase units by the
and sale between fund through
investors in a
stock
always remain
stock exchange
exchange
constant
floating rate
arbittrage
funds
funds
hedge funds
any of the
custodians
sponsor
above
D
C
B
B
making
handling
investments on
payment of
behalf of the fund investments
managers
with bankers
to create ethical
practices
amongst mutual
funds
to regulate
norms
governing
mutual funds
safe keeping of
securities or
participating in
the clearing
system on
behalf of the
mutual fund
to increase
awareness of
mutual funds
he can transfer
on a periodic
basis a
the
specified
investment
amount from
he is required to would provide the scheme to
invest a fixed
the benefit of
his bank
sum periodically cost averaging
account
30 days
2 months
1 week
within 3 month
from the close of
the financial year
within 1
month from
the close of
the financial
year
within 3 month
from the close
of each half
year
6 months
2 months
None of the
above
lets the seller

beware
lets the
distributors
beware
all of the above
1580.5478
1678.3871
1420.8952
C
A
B
0
0
bottom-up
top-bottom
bottom-top
rate of interest
credit rating of
the deposit
None of the
above
falls
remains
unaffected
becomes
extreme volatile
below par
at par
at a price
unrelated to the
prevailing
interest rate
interest rates
political risk
all of the above
D
B
0
proof of address
PAN card
all of the above
investment
amount and sale
price per unit
investment
amount, sale
price and
entry load
sale price and

entry load
542.52
553.4591
2200
portfolio quality
yield
all of the above
debt securities
government
securities
all of the above
registration
documentatio
n formalities
observation
Define client
goals;
Develop
evaluate client evaluate client
financial
financial status;
financial
planning
Define client
status;
recommendatio
goals; Define
Develop
ns; evaluate
client-planner
financial
client financial
relationship;
planning
status; Define
Develop financial recommendati
client Goals
planning
ons Define
;Define clientrecommendation client-planner
planner
s
relationship
relationship
mutual and
None of the
Beneficial
Beneficial
above
unit capital goes
down
net asset
value goes
down
A
C
unit capital
goes up
1312.14
growth funds
1130.2211
debt/income
funds
sector funds
91 days
182 days
30 days
International
funds
exchange
traded funds
gold sector
funds
1127.4005
requires the
automatically
investment to be
leads to
locked in for a
investment in
period of 3 years equity shares
sponsor
in 3 years out of
last 5 years
all of these
either of the
both of the
above
above
in each of last in 2 out of last 3
7 years
years
A
A
Rs. 100 Crores
Rs. 50 Crores
Rs. 10 Crores
Rs.2croe
Rs.4croe
Rs.100crore
C
B
0
AMFI
AGNI
AMC
as decided by the
sponsor
should be at
least Rs. 10
crores at all
times
should be
greater than Rs.
10crores
5 business days
of the end of
every month
10 working
days of the
end of every
quarter
5 business days
of every
transaction
has a right to
has a right to
exit the
claim free
scheme at
additional units
prevailing NAV of the scheme
within 10
within 5 business business days
within 15
days of closure of of closure of
business days
the scheme
the scheme of the allotment
has a right to
claim
compensation
money from the
trustee/AMC
SEBI's website
stock
exchanges
website
trustees
website
0
within 3 month
from the end of
next financial
year
within 6
month from
the end of
financial year
on a regular
basis
photograph
proof of
address
None of the
above
NRE Account
AMC
Current Account
the time when

the time when
the POA
the POA
accepts the
downloads the
online
online
application after
application
downloading
the time when

the investor
submits the
online
transaction form
whether to buy a
given share or
not
whether to
use technical
analysis or
quantitative
analysis
dividend per
share to
dividend per face current market
value
price
whether the
company's
factory can
withstand
earthquakes
None of the
above
C
B
growth stocks
value stocks
low value
stocks
7.54%
9.66%
11.11%
lower
same
the two are not

related
all diversified
equity schemes
diversified debt
funds
all types of
schemes
sector funds
only debt
schemes
diversified
equity funds
NSE
CRISIL
ICICI Securities
to beat the
market by
superior market
timing
to beat the
market by
superior asset
allocation
None of the
above
D
A
0
financial
institutions'
bonds
equity of
private
companies
corporate paper
long-term debt
market
money market treasury market
choice of
portfolio
concentration
underlying
exposure
all of the above
D
A
D
B
0
Accumulation
transition
None of the
above
disciplined
investing
financial
planning
savings
0
higher
gold bond
the same
almost nil
shares of gold
mining
companies
gold ornaments
A
C
42.42
41
43
the POA holder
both of the
above
any of the
above
all of the above
on weekdays
through the
between 9.00 am order routing
to 3.00pm
system
0
if inculcates a
discipline of
if allows investor
regular
to change the
investment in
amount
the investor
if facilitates
rupee cost
averaging
the right time to

buy or sell
whether
company's
technical
personnel are
adequately
qualified
None of the
above
price-volume
analysis
fundamental
analysis
technical
analysis
Rs.5.25 Crores
Rs.6.00 crores
Rs.7.00 crores
B
B
portfolio analyst
technical
analyst
fundamental
analyst
current yield
will be higher
if equity markets
If interest
than coupon
move down,
rates go down, rate if interest
dividend yield will price of bonds rates have gone
move up
will go down
down
management
sector
selection
allocation
stock selection
likely to go for
public issue all of the above
large equity base
stock selection
of at least 5
years
income funds
0
non-gilt debt
schemes
low inflation
economies
20%
0
midcap funds
timing the
market
of 8 years
portfolio rebalancing
beyond one
year
equity growth
funds
liquid funds
D
D
C
B
balanced
schemes
liquid schemes
inflation does
not make a
stock market in
difference
bear phase
30%
Liquidity risk
in high
smallcap
funds
10%
B
B
both b and c
D
A
trustees
employees in
a call center
dealing with
mutual fund
investors
AMFI registration
number
AMFI
registration
number
the trustees
sponsors
fund managers
Agent
registration
number
Prospective
unit-holders
B
B
prescribed by
AMFI
NFO dates
( opening,
closing, reopening )
as followed by
respective
as per industry
AMC
practice
All of the above

None of the
above
SID
date of SID
both of the
above
2 fiscal year
3 fiscal tear
six months
all legal
requirements
connected with
launching of the
scheme have
been complied
with
disclosures
made in the
SID are true,
fair and
adequate
the AMC
guarantees a
good
performance
dividend
capital gains
all of the above
AUM goes up
AUM remains
AUM may or
unchanged
may not change
investors can buy

and sale units of
a close-ended
scheme, only
during its NFO
and at maturity
respectively
investors can
investors can
buy and sale
buy units of a units of a closeclose-ended ended scheme,
scheme, only only through a
during its NFO stock exchange
Schemes which
invests in fixed
deposits only
Schemes
which invests
in debt
securities
whose
maturity
Schemes which
closely aligns invests mainly
with the
in money
maturity of
market
the scheme
instruments
fixed maturity
plans
0
diversified
debt funds
money market
funds or liquid
funds
D
B
the unit capital of the net assets

the fund is
of fund does
constant
not change
None of the
above
registrar &
transfer agent
either of the
above
None of the
above
unit holders
SEBI
AMC
at least 3 years
trustee
a maximum of
3 years
at least 5 years
any of the
AMC
above
B
B
the sponsor and

trustees
sponsor, trust
and SEBI
sponsor, trust
and AMC
one-fourthof all
directors
three-fourth of two-third of all

all directors
directors
trustees of the
fund
members of the
fund manager AMFI committee
Rs. 19.50 Crore

on a mark -tomarket basis
Rs.15.75 Crore
Rs. 9.50 Crore
at par
at book value
15%
12.50%
25%
They are hold

for not more
They are hold for
then three
They are hold
less then twelve
years
for less three
months
proceeding
years
proceeding the
the date of
proceeding the
date of transfer
transfer
date of transfer
long-term capital
loss can be set
off against shortterm capital gain
or long -term
capital gain
long-term
capital loss
arising out of
equityoriented
mutual fund
unit is not
available for
set off
short-term
capital loss can
only be set off
against shortterm capital
gains
total value of
assets held by
the fund
divided by
total number of thenumber of
shares divided by outstanding
asset value
units
debt schemes
total value of
assets held by
the annual
revenue
None of the
liquid schemes
above
C
D
25%
20%
10%
AMC
SEBI
Trustee
SID
KIM
RIM
2554.7297
1190.4565
3098.4321
Gross profit /
net profit / no. of no.of ordinary net profit / no.of
equity
shares
ordinary shares
shareholders
outstanding
outstanding
10 working
days
5 business days
3 business days
bottom-up
maturity
proceeds
top-bottom
redemption
money
bottom-top
capital gains
A
combination of
strictly short term long term and not allowed as
in nature
short term
per regulations
bonds
contracts
notes
B
C
B
see that the

sell long
fund's average
duration
duration
securities and sell high coupon
becomes longer
buy short
securities and
than the market's
duration
buy low coupon
average duration
securities
securities
inyerest rate
credit risk
risk
liquidity risk
C
C
more volatile
than market
equally
volatile than
market
no relation
9.82%
10.15%
14.26%
financial
financial planning
planning is
is equivalent to important only
retirement
for people
planning
over 35
financial
planning is
equivalent to
investing
E
A
over a period of
time the average
purchase price it does not tell
will work out
you when to
higher than if one buy, sell or
tries to guess the switch from
market high and one scheme to
lows
another
total return
None of the
above
liquidity
rupee cost
averaging has
no serious
shortcomings
all of the above
retail investors
rural investors
persons in high
tax bracket
need to be an
entity
independent of
the sponsors
does not give or

receive
not required to deliveries of
be registeres
physical
with SEBI
secrities
good knowledge
of financial and
options
familiarity with knowledge of

taxation and the hottest tips
estate
in the equity
planning
market
0
dividend payout
optin
growth option
both a and b
while applying
the investors
signs an
agreement
stating they
the law does not have read and an investor is
permit the
understood
expected to be
investor to sue the terms and
careful while
the trust
conditions
investing
mutual fund is
based upon
trust
C
A
0
physical
assets
None of the
above
NSE MF
NEAT MFSS
NEAT MF
SEBI
RBI
AMC
half yearly
monthly
yearly
securities
simpale
average basis
compounded
annualized
basis
persons having
experience of
selling mutual
funds for at least
10 years
call center
employees
persons who
are above 50
years of age
and have
minmum 5
years
experience
2454.9918
2479.3388
2506.9872
half-yeary basis
to regulate the
stock markets to improve the
to create
along with
standards of
awareness about
SEBI in
mutual fund
mutual funds
tandem
industry
close ended
funds
diversified
funds
both A and B
A
C
Board of trustees
90% of unitholders
SEBI
75% of unitholders
RBI
76% of unitholders
not being aware

of the scheme
features & risk
factors
trustees have
used the fund
for other
purpose
sponsors did
not fulfill all
necessary
compliances
within 3 years
after 6 years
after 3 years
As a SEBI
requirement
As an investor
requirement all of the above
Chapters


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Scheme Selection
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Scheme Selection

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Scheme Selection
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Scheme Selection

Scheme Selection
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Scheme Selection
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Scheme Selection

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Scheme Selection
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Scheme Selection


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Plans
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Scheme Selection
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Offer Document
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Investor Services
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Investor Services
Investor Services
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Investor Services
Investor Services
Investor Services
Investor Services
Investor Services
Investor Services
Investor Services
Investor Services






Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Investors

Investors
Investors

Investors
Investors
Investors


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Plans





Offer Document
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Investor Services
Offer Document
Offer Document
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Offer Document
Offer Document
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Offer Document
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Scheme Selection
(2.5% x 100) +
(2.25% x 300) +
(2% x 100) = 11.25
crore
Investor Services

{4+[2220]}/20)*100=30%
Let us assume,
number of units
held at
beginning=X,so,
value at
beginning=20.75 x
X = 20.75X, units
acquired on reinvestment = (1.55
x X) / 21.25 =
0.072941X, value
at end = (X +
0.072941X) x 22.65
= 24.30212X , Rate
of Return =
[(24.30212X /
20.75X) ^ (1/1)-1] x
100 = 17.1187%


Sharpe Ratio = (RsRf) / Sd or (7% - 5%)

/ 0.5 = 4%
Scheme Selection

Investors



Investor Services
Offer Document
Investor Services
Scheme Selection
Offer Document
Offer Document

Investor Services

Investors
Investor Services
Net Assets Rs.

509.94 Crore (475 +
55 + 12.75 - 18 4.75 - 10.06)
Investor Services
Offer Document
(1.25% x 100) +
(1% x 300) =
Rs.4.25 Crore
NAV = (700 - .50) /

28 = Rs.24.98
Offer Document



Change in NAV
5.9155% [(19.9995
- 18.8825) / 18.8825
x 100]; Annualised
Returns 11.831%
(5.9155% x 12 / 6).

Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Investors

Treynor Ratio = (Rs Rf) / Beta or (8% 5%) / 1.2 = 2.50%

Investors

Investors
Investor Services
Scheme Selection
Offer Document
Offer Document

Offer Document
Offer Document
Offer Document
Offer Document
Investor Services
Offer Document
Offer Document
Offer Document



Scheme Selection
Scheme Selection


Change in NAV
8.955% [(18.25 16.75) / 16.75 x
100]; Annualised
Returns 35.82%
(8.955% x 12/3).
Sharpe Ratio = (RsRf) / Sd or (9% - 4%)

/ 0.6 = 8.33%
Annualized
compounded rate of
return =
((600/300)^(1/7)) 1 = 0.10409 =
10.41%
Offer Document
Offer Document
Offer Document
Offer Document



Offer Document
Offer Document

Offer Document
Let us assume,
number of units
held at
beginning=X,so,
value at
beginning=23.75 x
X = 23.75X, units
x X) /24.50 =
0.081633X, value
at end = (X +
0.081633X) x 25.10
= 27.14899X , Rate
of Return =
[(27.14899X /
23.75X) ^ (1 / 1) -1]
X 100 = 14.3115%
(0.75% x 500) =
Rs.3.75
Offer Document
Scheme Selection
Offer Document
Investor Services
Scheme Selection

Investors
Offer Document
Treynor Ratio = (Rs Rf) / Beta or (11% 8%) / 1.5 = 2.00%

Offer Document
Investor Services


({[22-20]/20}/16) *
12} * 100 = 7.5%

Offer Document
Offer Document

Offer Document

Offer Document

Offer Document
Offer Document

Offer Document
Offer Document
Offer Document

Scheme Selection
Scheme Selection

Offer Document
Investor Services
Offer Document
Offer Document
Offer Document

Offer Document
Offer Document
Offer Document
Offer Document


(2.25% x 100) +
(2% x 300) +
(1.75% x 200) =
Rs.11.75



Investors

Investors
Investors

Investor Services
Investor Services
Offer Document
[1,00,000 + 20,000
- 25,000]/10,000
Investor Services
Offer Document
Scheme Selection
Offer Document
Offer Document
Offer Document
Offer Document
Offer Document
Offer Document
(2.25% x 100) +
(2% x 100) =
Rs.4.25
Offer Document
Scheme Selection
Investors
Offer Document

Investors
Scheme Selection

Investors

Investors
Scheme Selection

Offer Document
Offer Document

Offer Document
Offer Document
Offer Document
Investor Services
Offer Document
(2.5% x 100) +
(2.25% x 300) +
(2% x 300) +
(1.75% x 200) =
Rs.18.75
Offer Document
Offer Document
Offer Document
Offer Document
Offer Document


Offer Document
Offer Document

Offer Document
Offer Document
Offer Document




Offer Document

(1.25% x 100) +
(1% x 100) =
Rs.2.25
3 months = 3/12 =
0.25 year;
Annualised Return=
[((24/22)^(1/0.25))1]*100 = 41.63%
Let us assume,
number of units
held at
beginning=X,so,
value at
beginning=25.75 x
X = 25.75X, units
x X) / 26.00 =
0.05769X, value at
end = (X +
0.05769X) x 28.10
= 29.721089X ,
Rate of Return =
[(29.721089X /
25.75X) ^ (1/2)-1] x
100 = 7.43%


Offer Document
Offer Document
Offer Document

Offer Document
Offer Document
Offer Document

Investor Services




Offer Document
Scheme Selection
Offer Document

Let us assume,
number of units
held at
beginning=X,so,
value at
beginning=26.15 x
X = 26.15X, units
x X) / 26.50 =
0.06321X, value at
end = (X +
0.06321X) x 27.25
= 28.9725X , Rate
of Return =
[(28.9725X /
26.15X) ^ (1/1)-1] x
100 = 10.7934%
NAV = (25000 +
4000 - 2000) / 1000
= Rs.27; OR (10000
+ 17000 = Rs.27
NAV = 558 / 18 =
Rs.31 per unit. , NAV
is to be computed
considering both
realized and
unrealized gains.
6 months = 6/12 =
0.50 year;
Annualised Return =
((21/18)^(1/0.5))-1
= 0.3611 = 36.11%
Offer Document
Scheme Selection
Scheme Selection
Offer Document
Offer Document
Offer Document
Offer Document
Offer Document
Offer Document

Investor Services
Offer Document


0.75% x 350 =
Rs.2.625
Scheme Selection
Let us assume,
number of units
held at
beginning=X,so,
value at
beginning=25.75 x
X = 25.75X, units
x X) / 25.75 =
0.0583X, value at
end = (X +
0.0583X) x 26.15 =
27.6746X , Rate of
Return =
[(27.6746X /
25.75X) ^ (1/1)-1] x
100 = 7.47%

Investor Services
Investor Services
Repurchase price of
gilt fund Rs.10.6425
(10.75 x 99/100),
Value at redemption
Rs.23413.50 (2200
x 10.6425) sale
price of equity fund
Rs. 13.95, No of
units 1678.3871
(23413.50 / 13.95)

Scheme Selection
Scheme Selection
Scheme Selection


Repurchase price
Rs. 39.75 (40.15 x
99/100), Number of
units 553.4591
(22000 / 39.75)
Scheme Selection
Scheme Selection
Offer Document


Investor Services
Repurchase price of
bond fund
Rs.11.4713 (11.50 x
99.75/100), Value at
redemption
Rs.22942.60 ,(2000
x 11.4713) , No of
units in equity fund
1127.4005
(22942.60 / 20.35)


Investor Services
Investor Services
Investor Services
Offer Document
Offer Document
Offer Document
Offer Document


Offer Document
Scheme Selection

Scheme Selection



Let us assume,
number of units
held at beginning =
X, So, value at
beginning = 22.40 x
X = 22.40X, Units
x X) / 22.10 =
0.0905X, Value at
end = (X +
0.0905X) x 24.70 =
26.93535X, Rate of
return =
[(26.93535X /
22.40X) ^ (1/2) -1]
X 100 = 9.66%

Investors
Repurchase price
Rs.41.58 (42 x
99/100)
Investor Services
Investor Services

1.50% x 350 =
Rs.5.25 crore

Scheme Selection
Scheme Selection

Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection

Offer Document
Offer Document
Offer Document
Offer Document
Offer Document
Offer Document
Offer Document




(2.25% x 100) +
(2% x 300) +
(1.75% x 300) +
(1.50% x 400) =
Rs.19.50


Offer Document
Offer Document

Investor Services
Scheme Selection
Repurchase price of
bond fund
Rs.9.4525 (9.50 x
99.50/100), Value at
redemption Rs.
37810 (4000 x
9.4525)., No of units
in equity fund
2554.7297 (37810 /
14.80)


Scheme Selection

Let us assume,
number of units
held at beginning
=X, So, value at
beginning = 24.65 x
X = 24.65X, Units
x X) / 24.35 =
0.05441X value at
end =(X +
0.05441X) x 25.75
= 27.1511X, No of
das = 550 i.e.,
550/365 = 1.51
years, Rate of return
= [(27.1511X /
24.65X) ^ (1/1.51)
-1]x 100 = 6.61%

Investor Services
Investor Services
Investor Services
Repurchase price
Rs. 23.96 (24.20 x
99/100), Number of
units 2504.1736
(60000 / 23.958)
Offer Document
Investor Services
Investor Services

Offer Document
1
2
3
4
5
6
7
8
9
Question Details
Option A
Most of the Arbitrage Funds take Contrary Position of Futures and

Option
The Offshore Fund is also known as Feeder Fund
If an Indian MF sectors sees potential in making investment in

China, it will tie up with chinese fund. In India this will be known as
Feeder, while in China it will be called
China made portfolio
Arbitrage fund
Investment objective is closely linked to
Scheme
Option
Gold
Crops
MIP is a debt fund
Units are repurchase in closed end fund at
Higher than NAV
Lower than NAV
Which of these instruments is not issued by the corporates ?
Fixed Deposits
Commercial Paper
Interval Funds are
Largely open-ended but convert into Largely close-ended but convert into
close-ended at pre-specified intervals open-ended at pre-specified intervals
10
11
12
In India the first mutual fund was established in

Mutual Funds shall be recommended as
Investments in an Equity Linked Savings (ELSS)
1963
1964
A get rich quick investment option
Investments to achieve long term

goals
Entitles the investor to claim income Requires the investment to be locked
tax rebate
in for a period of 3 years
13
14
15
16
17
18
19
Investing through mutual fund is a better option than investing

directly in the stock market because
Gold sector fund invest in gold
Profit/loss earned/incurred by a mutual fund scheme___________.

In case of losses in a mutual fund scheme, investors may have to
bear amount higher than that invested.
The pool of money mobilized by mutual fund houses to
accommodate investors varied preferences is called_________.
Identifying stocks is a difficult process

1
Agents get commissions on mutual

fund investment
0
shared by AMC and the investors

according to pre-agreed ratio
belong to the investors
unit capital
mutual fund corpus
wealth generation through

professional management
exposure to wide range of securities

with smaller investment
flexible funds
20
Which of the following is/are the advantages of mutual fundFunds that combine the feature of close-ended and open-ended
funds are called_____________.
21
Passive fund is expected to-
beat the return of the index
hybrid funds
furnish the returns of the market
index
22
Gold funds and gold sector funds are the same type of funds.
23
Thematic fund is a variant to_________.

Investors in interational funds invest in a __________ which is reinvested in a __________.
diversified fund
sector fund
feeder fund, host fund
host fund, feeder fund
25
In which of the following do debt funds not invest-
government debt instruments
corporate paper
26
Funds, which invest only in the stocks comprising an index and aim
to give returns commenurate with the index returns, are
called__________.
index funds
active funds
27
Mutual funds can be defined as-
a link between the saving public and

the capital markets
an active participant in promoting

good corporate governance, investor
protection
28
A mutual funds' investments are guided by the-
AMC
board of trustees
29
have no risk at all
have interest raterisk but no credit

risk
30
Gilt funds In india, mutual fund schemes are not permitted to invest in
commodities.
31
24
Exchange traded funds are open-ended funds_______________.
1
that are open for sale and repurchase by the fund anytime
that trade in the stock exchange
32
Commodity sector funds are not permitted to operate in india.
33
A closed-end mutual fund has a fixed-
34
An open-ended mutual fund is one that has:
NAV
An option to invest in any kind of
security
Tenure
units available for sale and
repurchase at all times
35
Gold sector funds are a type of _____________.
gold funds
equity sector funds
36
Monthly income plans have to declare a dividend every month.
37
debt securities where the interest

debt securities whose rating changes rate payable by the issuer changes in
from time to time
line with the market
40
Floating rate debt securities means_____________.

___________are funds where the manager has the flexibility to choose
the investment portfolio.
Of these, which is an example of a passive fund management
strategy?
A Nav of equity incom/dividend yield scheme tends to fluctuate
higher than other equity schemes.
41
Fixed maturity plans are___________.
open-ended funds
42
The correct description of a mutural fund is:
it is a company
close-ended funds
it is a development financial
institution
43
Who is author of the book "The intelligent investor"?

When investors sale their units in mutual fund scheme, it is called
_____________ .
Benjamin Graham
Peter Lynch
sale transaction
buyback transaction
38
39
44
actively managed funds
flexible asset allocation funds
duration management
buy and hold
45
Gilt funds invest in ______________.
treasury bills
government securities
46
Capital Protected Schemes are usually structured to ___________ .
guarantee the principal repayment
guarantee the return on investment
47
An investor of a mutual fund scheme cannot invest directly.

Which of the following are fundamental attributes of a mutual fund
scheme-
1
Miain objective of the scheme
0
Aggregate fees and expenses
charged to the scheme
employment generation
economic development
50
Which of the following is/are not the advantages of mutual fundClose-ended funds have a fixed maturity and can be bought and
sold__________.
among investors
in a stock exchange
51
Junk bond schemes invest in companies that are________.
de-listed
of poor profitability
52
What is an "Equity Warrant?"
It is nothing but an Equity share of a

company
53
Mutual fund mobilizes money from investor`s to-
form a mutual benefit fund
It is a debt instrument that offers

fixed interest rate
invest in different markets and
securities
54
A mutual fund is:
55
The following characteristic is not present in an open end fund-
a partnership
facility to buy or sell back units to the
fund
a pass through vehicle

a fixed unit corpus for the life of the
scheme
56
In open-ended funds the pool of money remains constant.
57
number of securities in the portfolio
nature of securities in the portfolio
professional management
diversification of risk
59
Volatility of a mutual fund is influenced byWhat is not an advantage in investing in mutual funds against
equity?
Funds,which are normally close-ended, but become open-ended at
per-specified intervals, are called_______.
60
Arbitrage funds take contary positions in_________.
61
The nav of gold sector funds does not closely mirror gold prices.
62
Which of the following is/are the advantages of mutual fund-
Offers systematic approach to

investment
offers poetfolio customisation
63
open-ended funds do not have a time frame for closing the fund.
64
Ownership of unit holders in mutual funds is-
Mutual
Beneficial
65
Gold sector funds invest in_________.
physical gold
gold bond
66
Gold funds invest in gold only.
48
49
58
periodic funds
flexible funds
two different exchanges viz. NSE and two different segments viz.equity and
BSE
F&O
Host fund
Offshore fund
Plan
SIP
Industrial metal
Real estate
Whatever the price higher than NAV

or lower than NAV
Debentures
At NAV price only
Always open-ended
None of the above
1987
1993
Guaranteed returns
Direct investment in
capital market
All of these
Automatically leads to investment in

equity shares
Returned are guaranteed by mutual
funds
Bonds
None of the above
belong to the AMC
shared by the trustees

and the investors
according to pre-agreed
ratio
mutual fund schemes
unit reserve
benefit of economies of scale
all of the above
interval funds
balanced funds
keep the costs low
both c and d
balanced fund
financial institutions' bonds
equity fund
international fund, local
fund
equity of private
companies
dormant funds
none of the above
a participant that has brought in

liquidity into the financial system
all of the above
investment objectives
unit holders
have credit risk but no interest risk
have credit risk, interest

rate risk and reinvestment risk
that trades in over the counter

exchange
all of the above
rate of return
number of distributors
an upper limit on its NAV
a fixed fund size
debt funds
equity diversified funds
debt securities which offers multiple

interest rate structure
debt securities which

have no maturity period
fixed asset allocation funds
diversified funds
credit selection
prepayment selection
interval funds
it is a financial intermediary
hybrid funds
it is non-banking finance
company
John Templetion
Warren Buffer
buy transaction
re-purchase transaction
local fund, international fund
call money
ensure the principal repayment
both a and b
ensure the return on
investment
Investment pattern
All of the above
decrease in crime rate
improves government
exchequer
after lock in period
never
of poor track record
of poor credit quality
It is an instrument that gives the

holder the right to purchase equity
share in a company at a fixed price in
future
None of the above
fund business houses working capital
float ponzi schemes
a private trust
regular declaration of NAV
an association of persons
regular disclosure of
portfolio
fund manager`s success in timing

the market
All of the above
reduction in cost
tailor made portfolios
interval funds
close-ended open funds
two different segments viz.equity and
commodity
both a and b
Investors control is there to control

costs of running the scheme
varied number of
schemes with varied
numbers of options
mutual and Beneficial
None of the above
shares of gold mining companies
gold ornaments
S NO
Question Details
Option A
1
2
The 'Most Investor Service Centre' are

offices of
Trustee
RTA
Custodian
Trust
Board of trustee
Company
Board of directors
Financial intermediary
Trust
Updated NAV
Sponsor
AMC
SEBI
Point of Service
Point of Acceptance
RTA
AMC
Investor
SEBI
Depository
NSDL
Depository Participant
Point of Sale
Point of Service
Point of Acceptance
trust deed are contract between

Trustee and ___________
KYC application form are accepted
at_______________
Appointment of distributor by fund is
basis between distributor
To convert the physical into Demat,
investor must approach to
Selected branches/Offices of mutual
fund registrars and large distributors
documentation?
10
Who handles the securities of Mutual

Fund
Custodian
SEBI
AMFI
11
The following is not a duty of the

board of trustees of a mutual fund-
12
Which of the following can be a

sponsor of a mutual fund?
Maintain the records Issuing and re-purchasing transaction

of the investor
of units
4
5
6
7
8
13
14
15
16
Prior approval of _________is required

before a person is appointed as
director on the board of the AMC.
Appointment of an AMC can be
terminated by__________.
The AMC should have a minimum net
worth of___________.
The auditor of a scheme of mutual
fund and the AMC has to be different.
raise the maximum possible

ensure that
amount of assets in each scheme investors interests the management of the fund is in
floated by the fund
are safeguarded
accordance with SEBI regulation
indian public sector banks
trustee
domestic financial
institutions
foreign financial institutions
majority of the trustees
sponsor
75% of the unitholders
SEBI
both of the above
Rs. 100 Crore
Rs. 50 crore
Rs. 10 crore
17
XYZ Ltd., a custodian has 4 directors

out of which 1 director is also a
director of the sponsor company and
another director is 50% shareholder
of sponsor's associate company. Can
XYZ lit., be appointed for the sponsor
mutual fund?
yes
no
20%
75%
40%
19
If a sponsor controls________or more

shares of a custodian, then they
cannot be appointed for the mutual
fund operation of the sponsor.
The trust that manages a mutual fund
is appointed by
ministry of finance
RBI
SEBI
20
A transfer in the management of a

close-ended scheme does not require
the consent of-
unit holders
SEBI
trustees
act as a protector of investors'

interests
directly manage
the portfolio of
securities
do not have the right to dismiss

the AMC
to the trustees
to the sponsors
18
22
The board of trustees of a mutual

fund:
There can be multiple custodian of a
mutual fund scheme.
23
An AMC cannot invest in its own

scheme without disclosing it__________.
21
24
25
26
27
28
29
Atleast 50% of the director in the

AMC should be independent
of________________.
A mutual fund scheme can be
launched byThe agreement between the trustees
and the AMC ?
How much % of unit holders is needed
for termination of AMC?
Transfer agents of a mutual of a
mutual fund are not responsible forThe fund sponsors should have a
sound financial track record of-
sponsors
to the unit-holders
sponsors including sponsors including its subsidiaries

its subsidiaries
or the trustees
the trustees
the sponsor
The on behalf of the trustees
trust deed
investment
management
agreement
agreement to manage portolio
51%
75%
85%
issuing and redeeming units to

the mutual fund
updating investor
records
preparing transfer documents
7 years
12 months
5 years
30
As per SEBI (mutual fund) regulation,

who acts as the protector of unitholder's interest?
trustees
SEBI
ministry of finance
31
To transfer the management of a

scheme from one AMC to another, the
consent of the following isrequired-
SEBI
unit holders
both SEBI and unit holders
32
Distribution channels are a critical

element in the distribution of mutual
funds in india.
yes
no
AMC
sponsor
Custodian
40% and 100%
0% and 100%
25% and 49%
The custodian
The transfer agent
The trustees
1992
1993
1995
Sponsor needs to have a

minimum 50% share holding in
the capital of thhe AMC
Atleast two-thirds
of the trustee in
the trustee board
needs to be
independent
AMC should have minimum 40%

independentdirector
Government
SEBI
Fund distributors
33
34
35
36
37
38
39
XYZ ltd., a custodian has 20

shareholders out of which, ABC ltd., a
sponsorcompany holds 60% shares
Can XYZ., be appointed for ABC ltd
mutual fund operation?
AMC usually appoints all the other
consitiuents, except custodians.
Sponsor of a mutual fund has no
direct or indirect in the AMC of the
said fund.
Who needs to sign the trust deed
with the trustee ?
The minimum and maximum stake
that a single sponsor can have in an
asset management company is
respectivelyIssuing and redeeming units of a
mutual fund is the role ofSEBI Regulations for Mutual Funds
were formulated in-
41
State which of the following

statement is true ?
The most important link between
mutual fund and investors is
42

statement is"True" about a sponsor
eligibility criterion ?
40
Should be in financial service

business for the last 10 years
Should have
Should have latest net worth
positive net worth more than the capital contributed
in last 7 years
in AMC share capital
43
Distributors can be appointed by-
AMC
Trustee
sponsor
44
Continuous tracking of the companies

in which a mutual fund has invested
is done byAn independent director of an AMC
can be a director of another AMC.
Fund managers
Equity Analysts
Portfolio Managers
yes
no
45
47
XYZ Ltd., a custodian has 4 directors

out of which 1 director is also a
director of the sponsor company. Can
XYZ ltd., be appointed for the sponsor
`s mutual fund/
The AMC can be structured as a
private limited company.
48
A custodian handles the following

activities?
Delivery and safe-keeping of

investments of the fund
Sale and
redemption of
units by investors
Control over issue of offer

documents
no stake required
40%
50%
50
What is the minimum stake that a

sponsor needs to hold in the assed
management company?
The mutual fund trust is created by
the _____________.
trustee
AMC
sponsors
51
Application with SEBI for registration

of a mutual fund scheme is done
by___________.
trustee
sponsor
investment
managers
distribution agents
trustees
custodians
46
49
52
53
54
55
56
57
The role of a AMC is to act asA registrar & transfer agent is

appointed by______________.
What is the duty of the custodian?

Which of the following are
responsibilites of trustees?
_________________ can be appointed as
trustees.
Mnumber of trustee to be appointed
by the sponsor is_________________.
promoters
Sponsor
marketing various schemes

through agent`s network
general due diligence
AMC
handling securities
in terms of
physical &
eventual
Issuing & redeeming units of the
safekeeping
fund
special due
diligence
code of ethics
individuals
trustee company
both a and b
Three
five
two
58
Minimum number of independent

directors on the board of asset
management company is-
50%
25%
75%
the sponsors
the trustee
the unit holders
61
The asset Management company shall

make investment decisions solely in
the interest of
Depositories are like banks for
securities.
Safekeeping of physical securities is
the role of-
The custodian
The transfer agent
62
The accounts of mutual fund schemes

need to be maintained distinct from
the accounts of the AMC.
63

statement is true about a sponsor
eligibility criterion?
net worth should be less than

ANC's capital
atleast 40% of
AMC share capital
should be owned
by the sponsors
net worth should be more than

ANC's capital
two-fifth
one-third
one-half
Investment company
trust
company
59
60
trustee
Sponsor
trustees
AMC
67
Atleast _________of the trustee in the

trustee board should not be
associated with the sponsors.
The mutual fund in India is
constituted as:
Which of the following floats a mutual
fund scheme to the market?
Mutual funds in India are created as
a/an-
association of persons
private company
trust
68
Sponsor must have at least

____________years of business interest
in financial markets.
69

statement is true?
Atleast two-thirds of the trustee

in the trustee board needs to be
independent
atleast 50% of the

director in the
AMC needs to be
independent
70
Custodian is appointed by-
sponsor
trustees
64
65
66
sponsor needs to have a

minimum 40% share holding in
the capital of the AMC
sponsor directly or acting through
trustees
should be carrying
on business in
financial services
for at least 5 years
prior to
shoullhave a sound financial track
registration
record
71
For a person to quality as a sponsor,

he must-
Contribute at least 40% of the

AMC's net worth
72
A sponsor should have a minimum of

__________share holding in AMC capital.
20%
40%
75%
50%
2/3rd of trustees
3/4th of the trustees
trustees
custodians
sponsor
73
74
75
76
77
What proportion of a mutual fund

trustees have to be independent form
the sponsor?
Custody of a mutual fund scheme
vests with the____________.
Sponsors have unlimited liability
towards unit holders.
Role of the custodian is:

A sponsor should have a positive net
worth___________.
Managing the fund's distribution

channel
in each of the last 5 years
79
The minimum investment that a

single sponsor needs to make in an
asset management company is
The net worth of an asset
management company should be-
Rs.100 Crores
80
Maintenance of records of investors

in mutual fund scheme is done
by__________.
AMC
81
The AMC should maintain records of

all activities and transaction for
_______________.
a maximum of 5 years
82
The trust deed is executed between -
83
The requirement of independent

directors in an asset management
company is-
78
Rs.1crore
making
investments on
behalf of the fund handling payment of investments
managers
with bankers
in 3 years out of
last 5 years
in each of last 7 years
Rs.2croe
Rs.4croe
as decided by the should be at least Rs. 10 crores at
sponsor
all times
registrar &
transfer agent
either of the above
the sponsor and trust
at least 3 years
the sponsor and
trustees
a maximum of 3 years
sponsor, trust and SEBI
one-half of all directors
one-fourthof all
directors
three-fourth of all directors
84
85
A change in the following key people

does not meterially impact the
performance of the fund-
fund sponsors
The custodian of a mutual fund:
is appointed for issuing and

redeeming units of the mutual
fund
trustees of the
fund
fund manager
need to be an
entity independent not required to be registeres with
of the sponsors
SEBI
D
Fund Accountant
NBFC
Board of directors of the company
Sending the Annual account
statement of Mutual Fund
Investors
NSDL
AMFI
CDSL
All of the above
Fund Accountant
ensure the AMC has proper

systems-priocedures and key
personnel in place
all of the above
Unit holders
none of the above
Rs. 50 lakhs
50%
The sponsor of that mutual fund
AMC
Cannot supervise and diret the

working of the AMC.
in the offer document
sponsors and the trustees
AMC appointment letter

above (a) only
investing the funds in securities
markets
3 years
compliance officer
none of the above
All the above
0% and 49%
The bankers
1996
Prior approval of the sponsor is

required, before a person is
appointed as director on the
board of the AMC
AMFI
Should have earned profit after
interest and depreciation in the
last 3 years including the current
year
Custodian
Security Dealers
Overall control over the

operations of the AMC
60%
unit-holders
any of the above

regulators
AMC
receiving the proceeds on sale of

investments & discharging its
obligations towards operating
expenses
All of the above
professionally qualified
individuals only
four
two-thirds
It`s employees
sponsor
both b and c
two-third
None of the above
chief marketing officer of AMC
LLP
All of the above

unit holders
All of the above
51%
60% of the trustees

any of the above
safe keeping of securities or

participating in the clearing
system on behalf of the mutual
fund
in 2 out of last 3 years
Rs.100crore
should be greater than Rs.
10crores
None of the above
at least 5 years
sponsor, trust and AMC
two-third of all directors
members of the AMFI committee
does not give or receive

deliveries of physical secrities
S No
1
2
3
Question Details
Option A
Providing Training to all Distributor
Implement the Certification Programme
To develop the Cadre of Agent
PAN and KYC are mandatory in Ant Mutual

Fund

If there are any changes in the
fundamental attributes of a scheme, the
AMC must issue
9 am to 3 pm
Addendum
24 hrs
Addendum in any 2 news paper
10am to 4 pm
Addendum in one English news
paper and one local news paper of
AMCs head office
The useful downloads of all circulars up

to last year, which are updated on the
website of SEBI, are known as
Circular
Master circular
Addendum
If the explanation is not sent to AMFI in

case of any breach of conduct by then
distributor, then AMFI
Cancels the ARN of distributor
Can empanel the distributor
Can cancel the ARN of that

distributor and inform to all AMCs
Though AGNI is mandate, there is no

penalities in case of breach of code.
This statement is true
KYC of minor is mandatory
KYC of guardian is require incase if

investment is in minors name
Who enables the collection and payment

of investments?
Registrar
SEBI
AMFI
Distributor while getting empanelled also

fill self declaration stating that?
They should receive commission on time
All employees who are engaged in the sale

and distribution shall obtain ARN
Shall abide with Sebi code of ethics

Time stamping is mandatory at
NRI
All offices of AMC
HUF
Offices of AMC and point of acceptance
wherever applications are accepted
FII
Custodians Office
The head of expenses are decided by
SEBI
AMC
Trustees
Clearing the certifying examination and

getting SEBI's permission are mandatory
before a person/ institution can start
selling mutual funds
Though CIO has investment right it plays

limited role in investing in market
Can a mutual fund invest as per the board

resolution, though not as per the rules of
Memorendum of Association
Code of conduct of AMC given in which

schedule
First Schedule
Fourth Schedule
8
9
10
11
12
13
14
15
16
17
Fifth Schedule
18
19
SEBI stop charging.

The Lead of family in the HUF is
Which of the following can invest
Initial Issue expenses

Karta
Foreign citizen
CDSC
inherter
Any entity that is not an Indian resident
The investor needs to attach the

doccuments from Notary Public &
Gazeted officer for KYC documentation
22
The place of Know Your Client

documentation is
POS PointOf Service
POA Point Of Acceptance
23
Only primary holder needs to be KYC

doccumented in case of any one or
survivor
24
The KYC documentation has to be done

only with
CVL
CDSL
25
A female member of the family can be

karta in HUF
The investor can give post dated cheque

for additional purchase
27
Signatory Authority is mentioned in Board

Resolution
28
Observations made by SEBI on the Offer

Document need to be filed in a separate
document.
Partially true
Partially False
Completely True

investments
Principle of utmost good faith
Principle of indemnity
Principle of caveat emptor

principles
Ubraime fides
Principle of indemnity
Principle of Buyer beware
Which of the following is international

agency
CRISIL
Morning Star
Lipper

Individual only
Only HUF
Individual and HUF

before an agent can start selling mutual
funds
AMFI
1
SEBI
0
AMC
20
RTA
Godfather
OCBs which is managed by
foreigners.
21
CDSL
ONCE
26
29
30
31
32
33
34
35
36
37
ARN stands for

AMFI stands for
Agency Registration Number

Association of Mutual Fund in India
Agent Registration Number

Associates of Mutual Fund in India
AMFI Registration Number

Associates of Mutual Fund in Indians
ACE stands for

AGNI stands for
AMFI Code of excellence

AMFI's guidelines & norms
AMC code of ethics

AMFI's Guidelines & Norms for
Intermediaries
AMFI code of ethics

AMC's guidelines & Norms for
Intermediaries
As per SEBI, mutual funds can borrow for

short term to the extent of
Total net assets
50% of net assets
25% of net assets
There is at least 3 board of trustee

required in Mutual Funds
The appointment of AMC can terminated

by majority of board of trustee
75% unit holder
Majority of board of directors
Majority of board of directors of AMC
The detailed version of SEBI circular

regarding code of conduct for distributors
given by AMFI is known as:
Ethics code
AGNI
Front running
47
The AMFI Code of ethics has been

framed to be followed by
the______________.
mutual fund investors
stock market investors
asset management companies
48
Distributors are required to abide

by a code of conduct as prescribed
by SEBI. This code is based on-
AGNI
AMFI
ARN
49
In case of ongoing transaction

(other than NFO), statement of
account is to be sent to investors
within___________.
10 working days of the investment
5 business days of closure of the NFO
10 working days of the end of

the quarter
50
NAV and re-purchase price of a

mutual fund other than FoF
schemes, are to be updated in
AMFI and mutual fund website
within______________.
9.00 PM the same day
9.00 AM the next day
12.00 noon the next day
51
The term"self dealing" in mutual

fund means__________.
52
In case of delay in dispatching

dividend warrants/redemption
cheques beyond the time limit
prescribed, the AMC has to pay the
investor____________.
38
39
40
41
42
43
44
45
46
buying or selling of any securities

engaging into transaction with the fund doing personal trading with the
ahead of transaction of the fund, with
to get unfair benefits at the cost of
investments of the mutual fund
access to insider information
unit-holders money
scheme
penalty of Rs.5000 each
interest @ 15% p.a
Rs.100 extra as late fee
53
Scheme portfolio statement should within 1 month from the close of each
be published within_____________.
half year
within 3 month from the close of the

financial year
within 1 month from the close of

the financial year
by obtaining the consent of at least

75% of unit-holders
by allowing unit-holders to exit the

scheme after six months without any
exit load
by informing each unit-holders

individually of the proposed
change and by allowing them to
exit the scheme without any exit
load
trustees
AMC
55
An open-ended scheme can change

its fundmental attributesInvestors of a mutual fund scheme
cannot sue the __________.
56

dividend/redemption proceeds
within a period of 3 years, they get
the payment based on__________.
NAV at the time claiming the amount
54
face value of units or NAV at the time

of claiming the amount, whichever is
less
sponsors
prevailing NAV i.e after adding
the income earned on the
unclaimed money
58
Investors of a mutual fund scheme

already matured are not entitled to
any proceeds of illiquid securities
recovered later at any point of
time.
Guaranteed returns mutual fund
scheme is not permissible.
59
Buying or selling of any securities

by the key personnel of the mutual
fund ahead of transaction of the
fund, with access to insider
information is called__________.
self trading
insider trading
60
The AMC should encourage

concentration of investment
transaction through very few
selected brokers.
obtaining from the trustees any

information having an adverse effect
on their investments
inspecting magor docunents of a fund
receiving of a copy of the annual

financial statements of that fund
every quarter
every month
every hour
57
front running
62
Unit holders' right to information

does not includeThe NAV of each scheme should be
updated on AMFI website-
63
When a scheme's name implies

investment in a particular kind of
security or sector then it should
invest at least__________of its corpus
in that security or sector.
90%
80%
65%
64
An entity holding 5% or more of

the total corpus of any mutual fund
scheme are called______________.
sponsors
preferred investors
dominant unit holders
65
Mutual fund houses can also vanish

with no protection being available
to investors.
61
66
Guaranteed returns mutual fund

scheme are permissible if-
67
Investors can appoint

upto__________nominees for any
mutual fund schemes.
68
Dividends or redemption proceeds

once not claimed cannot be
claimed further further by the
investors.
stated in the offer document
offer document is approved by SEBI

containing such guaranteed returns
adequate resources are

maintained to fulfill the
guarantee
two
three
five
0
can sue the AMC/trustee
has no legal recourse
69
A prospective investor-
1
has the same status as a unit-holder
of a fund
70
What is the periodicity for

submitting the report by AMCs to
trustees?
monthly
bi-monthly
half yearly
71
NAV and re-purchase price of a FoF

mutual fund scheme, are to be
updated in AMFI and mutual fund
website within_____________.
3.00 PM the next day
10 working days of the investment
5 business days of closure of the NFO
5 working days
72
73
In case of mutual fund transaction,

statement of account at the
request of investor is to be sent
within___________.
AMFI is a self-regulatory
organization.
ACE
once a week in a national level
newspaper
AMFI
GCCI
75
The guideline and code of conduct

framed by AMFI for mutual fund
intermediaries is termedNAV of a mutual fund scheme has
to be published____________.
daily in atleast 2 newspaper
daily in atleast one newspaper
76
PAN no. and KYC documentation is

compulsory for mutual fund
investments except in case of
__________.
SIP
micro-SIPs
rural investrs
77
Dividend warrants have to be

dispatched to investors
within___________.
60 days of board of trustee meeting
30 days from the end of the month in

which it is declared
30 days of declaration
78
The first level grievance redressal

forum for mutual fund investor
is________.
Consumer forum
Investor Service Centre of AMC
SEBI
the scheme is income bearing
investment policy of the scheme
the names and addresses of the

registrats and custodians ?
Buyer beware
Buyer is always right
Seller is always right
74
79
80
Which of the following does not

constitute the fundamental
attributes of a scheme ?
Which is the most appropriate
position under MF regulations ?
81
Investors of a winded up mutual

fund scheme are entitled to the
proceeds of illuquid securities if it
is substantial and
recovered________.
any time thereafter
within one year
within 2 years
83
The circumstances under which a

scheme shall be wound up are to
be described in the offer document
at the time of the initial launch of
the scheme itself.
minimum of ________ investors.
10
15
20
84
The appointment of the AMC for

the mutual fund can be terminated
by-
Majority of directors of the trustees
50% of the unit holders
85
state which of the following is

legally permissible?
51% directors of ABC ltd., an AMC is

also directors of XYZ ltd., a sponsor
company
XYZ ltd., a sponsor company has 51%

share-holding in ABC ltd., an AMC
51% trustees of the trustee

board is associated with XYZ
ltd., a sponsor company
86
The AMFI Code of conduct is a

substitute of code of conduct set
out in SEBI (Mutual Funds)
Regulation.
82
87
Which of the following ststement is All mutual fund schemesshould have

false?
minimum 25 investor
All open-ended mutual fund schemes

shall have 20 investors
No single person shall hold more

than 25% of the corpus of openended schemes
88
Qualifying a certification exam to

sell and distrbute mutual fund
products is required for:
Independent financial advisor
Employee of AMC or distributor
Investor relations team-member
89
The responsibility of settlement

guarantee for mutual fund
transactions through stock
exchange is of-
Stock Exchange
AMC
Distributors
BSE Mutual fund system
BOLT MF
BOLT MFSS
AMC
Trustee
Sponsor
Sponsor needs to have a minimum

50% share holding in the capital of
thhe AMC
Trustee
AMC should have minimum 40%

independentdirector
90
91
92
93
BSE`s platform for mutual fund

transaction is
called_________________.
who registers the mutual fund with
the SEBI ?
The appointment of AMC of the
mutual fund can be terminated by
Auditor of an AMC is appointed by
the ___________.
94
Who has been given power to

regulate the criteria and
procedures for admission of its
members, and determine
professional rules and bylaws of
associations?
SRO
95
Debt oriented schemes should

disclose their portfolio to unitholders monthly, by the 3rd
working day of the succeeding
month.
96
half-yearly un-audited Financial

statement and scheme portfolio
statement should be published
in___________.
AMFI website
Mutual fund website
The fundamental attributes of a

scheme can be changed if:
Written communication about the

proposed change is sent to all unitholders
97
99
The code of ethice for mutual funds

published by AMFI
SEBI should approve the offer
document of NFO filed by AMC.
100
In order to be eligible to sell or

market mutual funds, individual
needs to pass the certifying
Examination prescribed
by____________.
98
101
102
Mutual funds schemes in India

follow accounting policies laid
down byWho is thr primary guardian of unit
holders' funds/assets-
none of above
All national daily newspaper
An advertisement to that effect is

published in one English National daily Dissenting unit-holders are given
and One regional newspaper where
an option to exit at prevailing
head office of mutual fund is situated
NAV
Is mandatory
Is in the form of recommended

practices
AMFI
NISM
SEBI
SEBI
Institute of Chartered Accounts of India
Indian Trust Act 1882
the AMC
the trustees
the registrars
the trustee company
the asset management company
the sponsor
Is unfavorable to investors
AMFI
SEBI (mutual fund) regulations, 1996
105
The auditor of the mutual fund

should not be associated with the
auditor ofMutual funds in India are governed
by_____________.
A self-regulatory organization can
regulate-
all entities in the market
Only its own members in a limited way
ministry of corporate affairs

Its own members with total
jurisdiction
106
Unclaimed dividend or redemption

amount from unit-holders__________.
cannot be deployed by the mutual

fund
has to be deployed in money market by

the mutual fund
has to be reinvested in the

scheme itself
103
104
107
SEBI permission is required before

a distributor of a mutual fund is
appointed
promote the interests of the unit

holders
set a code of ethics
regulate mutual funds
mutual funds
registrars & transfer agents
custodians
109
The role of AMFI in the mutual

funds industry is not toWhich of the following entities is
under the regulation of SEBI?
110
After dividend declaration, unitholders are entitled to receive

dividend within-
one week
111
Memorandum & articles of

association of the AMC can be
inspected by the unit-holders.
112
The organization responsible for a

comprehensive set of regulations
for all mutual funds in India is-
RBI
What does AMFI stands for?
Association of mutual funds in India
SEBI
Association of market federation of
India
AMFI
Association of money funds in
India
108
113
30 days
42 days
2 months
3 months
4 months
115
What is the maximum time given to

the asset management company to
give their reply after the
observations made by SEBI to a
new fund scheme filed with it?
Which of the following entities is
under the regulation of SEBI?
mutual funds
association of mutual funds in india
custodians
116
The liability of the sponsor of a

mutual fund scheme is______________.
limited to the extent of Rs. 100 crore

or AUM of the scheme, whichever is
less
unlimited
initial contribution made by it

towards setting up the fund
114
10,10%
50,5%
100,20%
118

minimum of ________ investors and
no single investor shall account for
more than ___________of the corpus
of the scheme.
A custodian is appointed by
the______________.
trustees
AMC
sponsor
119
A fund manager of an AMC can

manage schemes of two different
mutual funds.
120
The amount of authority enjoyed

by a self-regulatory organization is
defines by-
the apex regulatory authority
company law board
117
121
122
123
lf a unit-holder does not agree to

the merger of his fund with
another, he has no exit optionMinors are not eligible to invest in
mutual funds.
A proposed investor can sue an
AMC on the grounds of negligence.
lits own members
124
125
126
A scheme can be wound up ifif 75% of unit-holder pass a resolution

The operations of the mutual fund
SEBI Regulations
trust are governed by___________.
The structure of mutual fund is
governed by______________.
SEBI
after repaying the amount due to the

unit-holder
disclosing reasons of winding up

in two daily news papers having
circulation all over India and a
vernacular newspaper circulating
at the place where mutual fund
is formed
sponsor
trust deed
RBI
MCA
127
A fund sponsor can contribute to the

intital corpus of the trust
A fund sponsor can contribute to the

capital of the AMC
A fund sponsor can invest in his

own fund`s schemes
128
A mutual fund advisor after

passing the SEBI prescribed
certification exam-
can start selling mutual fund products
should register himself first with AMFI

and get AMFI registration number
should empanel himself with the

AMC`s
129
Prior approval of _______is/are

required for making any changes in
the constitution of AMC.
SEBI
Trustees
Unit-holders
130
Mutual funds are described

as_____________in the SEBI
regulation, 1996
AMC
Trusts
132
If a schemes a mutual fund is taken

over by another mutual fund,
which of the following is false?
Which of the following are self
regulatory organizations?
133
Unit-holders not consenting to

change in fundamental
attributes__________.
131
Companies
There is a change in the AMC of the
schemes that are taken over
SEBI
AMFI
can exit at the prevailing NAV,

without any exit load
can exit at price fixed by the AMC
can pass a resolution to stop

changes in fundamental
attribute
134

i.e.,______________applies to mutual
fund investments.
lets the buyer beware
lets the seller beware
lets the distributors beware
135
Key personnel involved directly

with investment operation of a
mutual fund scheme should
disclose their personal investment
transactions to the _____________.
AMC board of directors
trustee board
sponsors
136
The structure, that is required to

be followed by mutual funds in
India, is laid down by-
ministry of finance
securities & exchange board of India

(SEBI)
fund sponsor
should pass the SEBI prescribed

certification exam
after passing should register himself

with AMFI and get AMFI registration
number
become agents of a distributor

who is already empanelled with
AMC
1%
2%
2.25%
137
138

compulsory for a person who wish
to sell mutual fund producttributors commission as prescribed
by SEBI is_____________.
bombay stock exchange
There is a change in the sponsor of the The scheme has to be wound up

schemes that are taken over
compulsorily
139
Investor's right are available in

which of the following documents:
Application form
Offer Document
AMFI directory
140

staement is true?
There is no maximum ceiling on the

borrowings by mutual fund scheme
The mutual fund can borrow for

purchasing securities or for entering
into derivative contracts
mutual fund can borrow for any

time horizon
141
the borrowing of a mutual fund should a mutual fund should not have
not exceed 25% of the net assets and
not more than 25 schemes out
The rule of 20:25 as stipulated by
each scheme's borroeing should not
of which debt or equity schemes
an equity fund
not invest in not more tham 25 companies out of which 20 companies
should
SEBIshould
is exceed
20%be listed
should not exceed 20
142
The choice of an appropriate

benchmark for evaluating a fund's
performance depends on-
the fund manager
the investment objective of the fund
143
A person can stat selling mutual

fund products immediately after
passing the SEBI prescribed
certification exam.
paying dividends
paying redemption proceeds
paying off existing high interest

debts
145
The mutual funds can borrow for:

Mutual funds in India are permitted
to invest in__________.
securities
gold or gold related instruments
real estate assets
146
A custodian cannot be appointed

for mutual fund operation if-
sponsor or its associates control

atleast 50% shares of the custodian
50% or more of directors of custodian

has interest in sponsor or its associates
either of the above
147
AMFI was set up in 1995with the

objective to:
promote the interests of mutual funds

and unit holders
Set ethical, commercial and

professional standards in the industry
all of the above
148
Due diligence certificate of a

mutual fund scheme is issued
by_____________.
SEBI
Sponsors of the fund
trustees of the fund
149
Even a call center employee selling

a mutual fund is required to qualify
the SEBI prescribed certification
exam.
0
to create ethical practices amongst
mutual funds
to regulate norms governing

mutual funds
within 3 month from the close of the

financial year

the financial year
proof of address
PAN card
sponsor
either of the above
144
150
151
NRI / PIO resident abroad have the

facility of investing in mutual funds
on non-repatriable basis only.
Which of the following is not the
object of AMFI ?
To promote interest of mutual funds
153
Un-audited financial statement

should be published
within 1 month from the close of each
within______________.
half year
compliance includesproof of identity
154
The investment management

agreement defining the
responsibilities of AMC is executed
by___________.
152
trustees
SEBI
157
The AMC is required to be

approved & registered with SEBI
with a net worth of:
Code of conduct for mutual fund
given byThe document '(s) required for KYC
compliance does not includes-
155
Rs.20 Crores
Rs. 100 Crores
Rs. 50 Crores
ANMI
AMFI
AGNI
marital status proof
photograph
proof of address
158
NRI/PIO mutual fund applications

on non-repatriable basis should be
by cheques drawn on ___________.
NRO Account
NRE Account
AMC
159
In case of mutual fund investments

by an investor through a POA
holder, KYC is required to be
complied by-
the investor
the POA holder
both of the above
160
An "exchange-traded fund" has

average weekly net assets of
Rs.350 crore. As per SEBI's
regulations, the AMC can charge
the fund with management fees
upto:-
Rs.4.50 Crores
Rs.5.25 Crores
Rs.6.00 crores
161
162
Which of the following is not

required to pass the SEBI
prescribed examination?
What is the full form of ARN?
distributors
Agent registration number
trustees
AMFI registration number
employees in a call center

dealing with mutual fund
investors
AMFI registration number
sponsor
unit holders
SEBI
sponsor
trustee
AMC
0
securities
156
165
An AMC can explain adverse

variations between expense
estimates for the scheme on offer
and actual expenses for past
schemes on other medium than the
offer documents.
Prior approval of __________is
needed to appoint a trustee.
Auditor of a mutual fund scheme is
appointed by the__________.
166
167
Fundamental attributes of a mutual

fund scheme can be changed at the
discretion of the AMC or trustees.
Mutual funds are allowed to lend-
1
money
168
Who published "making mutual

funds work for you- The investors
guide"
AMFI
SEBI
RBI
169
Which of the following entities

need not pass the SEBI
examination for selling mutual
funds?
stock exchange brokers
persons having experience of selling

mutual funds for at least 10 years
call center employees
163
164
physical assets
The AMFI objectives does not

include the following:
to emphasize on ethical & moral

trade practices
to create awareness about mutual

funds
to regulate the stock markets

along with SEBI in tandem
AMC
Board of trustees
SEBI
172
From whom can a unit holder seek

redressal if his complaint is not
entertained by the mutual fund ?
A mutual fund scheme can be
terminated by_______________.
51% of unit-holders
90% of unit-holders
75% of unit-holders
173
Unit-holder of a mutual fund

scheme cannot seek legal
protection on the grounds of
_____________.
AMC has acted negligently to manage

the scheme
not being aware of the scheme

features & risk factors
trustees have used the fund for

other purpose
170
171
D
All of These
None of These
Not issue any notice
All of these
Suspend the distributor
KYC is not mandatory in MF
RBI
None of the above
Foreign citizen
All of the above
Stock Exchange
Seventh Schedule
Recuring expenses
None of the above
OCI card holder.
CVL
POS
Completely False
Principle of insurable interest
Principle of insurable interest
Credence Analytics
Only institutional investors

Trustee
AMFI Regulation Number

Association of Mutual Foundation in
India
Agent's code of ethics
AMC's guidelines & Norms for
Individuals
20% of net assets
All of These
All of These
Both a and b
None of the above
mutual fund distributors
ACE
10 business days of closure of

the NFO
making personal investment

with unit-holders money
interest @ 1% per month

each half year
after obtaining prior approval

from SEBI
mutual fund trust
amount determined by the AMC
self dealing
approving investment decisions

of the fund
every day
40%
significant unit-holders
all of the above
one
all of the above
quarterly
10.00 AM the next day
10 business days of closure of

the NFO
AGNI
once a month in all national
newspapers
investment below Rs. 5000

60 days from the end of the
month in which it is declared
Ministry of Finance
none of the above

Seller is guilty unless proved
right
within five years
50

XYZ ltd., a sponsor company
control 51% share of the
custodian
if the requirement of minimum

20 investors is not complied
within the stipulated period, the
mutual fund scheme shall be
automatically wound up
All of the above
Clearing Corporation
BSE STAR Mutual fund

Investment manager
any of the above
Above (a) and (b)
One English National daily and

one regional newspaper where
the head office of mutual fund is
situated
All of the above

Does not cover distribution and
selling practices
AMC
Association of Mutual Funds in
India
the custodians
All of the above

securities contract (regulation)
act
No entity at all
has to be transferred to the
investor education fund
increase public awareness of

mutual funds in the country
All of the above
esix weeks
SHCIL
Association of money federation
of India
6 months
depositories
limited to the extent of Rs. 1lakh
20,25%
any of the above
RBI
All of the above

AMC
Trust deed
All of the above
can launch mutual fund schemes
both a and c
Agencies
The schemes' offer documents
have to be changed and updated
RBI
have to accept the change
All of the above
compliance officer of the mutual

fund
association of mutual funds in
India (AMFI)
both a and b
no ceiling
SEBI
the borrowing is permitted only
to meet the case flow needs of
investor servicing
every scheme should have at
least 20 investors and no
investor should represent more
than 25% of net assets of a
scheme
AMFI
paying dividends or redemption

proceeds
all of the above
both of the above
None of the above
compliance officer of the AMC
to increase awareness of mutual

funds
each half year
all of the above
both of the above
Rs. 10 Crores
AMC
None of the above
Current Account
any of the above
Rs.7.00 crores
fund managers
Agent registration number
AMC
any of the above
None of the above
AMC
persons who are above 50 years
of age and have minmum 5
years experience
to improve the standards of

mutual fund industry
RBI
76% of unit-holders
sponsors did not fulfill all

necessary compliances
S No
Question Details
Option A
The SAI is relevant for all the

schemes offered by the same
Mutual Fund
Differed Load is only charged in
close end schemes
The investor cannot set off the

Capital Loss if
He is redeeming the investment

within 9 months
Offer Document of MF is approved

by SEBI
SAI needs to be updated regularly

by the end of ______________
every 3 months
every 6 months
every 3 months of every financial

year
As per SEBI regulations, every

application form needs to be
accompanied by
SID
SAI
Offer Document
KIM does not include which of the

following
Risk profile of the scheme
Bench Mark
Rights of Unit holders
KIM needs to be updated every
3 months
6 months
12 months
Post the initial update, the SID

needs to be update ___________
every 3 months
every 6 months
every 9 months
For a scheme launched in March

2010, the first update of the SID
would be due by
Apr-10
Jun-11
Jun-12
Any change in the scheme needs to

be
mentioned in an addendum
advertised in a national
english newspaper
mentioned in the website of the

mutual fund
SID contains the condensed

financial inforamtion of the
schemes launched in the last ____
years by the AMC
3 years
5 years
3 financial years
2
He is redeeming within 9 months He is investing within 3 months prior to
after record date of Dividend
the record Date of Dividend
3
4
6
7
8
10
11
12
In which of the following NFO

details will be mentioned
KIM only
SID
SID and KIM
NFO for ELSS is for
15 days
Monthly
30 days
Whether the company eligible to

invest in mutual fund is mentioned
in
Memorundum & article of

assoiation
Signatory Authority
Board Resolution
If an investor given the request in

an equity fund for purchase at
2.30pm which days NAV will be
applicable
Same Days Nav
Next Days Nav
Previous Days Nav
If the investor make the online

inestment which NAV will be
applicable
According to the time mention in

his PC.
According to the time mention in

web browser.
According to the time mention in web

server
If an investor give outstation

payout of Rs.50,000/- in MIP which
days NAV will be applicable.
Preceding Days NAV of next

working Days.
Preceding Days NAV of Next

working Day of fund realisation
Following Days NAV of application day
If an investor made the online

transation of Rs.2 lac at 2.30 am on
wednesday in FOF which days NAV
will be applicable.
Thursday's NAV
Friday's NAV
Wednesday's NAV
If an inestor make the inestment

request of Rs.50,000/- at 2:30pm in
Gilt fund which days NAV will be
applicable
same days NAV
Preceding Days NAV
Following working days NAV
13
14
15
16
17
18
19
20
An AMC launches a new scheme in

the market, based on
The performance of its last

scheme
Inputs from the CIO on the

Inputs from the CMO on the interest in
investment objectives that would
the market for the investment
benefit the investor
objectives
22
The offer document is prepared by

the Trustees
23

the Trustees and approved by the
AMC
24

the AMC and approved by the
Trustees.
An SID canot be issued in the
market until and unless it has been
approved by the Trustees.
An Offer Document has to be filed

with SEBI; Any advertising
campaign taken for that particular
scheme need to comply with
SEBI's advertising code.
Both the statements are true
Both the statements are wrong
Only First Part
NFO Open Date and Scheme Reopen date are one and the same
thing.
Partially true
Partially False
Completely True
NFO close date is the date after

which the units will not be available
for sale; NFO close date is the date
after which the units will be
available for sale at the prevailing
NAV.
Only Second statement False
Close ended schemes have and

NFO open date and NFO close
date; Close ended schemes do not
have Scheme re-opening date.
Only First Part
Any NFO launched by the AMC can

remain open for a maximum of 15
days.
21
25
26
27
28
29
30
Allotment of units or refund of

money needs to be done as per the
time mentioned in the Offer
Document of that particular
scheme.
Address of the Custodian
Term
32
Fundamental aspects of a scheme

do not include which of the
following
33
The offer document is a legal

document
The offer documents becomes

redundent post the investment

information about the mutual fund
that is offering the scheme.
Individual AMCs create their own

SID and SAI documents.
SAI and SID are applicable on

specific schemes offered by the
AMC
In legal parlance, SID and SIA are

two separate documents

investment risk
Offer Documents need SEBI

approval
Offer Document need to be vetted

and verified by SEBI
The Draft SID is available for

viewing in the AMFI's website for
21 days.
31
34
35
36
37
38
39
40
41
42
Investment objective

incorporated into the Draft SID,
then it needs to be hosted on
AMFI's website two days before the
issue opens.

For schemes launched within the

first 6 months of the financial year,
the first update of the SID is due
within ______ of the end of the
financial year.
3 months
6 months
need based
For a scheme launched in April

2008, the first update of the SID
would be due by
Apr-08
Jun-09
Jun-10
____________ schemes have to reopen for sale/ repurchase within 5

business days of the allotment.
Open-ended
Close-ended
All the schemes
KIM
SID
SAI
If an investor is submiting the

application form along with the
cheque of Rs. 1 lac in an equity
Fund at 2 PM, But there is
insuficient balance in his Account,
which days NAV will he get
Same days NAV
Following Working Days Nav
Preceding Working Days NAV
Any excess to the total expense in

a scheme as laid down by SEBI is
To be borne by the AMC
To be borne by the investors
To be borne by the distributors
43
44
45
46
47
48
49
50
Both B & C
every 6
months of
every
financial
year
KIM
Loads &
expenses
need based
every 12
months
Mar-11
All of the
above
since the
inception
SAI
Date of
closure of
NFO
Appliation
form.
Next working
Days Nav
According to
investment
Amt. & time
mention in
web server.
Following
Days NAV of
Preceding Day
of application
date.
Tuesday's
NAV
Next Days
NAV.
Only b & c
Only Second
Part
Completely
False
Only Second
statement
True
Only Second
Part
nature of the
scheme
Both 1 & 3
Mar-11
None of the
above
None of these
AMC will not
process the
transaction
and he will not
get any units.
to be borne by
SEBI
S No
Question Details
Option A
A Percentage of net asset value

of unit holder
Remittance can be done in Mutual Fund through
RTGS and NEFT
An institutional distributor builds reach through
Employees
In audio and video advertisements, the disclaimer clause

must
Display on screen for 5 seconds
IPIN and user name to existing

investor only
Foreign companies
Micro SIP is not available for

Mutual fund distributor get commission be selling mutual
fund as a product and stock broker also get commission by
selling same product.
Minor
1

Photo identification
AMC employees
12

To be able to sell mutual fund schemes and earn
commissions, a person should
Sponsor distributor
have an ARN number
1
13
Information regarding the minumum and maximum

commission to be given to the distributors have been laid
down by SEBI
Different AMCs charge different commissions; Same AMC
charges different commissions for different schemes
Totally True
Initial or Upfront commission is decided by

Trail commission is calculated by the investor as per the
service provided by the distributor
AMC
1
Trail commission is usually paid on a _______ basis
Monthly
Trail commission is calculated on the net assets attributable

to the units sold by the distributor
Initial commission and trail commission are calculated on

the same formula
Totally True
Mutual Fund commissions are paid for a limited number of

years; Mutual Fund commissions are paid for as long as the
investor's money is held in the fund
Totally True
AMC is bound by the acts of the distributor, or its agents or

sub-brokers
Commission is payable to distributors on investment made

through them by their clients; Commission is payable to
distributors on their own investment
both statements are right
As per SEBI guidelines, the distributor need not disclose the

commission to the investor
1
2
3
4
6
7
8
9
10
11
14
15
16
17
18
19
20
21
22
23
As per __________, offering rebate to investors is banned
ACE
As mutual fund investment is subject to market risk, the

AMC can make assumptions in its advertisements.
Each AMC is required to display the disclaimer in a

particular format and font as decided by its marketing team.
The minimum height of the disclaimer statement on

hoardings/ posters should be _______
18 inches
28
The disclaimer should be written on a __________

background.
black
29
The disclaimer should cover atleast _____ of the display

area on a hoarding/ poster.
5%
In audio-visual media, the disclaimer is either required to be

displayed on the screen for atleast 5 seconds or
In an audio-visual, the disclaimer should cover ____of the

screen, while the rest ____can be used by the name of the
mutual fund or the logo, etc
20/80
32
In audio advertisments, the disclaimer needs to be read out

over a period of
2.5 seconds
33
Which of the following informations cannot be included in a

tombstone advertisement?
Logo or trademark
34
Which of the following informations can be included in a

tombstone advertisement?
Scheme literature
Risk factors need to be mandatorily mentioned in the tomb

advertisements; A general statement to refer to the SID for
details needs to be mandatorily mentioned in the tomb
advertisements.
36
Any statement if mentioned in the Product Launch

advertisement explicitly, need not be substantiated in the
SID & SIA
37
The maximum initial commission that an AMC can pay to

distributors is __________
0.05%
The distributor can charge a fee from the investor
Stock exchange brokers are permitted to distribute mutual

funds without the requirement of passing the certifying test.
Trail commissions are linked to valuation of portfolio in the

market
Listing of shares at a stock exchange ensures
Guaranteed returns
It is _______ objective to develop a cadre of well trained

agent distributors.
SEBI
Which of the following is prohibited in Tombstone

Advertisement
Contact details of AMC and RTA
Point out the features and

benefits of various investment
options
24
25
26
27
30
31
35
38
39
40
41
42
43
44
Code of ethics should be followed by distributors as:
It is required by AMFI
Most AMC share the portfolio of all their schemes in their

website on a _______basis
Daily
46
47
Which of these cannot be distributor
RBI Branch
48
For investors to correctly compare performance of

different funds SEBI's advertising codes include-
uniform computation of
yields
displayed in black letters of
at least 8 inches height in
white background
50
In display advertisement' the statutory disclaimer

"mutual funds investmentis is subject to market risk.."
should be________________.
_____________can only give basic information about a
mutual fund registered with SEBI.
51
MF regulation precribe-
The minimum commission

of the distributor
52
In which of the following advertisement tpye "risk

factors" of mutual fund investment may not be
mentioned?
Audio-visual advertisement
53
According to SEBI's advertising code, for fund that have

been in existence for more then a year, annualized
returns have to be furnished for-
1 yr, 3 yr, 5yr, and sine

launch
54
Commission paid by AMC (S) to distributors consists of-
upfront commission
55
True
56
A ranking entity, which is a subsidiary of the AMC of

mutual fund can provide ranking of AMC(s) scheme in
performance.
In performance advertisements, the return calculation
should be made on__________.
absolute basis
57
_____________of mutual fund shall not be used other than

launching or re-launching of scheme.
product launch
advertisement
45
49
58
59
60
To empanel with the AMC or to become agents of a

distributor who is already empanelled with AMC is
compulsory in order to sell mutual fund products.
An AMC of a mutual fund is bound by the act its
distributor or agents.
AMC pay a trail commission for the period the
investment is held in the scheme.
63
A mutual fund advisor cannot advertise or issue publicity

material other than that provided by the AMC or preapproved by the AMC.
SEBI regulates the minimum pr maximum commission
that the distributors can earn.
Distributors cannot claim commission on their own
investments.
64
In performance advertisements, the compounded

annualized return shall be shown for_________.
61
62
Display advertisement
True
True
True
True
True
True
the last 3 successive years
65
Trail commission takes into account valuation gains

earned on units.
True
67
Every AMC follow one specific commission structure and

do not vary between schemes or plans.
Distributors can claim upfront commission directly from
the investors.
68
Trial commission is calculated______________.
on the fund mobilized by the

distributors
70
Which of the following information is prohibited for

Tombstone advertisement ?
The name and address of the mutual fund`s POA can be
obtained from-
Logo or trademark or
corporate symbol, if any
SID of the mutual fund
scheme
71
Investor can change the distributor through which he has

invested after obtaining No Objection Certificate from
him.
72
Mutual funds have to publish complete staement of the

scheme portfolio and the un-audited financial
results_________.
within 1 month from the

close of each half year
73
Buying or selling of securities, knowingly, by the AMC of

a mutual fund from/to the director, officer, employee of Terms laid down in the Offer
the AMC is violation of:
Document
74
The term "front running" in mutual fund means________.
doing personal trading with

the investments of the
mutual fund scheme
75
SEBI Advertising code mandate that all performance

calculations in a fund`s advertisement should be bassed
on-
NAV
76
Product launch advertisement of mutual fund shall not

be used other than______________.
launching of schemes
77
engaging into transaction with the mutual fund to get

unfair benefits at the cost of unit-holders money is
called_________.
self dealing
66
69
True
True
79
Are mutual fund agents/distributors in India required to

pass any examination to qualify to sell mutual fund
units.
Trail commissions depend on _____________ of the
investor.
80
81
Trail commission is normally paid to distributors by

the_______________.
The new age distribution channel includes:
Investors
institutional channels
82
Trail commission is paid-
for a limited number of

years
78
yes, a test conducted by

AMFI
investable fund
83
Units from an open-ended mutual fund are bought:
on a stock exchange
84
In India, law does not perscribe the minimum or

maximum commissions payable to distributors.
87
In audio visual advertisement, the statutory disclaimer

"mutual funds investments are subject to market risk
." should be__________.
NSE's platform for mutual fund transaction is
called__________.
Trail commission is normally paid to the AMC on a
________basis.
88
The distributor is not bound to disclose the amount of

commission received by him to its investors.
89
In performance advertisements, where scheme are in

existence for lees than a year, the returns calculation
should be made on_____________.
total return basis
85
86
displayed on the screen for

at least 5 seconds
NSE MFSS
QUARTERLY
At Investment amount
Will not get any

Commission
Fixed Percentage according to SEBI

Regulations.
IFCR
MICR
NRE and NRO A/C
Agents
Sub-brokers
All of these
Need to cover 50% of screen
Both a and b
Need not to be disclose
IPN to existing investor only
IPIN and user name to all

new investors
No need any facility for doing the

transaction
Institutional investor
Foreign Individual
The trust where, more than 60% if the

beneficial interests is held by NRI
Individual
0
NRI
HUF
Photo debit card

Sponsor
Photo credit card

Associate group of
Sponsor
Photo employee id
Distributotor
Company distributor
be empanelled with an AMC
Investor
be NISM certified
Banks
All of the above
Totally False
Partially True
Partially False
SEBI
0
Investor
Distributor
Quarterly
Half yearly
Yearly
Totally False
Partially True
Partially False
Totally False
Partially True
Partially False
only first statement is right
only second statement is right
0
both statements are wrong
Both 3 and 4
AGNI
SID
SIA
8 inches
8 centimeters
18 centimeters
blue
white
as per the wishes of the AMC
10%
15%
7.50%
25/75
75/25
80/20
5 seconds
10 seconds
7.5 seconds
Name of AMC
Entry and/ or exit loads
Declaration of NAV
usage of ranking given by third

party
product launches
Risk factors
only second statement is right
2%
Nil
Long term capital appreciation
Low risk
High liquidity
AMFI
RBI
AMC
Entry load and exit load
Declaration of NAV and

performance
Logo or trade mark
Help the investor develop the

right approach to investing
Recommend some
investment option
available
Offer adhoc advise whenever the

investor has surplus money available
1%
0
0
It is required by AMC
Business increases
All of the above
Weekly
Monthly
Annual
Foreign Bank
Domestic Bank
Private Placement
uniform presentations of
dividends
ldentical time periods
all of the above
both of the above
tombstone advertisement
either of the above

audio-visual
advertisement
audio advertisement
The maximum commission

of the distributor
The minimum ae well

as the maximum
commission of the
distributor
neither the minimum nor the

maximum commission of the
distributor
product launch
advertisement
covering 10% of the display

area in white background
trail commission
1 yr, 3 yr, and since

launch
performance
commission
False
compounded
annualizedbasis
quarterly basis
simple average basis
Audio advertisement
the last 1 year, 2 years

and since launch
the last 1 year, 3 years, 5 years

and since launch
1ye, 5yr, and since launch
1 yr, 3 yr, and 5 yr

all of the above
False
False
False
False
False
False
the last year only
False
False
False
on the amount redeemed by

investors attributable to the
units sold by the distributors
Entry and/or exit loads, if

applicable
SAI of the mutual fund
scheme
on the net assets

attributable to the
units sold by the
distributors
any of the above
comparisons and
usage of ranking given Frequency of Net Asset Value (NAV)
by a third party
disclosure
Mutual fund website
Both a Aand c

close of the financial year
within 1 month from

the close of the
financial year

each half year
Investment Objective of the

mutual fund
Investment Principle of
the mutual fund
AMFI Code of Ethics
buying or selling of any

secuities ahead of
transaction of the fund,
making personal investment with access to insider
with unit-holders money
information
buying or selling of any secuities

after the transaction of the fund,
with access to insider information
NSE Nifty
BSE Sensex
None of the above
general information
advertisement
launching or relaunching of schemes
competitive advertising
insider trading
self trading
front running
yes, a test conducted by

SEBI
A post graduate
university course
yes, a test prescribed by SEBI
holding period
net-worth
age
AMC
internet
HNI or institutional
investors only
stock exchanges
retail investors only

All of the above
as long as the investor`s

money is held in the fund
up to one year from

the date of
mobilization of fund
indefinitely
from the fund itself
from AMFI
from a stock broker
displayed in a clearly legible

font-size covering at least at
80% of the total screen
space
accompanied by a
voice-over reiteration
All of the above
NSE MF
NEAT MFSS
NEAT MF
half yearly
monthly
yearly
simpale average basis
compounded annualized basis
half-yeary basis
Correct
Option
Chapters
A
A
D
A

A
E
D
A
C
A



A
A

C
D

B
D

S No
Question Details
An investor invested in Gilt Fund for Rs 20,000 for a period of 18 month and at the time of
redemption the value of the fund was at Rs 50,000. Find the capital gain tax (ignoring the
indexation)
2 Investor needs to pay wealth tax if he is investing in gold ETF

Unit Capital is
4 SEBI has stop charging

5 SEBI has banned Entry load in Mutual Fund from 1st August, 2009
6
7 STT is leived on Re-purchase of unit from mutual fund

8 Mutual fund is liable to fare for
10 NAV after dividend payment is called

11 Dividend distribution tax paid on money market instruments is ?
12 The new platform for trading in NSE and BSE are called as
If investor has made a subscription in Rel Gilt Fund at 2:30 pm with a local cheque which
13 NAV would be applicable?
14 _____ is used to measure fluctuation of fund

15 _____ is not a credit rating agency
16 ____ fees cannot be charged to a scheme
What would be the NAV if an investor invest in a gilt fund Rs. 1 crore at 3:30 PM by a local
17 cheque.
18 TDS on Dividend in Mutual Fund is

If an Investor is investing Rs. 10 Lacs at 4.00 PM in NFO. NAV on that day is Rs. 15. Find the
19 units alloted to the investor
If an investor has given the request for redemption of 1000 units at the NAV of Rs. 12 and
Face Value is Rs. 10. Find the amount that investor will receive
20
21
22
23
DTAA means,
Withholding tax applicable to the non residential investor is ______ according to DTAA
Finance Acts of 2000 and 2001 have reduced tax-free interest on Public Provident Fund to
24
If an investor dealing with 12000 units & company declared 1:3 bonus. How much units
25 investor will get
Dubey ji invested Rs.10000 at NAV of 12 on 1st july,2008. The MF declared 1:2 bonus on 31st
December 2008. How much extra units Dubeji will get
26
27
If the investor has 1,000 Units in aggressive growth fund. He has given the redemption on 1st
July,2008 at the NAV of Rs.15/- the MF charge 1% exit load find out the amount he will get.
Find NAV. Investment amount is Rs. 100 crore, deivedend accrued but not received 207 crore,
bills payable Rs. 55 lacs. No. of units issued to the investor is 1 crore
28
29
30
NAV of Mutual Fund

A bond with a coupon of 9% when interest rates for similar maturities are 11% will sell
31
Under the Deposit Insurance Scheme of the govt, upto Rs _______ per depositor in a bank is
paid by the insurer, incase the bank fails to pay the depositor's money.
32 Pre-mature closure of a fixed deposit attracts a penalty.

33 Interest earned in a bank deposit is taxable each year.
34
35
36
37
38
In the formula A=P*(1+I)n, P stands for

Which of the following might be worth considering while doing a financial planning
Today's costs can be translated into future requirement of funds using the formula
Portfolio turnover rate of a fund measure the
If the investor cannot pay the premium he can go for term plan in insurance policy
39 Dividends distributed by mutual funds are

40 Interest rate risk is :
Indexation means
41
42
43
What is the excel formula of standard deviation

An investor make transaction on internet which time can be a cut off time :
44 Re-purchase transactions in equity schemes are subject to STT

45 Equity schemes attract dividend distribution tax
46 If an investor does not want any tax liability he should invest in
47
Arbitrage funds enjoy all the tax exemption which is applicable in Equity Fund
Investor invest Rs12,000 where NAV is Rs. 23.45. Face value is Rs. 10 as per the current load.
48 How much unit will be aloted.
49 Which of the following is tax free investment

50 State which of the following statement in false?
51 What is mark to market?

52 Exit loads applicable to big investors and small investors are-
53 Initial issue expense of the mutual fund scheme has to be borne by the ___________.
54 Which of the following recurring expenses cannot be charged to the scheme?
55 A fund's declared NAV does not include loads56 The maximum entry load that could be charged by a mutual fund scheme os-
57
The NAV of an equity fund was 36.00.The fund charged 1.00% as exit load. If an
investor wants to withdraw Rs. 100000 from the fund, what is the number of units he
eill repurchase?
All expenses and income accrued upto the valuation date shall be considered for
valuation. Some minor expenses need not be so accrued, providedtheir affect on the
58 NAV is not more than:
Short-term capital gains tax arises if investments in mutual fund units are held for a
59 period of-
The basic rate of dividend distribution tax on debt funds (other than liquid funds)
60 payable for investors other than individual/HuF is-
TDS on the dividend distribution or re-purchase proceeds to non-resident investors is
61 payable at the rate of:
________________For valuation of not traded/thinly-traded securities when such secrities

62 represent more than 5% of the net assets of a scheme.
For the purpose of valuing a mutual fund portfolio, equity shares which are not
63 traded/thinly traded are valued on the basis of64 A fund's NAV is affected by-
65 NAV for_________is to be calculated up to 4 decimal places.

NAV for index funds, liquid funds and other debt funds is to be calculated up to
66 __________decimal places.
67 Annual report has to be published within ____months of accounts closing date.

68 Mutual fund scheme are permitted to keep re-purchase price lower than the NAV.
A fund of fund scheme cannot charge recurring expenses more than _________of the net
69 average assets of the scheme.
70 As per SEBI guideline dividends can be paid ___________.
71 The maximum load that a fund can charge is determined by the:

72 Exit load charged to investors in excess of 1% should be_______________.
A liquid fund has average weekly net assets of Rs. 800 crores. As per SEBI's regulations,
73 the AMC can charge the fund with management fees upto:-
An index scheme cannot charge reurring expenses more than _________of the net
74 average assets of the scheme.
75 NAV for________is to be calculated up to at least 2 decimal places.

When trading in an equity / equity related security in a month is less than ________, it
76 shall be considered as thinly traded.
Investors are totally exempt from any tax on the dividend income they from mutual
77 funds.
KYC documentation is reqired to be complied every time an investor enters into a

78 mutual fund transaction.
79
The applicablie NAV for a sale transaction of liquid fund where application has been
received after 12 noon would be (assuming funds available for utilization on the same
day) -
80 AMC(s) need not maintain records in support of each investment decision-
81 Which of the following is no relevance in evaluating a fund`s performance ?

82 P/E Ratio is calculated as__________.
83 If yield Spread is higher, credit risk is higher.

84 Nav of a scheme has gone up from Rs. 10 to Rs. 11.50 in 15 months. The CAGR is-
85
A unit of open-end fund was purchased when its NAV was Rs.20. At year-end its NAV
was Rs.22. In the interim period, the fund made a distribution of Rs.4 per unit when its
NAV was Rs.21. what was the simple Total Return of the found?
An investor buys a mutual fund unit at Rs. 20.75. He subsequently receives a dividend
of 15.5%, which he reinvests in the fund, at the then prevailing NAV of Rs. 21.25. On
completion of one year from the date of purchase of original units, the NAV stood at
86 Rs.22.65. What is the rate of return to the investor, using the CAGR Method?
Liquidity of a portfolio and presence of liquid assets in a portfolio means the same
87 thing.
88 face value of units of a mutual fund scheme has to be-
Which of the following "Ranking Entities" ranking can be used by a Mutual fund in
89 performance advertisements?
Given the following details about a mutual fund, calculate the net assets:(a)
investments: Rs.475crore (b) Other assets: Rs. 55crore ( c) Accrued Expenses: Rs.
18crore (d) Accrued Income: Rs. 12.75 crore (e) Current liabilities: Rs. 4.75crore (f)
90 Other liabilities: Rs. 10.06crore.
For the purpose of valuing a mutual fund portfolio, debt securities which are not traded
91 are valued on the basis of-
92 Which of the following entity(s) is/are exempt from taxSecurities Transaction Tax (STT) is not payable by equity-oriented mutual funds on F&O
93 transactions.
The basic rate of Dividend Distribution Tax on Debt funds (other than liquid funds)
94 payable for investors who are individual/HUF isSystematic withdrawal plans are more tax efficient than dividend payout plans for debt
95 funds.
96 Fundamental analysis involvesA high P/E Ratio does not always mean the company is expensive vis a vis a low P/E
97 Ratio does not mean the company is cheap.
The maximum amount of management fee that could be charged by an equity scheme
98 having "average net assets"of Rs. 400 crore isA fund`s investments at market value total Rs.700 crores, Total liabilities stand at Rs.
99 50 lacs and the number of units outstanding is 28 crores. What is the NAV ?
The nav of a fund on January 2011 was Rs. 18.8825. 6 months later, the NAV had grown
100 to Rs.19.9995. Find out the annualised return.
101 Benchmark of a mutual fund scheme is decided by_______________.

Li-Bex, a sub indices of sovereign Bond Index(I-bex) is composed of government
102 securities having maturity of-
103 Sharpe and Treynor Ratios are measures of:

A Scheme with a beat of 1.2 earned a return of 8%. If the rate of return is 5%, calculate
104 the treynor Ratio.
105 The rule of 72 is used to106 Unit capital is found in the-
107 The reative size of mutual fund companies is assessed by their______________.
108 State which of the following statement is True?

To get the benefit of dividend stripping the investor in units of mutual fund would need
109 to-
A facility where investment can be made by blocking the amount kept at the bank
110 account without transferring the entire application money is called_____________.
The applicable NAV for a sale transaction of equity fund amounting to Rs. 1 crore or less
111 where application has been received within 3 pm with local cheque/dd would be-
Additional investments in the same mutual fund does not necessitate filling of full
112 application form.
113 Equity schemes are subject to dividend distribution tax.

114 Which of the following problems have been eliminated by depositories ?
115 Which of the following is not considered for technical analysis ?

The_______________is an indicator, which calculates how much the share market is
116 prepared to pay for each share of the company, as compared to its book value.
117 Value investment style entails investing in_________

118 Fund manager with investment philosophy of growth investing, loos for:
119 SWP is tax effective for debt funds than equity funds because120 For evaluating sectoral funds, the preferred benchmark would be theIf a mutual fund scheme name implies investment in any particular kind of security or
121 sector___________.
An investor buys a mutual fund unit at Rs. 23.75.. He subsequently receives a dividend
of 20%, which he reinvests in the fund, at the then prevailing NAV of Rs. 24.50. On
completion of one year from the date of purchase of original units, the NAV stood at Rs.
122 25.10. What is the rate of return to the investor, using the CAGR method?
The maximum amount of management fee that could be charged by anindex scheme
123 having "average net assets"of Rs. 500 crore is124 Tracking error is-
125 Turnover rates would be most relevant to analyze the performance ofAn investor purchased an open-end fund when its was Rs.20. 16 months later, its NAV
126 stood at Rs.22. The percentage NAV change in the fund was:
127 Distribution tax should be taken into account when computing net returns from128 The unit-holders` funds in the scheme, is known as__________.
129 Units of mutual funds are subject to wealth tax ofTDS on the dividend distribution or re-purchase proceeds to resident investors is
130 payable at the rate of:
131 Dividend distribution tax payable on equity-oriented mutual fund isCash and securities of a mutual fund should be segregated and maintained scheme132 wise.
An open-end fund with 10,000 units outstanding had the following items in its balance
sheet: investment at market value Rs.1,00,000 current assets Rs. 20,000 current
133 liabilities Rs.25,000 calculate the fund`s NAV per unit.
134 Mutual funds cannot pay dividend out of un-realised profits.
Rupee cost averaging and value averaging can be recommended to an investor who is
135 in
136 The day on which NAV is calculated by a fund is known as-
137 The net assets of a mutual fund scheme includes-
Income not realised but relates to the period are not taken into account while valuing
138 mutual funds net assets.
A closed-end equity fund has average weekly net assets of Rs. 200 crore. As per SEBI`s
139 regulations, the AMC can charge the fund with investment and advisory fees upto:140 Reviewing of company`s financial statements is done for-
141 Net assets of a mutual fund are valued following the_____________.

142 Long-term capital gains tax on debt-oriented mutual fund nil.
Units of mutual funds which is bought within a period of 3 months prior to the record
date of bonus/dividend and sold within a period of 9 months after the record date of
143 bonus/dividendQuantitative analysis is more likely to be done to evaluate a particular sector or industry
144 rather than any specific stock.
The applicable NAV for a re-purchase transaction of equity fund where application has
145 been received within 3 pm would be -
146 Technical analysis tries to predict future movement of stock price by analyzine:
147 State which of the following statement is true?

A scheme with 1000 unit holders has the following items in its balance sheet-unit
capital Rs.10,000; investments at market value Rs.25,000; other assets Rs.4,000; oyher
148 liabilities Rs.2,000;reserves Rs.17,000.what is the scheme's NAV per unit?
A mutual fund has 18 crore units and net assets of Rs. 558crore. Of these net
assets,Rs.162 crore represents realised gains and Rs.216 crore represent unrealised
149 gain. What is the NAV per unit?
The NAV of a fund on march 31, 2010 was Rs.18.6 months later, the NAV had Grown to
150 Rs.21. find out the annualised return.
Debt oriented, close-ended schemes should disclose thir portffolio in their
151 website__________________.
Unit -holders of mutual fund are not entitled to protection under the companies Act'
152 1956.
Expenses not paid off but relates to the period are not takeninto account while valuing
153 mutual funds net assets.
154 NAV for equity and balanced funds is to be calculated up to__________decimal places.
155
An investor buys a mutual fund unit at Rs.25.75. He subsequentlt receives a dividend of

15%, which he reinvests in the fund, at the then prevailing NAV of Rs.25.75. At the end
of the year,the NAV of the fund is Rs.26.15. What is the rate of return toreturn to the
investor?
156 Unit capital of a mutual fund scheme is
157 The unit capital of a close-ended fund______________.

An investor holds 2200 units in a gilt fund. The current NAV is Rs. 10.75. He would like
to switch his holdings to an equity fund,whose NAV is Rs. 13.95. If the entry and exit
load for the gilt fund are 0% and 1% respectively and the entry and exit load for the
158 equity fund are 0% and 0.50% respectively, what is the equity fund, after the switch?
159 Dividend distributed to unit-holders by a debt fund is liable to dividend distribution tax.
160 The number of units an investor is entitled to receive on a buy transaction depends on-
161
The NAV of an equity fund was 40.15. The fund charged 1.00% as exit load. If an
investor wants to withdraw Rs.22000 from the fund what is the number of units he will
repurchase?
An investor holds 2000unit in a bond fund. The current NAV is Rs.11.50. He would like to
switch his holdings to an equity fund, whose NAV is Rs.20.35. If the exit load for the
bond fund is 0.25% and the entry load for the equity fund is nil, what is the unit holding
162 in the equity fund after the switch?
Securities Transaction Tax (STT) is not payable by equity-oriented mutual funds on F&O
163 purchase transactions.
164 Mutual fund schemes should have sale price equal to the Nav.
While calculating distributable reserves, valuation gains are to be ignored but valuation
165 losses needs to be taken into account.
An investor buys a mutual fund unit at Rs.22.40. He subsequentlt receives a dividend of

20%, which he reinvests in the fund, at the then prevailing NAV of Rs.22.10. At the end
of 2 year,the NAV of the fund is Rs.24.70. What is the rate of return toreturn to the
166 investor?
The NAV of an equity fund was 42.00. The fund charged 1.00% as exit load.What would
167 be the re-purchase price?
168 Dividend payout changes the number of units held by the investor.
A person who is taking investment decision by studying company & its operation is
169 called as
The maximum amount of recurring expenses that could be charged by a debt scheme
170 having "average net assets" of Rs. 1100 crore is-
171 Mutual funds value their investments172 The basic rate of dividend distribution tax on liquid debt funds is-
173 Units of mutual fund are short-term capital assets if174 Non-traded seciurities are to be excluded while calculating the NAN. True or False?
175 Nav is176 Recurring expenses cannot be charged by ________________.

If a singhle unit holder holds more than___________% of assets, the number of such unit
177 holders and their percentage holding in the net assets have to be disclosed.
178 Every mutual fund scheme should have an appropriate benchmark.
179
An investor holds 4000 units in a bond fund. The current NAV is Rs.9.50. He would like
to switch his holding to an equity fund, whose NAV is Rs.14.80. If the exit load for the
bond fund is 0.50% and the entry load for the equity fund is nil, what is the unit holding
in the equity fund after the switch ?
180 Liabilities in the balance sheet of a mutual fund are-
181
An investor buys a mutual fund unit at Rs.24.65. He subsequently receves a dividend of

13.25%, which the reinvests in the fund, at the then prevailing NAV of Rs. 24.35. At the
end of 550 days the NAV of the fund is Rs. 25.75. What is the rate of return to the
investor?
182 Physical gold is subject to wealth tax beyond threshold limit whereas gold ETF is not.
183 Which of the following is true?

184 Mutual fund investments cannot be made by paying through cash.
185 Dividend Distribution tax is tax effective forThe applicable NAV for a sale transaction of liquid fund where funds are not available for
utilization on same day would be same irrespective of whether funds are received befor
186 or after 12 noon.
187 Dividend distribution tax is applicable for debt mutual fund scheme having_____________.
The NAV of a fund is 24.20. The fund charged 1.00% as exit load.If an investor wants to
188 withdraw Rs. 60000 from the fund, what is the number of units he will repurchase ?
189
Investors get the unclaimed dividend / redemption proceeds at prevailing NAV i.e. after
adding the income earned on the unclaimed money when they cliam the
same_____________.
Option A
Rs 3,000
1
No. of units* face value
1
In equity fund upto 2 decimal
0.125%
Income
Fluctuations of a fund result around a mean level.
Re-investment
25%
NEAT MFSS
Nav of the same day of application
Sharpe Ratio
Morning Star
Service Tax
Same days NAV
25%+surcharge+cess
66666.6666666667
Rs. 12000
Dividend tax Authorised Association
Lower of the rate
12%
Risk premium of a fund as difference between the funds
average return an risk free return divided by beta of the fund.
400 units
1250 units.
Rs.15000/-
Rs. 371.5
Mutual fund do not received income in interest

At premium
2 lakhs
1
1
Principle
Inflation
A=P* (1+I)^n
Size of the fund's portfolio
1
Taxed at source
Financial Loss.
Capital gain
S.D=STDEV(range of cells where the periodic returns are calculated)
12 Noon.
1
1
Debt fund growth option
1
510 units
PPF
higher the appreciation in the investment portfolio, higher
would be the NAV
valuing investment at cost price
same
investors
service tax
True
6.00%
2750.275
2.00%
less than 3 years
20%
As prescribed in income tax act and where DTAA applicable at

lower of IT rate or DTAA rate
an independent valuer has to be appointed

Earnings per share
purchase and sale of investment securities
equity and balanced funds
maximum 4
four
True
2.00%
out of accrued profits
AMC
repaid to investors on whom it is charged
Rs. 2.25 crore

2.25%
equity funds
Rs.5 lacs and 50000 shares
1
1
Closing NAV of the day preceding next business day

1
The performance of the stock market as a whole
Market price per share / No. of ordinary shares outstanding
1
(11.5 / 10)^<12/15)- 1
25%
11.24%
1
Rs. 1
an entity who is independent of the AMC(s) or Mutual fund its

affili.ates
485.00 crore
Yield to maturity
Mutual fund trustee/trustee company
1
10%
1
Checking the foundations of the company`s factory building
1
Rs. 2.25 crore
Rs. 30.19
10.24%
the sponsors
Above 7 years
Average return
3.20%
on request
Liability side of scheme`s balance sheet
net worth
an equity-oriented mutual fund scheme investor would not

bear any STT
Buy the units more than 3 months prior to the record date for
the dividend
BLOC
Closing NAV of day funds are available for utilization

1
1
Reduction in the share transfer time of the buyer
Historical data on the company' share price
Market price per share / Earning per Share

Valuable Stocks
Companies with above average profits and growth in earnings
debt funds have no capital gains tax
BSE sensex
not less than 90%
19.27%
Rs. 7.50 crore
Error in calculating the NAV
equity funds
8.00%
equity funds
unit capital
1% on market value
5%
10%
1
Rs. 9.50
1
accumulation phase
Computation date
amounts invested
Rs.2.25 crores
technical analysis
accrual basis of accounting
1
Cannot set off capital loss on such units aginst any capital
gains to the extent of dividend recived
1
Closing NAV of the day immediately preceding the date of
application
The stock price movements of a company
equity schemes are subject to STT
Rs.27
Rs.31
18.36%
quarterly, by the 5th working day of succeeding month
1
1
at least 4
6.57%
number of units multiplied by its face value
varies with the ongoing sale and re-purchase of units by the
fund
1695.3405
1
investment amount
547.9452
1575.2025
1
1
1
8.28%
41.58
1
chartist
Rs. 22.25 Crore
at purchase price
10%
They are hold for not more then twelve months proceeding
the date of transfer
1
Asset valu divided by all shares sold since the fund was
initiated
liquid schemes
50%
1
2120.3028
In the form of long-term loans
6.61%
1
financial planning is equivalent to tax planning
1
pensioners
1
dividend re-investment optin
2504.1736
within 5 years
Rs 6,000
Nil
0
No. of units outstanding* face value
No. of units issued* current market price
Exit Load
0
Deffered Load
Except than equity other funds are rounded offupto 4

decimals
In liquid fund upto 4 decimals and other than liquid

upto 4 decimals
0.015%
0.25%
Dividend
Sensitivity of a funds returns to changes in
market index.
Cum Dividend
NIL
Capital Gain
Weighted average P/E ratios of all stocks held
in portfolio.
Ex-Dividend
25%+surcharge+cess
BSE Star Mutual Fund

Nav of the immediate next working day
Both 1 and 2
Nav of the same working day.
Treynor Ratio
CDSL
Standard Deviation
Credence
Listing fees and Depository Fees

NAV of realisation date
Registrar and transfer fees

NAV of previous day of realisation
12.5%+surcharge+cess
20%+surcharge+cess
100000
66667
Rs. 12500
Rs.10000
Double Taxation Avoidance Agreement
Double Taxation Acceptance Agreement
Higher of the rate
Same rate
10.50%
8%
Risk premium of a fund as difference between

the funds average return an risk free return
divided by standard deviation of the fund.
Risk premium of a fund as difference

between the funds average return an risk free
return divided by P/E ratio of fund.
4000 units
Nil
833 units.
417 units.
Rs.14850/-
Rs.14000/-
Rs. 307
Rs.99
Interest income is added to the NAV
Interest income is subtratced to the NAV
At discount
At par
1 lakh
5 lakhs
0
0
Profit
Cost in today's terms
Number of years after which the expense will occur
Are the expenses to be done in foreign currency
A=P/(1+I)^n
P=A^n*(1+I)
Amount of buying and selling done by the fund
The average number of units sold by the fund in

one day
0
Taxed in the hands on the investors
Are subject to capital gains tax
Inflation.
Benefit of inflation
Tax Deferal.
Cost adjusted with the impact of inflation
S.D=STDEV
S.D=(range of cells where the periodic returns are

calculated)
12 Midnight.
Server time as per the computer.
0
0
Dividend Reinvestment, debt fund.
0
Dividend Payout of Debt Fund.
1200 units
500 units
RBI Relief Bond
G-Sec.
higher the expenses, higher would be the NAV
higher the interest, dividend and capital gains

earned by the scheme, higher would be the
NAV
valuing investment at market price

different
valuing investment at cost or market price

whichever is lower
not charged to either
sponsors
AMC
software development expenses
fees to trustees
False
7.00%
2.25%
2777.7778
2690.9955
1.50%
0.50%
one year or more
3 years or more
15.00%
12.50%
as prescribed in income tax act
as prescribed in DTAA
valuation of peer group companies is to be

considered
book balue is to be considered
book value
valuation pf peer group companies
valuation of all investment securities held
units sold or redeemed
index funds
liquid funds
at least 2
maximum 2
six
three
False
1.50%
0.75%
out of free reserves
out of distributable reserves
SEBI
AMFI
tranferred to investor education fund
utilized by AMC to meet selling expenses
Rs. 2 crores
Rs. 2.5 crores

2.00%
1.75%
balanced funds
equity and balanced funds
Rs. 5 lacs
50000 shares
0
0
Closing NAV of the day preceding the day on

which funds are available for utilization
Closing NAV of the day immediately

preceding the date of application
0
The returns given by other comparable
financial products
Total Earnings / No. of Ordinary shares
outstanding
The performance of other mutual funds

Market price per share / Earning per share
0
(11.5 / 10)^(15/12)- 1
(10 / 11.5)^(15/12)-1
30%
20%
14.90%
21.37%
0
Rs.100
Rs.10
an entity whose services have not been

procured by the AMC(s) or mutual fund or any
an entity who provides general information about of its affiliates to assign a ranking to the
AMC(s) or mutual funds to the public
AMC(s) or mutual fund
691.24 crore
509.94 crore
Yield matrix prepared by authorized valuation

agency
AMC of the mutual fund
Valuation of other similar debt securities

Sponsors
0
15%
12.50%
0
Research into the operations and finances of the
company
studying the company`s share prices
0
Rs. 4.25 crore
Rs. 3.50 crore
Rs. 24.98
Rs. 32.15
5.92%
11.83%
SEBI
the AMC in consultation with the trustee
Above 10 years
5-10 years
risk
Risk adjusted return

6.00%
5.70%
calculate the period in which an investment will

double at a given rate of retum
Asset side of the balance sheet
calculate the rate at which money will grow

to double in a given period
Revenue account
assets under management
number of investors
an equity-oriented mutual fund scheme investor

would bear a tax on short term capital gains as
per the investor`s tax slab
a debt-oriented mutual fund scheme investor

would not bear any STT
sell the units more than 9 months after the

record date for the dividend
both of the above
SIP
RTGS
Closing NAV of day preceding next business day
Closing NAV of next business day

0
0
Risk of stolen, fake, forged shares
Stamp duty on transfer of shares in

dematerialized form
The company shares' trading volume
Current market sentiment
Market price per share / Book value per share
Book value per share / Earning per share
undervalued stocks
Companies with large equity base
low value stocks

Companies which are likely to go for public
issue
debt funds are not subject to STT on

redemption/withdrawal
S&P CNX Nifty
dividend distribution tax is applicable for debt

funds
BSE 200
not less than 50%
upto maximum of 76%
12.18%
8.67%
Rs. 4.25 crore

Error in portfolio aliocation
Rs. 3.75 crore

a index funds actual return/loss
index funds
debt funds
7.00%
7.50%
funds
net assets
both the above

portfolio
2% on cost
2% on excess of market value over original

cost
2%
10%
12.50%
20%
Rs. 12.00
Rs. 10.00
0
distribution phase
valuetion date
sudden wealth phase

record date
profits earned
appreciation in the value of investment

portflio
Rs.2 crores
quantitative analysis
Rs.2.5 crores
fundamental analysis
realization method of accounting
cash basis of accounting

0
Cannot set off capital loss on such units aginst

any capital gains on sale of original units after
bonus issue
capital loss on original units to be treated as

cost of acquisition of bonus units
0
closing NAV of the day
closing NAV of next business day
both of the above
none of the above
equity scheme are not subject to dividend

distribution tax
dividend re-investment option don't allow the

money to grow in the fund on gross basis
Rs.29
Rs.10
Rs.19
Rs.22
15.48%
monthly, by the 3rd working day of the

succeeding month
36.11%
bi-monthly, by the 7th working day of the
succeeding month
0
0
at least 2
maximum 3
7.47%
number of units
5.99%
number of units multiplied by book value of
units
varies with the ongoing purchase and sale

between investors in a stock exchange
varies with the ongoing sale and re-purchase

of units by the fund through stock exchange
1580.5478
1678.3871
0
investment amount and sale price per unit
investment amount, sale price and entry load
542.52
553.4591
1127.4005
1130.2211
0
0
0
7.54%
9.66%
42.42
0
41
portfolio analyst
technical analyst
Rs. 19.50 Crore
Rs.15.75 Crore
on a mark -tomarket basis
at par
15%
They are hold for less then twelve months

proceeding the date of transfer
12.50%
They are hold for not more then three years
proceeding the date of transfer
0
total value of assets held by the fund divided
by thenumber of outstanding units
liquid schemes
total number of shares divided by asset value

debt schemes
25%
0
20%
2554.7297
1190.4565
strictly short term in nature
combination of long term and short term
9.82%
10.15%
0
financial planning is equivalent to retirement
planning
financial planning is important only for people

over 35
0
retail investors
rural investors
0
dividend payout optin
growth option
2454.9918
within 3 years
2479.3388
after 6 years
Option
None of these
NAV * face value
B
B
Management fees in liquid fund
A
A
In debt fund upto 4 decimals
0.017%
Dividend Distribution
Risk premium of the fund.
D
B
None of the above

20%+surcharge+cess
C
C
NEAT MMF
None of the above
C
C
Alpha
Crisil
C
B
Software development fees

NAV of next days
D
B
NIL
D
B
60000
A
Cannot say anything
Double Taxation Authorised Agreement
Either higher or lower of the rate
11%
The fluctuations of funds return around a mean

level.
16000 units
416.67 units.
Rs.14810/-
Rs. 207
None of these
At a price unrelated to the prevailing interest rate
Nothing
C
A
A
Cost at the end of the period when the expense will be
incurred
All of the above
P=A^n*(1+I)
None of the above
B
A
Are tax-free in the hands of the investor
D
B
Tax Benefit.
the technique of reducing the capital gain tax
S.D=STDEV*(range of cells where the periodic returns

are calculated)
Investor's computer time.
C
A
B
C
Any of the above.
A
600 units
Kisan Vikas Patra
lower the appreciation in the investment

portfolio, lower would be the NAV
valuing investment at cost or market price

whichever is higher
none of the above
B
A
there cannot be any initial issue expenses
scheme advertising expenses
B
A
SEBI has banned entry load
2805.8361
1.00%
less than 1 year
D
25%
NO TDS on non-resident investors
face value is to be considered
all of the above
all of the above
index funds, liquid funds and other debt funds
at lest 4
nine
B
A
irrespective of profit or loss
3.00%
C
C
Distribution agents based on demand for the

fund
credited back to the scheme
nil
D
1.50%
index funds, liquid funds and other debt funds
None of the above
A
A
B
Closing NAV of next business day
A
B
The Change in wholesale price index
Book value per share / Earning per share
B
A
<10 / 11.5)^(12/15)- 1
31%
17.12%
Any amount fixed by AMC
B
C
All of the above
634.00 crore
any of the above

Mutual fund trust
B
D
B
25%
C
A
None of the above
B
A
Rs. 6.50 crore
Rs. 40.49
B
18.38%
trustee
8-15 years
Beta of the portfolio
C
2.50%
None of the above

Equalization account
B
A
any of the above
a debty-oriented mutual fund scheme investor

would be exempt from long-term capital gains
tax
Either of the above
ASBA
Closing NAV of day application is received
D
A
B
All of the above
The company's regulatory environment
Book value per share / P /E Ratio
All of the above
All of the above
both b and c
S&P CNX sectoral indices
D
D
not less than 65%
14.31%
Rs. 3.50 crore

error due to practical difficulties
C
B
value funds
8.50%
None of the above

scheme assets
B
B
no wealth rax payable
no TDS
nil
D
A
Rs. 14.50
A
A
transition phase
book closure date
A
B
All of the above
Rs.3 crores
any of the above
A
C
any of the method of accounting
A
B
All of the above
D
A
Closing NAV of the day preceding the next

business day
C
B
all of the above
Rs.27,000
Rs.10
A
24.95%
quarterly, by the 2nd working day of succeeding

month
B
A
B
maximum 5
5.43%
the scheme's NAV
always remain constant
1420.8952
C
A
sale price and entry load
2200
1312.14
B
A
A
A
11.11%
43
A
B
fundamental analyst
Rs. 9.50 Crore
at book value
B
D
25%
They are hold for less three years proceeding
the date of transfer
A
B
total value of assets held by the annual revenue

None of the above
C
D
10%
B
A
3098.4321
not allowed as per regulations
14.26%
A
A
financial planning is equivalent to investing
None of the
above
E
A
persons in high tax bracket
A
both a and b
2506.9872
after 3 years
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S No
1
2
Question Details
Option A
Individual Investor cannot pledge their units
Redemption is
NAV minus exit load
Compliance Report
Switch is
Not allowed in mutual fund
Direct credit of bonus units
In case of post-NFO investor should receive

a/c statement in _____ ?
10 working days
6
The investor also has the option to convert the Rematerialisation
demat unit into physical form is
7
8
9
10
11
Remittance can be quickly done with
RTGS
Existing investor
Standing Instruction
Authorised Signatory is required in case of
NRI
________________ can sale schemes of only

12 one mutual fund.
IFA
In joint holding mode when fist holder dies
Units transfer to nominee
In mutual fund maximum joint holder can be
Investor can do the day transaction in Open

end equity fund
13
14
15
The benefit of application by blocked amount is The amount will debited
only when units will be
allotted
16
If the investor is not comfortable with any
change then
17
He can redeem his

investment at prevailing
NAV
What is insider trading?
Buying and selling

securities ahead of doing
the same transaction for
the fund
18
The regulation of Personal trading is applicable Key Personnel of the AMC
19 to:
To provide the facility of liquidity to the
investors, a part of the open-ended schemes
are maintained in ___________
Liquid assets
20
Which of the following cannot invest in Mutual
21 Fund
Common Man
22 PAN Card is not compulsory for__________.
micro SIP
NRI/PIO mutual fund application on

repatriable basis should be by cheques
23 drawn on ___________.
Reserve bank of india

liquid fund where ion has been received
within 12 noon would be (assuming funds
24 available for utilization on the same day)-

preceding next
business day

equity fund amounting to Rs. 1 crore or less
where application has been received after 3
25 pm with local cheque/dd would beOptions available to mutual fund investor
26 is/are-
Which of the following is TRUE of an

27 automatic reinvestment (or a growth) plan?
closing NAV of day

funds are available for
utilization
dividend payout option
the growth plan allows

for the automatic
reinvestment of all
income and capital
gains
Debt fund investors who is in need of cash

Daily dividend payout
28 at regular intervals is better off by choosing- plan
NAV of a scheme helps in deciding an
investor whether he should go
29 for___________.
Automatic reinvestment
plans
30 What is difference between SIP and VAP?
SIP is systematic
investment plan and
VAP is value averaging
plan
___________option enable investors to give

standing instruction to the fund to initiate a
31 transaction when a condition is met.
ECS
Which of the following measures are not

taken by SEBI for protecting investors of
32 mutual funds?
mandating minimum
levels of diversification
for mutual funds
Foreign entities can invest in mutual funds of

33 india through_______route.
OCB
In case of death of unit-holder, the units get
transferred to the nominee automatically
34 without calling for any evidence.
True
Persons in high tax bracket are better off in
choosing dividend payout option than those
35 in lower tax bracket for debt funds.
True
Documents available to investors for

36 inspection do not include
memorandum and
articles of association
of AMC
In a dividend re-investment option of a

mutual fund scheme, new units are allotted
37 to investors at-
ex-dividend NAV
38 A systematic withdrawal plan is ideal for:
investors with growth

as the main investment
objective
The applicable NAV for a sale transaction of

equity fund amounting to Rs. 1 crore or
39 above would be_
closing NAV of day

utilization
A scheme's policy on dividends and

40 distribution-
is decided by the fund

manager as per is
market outlook
Which of the following is true of systematic

41 withdrawal plan(SWP)?
it allows investors to
make systematic
withdrawal from his
fund
The need for regular income is better met

through a systematic withdrawal plan than
42 dividend payout option.
True
A "switch" transaction is not a sale

43 transaction under the income tax regulation. True
In _____________option of a mutual fund
scheme, the NAV captures the full value of
44 portfolio gains.
dividend

diviend declaration but prior to its payment
45 is:
46 dividend payment is:
ex-dividend NAV
ex-dividend NAV
Units of mutual funds can be held in

dematerialized form at the discretion of the
47 investor.
Dormant investors are not entitled to
48 ststement of accounts.
1
1
49 Investors` right under a scheme are-
Uniform for all

schemesof all funds
In case of SIP/STP/SWP initial transaction,

staement of account is to be sent to
50 investors within__________.
10 working days of the

investment
Unit-holders are entitled to copy of AMC

51 Annual Report_____________.
Investors can buy mutual fund units even in
52 a fraction of 1 unit.
on request
1
If units are held by 3 investor`s jointly,

redemption proceeds are payable
53 to__________.
first holder
While entering into a re-purchase

54 transaction, an investor has to specify-
re-purchase amount
An investor in a close-ended mutual fund

can get his/her money back by selling
55 his/her units:
Back to the fund
Investors can buy or sale units only from the
56 mutual fund.
57 Investor has right toDormant investors are investors who have

58 not transacted for the last___________.
Issuance of unit certificate to unit holders is
59 mandatory.
Investors can inspect the following
60 documents-
Access to information
3 months
1
trust deed
lnvestors in mutual fund have the option to

avail unit certificate in lieu of statement of
61 account.
Who among the following are not
62 institutional investors?
Pledging of mutual fund units is not
63 permissible.
_________is a process whereby an investor's
investments in physical form are converted
64 into a digital record.
banks
1
rematerialisation
Investors cannot buy fractional units of

65 mutual funds through-
individual agents
If investor seeks a unit certificate, it should

66 be issued within______________.
15 working days
The scheme wise annual report of a mutual

fund shall be published or mailed to unit
67 holders not later then:
3 months
___________can be bought and sold through68 out the day from the stock exchange.
Dematerialisation of mutual fund units is
69 compulsory.
gold funds
1
In case of SIP/STP/SWP ongoing transaction,

statement of account is to be sent to
70 investors within__________.
10 working days of
each investment

fundamental attributes of a
71 scheme_________.
has a right to stop such

proposed changes
The online trading platform facilitates buying through the stock

72 and selling of mutual fund unitsexchange brokers
Which of the following is untrue of

73 systematic investment plan?
lf allows investor to
invest a fixed amount
on a monthly basis
Redemption / re-purchase cheques must be

dispatched to investors Within
_____________from the date of receipt of
74 request.
30 working days
The investor canot plead ignorance of

procedures while investing in a mutual fund
75 becauseAn "STP" transaction consists of a buy as
76 well a sale transaction.
mutual fund is a risky

investment
1
Nomination is only an authorization for the

mutual fund to transfer the units to the
nominee in the event of demise of the unit77 holder.
Sending physical ststement of accounts at

specified interval is mandatory even if the
78 investor has mandate e-mail statement.
No separate statement of account is

required to be issued by the AMCof mutual
fund if investors hold units in dematerialized
79 from.
NAV plus exit load
NAV Plus entry Load
NAV minus entry load
Custodial agreement
Trust deed
Investment report of the

fund manager
Is equal to a purchase
transaction
Is a repurchase from one scheme

None of the above
and purchase in another scheme with
1 request
Making available screen based Single point of address change

platforms for purchase and
sale of Mutual Fund Schemes
All of the above
5 working days
7 working days
3 working days
Dematerialisation
Demat
Remat
NEFT
ECS
Both A&B
New investor
Both new and existing investor
Distributotor
ECS
PDCs
All of the above
HNI
Institutional Tinvestor
Investor
Distribution Companies
Institutional team member of AMC
Financial Planner
Units are legally transfer to

legal hier
Units are automatically get redeemed Units are holds or carry

by surviving holder
The amount will debited only

when investor will give the
request
According to SEBI regulation
Depends upon AMCS

employee
He can redeem investment at

prevailing NAV within 30 days
from the date of change take
place
Cannot exit at face valve
Can exit at face valve
Buying and selling securities on Both of the above

the basis of privileged
information available to the
fund by persons who are
insiders to the company
None of the above
The directors of the trustee

company
Sponsor of the fund
Only 1 and 2
Equity funds
Debt funds
Sector funds
Institutional Investor
NBFC
LIC
STP
minors
investment through
power of attorney
holder
NRRE account
NRO account
SEBI

preceding the day on which closing NAV of the day
immediately preceding the date
utilizatione
of application
closing NAV of next

business day
closing NAV of day

preceding next business
day
dividend re-investment
option
all of the above
closing NAV of the

day application is
closing NAV of next business day received
growth option
automatic reinvestment
allows for accumulation of the major benefit of automatic
additional units of the fund reinvestment is compounding
an investor who
subscribes to the
growth option under
a scheme can later
change to a dividend
option
monthly dividend payout

plan
systematic investment plan
systematic
withdrawal
systematic withdrawal
plans
systematic transfer plans
none of these
no difference
VAP is modified version of SIP

that allows the investors
SIP is systematic
flexibility with respect to amount investment and VAP
and frequency of investment
is withdrawal plan
all of these
SIP
trigger
SWP
ensuring that the funds are

not used to favour a few
tracking the securities that each
companies
fund has invested in
ensuring that the

funds are invested in
approved secrities
only
FII
none of the above
either of the above
False
False
consent of auditors and

legal advisors
reports based on
which actual
investments are
investment management reports made
cum-dividend NAV
NAV prevailing prior to dividend

declaration
NAV prevailing on the

date of declaration of
dividend
investors who wish to

benefit from market
fluctuations
investors who prefer a regular

income stream
investors who are not

sure about
themselves
closing NAV of day

preceding next business
day
closing NAV of the

closing NAV of next business day day
should be disclosed
at tne time of initial
launch
can be changed to suit the

requirements of the AMC
need not be consistent
it is suitable for investors

seeking regular income
SWP is similar to monthly income

plan
only 1& 2
False
False
dividend re-investment
growth
bonus
cum-dividend NAV
ex-declaration NAV
cum-declaration NAV
cum-dividend NAV
ex-declaration NAV
cum-declaration NAV
Not defined
Listed in the offer document
Available with stock

exchanges
5 business days of closure

of the NFO

the quarter
10 business days of
closure of the NFO

end of the financial year
within 3 month from the end of

the financial year
by paying applicable
charges
All the holders equally
Any one of the holders
Either first or second

holder
number of units to be repurchased
both of the above
any of the above
0
0
To the agent through which

On a stock exchange where he/she subscribed to the units of
the fund is listed
the fund
both a and b
0
Propotionate right in the
beneficial ownership of the
assets of the scheme
Inspect documents
All of the above
1 year
9 months
6 months
memorandum and articles of

association of AMC and trustee
company
All of the above
provident funds
non banking finance

companies
dematerialisation
depository
0
agreements with various
constituents
resident individuals
0
digitalisation
direct application
institutional distributors
stock exchanges
30 days
2 months
1 week
6 months
2 months
None of the above
International funds
exchange traded funds
gold sector funds
5 business days of the end

of every month

every quarter
5 business days of
every transaction
has a right to claim

compensation money from
the trustee/AMC
has a right to claim

has a right to exit the scheme at free additional units
prevailing NAV
of the scheme
on weekdays between 9.00

am to 3.00pm
through the order routing system all of the above
if inculcates a discipline of
if allows investor to change regular investment in the
the amount
investor
if facilitates rupee
cost averaging
5 business days
3 business days
10 working days
while applying the investors

signs an agreement stating they
the law does not permit the have read and understood the
investor to sue the trust
terms and conditions
0
an investor is
expected to be
careful while
investing
mutual fund
is based
upon trust
Option
B
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Question Details
Option A
Which of the following has the least risk in the

Mutual Funds
Money market mutual fund
Rating and ranking is one and the same thing
Reinvestment risk
Fundamental Analyst is also known as Chartist
AAA
Which of the following investment products do

not give guarantee for return or capital
Bank deposits
All fund have significant similarities except

one
MIP
Benchmark for Money market mutual fund
CRISIL CompBEX
CRISIL CompBEX - Composite

Bond Index
Benchmark for MIP
CRISIL CompBEX - Composite

Bond Index
YTM
Market specific risks
Which of this is not a part of high-risk funds ?
Aggressive growth funds
Which of these strategies is best to reduce

company specific risk ?
Holding largely diversified

portfolio.
For which of the following funds would you

consider average maturity as an important
factor in selecting the right one for the
investor ?
A debt fund
Which of this statement about balanced fund

is true ?
Balanced fund is exactly 50%

equity and 50% debt.
2
3
4
5
7
8
10
11
12
13
14
15
16
A kind of Offer Document
Which of the following statement is true?
Growth and Risk are associated

with equity funds
At the time of turmoil gold prices
Changes Randomly
The difference between the yield on Gilt and

the yield on a non-government Debt security is
called
YTM
During the recessionary situation in ______

equity markets in many countries fared poorly,
but gold prices went up?
2007-09
If investor buy 7% debentures and companies

rating came from AA to AAA In what price will
investor sell
At premium
Low risk (conservative portfolio) consists of ?
Portfolio 40% Growth an

income funds+ 30%
Govt.Bond funds
+20%Growth funds +10%
index funds.
The rupee-cost averaging talks about ?
Investments for the same

amount at regular intervals
Which is the having low risk
Income Fund
On which of the following shall an investor

invest for high returns
Bank F.D.

rates for similar maturities are 11% will sell
Above par
17
18
19
20
21
22
23
24
25
26
27
Offered Gifts
If gold market is down gold future investment

will,
Go up
Concentration risk can be in investment of
Sector fund
To show the performance of scheme or fund,

the Mutual fund should
CAGR
Sector Fund.
In recessionary period gold gives better return

than any other financial product
Black Swan means,
Opposite of white swan
Riskiest fund in balanced fund is :
Capital Protection Scheme.
The investor cannot set off the Capital Loss if
He is redeeming the investment

within 9 months
The size of a fund has no bearing on its

performance
Which of the following is of no relevance in

evaluating fund's performance
The performance of the stock

market as a whole
The choice of an appropriate benchmark for

evaluating a fund's performance depends on
The fund manager
Investing real estate fund has an advantage

except :
Diversified Portfolio.
28
29
30
31
32
33
34
35
36
37
38
39
40
For evaluating funds, the preferred benchmark

would be the
BSE Sensex
To evaluate a close-ended debt-fund, a suitable

benchmark would be
BSE Sensex
When comparing performance of two funds,

the following need not be similar
Risk profiles
Which of the following is the least risk in the

mutual fund
If an investor keeps investing a fixed amount

at regular intervals, the average cost of his
purchases will always be less than if he makes
investment at irregular periods
Which of the following debt investments is not

rated
Corporate bonds
Gold and real estate are attractive investment

options only in high inflation economies
Deciding on strategies such as long-term

averaging, active switching, all depend on the
Stock market situation on date
In liquid fund returns can be advertised in
1 yrs, 3yrs, 5yrs, and since

inception

independent of the
Kind of stocks in the portfolio
Company specific
Company specific risk
A fund with a high beta coefficient gives

greater returns in a rising market, and is more
risky in a falling market

standard deviation as a measure of risk
Standard deviation measures total

risk, not just market risk
Which of the following aspects would an

investor in a debt scheme give most
importance
Sector Selection
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
Past performance should not be solely relied

on for selecting a fund
Between the past performance of the fund and

its suitability for an investor, past performance
is more important
For which of the following would you consider

average maturity as an important factor in
selecting the right one for the investor?
A Debt fund
Less volatile than market
Sharpe and Treynor Ratios are measures of:
Average return
A criticism of rupee-cost averaging is
Investment is for the same

Index funds are usually considered to be

passive funds
The NAV of an Index fund is directly

propotional to the benchmark index.
The price of units of a closed-end scheme in

the stock exchange tends to be
____________NAV.
same as the
Units of an open-ended scheme can be bought

back by the scheme at __________
NAV less Entry load
Close ended schemes are subject to the risk of

large fluctuations in net assets, on account of
heavy sales or re-purchase.
An investment horizon if ____________ makes

the probability of losing money in equities
increases
5 and less than 5 years
The interst and surrender value in PPF is tax

free
The price of units of a closed-end scheme in

the stock exchange is to be ____________NAV.
same as the
Black swan is refered as,
A kind of offer Document
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
Close ended schemes are subject to the risk of

large fluctuations in net assets, on account of
heavy sales or re-purchase.
A Diversified fund is less risk prone then a

Sector fund
It can be risky to invest in ________ during

periods of economic turmoil
Large-cap
Growth funds offer good returns in the initial

phases of a bull run; Value funds yield benefits
over large holding periods.
Both statements are right
If an Indian investor invests in the US, then
He would benefit if the US $

becomes stronger
MIP are perfect investment options for

investors who do not wish to take any equity
exposure.
For a predictable return, an investor should

invest in a
MIP
Non-government securities offer higher yields

and are not subject to credit risks.
Longer term debt securities fluctuate more

than shorter term debt securities
NAV of a long term debt fund might be more

volatile than that of a short term debt fund
Incase the interest rates in the market are

expected to go up, then investment would be
best made in a
Long Term debt fund
Use of the term 'liquid plus' as a fund type has

been banned by SEBI
83
Balanced schemes invest in a mix of equity

and debt securities
84
Gold ETF and Gold Sector Funds are one and

the same thing
Dividend payout option has the benefit of

money flow to the investor; Growth option has
the benefit of letting the money grow in the
fund on gross basis
It might be better to receive money in an equity

scheme in the form of dividend, rather then repurchase of units
The returns of gold fund is depend on
Global price of gold
71
72
73
74
75
76
77
78
79
80
81
82
85
86
87
Which of the following is comparable?
Equity Fund and PF
89
Which of the following is the best product for

long term investment
Gold ETF
90
Which of the following is the best product for

short term investment
Gold ETF
91
The historical price of a share is calculated

by using the formula-
average earnings of last 5

years / no. of ordinary shares
outstanding
92
_______________stocks tends to grow faster

than the economy and in correction phase
falls faster too.
volatile
88
94
The bottom-up approach of portfolio

building is also called_________.
Money market securities have a meturity
period of_______________.
95
The difference between the yield on gilt and

the yield on a non-government debt security
is called its______________.
premium
96
Simple total return takes into account the

reinvestment of the dividend.
True
97
A growth stock refers to shares of a

company whose earnings are projected to
grow at the normal market rates
True
98
The SEBI prescribed means of measuring

return is-
simple return
99
The real estate price shoots up when-
the economy improves
100
__________are applicable for debt schemes.
modified duration
101
When expecting a fall in market price, fund

managers can reduce the loss in portfolio
value by-
speclating
102
Non-systematic risk in an equity portfolio

can be___________.
managed by adopting good

stock picking technique
93
value investing
3 years
103
Volatility in a mutual fund portfolio is caused

by_______________.
investment in blue chip stocks
104
Which of the following is not true ?
standard deviation measures

the fluctuations of a funds
returns around a mean level
105
Sarpe ratio of an equity scheme can be

compared with the sharpe ratio of debt
scheme.
True
106

24.65. He subsequently receives a dividend
Rs.25.75. What is the rate of return to the
investor?
11.13%
107

standard deviation as a measure of risk?
standard deviation measures

total risk, not just market risk
108
Scheme's return and investor's return from

the scheme may differ due to-
loads
109
Alpha measures the___________.
110
__________________helps in assessing under

performance or out-performance.
beta
111
What would be a suitable benchmark to

evaluate a closed-end debt fund?
BSE sensex
112
113
MIBOR is based on __________.

Higher the sharpe ratio, better is the
scheme's performance.
114
The risk of a scheme's NAV moving up or

down on the basis of capital market
movements is
Scheme's return
international money market

True
an investment attribute
115
Benchmark of a mutual fund scheme can be

changed by__________.
the sponsors
116

true?
interest rate sensitivity of a

debt security is lower if the
maturity period is higher
117
In a floater, when the market yield goes up,

the issuer__________.
redeems the security
118

false?
In a floater, when the market

yield goes up, the issuer pays
higher interest
119

true?
there is a direct relationship

between yields and value of
debt securities
120
For choosing an appropriate benchmark to

measure a scheme's performance, all of the
following are required except-
The composition and size of

the portfolio
121
Which of the following statements is an

adequate description of reality?
when compared to gilt funds,

securities in diversified debt
funds have higher risk of
default
122
If a bond cannot be sold at a price near its

value, it means that investment in this bond
has
high liquidity risk
123
Mutual funds are permitted to use derivative

for-
leveraging
124
The following is not a standard risk factor-
Investments are subject to

market risks
125
Rupee cost averaging can be done through-
Systematic Investment Plan
126
Sate which of the following statement is

correct?
If interest rates go down,

price of bonds will go up
127
Goal oriented investing means-
Setting broad financial targets

and investing as per risk
preference of the individual
128
Coupon of a debt security rreferd to-
A piece of paper attached to

the certificate
129
Return can be annualized and compounded

only if the scheme has copleted-
30 days
130
Call or put provisions are used to modify the

fixed maturity of debt securities-
131
Sector funds have_______risk.
Iiquidity
132
__________ has a high risk of misjudgment.
Arbitrage funds
133
134
Beta as a measure of risk is relevant for

both equity and debt schemes.
Information on performance of a scheme as

compared to its benchmark can be found in
theKey information Memorandum
135

earned a return of 7%. If the risk free of
return is 5%, calculate the Sharpe Ratio.
6.00%
136
Fixed Maturity plans are not suitable for

invertors who-
Wants to invest in less risky

funds
137

investment option for the purpose of getting
the maximum benefits of compounding ?
12% interest paid yearly
138
Lower dividend yield indicates a Bull market.
Return on Total Asset is equal to

_____________.
The following are the characteristics of
bonds exceptCredit risk and yield on adebt security is
inversely related.
Gross Income/Average Total

Asset
139
140
141
Par value
1
142
"Duration" refers to-
Change in valuation of debt

securities with respect to
change in interest rates
143
In a floater, when the market yield goes

down, the issuer____________.
redeems the security
144
A put provision in a debt issue allows-
Investor to put away the

certificates in safe deposit
vaults
145
Fixed Term plans have characteristic as-
Having short and fixed tenure
146
Which of the following does not generally

guarantee return or capital ?
Bank Deposit
147
The risk tolerance of an investor is

independent of-
His age
148

True?
Passive funds don`t tend to

outperform the index it tracks
149
If the portfolio manager expects interest

rates to rise, then a debt portfolio is
______________
Sold off
150
151
A five year deep discount bond wouldSEBI norms require that returns be
compuws on CAGR basis.
Pay interest on ayerly basis
152
Presence of high proportion of liquid assests

in a scheme give lowe return in bull market
and vice versa.
153

Rs.16.75.3 months later, the NAV had
Grown to Rs. 18.25. find out the annualised
return.
8.27%
154
To meet redemption payments the mutual

fund can ?
Borrow 10% of the net assets

of the Scheme for 1 year
155
The additional yield required to account for

the risk of default by the borrower is known
as-
Yield plus
156

more than 1
157
_______________ measures the sensitivity of

value of a debt security to changes in
interest rates.
beta
158
Offer document of a mutual fund scheme

does not mention the benchmark of the
scheme.
159
A fund sells 100 units of face value Rs. 10/at an NAV of Rs. 12.25. How much would be
credited to unit capital?
Rs. 1225
160
Arbitrage funds are not meant to lock into a

better risk-return relationship than liquid
funds and get the tax benefit of equity
funds.
161
The practice of taking larger positions based

on margin payments is called_______.
arbitraging
162
Investing in Gold EFT is advantageous as

compared to physical gold due to-
physical gold has high storage

cost
163
Debt schemes are popular because-
the indian stock market is

always going down
164

earned a return of 9%. If the risk free rate of
return is 4%, a calculated the Sharpe Ratio.
5.00%
165
An investor who has invested Rs.300, after

7 yrs the value grows to Rs.600. What is his
annualized compounded rate of return?
166

independent of the-
kind of stock in the portfolio
167
MIBOR stands for _____________.
money inter-bank offered rate
168
Lower modified duration implies higher

169
Since derivative is a security as per law, no

prior permission is required from investors
nor it is required to mention in the offer
document to invest in derivatives
170
A systematic investment plan-
requires the investor to invest

a fixed sum periodically
171
Differential expectations between investors

within a scheme can be addressed by
offering-
dend payout option
172
Open-ended funds do have___________.
sale re-purchase facility
173
______________invest in securities whose

price fluctuate less but which offers higher
dividend.
balanced funds
174
Monthly income plans are a form of-
equity funds
175
Where the profitability metric of a scheme is

positive,___________.
net asset value goes up
176
The value of floating rate securities

fluctuates less than fixed rate securities.
177
The _____________debt securities tend to

hold their value, despite changes in yield in
the debt market.
Fixed rate
178
Gilt funds are safest among all debt funds.
179
Nifty has a beta of_______.
181
Interest rate sensitivity of a debt security is

higher if the maturity period is higher.
1
equity markets are more predictable in the
________.
short term than the long term
182
A scheme with a beta of 1.5 earned a return

of 11%. If the risk free rate of return is 8%,
calculate the treynor ratio.
4.27%
183
Beta of an equity fund measures its-
performance
180
184
Taking a position of higher amount than that

is available to an investor can be done by
investing through-
recognized stock brokers
185
The risk of mutual fund scheme includes:
portfolio risk
186
The performance of_____________ tends to

mirror a specific index, which it tracks.
actively managed funds
187
188
Which of the following has the lowest risk?

A better performance than the return on
index is given by-
liquid fund (MMMF)
189
Appreciation/Depreciation in the investment

portfolio is not includable in "net assets".
190
When a dividend is paid by mutual fund, the

NAV of the units falls to that extent.
191
The most suitable measure for a fund's

performance does not depend on the-
type of fund
192
Fundamental analysis means-
Review of companies'
financials
193
government borrowings
194
What factor/s affect the interest rate?

____________is important in bottom up
approach of investing.
195
commercial paper is issued by corporate

bodies-
to meet short-term working

capital requirements
passive funds
stock selection
197
Current yield relates interest on a security

toThe price of gold in india depends
on_____________.
international price of gold
198
CAGR technique is used for calculating

returns of mutual fund schemes-
offering growth option
196
lts current market price
199

true?
MIP is less riskier than regular

debt funds
200
A high credit rating does not mean-
high yield spread
201
A benchmark once selected for mutual fund

scheme cannot be changed later.
203
The power of compounding is best realized

by investing in:
A steady holding of investments in an equity
funds portfolio indicates-
204
A fund which is otherwise considered as

debt fund but have an element of equity in
it is-
Arbitrage funds
205
What would you recommend to an investor

who does not want to take any credit risk?
deposit with a chit fund

company
206
Fluctuation of NAV is lower in-
gilt schemes
207
Which of the following are important criteria

for comparison of fund performance?
portfolio composition
Which of the following is incorrect?
A value fund tries to seek out

fundamentally sound
companies whose shares are
currently overpriced in the
market
209
Yield spread means-
the additional yield on a

government security as
compared to the rate of
inflation
210
When interest rates risk bond prices-
also risk
202
208
income funds with dividend

option
long-term orientation
211
212
A bond having coupon rate 9% when current At a price which is not related
coupons for bonds of similar maturities are
to interest rates for similar
11% will sellmaturities
If current yield has fallen, interest rates
have gone up.
1
213
A value manager does not look for-
Stocks that are currently

undervalued in the market
214
What is incorrect of the following?
value funds invest in

overpriced stocks
215
______________.are short-term securities

(upto 1 year) issued by companies.
certificate of deposits
216
How would you measure the performance of

an equity index fund?
There is no need to
benchmark an equity index
fund
217
The treynor ratio user___________ as

compared to__________ in sharpe ratio.
standard deviation, beta
218
An investment has doubled in 6 years.the

annualized compounded returns is:
16.67%
219
If may not be possible to reinvest interest

received at the same rate as principal. This
is known as-
reinvestment risk
220
If a scheme has limited liquidity, this has to

be stated as a standard risk factor.
221
A growth manager looks for-
high current incomt income
222
If YTM increases, bond prices will decrease.
223
The yield on gilt is generally the lowest due

to_____________.
no interest risk
224
The domestic price of gold rises when the

foreign exchange rate________________.
gets strenghen
225
Floating rate securities means

securities_____________.
which pays interest higher

than the g-sec securities
taking interest on g-sec
securities as the base
226
An equity scheme is 90 days old.To compute

its yield, it can use-
absolute return
227
__________are a variation of sector funds.
Diversified funds
228
In a_____________asset allocation as the

person grows older, the debt component of
the portfolio keeps increasing.
tactical
229
Modified duration assess how much a debt

security is likely to fluctuate in response to
changes in interes rates.
beta
230
The difference between a scheme's actual

return and its optimal return is its_________.
risk permium
231
Sharp & treynor ratio calculation is useful in
risk
232
The current NAV of a fund is Rs.24.00.Three

months earlier, the NAV was Rs.22.00. Find
out the annualised return.
22.45%
233

fund, at the then prevailing NAV of Rs.26.00.
At the end of 2 years, the NAV of the fund is
Rs.28.10. What is the rate of return to the
investor?
9.28%
234
235
Identify yhe CORRECT statements?

The greatest potenital for growth in capital
is offered by-
236
A gilt fund is atype of fund that invests:
Investing on a mutual fund is

likey to be less risky
compared to directly investing
in the market
debt funds
in very high quality equity

only
237
238
Interest paid to investors on delayed

payment can be charged off to the mutual
fund scheme.
A systematic investment plan is the best
example of-
1
rupee cost averaging
Steady capital appreciation

and steady dividends yields
241
Which of the following is generally true for a

growth stock?
Better the credit quality of a debt security,
lower is the yield spread.
Change in NAV method does not account for
divided.
242
Yield and price of a bond move-
in opposite direction
239
240
1
1
245
A fund with higher sharpe ratio than the

market is outperforming the market.
Debt funds do not have portfolio
concentration risk.
Which of the following are sub-indices of IBox?
Si-Bex
246
A funds with a high beta coefficient gives

greater returns in a rising market, and more
risky in a falling market-
247
The size of the market capitalization of a

fund's equity holdings in inversely
proportional to the returns that-
can be expectted from the

fund
243
244
248
1
1
high transaction costs
249
A high turnover rate for a fund indicatesCapital protected schemes offer guaranteed
income.
250
The biggest disadvantage of investment in

real estate is-
less potential for capital

appreciation
251
Of the following fund types, the highest risk

is associated with:
balanced funds
252
Which of the following risks do not affect a

debt fund?
default by issuer on payment

of interest or principal
253
_______________are short-term debt

instruments issued by RBI on behalf of the
government of India.
gilt securities
254
debt funds with long-term investment carry

higher risk of capital loss.
255
Deep discount bonds are well explained as-
having 5 year tenure
256
Dividend yield funds________.
offers high dividend payments

to investors
257

26.15.He subsequently receives a dividend
Rs.27.25.What is the rate of retun to the
investor?
12.82%
258
sharpe ratio divides risk

premium by the fund's
standard deviation
259

more than 1
260
Investment that an investor makes in a

mutual fund scheme is issued__________of
the scheme.
certificates
261
___________usually invests in debt securities

where the interest rate payable by the
issuer changes in line with the market.
Floating rate funds
262
Fund of funds invest in____________.
Exchange traded fund
263
Risk factors may not be mentioned in-
product launch advertisement
265
The units allotted to investors in mutual

fund scheme increases inP/E ratio and dividend yield are in inverse
proportion.
266
Value stocks-
have high current dividend

yield
267
Treasury bills are issued by__________.
listed companies
268
To compare bonds with different coupon

rates, maturities and prices, investors would
use:
current yield
269
when interest rate falls a debt portfolio

manager_______________.
increases exposure to long

term floating rate debt
securities
270
Under the CAGR technique of measuring

return it is assumed that_________.
dividend would be re-invested

in the same scheme at the exdividend NAV
264
dividend payout option

1
273
A call provision in a debt issue allows the

issuer toMonthly income plans offer fixed
guaranteed dividend.
Interest rate sensitivity of a debt portfolio is
measured by-
274
An arbitrage fund though an equity fund is

appropriate to benchmark against money
market index.
275
"Risk" is equated with-
volatility of earnings
276
A high portfolio turnover ratio indicative of

better performance of the fund.
277
An investor who wish to invest in gold is

better of by investing through-
reginstered gold merchants
271
272
call out the names of the

investors
1
modified duration
278
_____________take contrary positions in

different markets or securities.
fund of funds
279
An investor has opted for a systematic

transferplan. This means
he can transfer on a periodic

basis a specified amount from
one scheme to another
280

means_______________.
lets the buyer beware
281
In uncertain or gloomy economic condition,

the real estate price___________.
shoots up
283

rates for similar maturities are 11% will sell
Systematic risk of an equity portfolio arises
out-
284
Appropriate benchmark foll all types of

diversified equity schemes should be either
BSE sensex or NSE nifty.
285
When the profitability metric of a scheme is

negative,_______________
Net Asset Value goes up
286
Assured return or guaranteed monthly

income plans are essentially-
hybrid funds
287
Liquid schemes invest only in debt

securities of less than_________maturity.
365 days
288
investment in an equity linked savings

scheme (ELSS)
entitles the investor to claim

income tax rebate
Dividend yield for a stock isThe current yield of bond increases if the
interest rate falls.
dividend per share
282
289
290
above par
inflation
291
When compared to government securities,

the credit risk on corporate bonds is-
higher
292
Alpha, the measure of fund managers

performance has applicability in-
all types of equity schemes
294
Treynor ratio of calculating risk-adjusted

return is best suited forSovereign bond index (l-Bex) is developed
by-
295
An index fund managers tries-
to beat the market by

superior stock selection
296
Higher modified duration implies higher

293
297
298
299
300
301
Which of the following investment is not

made by debt funds
ICICI securities' sovereign bond index is
based on-
balanced funds
SEBI
government debt instruments

choice of bebchmark depends onchoice of investment universe

Compared to equity funds, income margins
narrow
for debt funds areA lower P/E ratio is indicative of a bull
market.
1
302
state which of the following statement is

correct?
if equity market move up, P/E

ratios will move down
303
Liquidity risk is high in case of_____________.
sector
305
Higher the credit risk, higher is likely to be

the yield on the debt security.
The type of income earned by a mutual fund
scheme includes-
interest
306
If a scheme of a mutual fund has positive

profitability metric, the _______.
AUM goes down
304
307
Fixed maturity plans are_____________.
Schemes which invests in

debt securities for a fixed
limited period
308
Debt funds which is/are considered to be of

lowest risk is/are:
gilt funds
309
Which of the following is true for closed

ended funds?
The fund offers to buy and sell

units at NAV
310

true?
short-term capital loss can be

set off against other head of
income
311
Earning per share (EPS) are calculated

as________________.
Gross profit / No. of equity

shareholders
If duration is high, interest rate risk is high.

The return that an investor earns on a debt
security called its_____.
312
313
314
315
316
There is an inverse relationship between

yields and value of debt securities.
Return for periods less than a year cannot
be annualized.
Systematic risk of a portfolio can be
avoided.
yield
1
1
1
sell short maturity securities

and buy long maturity
securities
318
If yields fall, a debt fund manager will do all

of the following exceptThe most significant risk in a well-diversified
debt scheme is-
319
less volatile than market
320
A criticism of rupee-cost averaging is-
investment is for the same

321
Yield-to-maturity of a debt funds portfolio is

more important when the investment
objective is-
current income
317
re investment risk
Equity fund
Growth fund
Gilt fund
0
Default risk
Correct
Option
A
B
Inflation risk
Interest-rate
risk
B
B
ABB
AAA*
A++
Public Provident Fund

(PPF)
National
Savings
Certificates
(NSC)
Units of a
mutual fund
Balance fund
Capital
protected fund
sector fund
CRISIL LiquiFEX
NSE's MIBOR Both B and C
CRISIL MIPEX
CRISIL
Banking Index
CRISIL Debt
Hybrid Index
CRISIL MIPEX
CRISIL
STBEX Short-Term
Bond Index
CRISIL Debt
Hybrid Index
Credit rating
Yield Matrix
Yield Quality
Sector specific risks
Company
specifis risks
Credit risk
Income
funds
Holding more number By hedging
of sectors in a
with futures
portfolio.
an options.
Specialized
funds
None of
above
Both 1& 2
above
Sector funds
A Balanced fund
Balanced fund is
exactly 40% equity
and 60% debt.
Money
market fund
Balanced
Balanced
fund is rarely
fund is
exactly 50% exactly 60%
equity and
equity and
50% debt.
40% debt.
When the market can

behave in a manner not
seem in the past
Black
marketing
Opposite of
White Swan
Stability is associated
with debt funds
Both 1 & 2
None of the
above
Goes down
Goes upwards
steady
Remains
Constant
Yield Spread
Call to Yield
Floating Rate
2008-10
2009
None of the
above
At Discount
At par
Does not have

in relation.
50% Government
securities funds +
50% Money Market
Funds.
25%
aggressive
growth funds
+25%
international
funds 25%
Sector funds
+ 15% High
Yield Bond
funds + 10%
Gold Funds.
100% Liquid
fund
When to buy, sell or

switch from one
scheme to another
Disgarding
the nonperformers
and keeping
the good
performers
All of the
above
Growth Fund
Money Market
Mutual Fund
Index Fund
Corporate Bond
Debt
Securities
Equity Shares
Below par
At par
At a price
unrelated to
the prevailing
interest rate
Parents and Relatives

Contribution
Parents
Income
All of the
above
A
Go down
React as per
margin
Remains
Same
B
Gold fund
Real estate
Golld ETF
Annualised Returns
Absolute
Return
Simple return
A
Growth Fund.
Diversified
Equity Fund.
Index Fund.
Value Fund.
A
0
A
The sentiments of market
unexpected
Fluctuation
scenario in the into the market
market, which
has not yet
been
performed in
the past
C
MIP.
Fixed Asset
Allocation
Fund.
Fliexible Asset
Allocation
Fund.
D
He is redeeming within 9 He is investing

months after record date
within 3
of Dividend
months prior
to the record
Date of
Dividend
Both B & C
D
0
The performance of other The returns The change in

mutual funds
given by other
wholesale
comparable
price index
financial
products
D
The investment objective
of the fund
SEBI
AMFI
B
High Ticket Size.
Professional
Management.
Domestic
Asset.
B
S&P CNX Nifty
I-Sec's I-BEX
BSE 200
CRISIL Debt
Index
S&P CNX
Sectoral
Indices
S&P CNX
Defty
C
Investment objectives
Fund size
Fund
managers
D
Equity fund
Growth fund
Gild fund
A
Commercial paper
Company
deposit
Debt fund
0
A
Amount of money to be
invested
Investor's risk Phase through

tolerance
which the
economy is
passing
C
15 yrs, 30yrs, 5yrs, and

since inception
7 days, 15
days, 30 days
7 days, 15
days, and
since inception
C
Degree of diversification
of the portfolio
Fund
manager's
success at
market timing
Number of
investors in
the scheme
D
Market level
Sector specific
All of the
above
Market level risk
Both of the
above
None of the
above
A
It is based on past
returns, which does not
necessarily indicate
further performance
It is an
independent
number
All types of
fund can be
measured with
standard
deviation
B
Stock selection
Weighted
average
Maturity
No. of
securities in
portfolio
0
B
0
D
A Balanced fund
A Money
market fund
Both a and b
above
A
More volatile than market Equally volatile

than market
No relation
B
Risk
Risk adjusted
return
Beta of the
portfolio
C
Over a period of time, the It does not tell Rupee cost

average purchase price
you when to averaging has
will work out lower than if
buy, sell or
no serious
one tries to guess the
switch from
shortcomings
market highs and lows one scheme to
another
C
0
0
A
lower than the
higher than
the
none of the
above
B
NAV
NAV plus Exit

load
NAV less Exit

load
B
A
5 years and above
upto 3 years
upto 2 years
D
0
lower than the
When the market can

behave in a manner not
seen in the past
A
higher than
the
black
marketing
Lower or
higher than
NAV
Opposite of
white swan
B
A
0
Mid-cap
A
Small-cap
Both B & C
Both A & B
D
Both statements are

wrong
Only the 1st

statement is
right
Only the 2nd

statement is
right
A
He would benefit if the

Indian Rupee becomes
stronger
He would
He would
loose if the US loose if the
$ becomes
Indian Rupee
stronger
becomes
stronger
A
0
B
FMP
Equity Fund
International
Equity Fund
B
0
B
0
A
0
A
Short Term Debt fund
Both of the
above
None of the
above
B
0
A
0
0
Both statements are
wrong
B
Only the 1st
statement is
right
Only the 2nd

statement is
right
A
A
Interest rate
Rupee cost
averaging
both 1 and 3
A
Equity Shares and

Bonds
Liquid Fund
and Saving
Bank
account
Gilt Fund
and SENSEX
C
Gold Sector fund
Gold
Gold Future
Gold Sector fund
Gold
Gold Future
total
earnings /
no. of
market price per
ordinary
share / no. of ordinary
shares
shares outstanding
outstanding
growth
value
growth investing
stock picking
less than a
year
sector
selection
less than a
month
yield spread
net worth /
no. of
ordinary
shares
outstanding
emerging
6 months
coupon rate risk premium
C
C
False
False
annualised return
the infrastructure
development takes
place
weighted average
maturity
compounded
compounded
annual
return
growth rate
the interest
rate falls
yield spread
abstaining from the using equity

market for some days derivatives
minimized by
diversificatio
all of the
above
all of the
above
selling the
entire
holdings
managed by
minimized
investing in
by good fund
bluechip
managemen companies
t
only
D
D
ldle cash lying with

the fund
investment
in high rated
bonds
none of
these
r-squared
measures
how much of
a fund's
fluctuations beta of less
is
than one
attributable means that
to
the fund is
standard deviation is movements more volatile
relevant for both debt in the overall
than the
and equity funds
market
market
False
15.67%
it is based on past
returns, which does
not necessarily
indicate further
performance
taxes
scheme's optimal
return
13.79%
10.15%
all types of
funds can be
measured
it is an
with
independent
standard
number
deviation
both of the
above
never differs
fund
manager's
risk premium performance
CAGR
benchmark
alpha
I-sec's Si-bex
crisil
composite
bond fund
index
S &P CNX
nifty
market
short term
money
market
corporate
bond market
False
scheme specific risk
standard risk
credit risk
SEBI
the AMC in
consultation
with the
trustee
trustee
higher the
weighted
systematic
average
risk of an
maturity of a
lower modified
equity
debt security
duration implies
porfolio is
is, higher
higher interest
measured by would be its
sensitive risk in a debt its modified
interest
porfolio
duration
sensitivity
pays lower interest
pays higher
interest
incur losses
a debt
security with the value of
longer
floating rate
maturity
securities
In a floater, when the
fluctuates
fluctuates
market yield goes
more than
more than
down, the issuer pays short tenor
fixed rate
higher interest
securities
securities
credit risk
a debt security of
and yield on
shorter maturity
a debt
higher the
would fluctuate a lot
security is
credit risk
more, as compared to
inversely
would be the
longer tenor securities
related
yield spread
historical
data of fund the nature of
performance investments
the investment
objective
long-term
debt fund
have higher
NAV
fluctuation
when
comoared to
growth and risk are
money
associated with equity
markets
funds
funds
all these
statements
describe
reality
adequately
low liquidity
risk
inflation risk
high default risk
hedging against risk
re-balancing
og portfolio both b and c
NAV can move up or

down
Past
performance
of sponsor /
AMC /
mutual fund
is not
indicative of
future
performance
Risks
associated
If the AMC
with the use
has no
of derivative
previous
instruments, experience
if the fund in managing
plans to use
a fund, a
such
disclosure to
instruments
that effect
Dividend Reinvestment
Systematic
Plan
Transfer Plan
If the
If interest
interest rate
rates go
goes up,
down, price
yield of
of bonds will bonds will go
also go down
up
Both A and B
Whatever
money
becomes
available
from time to
time, to be
invested as
per risk
preference
None of the
above
The amount
rate of
interest paid
The return on investor on par value
would earn
of the bond
None of the
above
24 months
Systematic
withdrawal Plan
If the interest rate

goes up, yield of
bonds will go down
Viewing each finacial

goal distinctly, and
making a specific
asset allocation and
investment for each
goal
12 months
6 months
0
Ieverage
Sector funds
A
concentratio
credit
n
Thematic
Contra funds
funds
D
C
Offer Document
Fund
Advertiseme
nts
All of the
above
8.23%
4.00%
7.92%
Wants predictable
returns
wants return
more than
normal fixed
deposits
wants
regular or
anytime
liquidity
6% interest paid
every 6 months
3% interest
paid every 1% interest
quarter
paid monthly
D
A
Average total
asset/gross income
Return on
equity/avera
ge total
asset
net
income
/average
total asset
Coupon
Maturity
Beta
Change in
valuation of
debt
Change in valuation of securities
Original
debt and equity with with respect tenor of any
respect to change in to change in
debt
interest rates
BSE sensex
instrument
oays lower interest
pays higher
interest
makes profit
Issuers to
Investors to
redeem debt extend the
Investors to redeem
prior to
tenure of
debt prior to maturity
maturity
debt
Invest in debt
securities
Invest in
securities
having
maturity in
line with the
maturity of
the scheme
All of the
above
PPF
Units of
mutual fund
NSC
His income
The stock
market
movements
His job
secrity
Passive funds track

BSE-Sensex or NSENifty only
Fund
manager
decides the
composition
and
quantum of
investment Running cost
in passive in of passive
passive
funds are
funds
higher
Switched towards a
higher proportion of
floating rate
instruments
Switched
towards a
higher
proportion of
fixed rate
kept as it is
be
redeemend
on maturity
at the face
value which
is higher
that the the
issue price
with no
payment in
between
pay interest on a
quarterly basis
Offer yield
tak free
11.25%
8.96%
35.82%
Borrow 20% Borrow 5%

of the net
of the net
Borrow 15% of the net assets of the assets of the
assets of the Scheme Scheme for Scheme for
for 1.5 years
0.5 years
2 years
Yield spread
Yield extra
Yield
premium
less than 1
one
zero
variance
standard
deviation
modified
duration
Rs. 225
Rs. 1000
None of the
above
leveraging
hedging
gambling
physical gold has

threat of loss due to
theft
wealth tax is
applicable
on physical
gold
All of the
above
the returns are more

predictable
most
investors are
always in
debt
All of the
above
8.33%
7.00%
6.81%
11.2
10.41
12.46
degree of
diversification of the
portfolio
fund
manager's
success at
market
timing
number of
investor in
the scheme
Mumbai inter-bank
offered rate
monetary
internation
bank offered
rate
None of the
above
B
provides the
benefit of
rupee cost
averaging
all of these
variable NAV
growth
option
nomination
facility
All of the
above
fixed
maturity
equity income funds
thematic
funds
debt fund
sector fund
diversified
equity funds
balanced
fund
unit capital goes down
net asset
value goes
down
unit capital
goes up
enforces saving in a
disciplined and
phased manner
dividend reinvestment option
Floating rate
low yield
None of the
above
0
long term than the
short term
developed
nations
growing
economy
9.00%
both the
above
3.33%
None of the
above
risk
D
D
High yield
2.00%
B
B
B
A
B
B
C
financial institutions
mutual funds
futures &
options
liquidity risk
liabilities in
the scheme
All of the
above
fixed asset allocation

funds
sector funds
passive
funds
diversified
debt fund
dynamic
funds
diversified
equity fund
tactical
funds
gilt fund
avctive funds
A
B
lnvestment objective
of the fund
financial
market
conditions
Review of companies'
stock performance in
market
review of
movements
in index
supply of money
sector selection
to finance the
acquisition of long
term capital assets
lts face value

exchange rate
offering bonus option
amount
invested by
investor
All of the
above
All of the
lnflation rate
above
Country
diversificatio
selection
n
A
D
A
to retire long
term debt
to pay
dividend
Its fair value

duties and
taxes
the current
price of TBills
All of the
above
offering
dividend
option
offering
dividend
option and
dividend has
been paid
longer-term
debt
securities
fluctuate
more than
diversified
shorter term debt funds
FMP is most liquid
debt
don`t have a
among debt funds
securities
credit risk
low yield
low risk
high perceived safety
spread
premium
C
A
er transaction costs
balanced
funds with
dividend
option
both the
above
None of the
above
None of the
above
monthly income plans
diversified
debt funds
fixed
maturity
plans
deposit with a local

co-operative bank
a gilt fund
a diversified
debt fund
liquid schemes
fixed
maturity
schemes
diversified
debt
schemes
maturity profile
fund size
None of the
above
A growth
fund would
invest in the
equity
shares of
companies
A fund that
whose
invests only
earning are
in ASEAN
expected to countries is
risk at an
an example
above
of specialty
average rate
fund
equity funds with

growth/reinvestment
option
A balanced fund holds

assets more or less in
equal proportions
between debt/money
market securities and
equities
B
C
The additional yield

on a bond as
compared to the yield
of a benchmark
security
term
structure of
interest
rates
sovereign
yield curve
fall
are not
affected
fluctuate
either up or
down
above face value
at face value
below face
value
D
B
stocks whose worth

will be recognized by
long-term
the market in the long high current
capital
term
yield
appreciation
growth funds
invest in
value funds invest
overpriced
None of the
inunder priced stocks
stocks
above
commercial papers
treasury bills
gilt
securities
by
by
comparing
comparing
its
its
performance performance
with a
with the
by comparing it with
money
index it
return on government
market
isdesigned
securities
mutual fund
to track
beta, standard
deviation
risk-free rate
of return,
beta
standard
deviation,
scheme`s
return
12.25%
100%
200%
inflation risk
interest-rate
risk
call risk
undervalued stocks
B
above
average
earnings
growth
None of the
above
C
A
no investment risk
no credit risk
no maturity
risk
gets weaker
remains
unchanged
turns volatile
whose rates
are different
for different
for different
category of
investors
which pays interest

lower than the g-sec
securities taking
interest on g-sec
securities as the base
simple annualized
return
fund of funds
flexible
compounded
annualized
return
any of these
thematic
contra funds
funds
A
D
strategic
fixed
weighted average
maturity
Modified
duration
Ex-marks
beta, standard
deviation
alpha
theta
return
risk sdjusted
return
risk & return
41.63%
38.42%
11.76%
6.54%
7.43%
2.11%
A mutual fund
enables a small
investor build a
diversified portfolio
investment
in a mutual
fund offers
more
liquidity
growth funds
gilt funds
all are
correct
balanced
funds
in
government
in instruments issued
securities &
by companies with a in short-term treasury bills
sound track record
securities
only
D
C
B
None of the
above
Steady
high capital
capital
appreciation appreciation
high capital
but low
but high
appreciation and high
dividends
dividends
dividends yields
yields
yields
value averaging
buy & hold
together in the same

direction
in an
unrelated
fashion
in line with
the inflation
index
0
Li-Bex
B
Mi-Bex
All of the
above
level of risk assumed state of the

by the fund
stock market
greater efficiency
high returns
to the
investor
All of the
above
arising
market
high purchase price
depreciation
in value as
time passes
value gets
eroded due
to inflation
gilt funds
equity
growth funds
debt funds
price fluctuations of
the debt securities
share price
movements
interset
volatility
treasury bills
commercial
paper
bonds
having fixed yearly

return
invest in high
dividend paying
companies only
issued at a
discount and
redeemed at
face value &
no income is
given in
between
invest in
shares
whose prices
fluctuate
less but offer
attractive
pays regular
dividends
dividends
having
quarterly
return
15.94%
10.79%
12.00%
treynor ratio divides

risk premium by the
fund's beta
alpha
compares
the fund's
actual
results with
what would
have been
expected
given the
fund's beta
and the
market index
performance
a and b
less than 1
one
zero
membership advice
investment
advice
units
fiexible income funds
flexible debt floating debt

funds
funds
a, b and c
feeder fund
other mutual
fund
schemes
host fund
tombstone
advertisement
all of the
performance
above
advertiseme advertiseme
nt
nt
growth option
rights option
option
yield high growth in

earnings
are currently None of the

under valued
above
foreign companies
reserve bank public sector

of india
banks
technical analysis
yield to
maturity
fundamental
analysis
increases exposure to
short term floating
rate debt securities
increases
exposure to
long term
fixed rate
debt
securities
decreases
exposure to
long term
fixed rate
debt
securities
dividend would be reinvested in the same

dividend
no dividend
scheme at the cumwould not be
would be
dividend NAV
re-invested
paid
Extend the redeem the

tenure of the debt before
debt
maturity
redeem the debt on

maturity
0
weighted average
maturity
B
both of the
above
None of the
above
level of earnings
the number
of investors
in a fund
the number
of schemes
of fund
family
gold deposit schemes
gold etf
gold sector
funds
floating rate funds
arbittrage
funds
hedge funds
he can
transfer on a
the
periodic
investment
basis a
would
specified
provide the amount from
benefit of
the scheme
cost
to his bank
averaging
account
lets the seller beware
lets the
distributors
beware
all of the
above
falls
remains
unaffected
becomes
extreme
volatile
he is required to
invest a fixed sum
periodically
below par
at par
interest rates
political risk
at a price
unrelated to
the
prevailing
interest rate
all of the
above
unit capital goes down
growth funds
B
D
B
net asset
value goes
down
unit capital
goes up
debt/income
funds
sector funds
91 days
182 days
30 days
requires the
investment to be
locked in for a period
of 3 years
automaticall
y leads to
investment
in equity
shares
all of these
dividend per face

value
dividend per
share to
current
market price
None of the
above
lower
same
the two are

not related
all diversified equity

schemes
all types of
schemes
only debt
schemes
diversified
diversified debt funds sector funds equity funds
ICICI
NSE
CRISIL
Securities
to beat the market by

superior market
timing
to beat the
market by
superior
asset
allocation
None of the
above
D
D
financial
institutions'
corporate paper
bonds
money
long-term debt market
market
equity of
private
companies
treasury
market
D
A
choice of portfolio
concentration
underlying
exposure
all of the
above
higher
the same
almost nil
current yield
will be
If interest
higher than
rates go
coupon rate
if equity markets
down, price
if interest
move down, dividend of bonds will rates have
yield will move up
go down
gone down
smallcap
midcap funds
funds
both b and c
B
D
dividend
capital gains
all of the
above
AUM goes up
AUM remains
unchanged
AUM may or
may not
change
Schemes which
invests in fixed
deposits only
Schemes
which
invests in
debt
securities
whose
Schemes
maturity
which
closely
invests
aligns with
mainly in
the maturity
money
of the
market
scheme
instruments
fixed maturity plans
diversified
debt funds
money
market funds
or liquid
funds
the unit capital of the

fund is constant
the net
assets of
fund does
not change
None of the
above
long-term
capital loss
arising out of short-term
equitycapital loss
long-term capital loss
oriented
can only be
can be set off against mutual fund
set off
short-term capital
unit is not
against
gain or long -term
available for short-term
capital gain
set off
capital gains
Gross profit / net profit /

no.of
no.of
ordinary
ordinary
shares
shares
outstanding outstanding
net profit / no. of

equity shareholders
0
maturity proceeds
A
redemption
money
capital gains
A
A
sell long
duration
sell high
see that the fund's
securities
coupon
average duration
and buy
securities
becomes longer than
short
and buy low
the market's average
duration
coupon
duration
securities
securities
inyerest rate
credit risk
risk
liquidity risk
more volatile than

market
equally
volatile than
market
no relation
it does not
over a period of time
tell you
rupee cost
the average purchase when to buy, averaging
price will work out
sell or switch
has no
higher than if one
from one
serious
tries to guess the
scheme to shortcoming
market high and lows
another
s
total return
liquidity
all of the
above
C
C
Chapters



















































S No
Question Details
Option A
Who amongst the following will help to find the perfect

company to invest
Fundamental Analysis
Stock picking is
Top Down approach
An investor asks you in what order he should list the

following schemes,going from the scheme with the least
risk to the one with the highest risk -1.balanced fund, 2.A
stock index, 3.A Liquid fund, 4.Pharmaceutical sector fund.
1,2,3,4.
Which of this is not a criteria for consideration while

selecting equity funds ?
Classify the schemes
Selecting a money market fund

is easier than selecting a bond
or equity fund.
Risk tolerence is ?
Is the abnormal loss, which the

investor is ready ti incur
G-Sec papers are normally issued on a ?
Short term basis
Relief bonds issued by government are?

Stock picking is ____approach
Which of the following is an international asset class?
Highly risky
Top Down Approach
Real Estate
Which of the following is not a commodity

The NPS consists of --------------------------Which of the following about public provident fund (PPF)
are untrue
Food crops
Asset Class G
50% of the balance of the 4th year
can be withdrawn in the 7th year
Which of the following is untrue for Public Provident Fund

Schemes
The interest is tax-free
Annual contribution to Public Provident Fund should be
Rs.10000.00
Which of the following is true about PPF?
Assured Tax free interest
Tier I pension account is withdrawable

If an investor taking high risk appetite for long term
investment and high capital appreciation in which type of
fund will investor invest
1
Real estate
Which of the following is the safe investment
PPF
The maturity period of RBI Relief Bonds is

The current yield on Indira Vikas Patra works out to
5 years
7 years
10.50%
The annual yield on RBI Relief Bonds is

Indira Vikas Patra is an investment product popular with
9.50%
Rural investors
An investor will get maximum exposure to gold be investing
Gold ETF
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
In which commodity mutual fund cannot invest
Gold
Mutual fund offer wider range of portfolio than NPS
Rs. 70,000/-
If an investor wants monthly income then he should opt for,
SIP
Characterstics of scheme can be known through
Poftfolio of Scheme
In India are tend to invest in physical Assets

Where will a person invest if he wants to invest in gold for
short term.
1
Gold

Which of the following is an international asset?
SEBI
Real Estate
Investment objective defines the broad investment charter
Gold future contracts have an unlimited contract period.
Gold future contracts can be renewed at the expiry of the

contract period, with no renewal cost.
38
Gold ETF is an open end scheme; Gold ETF has a fixed

maturity period.
39
Investors who buy ETF can hold on to their position

indefinitely.
40
Gold holdings, including that used for personal use,

attracts Wealth Tax.
1
41
Gold linked mutual fund schemes are exempted from

Wealth tax; Gold deposit schemes are exempted from
Wealth tax.
42
Real estate is an illiquid market; Gold has the advantage of

liquidity.
PRAN stands for
Provisional Registration Account

Number
Under new NPS scheme, Tier I is the Pension account while

Tier II is a Savings account
The Pension account is withdrawable; Tier II is nonwithdrawable
The Life cycle fund under NPS will invest the investor's
money into
Equity market instruments
Gold futures are superior to ETF Gold as a vehicle for lifelong investment in gold
As regards wealth tax, ETF Gold is superior to physical

gold.
The New Pension Scheme is regulated by

An investor under the new pension scheme can choose
which of the following asset classes
SEBI
Equity
Tangible assets can also be called as ______________
Physical assets
26
27
28
29
30
31
32
33
34
35
36
37
43
44
45
46
47
48
49
50
51
A share certificate is a physical asset; A Share certificate is

not the asset but only the evidence supporting the benefit
that the investor is entitled to.
A gold bar and a share certificate of gold exchage fund are

both examples of physical assets.
Majority of the wealth of Indians is locked in _________
Physical assets
MCX stands for ___________________
Multi commodity Exchange
In India, individual investors do not have direct access to
Capital market instruments
Which of the following investment products do not give

guarantee for return or capital
Bank deposits
The biggest disadvantage of investment in real estate is
Less potential for capital

appreciation
Which of the following is not a characteristic of company

fixed deposits
A higher rate of interest
Individual investors do not normally invest in Government

Securities because
Individual investors are not allowed

to invest in Government Securities
Capital protected schemes invest zero coupon bond
Tier II pension account is withdrawable

Which of the following is the best investment option for the
purpose of getting the maximum benefits of compounding?
1
12% interest paid yearly
An investment horizon if ____________ makes the

probability of losing money in equities negligible
5 and less than 5 years
Which of the following is disadvantage in LIC
Individual needs to pay a fixed

premium
While deciding to select an AMC for investment, the

investor can look out for
Fund age
Mutual Fund can invest in Liquid plus fund

Foreign nationals are freely permitted to invest in Indian
Mutual Funds
1
1
1
1
71
STP is a combination of SIP and SWP

Switch = Repurchase + Sale
The Nav of close-ended schemes are usually
quoted____________at the stock exchange.
at a premium to NAV
72
Passive funds are expected to offer returns__________.
above the market returns
73
Portfolio turnover ratio is:
74
A high portfolio turnover in an equity fund means-
75
76
A better Gold ETF is the one which__________.

A portfolio turnover of 200% implies that an average
security stays in a portfolio for-
total dales / net assets

the fund is very active in
market
gives decent returns
consistently
77
A debt fund investor should give moreattention

to__________before selecting a debt scheme.
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
6 months
fund house reputation and
track record
78
Market risk can be effectively managed by:
investing with a short term

horizon
79
Investors looking for regular income from equity

schemes are better off in investing in dividend payout
plans than investing in growth plans with systematic
withdrawal plan, due to-
cumbersome and time taking

process of re-purchase
80
A close-ended scheme is quoted on the stock exchange

at a discount to its NAV when-
the market are bearish
81
The maximum exit load that sould be charged to

investors as per SEBI regulations is ___________.
5%
82
83
84
Arbitrage funds is suitable forA high portfolio turnover for a fund indicatesDebt funds with long-term investments carry higher risk
of capital loss-
85
An investor buys units in a fund that has given excellent

returns in the past, but his expectations are not met, as
the fund does not perform well this year. The investor
can-
86
limiting the risk associated

with equity markets
that the fundis active
True
sue the AMC
ratio of purchase or sales to

the net assets of the fund
87
Portfolio turnover ratio refers toIn the growth option, number of units held by an
investor vares.
88
The regulator of the "New Pension Scheme" is-
SEBI
The names and addresses of

the registrars and custodians
91
Which of the following is a fundamental attribute of a

mutual fund scheme?
In a bottom-up approach, sector allocation precedes
stock .
Investment horizons for equity funds should be
normally______________.
92
Investing in foreign equities means-
Taking exposure in
International equity market
93
A gold ETF fund should be selected based on-
how well they track gold prices
89
90
1
Low
94
Which of the following is not true for Equity Linked

Savings Schemes?
Investors can claim an income

tax benefit
95
Certificate of Depostits are issued by___________
Banks
96
Which of the following do not apply to the term

'maturity' of a det security ?
The date on which the

certificates becomes old
97
G-Sec or gilt securities are issued by___________.
government
98
Micro SIP means_______________.
SIP where monthly investment

does to exceed Rs.100
99
Which of the following is incrrect?
An equity fund would invest in

ordinary shares, perference
shares and warrants
100
_____________are funds which invest in shares of

companies engaged in gold mining and processing.
gold funds
101
102
103
104
Systematic transfer plan allows investors toThe______________ is the main driver of returns in a
mutual fund scheme.
An equity fund`s age and size are irrelevant when
selecting a fund for investmentSecurities analysis is an important aspect
for_______________.
transfer amount from one

mutual fund to another mutual
fund at regular intervals
Fund managers
1
actively managed schemes
105
The difference between debenture and bond is:
bonds are issued by

corporations and debentures
are issued by PSUs
106
Which of the following are not true for ELSS?
Investor can claim an income

tax benefit
110
A sector fund should have minimum investment in that

particular sector of not less than____________.
A debt fund's age and size are not important when
selecting a fund for investmentMutual funds cannot use derivatives.
In____________approach of investing sector allocation is
the key decision.
top-down
111
The most important factor one should look for when

investing in a corporate fixed deposit is the-
yield
107
108
109
112
113
Which of the following would you look at while selecting

a money market mutual fund?
The asset class (s) available to an investor in NPS (new
pension scheme) is/are-
50%
1
1
cost
equity securities
114
Fundamental analysis froms the basis to decide-
when to buy a given share
117
118
_____________are stocks that have an inherent intrinsic

value which is not reflected in the market price of shares
but have the potentiality to unlock in the long run.
In top-down approach of investing, ___________is the key
decision.
A fund manager who believes in the growth philosophy
looks for companies withbonds/debentures have a maturity_________.
timing
above average earnings
growth
of not less than 10 years
119
A debt security of shoter maturity would fluctuate a lot

more, as compared to longer tenor securities.
115
116
120
under-valued stocks
high inflation economies
122
Credit quality of the portfolio is important for__________.

Gold and real estate are attractive investment options
ina mutual fund scheme cannot borrow more
than_______of its net assets.
123
There is no restriction on borrowings by mutual funds.
124
125
In _________approach of investing, sector allocation is a

result of the stock selection decisions.
Equity derivative instruments are-
top-down
shares
121
gilt schemes
40%
Tactical fund manager
Technical Analysis
Passive Fund Manager
Bottom-up approach
Technical approach
Fundamental approach
1,3,4,2.
3,1,2,4.
2,3,1,4.
Evaluate past returns
Choose Strategies
Reviewing funds
structural charateristics
Selecting a bond fund is easier than

selecting a money market fund
Selecting a equity fund is easier

than selecting a money market fund
None of above
Is the extent of loss the client can

tolerate psychologically and
financially
Is the normal loss of an invesment

category
None of the above
Medium term basis
Long term basis
Very short term basis
Moderate risky
Bottom up Approach
Equity
Vertually risk free

Growth Style
Debt
None of the above

Blended Style
Gold
Gold
Asset Class C
The interest is tax free
Currency
Asset Class E
The rate of interest is 12% p.a.
Art
Life Cycle Fund
Contribution upto
Rs.60000 are eligible for
tax rebate
Post-tax returns are attractive
Liquidity is rather low
None of the above
Between 100 and Rs.6000
Between Rs.600 and Rs.1000
None of the above
Interest is paid every year
Can be withdrawn after a year
All of the above
0
Sector fund
Debt fund
Gold
RBI Relief Bond
NSC
Kisan Vikas Patra
6 years
6 years
11%
7 years
5 years
10%
8 years
3 years
9%
9.5% before tax

Investors in high tax bracket
8.5% before tax

Urban investors
8.5% after tax

Risk taking investors
Gold Fund
Gold Sector Fund
Gold futures
Art
Property
Institutional metal
Rs. 50,000/-
Rs.1,20,000/-
Rs. 500 to Rs. 70,000
STP
SWP
DTP
Operation of scheme
Portfolio and operation of scheme
None of the above
0
Bullion
Gold Futures
Gold ETF
IRDA
Gold
PFM
Currency market
AMFI
International Fund
Only the 1st statement is right
Only the 2nd statement is

right
Both statements are wrong
Only the 2nd statement is right
Only the 1st statement is

right
Only the 2nd statement is right
Only the 1st statement is

right
Personal Retirement Account Number
Personal Registration Account Number
Permanent Retirement
Account Number
Only the 1st statement is right
Only the 2nd statement is

right
Debt securities, other than govt securities
govt securities
any fund as per the

investor's choice
IRDA
Corporate debt
PFRDA
govt securities
AMFI
Any of the above
Financial assets
Non-physical assets
Real assets
0
0
0

0
0
0
0
only second statement is

right
Financial assets
Non-physical assets
Gold and Real estate
Mega commodity exchange
Multi consumer exchange
Mumbai commodity
exchange
Real estate
Bullion
Money market instruments
Public Provident Fund (PPF)
National Savings Certificates (NSC)
Units of a mutual fund
High purchase price
Depreciation in value as time passes
Value gets eroded due to

inflation
Higher risk
Unfavourable effect of tax
Very high liquidity
The amount required for investment is very

large
Safety of principal is not guaranteed
None of the above
0
6% interest paid every 6 months
3% interest paid every quarter
1% interest paid monthly
5 years and above
upto 3 years
upto 2 years
Assured policy surrender value
Low risk
none of the above
Tracking error
Scheme running expenses
All of the above
at a discount to NAV
at par
in line with the market
below the market returns
either of the above

as per government
bond yield
total purchase / net assets
total purchase and sales / net assets
total purchase and

sales / average net
assets
transaction costs are high

is managed by reputed AMCs
the fund may be quity risky

offers facility of converting the Gold
ETF to physical gold
all of the above

tracks the gold prices
better
12 months
48 months
36 months
portfolio composition
scheme's performance
weighted average
maturity
0
0
0
0
investing in high price shares
investing regularly with

a long-term perspective
to smoothen out the
effects of volatility in
market price
chances of incurring capital loss is

more for SWP
the money don't grow with SWP
tax effect, as dividend

is tax free whereas
redemption from equity
schemes attracts STT
aswell capital gains
investors perceive that the fund will

be unable to maintain the NAV
the assets of the fund are

undervalued
none of the above
1%
7%
2%
investing in debt funds
getting decent returns like debt funds getting tax benefits like equity funds
higher transaction costs
both the above
all of the above

none of the above
False
sue the trustees
sue the agent/distributor
none of the above
ratio of total purchase and sales to

the net assets of the fund
ratio of sales or purchase ( which

ever is lower) to the net assets of
the fund
ratio of sales or
purchase ( which ever
is higher) to the net
assets of the fund
RBI
Employees provident & Pension

Fund Authority
Pension funds
Regulatory and
Development Authority
The nature of the scheme being

income bearing
The specified stocks in the

scheme`s portfolio
The names and

addresses of the
compliance officer
high
very high
very low
Taking exposure in exchange rate
both of the above
None of the above
how old the gold ETF fund is
how better is their

dividend paying track
record
how better returns they are offering

than the gold prices
There is a lock-in period before

investment can be withdrawn
There are not specific restrictions on

investment objectives for the fund
managers
These funds can not

invest in shares of
listed companies
Financial Institutions
State Government
both a and b
The term of bond
The date of redemption
The date on which the

issuer has to repay the
amount]
Institutions
Private sector companies
All of the above
SIP where monthly investment does

to exceed Rs.500
SIP where annual investment does

to exceed Rs.10000
SIP where annual

investment does to
exceed Rs.50000
a bound fund would mainly buy debt

instruments
gold sector funds
transfer amount from one scheme

with in the same mutual fund
stock selection
a sector fund invests in

the shares of
an index fund is indexed to inflation
companies in a
index
particular industry
gold exchange traded funds
All of the above
transfer amount from one scheme to transfer dividends of

his bank account
one scheme to another
portfolio
asset allocation
debt schemes
equity schemes
0
passively managed schemes
bonds are unsecured and debentures

bonds are backed by loans
are secured
anddebentures are backed by assets
None of the above
There is a lock-in period before

investment can be withdrawn
There are no specific restrictions on

investment objectives for fund
managers
These funds cannot

invest in shares of
listed companies
24%
76%
65%
bottom-up
top-bottom
bottom-top
rate of interest
credit rating of the deposit
None of the above
0
0
portfolio quality
debt securities
yield
all of the above

all of the above
whether to buy a given share or not
whether to use technical analysis or

quantitative analysis
whether the company's

factory can withstand
earthquakes
growth stocks
value stocks
low value stocks
management selection
stock selection
sector allocation
large equity base

of at least 5 years
likely to go for public issue

of 8 years
all of the above

beyond one year
non-gilt debt schemes
balanced schemes
low inflation economies
inflation does not make a difference
liquid schemes
stock market in bear
phase
20%
30%
10%
Liquidity risk in high
bottom-up
bonds
top-bottom
contracts
bottom-top
notes
Correct
Option
B
B
Chapters
Scheme Selection
Scheme Selection
Scheme Selection
Cost
E
Scheme Selection
D
Scheme Selection
B
Scheme Selection
C
C
B
D
C
D
D
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
D
D
A
B
B
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
B
A
C
D
B
C
D
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
B
A
A
any fund as
per the
customer's
age
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
C
A
Scheme Selection
Scheme Selection
C
C
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
A
C
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Only 2 & 3
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
A
B
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
D
B
Scheme Selection
Scheme Selection
B
A
A
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
D
C
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
A
B
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
A
D
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
Scheme Selection
B
C
Scheme Selection
Scheme Selection
S No
Question Details
Option A
For young investors doing retirement

planning ?
Monthly Income schemes are appropriate
Why should a fund distributor become a

financial planner ?
Because of Strong Potential for such

services
Its the duty of the client to set

mearsurable financial goals
Investments for the same amount at

regular intervals
Direct investments in stock markets can be a

better option over investing through mutual
funds if ?
The investor wants better returns than

those offered by mutual funds
If an investors regular income improves then

his risk appetite will also
Increase Gradually
The distribution of an investors portfolio

between different asset classes is called
_____?
Asset Allocation
As the person grows older, the debt

component of the portfolio keeps increasing.
This is an example of ______
Tactical Asset Allocation.
_______ is suitable only for seasoned

investors operating with large investibles
surpluses?
Model Portfolios
Individuals who want to bulid their wealth and

are ready to take the risks are ?
Old investor
An equity portfolio is not a viable investment

option to meet short term financial needs
One of the most effective ways to invest

through mutual fund is to
Develop a model portfolio
Asset allocation is
Keeping certificates of the physical securities in

proper places
A retired person generally needs a greater

proportion of
Debt funds

types of equity funds is advisable for investors
In distribution phase
Retired investor should
Not draw down on their capital
10
11
12
13
14
15
16
For older investors who want to transfer their

wealth
No financial planning is required
Investors who acquire sudden wealth
Can speculate with all the acquired money in the

stock markets
Only if a specialty offshore fund has

consistently given very good performance, it
can be considered for investment by a retiree
If you maintain a flexible ratio of asset

allocation, would you
Rebalance the Debt/Equity allocation

periodically?
While deciding on an asset allocation strategy,

the investor must consider.
The stage of his life
Asset allocation of a portfolio should be reevaluated every time there is a change in the
Family size and requirement
A person working as a CEO in TCS has more

risk appetite than a small business man.
Daring, adventurous and mentally strong

people has less risk appetite

recommendable in case the investment
horizon is long.
Equity
An Investor with an objective of having an

equity growth component in his portfolio
should invest in
Equity fund
Liqidity is the most important differentiater

between a Close ended and an Open ended
fund.
If the open end fund is in profit its advisable to

wrinkage the investment
Asset Allocation means,
Don't keep all the egg in one basket
Insurance is more critical for,
Physical Assets
Which of the following is not a good selection

for investment purpose
Equity Fund
Which of the following is not a reason to invest

in Gold Fund
Professional management
Which of the following is not a reason to invest

in Real estate fund
Professional management
Asset Allocation in Asset Class C is,
Equity
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
There is no need to have insurace policy of the

nominee
If the employer providing medical policies to

the employee of its company then employee no
need to keep their personal medical cover
The retired client never invest in equity
The new pension scheme is managed by

_____________fund managers.
one
36
37
38
While choosing between a bank deposit and

a debt income fund, the investor must
consider/
The biggest advantage of investment in gold
is-
Credit rating of bank
True
42

investment options only in high inflation
economies
The new pension scheme don't offer equity
investment product.
43
Gold futures are considered to be an

alternative and superior route of investing in
gold than Gold ETF.
True
44

funds is required by-
Accumulating investors
45
One of your Indian friends who have

invested in a mutual fund is about to get
Australian citizenship. What would you
advise?
He should transfer the investment to his

relative
46

consider______________.
The stage of his life
47
For older investors who want to transfer

their wealth-
No financial planning is required
48
The investment objectives of a mutual fund

scheme-
Are of no relevance to the investor
49
An investor is better off by switching to best

performing schemes at periodic.
50
In developing a fund portfolio for any

investor, the following steps are involved.
The order in which these steps are to be
followed is-
asset allocation sector distribution,

selection of fund managers and scheme
51
______________invests only in securities

which do not have credit risk.
money market funds
39
40
41
high returns
True
52
________________are more diversified and

broad based than a sector fund but narrower
than a diversified fund.
equity income funds
54
Differential payment expectation between

investors in a scheme cannot be addressed
from one single scheme.
Growth investment style entails investing
in_______.
high growth stocks
55
Deciding on strategies succh as long-term

averaging, active switching, all depend on
the-
stock market situation on date
56
Mutual funds should be recommended as

__________.
investments to achieve long term goals
57
Indians are more comfortable in investing in

physical assets rather than financial assets.
53
Long term bond funds are

appropriate
Money market funds are

appropriate
None of above
Because of Limited supply

of financial planner
Because of the kind of

the money this business
offers
Only 1&2
Its the financial planners

duty to set mearsurable
financial goals for his
clients
Both the clients and

financial planners should
together set
mearsurable financial
goals
None of the above
When to buy, sell or switch

from one scheme to
another
Disgarding the nonperformers and keeping

the good performers
All of the above
The investor has large

capital, knowledge and
resources for research
The investor has

identified a bullish phase
in the stock market
The investor wants to invest

for the long term
Increase rapidly
Increase slowly
Remain constant
Asset Management
Asset Framework
None of the above
Strategic Asset Allocation.
Model Portfolios
None of the above.
None of the above.
Investor who is in Transition

phase
Wealth creating affluent

investors
Wealth preserving affluent

investors
Invest all the money in one

fund scheme
Invest all the money in different

schemes of the same fund family
Buy a few units of every mutual

fund scheme available
Allocation the available money

Allocating the right
to all the securities available proportion of funds to equity,
debt and money market
securities
None of the above
Equity funds
Money market funds
All of the above
In accumulation phase
In transition phase
Who are wealth preserving affluent

individuals
Not invest in securities, which

bear risk of capital erosion
Continue holding a major

portion of their holding in
equity growth funds
Never invest in equity
Only 1&3
None of the
above
The right investment strategy

depends upon who the
beneficiaries are
The right investment

strategy depends upon the
state of the stock market
All the funds can be invested in

aggressive equity funds
Should not use any of the new

wealth to invest in equity
Should take the effect of

taxes into account
Need not pay any taxes on the

newly acquired wealth as it is not a
part of their regular income
Rebalance the Debt/Equity

allocation very frequently
Generally avoid portfolio

rebalancing?
Keep fixed percentages of equity

and debt investments at all times?
His risk appetite
The purpose of making

investment
All of these
Job of the investor
Dramatic change in the

market condition
All of these
Debt
Liquid
Money Market
Debt fund
Liquid fund
Index fund
All the corpus investing in

one companies
Customer is king
Allocate some units to every

investor in India
Financial Assets
Both of the above
none of the above
ETF
Life Insurance
Gold Future
Small Ticket
International Asset
Safe haven asset class
Small Ticket
International Asset
Safe haven asset class
Mix of all asset classes
Debt
G-Sec.
0
0
six
three
four
Quality of the mutual fund

assets
his investment objective

and risk appetite
all of these
high appreciation in value
low purchase price
hedhe against inflation
Investors in the intergenerational transfer

phase
Investors in the distribution

phase
False
False
False
Affuent investors
He can continue to hold

He should immediately
as PIO are allowed to
redeem his investment since
He should get RBI approval invest in mutual funds in forign citizens are not eligible
for continuing
India
investors
His risk appetite
The purpose of making

investment
All of these

strategy depends upon who
the beneficiaries are

strategy depends upon
the sate of the stock
market
all the funds can be invested

in aggressive equity funds
Should be the same as his

own investment objectives
Changes with market

movements
Changes with the change in

AMC(s) key personnel
0
selection of fund
sector distribution, asset managers/scheme sector sector distribution,selection of
allocation, selection of fund distribution and asset
fund managers ,asset
managers and scheme
allocation
allocation and schemes
debt funds
gilt funds
hybrid funds
hybrid funds
balanced funds
Thematic funds
growing stocks
low growth stocks
All of the above
amount of money to be
invested
investor`s risk tolerance
phase through which the

economy is passing
a rich quick investment

option
Investments to take
advantage from stock
market swings
all of these
Correct
Option
Chapters
A
Investors
D
Investors
C

Investors
A
Investors
B
Investors
A
Investors
A
Investors
B
Investors
C
Investors
C
Investors

Investors

Investors

Investors
Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors
A
A
C
C
C
C

Investors
Investors
Investors
Investors
Investors
Investors

Investors

Investors
Investors

Investors
D
D

Investors
Investors

Investors
Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors

Investors
Investors

Investors

Investors

Investors
S No
Question Details
Which of this is not a step in the financial
planning process ?
1
Which of these is not the clients
responsibilities ?
2
The Strategy advisable for an investor to
maximize investment return in the long run
is?
3
4
____ is an approach to understand the risk

appetite of investor?
Investment advice is dependent on
understanding
5
6
Which of the life cycle stage is mention
here "couple becomesinterdependent with
shared responsibility for the achivement of
future goal" ?
7
If an investor wants income and can't bear
risk at all, then he should opt for
8
If number of dependant increases in family,
risk appetite
9
10
11
12
Age bar of risk appetite are underAge come under

Risk appetite of investors is assessed
through
A person working with TCS as a CEO have
more risk appetite than a person working
as a CSR in TCS
13
14
An adventurious and daring person can

bear more risk
The psychological need to having an asset
under one's possession, provides the
customer with ____________ because of
which they prefer physical assets.
15
A comprehensive financial plan takes into
account all the financial goals of a person
together, and then startegises the
investment plan.
16
___________captures the estimated

inflows from various sources and
estimated outlfows for various financial
goals, including post-retirement living
expenses.
17
The comprehensive financial plan includes
18
A goal oriented financial plan includes
taking a perspective on the Life Cycle and
Wealth Cycle of the investor
19
20
Equity exposure suits which of these Life

Cycle the most
Life insurance becomes absolutely critical
for
21
Premiums for Term insurance policies are
generally higher than those of the Unit
linked policies
22
Starting with a health insurance policy
early is the best antidote against the
__________ clause.
23
Health insurance policy claims are
generally settled through reimbursement
or on cashless basis
24
The Accumulation phase of the wealth
cycle correspondes with which of the life
cycle phase/s
25
In the ________phase of the wealth cycle,
the investors tend to increase the
proportion of their portfolio in liquid
assets viz money in the bank, liquid
schemes etc
26
__________ phase of the Wealth cycle is
the parallel of the retirement phase of the
Life cycle
27
According to the Certified Financial
Planner - Board of Standards (USA), the
first stage in financial planning is
28
29
30
Investors can get into long term

investment commitments in
_____________________
Financial goals do not include
Financial planning allows a person
31
Financial plans do not alter in any way the

amount of tax an investor pays as the tax
is on his income
32
Which of the following works with an
investor on his overall financial situation
33
A Financial planner takes responsibility for
the financial well being of his/her clients
34
35
Financial planners and their clients should

focus on
Financial Planning comprises
36
Financial planning is relevant only for high
networth individuals
37
38
39
Financial planning does work for older

clients
Financial planning is primarily tax planning
In financial planning, all responsibility
ends with the financial planner and the
client has no responsibilities
40
The constraint on financial planning due to
insufficient investable resources can be
remedied to some extent by
41
42
43
The transition phase of an investor's

wealth cycle is when
44

funds is required by
What is the fourth step of financial
planning as per Certified Financial
Planner-Board of Standards (USA)?
45
recommendable in case the investment
horizon is long.
46
47
Initial Stage of life is known as

accumulation stage,
48
Which of the following will not require

financial planning-
49
Investors in_______________ stage prefer

long-term risky investments.
50
a 55 year old investor, who is employed

and earning well, can be said to be in-
51
An investor who gets sudden wealth

should ideally invest the sum
immediately into-
52
As per wealth cycle guide, during the

accumulation stage-
53
Persons need to get into the habit of

savings from "young unmarried" stage
itself.
54
if an investor keeps investing a fixed

amount at regular intervals, the average
cost of his purchases will always be less
than if he makes investment at irregular
periods-
55
Which of the following represents the

transition phase?
56
accumulation wealth cycle approach is

best for following class of investors-
57
Financial planninf involves-
58
Long-term investment commitments

should be started from-
59
To ensure that the right amount of

money is available at the right time to
meet the various financial goals of the
investor, one should make
appropriate____________.
60
A comprehensive financial plan set out

needs no further review or monitoring as
it is a one-time exercise.
61
Which of the following strategies is an

example of the combined approach of
rupee cost and value averaging ?
62
Asset allocation for a financial planner

means-
63
Flexible asset allocation schemes-
64
Financial plannuing for two Persons

within the same life-cycle stage should
not be same due to-
67
What do you mean by Portfolio ReBalancing ?

Financial planners and their clients
should focus onThe right life-cycle stage to start
investig in equity is-
68
________________ stage is parallel of

retirement stage of life-cycle.
69
Value averaging means-
70
71
Liquid assets are more required in

______________ stage of wealth-cycle.
72
Strategic assets allocation worked out

for an investor is based on
______________.
73
Risk appetite of an investor is not

required to be considered while
rendering investment advice.
65
66
74
75
76
77
78
Where would you place a 53 years old

executive planning to retire at age 60?
The transition phase of an investor`s
wealth cycle is when-
Financial planning isDuring reaping phase, the investor looks

forward to:
79
Financial planning comprisesThe accumulation stage covers the lifecycle stage(s)-
80
Risk appetite of an investor depends on:
81

scheme can be different between
investors in a scheme.
82
Financial planning is a long-term

exercise so it needs lonh-term
relationship betweem the investor and
the financial planner.
83
Financial planning allows a person-
84
Which of the following statements is

True?
85
How does a financial planner help his

client/
86
The constraint on financial planning due

to insufficient investable resources can
remedied to some extent by-
87
A "comprehensive financial" is a plan:
88
Tactical asset allocation is suitable for:
89
The following is a recommended

financial planning sequence-
90
Financial planning is relevant only for

high net worth individuals-
91
________is a phase when financial goals

are in the horizon.
92
A planned and systematic approach to

provide for the financial goals to meet
one's aspiration is-
93
Technical analysis guides the decision

on-
94
______________is a study of price and

volume whichbelieves that the price
behaviour of a share and its volume is a
reflection of investors sentiment.
95
The provcess of making changes in

asset allocation and specific
investments is known as-
96

growth, a greater proportion of
investment should be advised in-
97
The following is the least important skill

that a financial planner to possess
Option A
Determine the shape and risk tolerence level of the client
Define the clients goals
Set measurable financial goals
Re-evaluate the financial

situation periodically
Buy and hold on to investments for a long time
Liquidate poorly performing

investments from time to time
Risk Handling
Risk Approach
Risk appetite of the investor
Risk level of the investment

options being considered.
Investing funds to receive the higest rate of return

possible
Restoring to tax planning to

keep tases as low as possible
Childhood stage
Young unmarried stage
Gilt fund
Income fund
Increases
Decreases
Family information
Personal information
Family information
Personal information
Risk Appetizers
Asset Allocators
Comfort
Simplicity
Goal-oriented Financial plan
Comprehensive Financial plan
Gather Client data, define client goals
analyse & evaluate client's

financial status
Young Unmarried
Young Married
young married working couple
youn married couple, with one

spouse working
Low premium
Exclusions
childhood to pre-retirement
young married to married with

older children
Accumulation
Sudden wealth
Transition
Accumulation
Analyse and evaluae client's financial status
Establish and Define the clientplanner relationship
Distribution phase
Transition
Buying a home
Winning a sports gold medal
To become a billionaire
To achieve financial goals through

proper management of finances
Tax Advisor
Financial Planner
Allocating funds to asset classes (e.g.debt,equity etc.)
Allocating funds to individual

securities
Defining a client's profile and goals
Recommending appropriate asset

allocation
Decreasing the standard of living
Disciplining children
Studying financial management
Managing the risk of investment
The financial goals have been already met
The investor has retired
Affluent investors
Gather Client Data
Define Goal
Equity
Debt
A 40 years old doctor with substantial savings
A retiree who is currently

getting an income of 4,000
but would want Rs.10,000 a
month
transition
accumulation
accumulation stage
transition stage
stock market
bank fixed deposits
the client looks to build wealth
the clients' goals are

approaching
True
False
True
False
investor has no need for investment income
investor has a long-term

horizon
retirement stage
studying financial management
married with 2 kids

Managing the risks of
investing
transition
accumulation
savings
systematic investment plan
True
False
when the investor sets a target value for his investments

in an equity fund
when the investor invests a

fixed sum each month in a
liquid fund
how the investment should be

distributed between different
Determining how much is to be invested in each security
asset classes
Switches portfolio allocation between debt and equity

depending on market perception
Switches the scheme

objectives, depending on their
view on the respective
markets
different financial status
different needs and

aspirations
Allocating funds to asset classes (e.g.debt, equity etc.)
Balancing the portfolio to

ensure consistency as per
investment of the client
Allocating funds to individual
securities
Young Married
Married with young children
Reaping
Inter-Generational Transfer
Changing the asset allocation of the portfolio
Keeping the target value of investment constant by

investing the amount by which the investment value has Investing the same amount of
gone down
funds regularly
investing assets to receive the highest rate of return

possible
is a process aimed at
identifying financial needs of
a client and planning
investments that allows
meeting future financial goals
of the investor
reaping
transition
risk analyzing
risk assessing
sudden wealth stage
Reaping stage
the financial goals have been already met
the investor has retired
investing funds to receive the highest rate of return

possible
resorting to tax planning to

keep taxes as low as possible
Building wealth
cashing out
Childhood to married with older childern
recommending appropriate
asset allocation
young unmarried to
retirement
earning members in the family
employability
defining a client`s profile and goals
to become a billionaire
to achieve financial goals

through proper management
of finances
two investors with the same

Risk profile of a client remainns constant through the llife risk profile would always have
cycle
identical portfolios
by picking up cheques and application forms the client
by identifying client needs,

recommending the correct
asset allocation and providing
him service, that would help
investors in making
investments
decreasing the standard of living
disciplining children
Where various alternative financial plans are worked so

that if one doesn'swork other could be opted
where all the financial goals of

a person are taken
together,and the investment
strategies worked out on that
basis
low income earners
seasoned investors with large

investible surplus
define the client-planner relationship; Define client

Goals ; Evaluate financial status; Develop financial
plannimg recommendations
evaluate client financial

status; Define client goals;
Define client-planner
relationship; Develop financial
planning recommendations
distribution
Accumulation
Systematic Investment Plan
disciplined investing
whether to buy or sell
the right time to buy or sell
qualitave analysis
price-volume analysis
financial planning
stock selection
gilt funds
income funds
ability to build client trust
good knowledge of financial

and options
Portfolio rebalancing
Managing the clients

finances
Have realistic expectations
Gather and analyze data
Switch from poor

performers to good
performers
Risk Profiling
Risk Taking
Both of the above
None of the above
Planning for retirement with the

maximum income possible
Process of solving financial

problems and reaching
financial goals
Young married with childern Married with

stage
older
childern
stage
Liquidate good performing

Young married stage
Correct
Option
Fixed Deposits
Index Fund
Constant
Drastic change
Financial information
None of these
Emplyability
Financial information
Risk Profilers
Financial Plan
B
C
A
A
Feeling of helping the economy
Advance impact on society
Staretegic Financial Plan
Tactical financial plan
B
Implement the financial planning
recommendations
Monitor the financial planning

recommendations
All of the
above
E
A
Childhood
Married with young children
young unmarried person
a child
B
Co-payment
Pre-existing illness
A
young unmarried to pre-retirement
young unmarried to married with

older children
C
Transition
Inter-generational transfer
C
Sudden Wealth
Reaping
D
Gather client data, define client goals
Develop and present financial

planning recommendations and/
or options
B
Inter-generational phase
Accumulation phase
D
Planning for retirement
Saving for child's education
To invest in foreign countries
None of the above
B
Insurance Agency
Financial Advisor
B
A
Tracking stocks, which they feel have
potential
None of the above
Monitoring financial planning

recommendations
All of the above
B
A
B
B
Disciplined monthly budgeting
None of the above
C
Financing the client's investments
None of the above.
Financial goals are approaching
Investor suddenly gets a

windfall
Investors in the inter-generational

transfer phase
Investors in the distribution

phase
Establish Relationship
Monitor the Financial Planning

Recommendations
D
Liquid
Money Market
A
A
An old person wanting to transfer

all his wealth to his grandchildren
A young professional aged

26 years
distribution
reaping
distribution stage
inter-generational wealth
transfer stage
diversified equity schemes of

mutual funds
liquid schemes of mutual

funds
client cashes out
client feels the need to take

care of the next generation
investor cannot take risks
investor's financial goals are

approaching
about to approach retirement
young married
financing the client's investments
none of the above
reaping
inter-generational transfer
lump sum investment Planning
financial Planning
when the investor invests

regularly in a liquid fund,
sets a target for an equity
fund, then invests more in
equity fund if its value
declines and books profits
when the investor invests regularly when its value exceeds the
in a liquid fund
target value
how the investment should be

distributed between different
mutual funds having the same risk
profile
how a fund manager

distributes his investments
within a scheme
both of the above
none of the above
different socio-economic conditions
all of the above
Changing the asset allocation as

per the change in financial needs,
market conditions
Tracking stocks, which they feel
have potential
All of the above
None of the above
young unmarried
Pre-retirement
Transition
Accumulation
Investing in one lump sum amount
none of these
keeping taxes as low as possible
planning to retire with the

accumlation
inter-generational transfer
risk profiling
risk screening
accumulation stage
financial goals are approaching
transition stage
investor suddenly gets a
windfall
planning for retirement with the

process of solving financial

problems and reaching
financial goals
transferring wealth
All of the above
monitoring financial planning

recommendations
married with young children to preretirement
All of the above

young unmarried to pre
retirement
age
All of the above
to invest in foreign countries
None of the above
all wealthy investors have exactly

the same risk profile
the level of risk tolerance

for most of the clients is
fixed
buy researching and identifying

individual stocks or bonds for the
client's portfolio
by tracking the economy

and government policies
disciplined monthly budgeting
None of the above
where several plans are worked out

for all the members of the family
together
all of the above
retail investors
young investors
Develop financial planning

Define client goals; evaluate client recommendations; evaluate
financial status; Develop financial
client financial status;
planning recommendations Define Define client Goals ;Define
client-planner relationship
client-planner relationship
B
none of the
above
statements
is true
transition
None of the above
financial planning
savings
whether company's technical

personnel are adequately qualified
None of the above
fundamental analysis
technical analysis
timing the market
portfolio re-balancing
equity growth funds
liquid funds
familiarity with taxation and estate

planning
knowledge of the hottest

tips in the equity market
Chapters
Helping Investors with Financial
Planning
Planning

Planning
Planning
Planning

Planning

Planning
Planning
Planning
Planning
Helping Investors with
Financial Planning
Financial Planning

Financial Planning
Financial Planning

Financial Planning

Financial Planning

Financial Planning
Financial Planning

Financial Planning
Financial Planning
Financial Planning

Financial Planning

Financial Planning

Financial Planning

Financial Planning

Financial Planning

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Financial Planning
Financial Planning
Financial Planning

Financial Planning

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Financial Planning
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Financial Planning

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Financial Planning
Financial Planning
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Financial Planning
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Financial Planning
Financial Planning

Financial Planning
Financial Planning
S No
1
Question Details
Option A
A one time process
If you maintain a flexible ratio of asset

allocation, would you?

allocation periodically
Which of the asset allocation principles talks

about adjusting the percentages for each
group of investors after taking account of their
age ?
Fixed vs.Flexible asset

allocation.
Using telephone swithing

method to actively move
and out of different
schemes of different fund
complex
An investor in need of regular income should

not select ?
A bank deposits
4
5
The without profit insurance policy promices to The sum assured and the
pays ?
bonus declared by LIC from
year to year
6
Which of the following statements is not true
about mutual funds ?
Investing In MF divesify
portfolios.
Investors do not always look for returns while

investing in ?
Mutual Funds
If a financial advisor gives alternate plans for

investment , investor might get confused
11

A conservative investor will invest in
__________
Sudden Wealth
Diversified Equity
50 50
12
An Investor with Double-Income in Late forties

with no children Debt-Equity Portfolio would
be?
Which type of portfolio asset mix would you
recommend to your 55 year old client who
plans to retire at age 58? Choose a portfolio
that is closest match to the investors needs ?
40% in equity an 60% in

balanced funds
A retired investor needs to generate income for

a comfortable post retirement life.Which phase
is the investor in ?
Transition Phase
Your client has won Rs.1crore in "Kaun

Banega Crorepati".What would your
suggestion be?
Invest the entire amount

without any delay in "old
economy" stocks-since
they are back in favor
7
8
9
10
13
14
15
Childhood stage and transition stage are

examples of Wealth Cycle and Life Cycle?
The asset allocation that is worked out for an

investor based on risk profiling is called
Tactical Asset Allocation
16
17
How much equity would you suggest for a
single income family with grown up children
who are yet to settle down?
0.5
18
Young unmaried prefer regular recurring
deposit scheme except
PPF
Newly maried
Most individuals invest in life insurance

policies for
Risk protection
The amount an insurance company would pay

to the nominee if a policyholder died is known
as the
Premium
Why should one buy an insurance policy
It gives high current returns
If an investor as an earning having very less

income should invest in equity - Debt ratio as
50 : 50
Flexible Asset Allocation
According to strategic asset allocation, a 60

year old retired person from a government job,
would invest in
60% Debt, 40% equity
28
A person working in BPO, the planner would

advice to invest in
Equity
40
29
The Inter-generational transfer phase should

not be postponed beyond _________ years of
age
30
Regular money is required during the

_____________ phase.
Reaping
During the sudden wealth phase, it is advisable

to initially block the money by investing in a
________ scheme
equity
Term life insurance policies are the cheapest

form of insurance
Money back life insurance policies help with

regular inflow of cash at periodic intervals
34
Providing funds for a daughter's marriage is an

example of

50:50
35
An Investor with Double-Income in Late forties

with no children Debt-Equity Portfolio would
be?
19
20
21
22
23
24
25
26
27
31
32
33
Which of the following lets an investor book Fixed Rates of Asset Allocation
profits in rising market and increase holdings
in a falling market
36
The strategy advisable for an investor to
maximise investment return in the long run is
Buy and hold on to

investments for a long time
In NPS the investor can invest in life cycle fund
To satisfy a young investor's need for growth, a

greater proportion of investment should be
advised in
Gilt funds
Which of the following is physical assets
Real estate
41
Risk appetite of an investor can be

understood through:
risk analysis
42

types of equity funds is advisable for
investors-
in distribution phase
43
Retired investors should-
not draw down on their

capital
37
38
39
40
Has to be done in once in

fortnight
allocation very periodically
An indefinite continous
process
Generally avoid portfolio
rebalaning
Has to done once in a year

Keep fixed percentages of equity
& debt investments at all times
Strategic asset allocation.
Tactical asset allocation
Benjanin Graham's 50-50 Balance
Using telephone swithing

Using telephone switching Using telephone switching method
method to actively move and method to atively move and
to atively move and out of the
out of different schemes of
out of the same scheme of
same scheme of the different
same fund complex
the same fund complex
fund complex
A debt fund
An Equity growth fund
PPF
Certain sum of money to the

survivor of the policy taken in
the event of death within the
term of the policy
None of the above
BothA and B
Investing In MF offer liquidity
Inesting In MF increases
transaction cost
MF offer professional
management
Real Estate
Gold
Bank Deposits
Transition stage
Mid Cap
Wealth Cycle
Small Cap
Life Cycle
Arbitrage Funds
60 40
30 70
70 30
40% in equity an 60% in Debt 20% in equity funds, 20% in 10% in moonthly income schemes
funds
liquid funds , and 60% in
debt funds
Distribution or reaping Phase
Intergenerational transfer
Phase

Invest in very safe liquid
immediately in an Equity
investment options and take
Index Fund-since the index is the time needed to work out
a historic low
the financial plan
Accumulation phase
Invest immdiately in IT stocks,

since the valuations are now
considered to be attractively low
Fixed Asset Allocation
Strategic Asset Allocation
0.35
0.75
0.4
NSC
Bank Deposits
Betting on horse (as a regular income)
Married with older childern stage
Married with 5 depended

children
Newly married both are working
Tax benefits
Easy liquidity
High returns
Sum assured
Face value
Real value
It gives capital appreciation over

its term
It should be bought due to the

need for insurance and not as
an investment
All of the above
25: 75
70 : 30
20: 80
Maried with 2 Children stage
Just Maried
Call centre employee
Strategic Asset Allocation
30% liquid, 60% debt and 10%

equity
70% debt and 30% equity
100% debt
Debt
Entire corpus in Equity
Large amount in equity throgh SIP
35
45
50
Transition
Accumulation
Sudden Wealth
liquid
debt
life insurance
Comprehensive Financial plan
financial goal
none of the above
60:40
30:70
70:30
0
0
Flexible Ratio of Asset Allocation
Investment without any asset

allocation plan
Buy and hold Strategy
Liquidate poorly performing


Switch from poor performers to good

performers
Income funds
Equity growth fund
All of the above
Gold fund
Real estate fund
Gold ETF
evaluation of financial status
risk profiling
evaluation of socio-economic
conditions
in accumulation phase
in transition phase
who are wealth preserving

affluent individual
not invest in securities, which

bear risk of capital erosion
continue holding a major

portion of their holding in
equity growth funds
never invest in equity
Correct
Option
C
Chapters

B

D

D

C
B
A
A

C
C

A

C
B
D
B

D
D
B


C
Q. No
1
2
Question Details
Option A
The Offshore Fund is also known as Feeder Fund
The 'Most Investor Service Centre' are offices of
Trustee
RTA
Most of the Arbitrage Funds take Contrary Position

of Futures and
Option
Custodian
Fund
Accountant
3
Providing Implement To develop All of These

Training to
the
the Cadre
all
Certificatio of Agent
Distributor
n
Programme
4
5
6
PAN and KYC are mandatory in Ant Mutual Fund
The SAI is relevant for all the schemes offered by

the same Mutual Fund
A
At
Will not get
Fixed
Percentage Investment
any
Percentage
of net
amount
Commissio according
asset value
n
to SEBI
of unit
Regulations
holder
.
7
8
Differed Load is only charged in close end schemes
11
He is
He is
He is
Both B & C
redeeming redeeming investing
the
within 9
within 3
investment
months
months
within 9 after record prior to the
months
date of
record
Dividend
Date of
Dividend
Remittance can be done in Mutual Fund through
RTGS and
IFCR
MICR
NRE and
NEFT
NRO A/C
9 am to 3
24 hrs
10am to 4
None of
pm
pm
These
Addendum Addendum Addendum Not issue
in any 2
in one
any notice
news paper
English
news paper
and one
local news
paper of
AMCs
head office
9
10
The investor cannot set off the Capital Loss if

If there are any changes in the fundamental
attributes of a scheme, the AMC must issue
12
13
14
15
If an Indian MF sectors sees potential in making

investment in China, it will tie up with chinese
fund. In India this will be known as Feeder, while in
China it will be called
China
made
portfolio
Arbitrage
fund
Host fund
Offshore
fund
Investment objective is closely linked to
Scheme
Option
Plan
SIP
The useful downloads of all circulars up to last

year, which are updated on the website of SEBI, are
known as
Circular
Master
circular
Addendum All of these
If the explanation is not sent to AMFI in case of any Cancels the

breach of conduct by then distributor, then AMFI
ARN of
distributor
Can
empanel
the
distributor
Can cancel
Suspend
the ARN of
the
that
distributor
distributor
and inform
to all AMCs
16
17
18
Offer Document of MF is approved by SEBI
An institutional distributor builds reach through
Employees
Agents
In audio and video advertisements, the disclaimer

clause must
Display on
screen for
5 seconds
An investor invested in Gilt Fund for Rs 20,000 for

a period of 18 month and at the time of
redemption the value of the fund was at Rs 50,000.
Find the capital gain tax (ignoring the indexation)
Rs 3,000
Rs 6,000
Investor needs to pay wealth tax if he is investing

in gold ETF
IPIN and
user name
to existing
investor
only
IPN to
existing
investor
only
Which of the following has the least risk in the

Mutual Funds
Money
market
mutual
fund
Equity fund
Rating and ranking is one and the same thing
SubAll of these
brokers
Need to
Both a and Need not
cover 50%
b
to be
of screen
disclose
19
20
21
Nil
None of
these
IPIN and
No need
user name any facility
to all new
for doing
investors
the
transaction
22
Growth
fund
Gilt fund
Inflation
risk
Interestrate risk
Fundamental Analyst is also known as Chartist
Reinvestm Default risk

ent risk
1
0
Who amongst the following will help to find the

perfect company to invest
Fundament
al Analysis
Technical
Analysis
Stock picking is
Top Down
approach
Passive
Fund
Manager
Fundament
al approach
23
24
25
26
27
28
Tactical
fund
manager
Bottom-up
approach
Technical
approach
Foreign
Institutiona
companies l investor
Foreign
Individual
The trust
where,
more than
60% if the
beneficial
interests is
held by NRI
AAA*
A++
29
30

Unit Capital is
31
AAA
ABB
No. of
No. of units No. of units NAV * face
units* face outstandin
issued*
value
value
g* face
current
value
market
price
Which of the following investment products do not

give guarantee for return or capital
Bank
deposits
All fund have significant similarities except one
MIP
Balance
fund
Gold
Crops
MIP is a debt fund
Trust
Company
Units are repurchase in closed end fund at
Higher
than NAV
Lower than
NAV
Board of
trustee
Board of
directors
Updated
NAV
trust deed are contract between Trustee and

___________
KYC application form are accepted at_______________
Sponsor
AMC
SEBI
Investors
Point of
Service
Point of
Acceptance
RTA
NSDL
Appointment of distributor by fund is basis

between distributor
Though AGNI is mandate, there is no penalities in
case of breach of code.
AMC
Investor
SEBI
AMFI
CRISIL
CompBEX
CRISIL
CompBEX Composite
Bond Index
CRISIL
LiquiFEX
CRISIL
MIPEX
NSE's
MIBOR
CRISIL
Banking
Index
Both B and
C
CRISIL
Debt
Hybrid
Index
Benchmark for MIP
CRISIL
CompBEX Composite
Bond Index
CRISIL
MIPEX
CRISIL
STBEX Short-Term
Bond Index
CRISIL
Debt
Hybrid
Index
SEBI has stop charging
Initial Issue
expenses
Exit Load
Deffered
Load
Manageme
nt fees in
liquid fund
SEBI has banned Entry load in Mutual Fund from

1st August, 2009
32
33
34
35
Public
National
Provident
Savings
Fund (PPF) Certificates
(NSC)
36
37
38
Units of a
mutual
fund
Capital
protected
fund
Industrial
metal
sector fund
Financial
intermediar
y
NBFC
Real estate
Whatever
At NAV
the price
price only
higher than
NAV or
lower than
NAV
Trust
39
Board of
directors of
the
company
Maintain Issuing and Sending

the records
rethe Annual
of the
purchasing
account
investor transaction statement
of units
of Mutual
Fund
40
41
42
43
44
45
46
47
48
49
50

YTM
Credit
rating
In equity
Except
fund upto 2 than equity
decimal other funds
are
rounded
offupto 4
decimals
Yield Matrix
Yield
Quality
In liquid
In debt
fund upto 4 fund upto 4
decimals
decimals
and other
than liquid
upto 4
decimals
51
52
STT is leived on Re-purchase of unit from mutual

fund
Mutual fund is liable to fare for
0.125%
0.015%
0.25%
0.017%
Income
Dividend
Capital
Gain
Dividend
Distribution
To convert the physical into Demat, investor must

approach to
Depository
NSDL
Depository
Participant
CDSL
An investor asks you in what order he should list

the following schemes,going from the scheme with
the least risk to the one with the highest risk
-1.balanced fund, 2.A stock index, 3.A Liquid fund,
4.Pharmaceutical sector fund.
1,2,3,4.
1,3,4,2.
3,1,2,4.
2,3,1,4.
Market
specific
risks
Fluctuation
s of a fund
result
around a
mean level.
53
54
55
56
Sector
Company Credit risk
specific
specifis
risks
risks
Sensitivity Weighted
Risk
of a funds
average premium of
returns to P/E ratios
the fund.
changes in
of all
market
stocks held
index.
in portfolio.
57
Which of this is not a part of high-risk funds ?
58
Which of these strategies is best to reduce
company specific risk ?
Aggressive
Sector
Income
Specialized
growth
funds
funds
funds
funds
Holding
Holding
By hedging
None of
largely
more
with
above
diversified number of futures an
portfolio. sectors in a options.
portfolio.
59
60
For which of the following funds would you

consider average maturity as an important factor
in selecting the right one for the investor ?
Which of this is not a criteria for consideration
while selecting equity funds ?
A debt fund A Balanced

fund
Classify the
schemes
Evaluate
past
returns
Money
market
fund
Choose
Strategies
61
62
Selecting a Selecting a Selecting a

money
bond fund equity fund
market
is easier
is easier
fund is
than
than
easier than selecting a selecting a
selecting a
money
money
bond or
market
market
equity
fund
fund
fund.
Both 1& 2
above
Reviewing
funds
structural
charateristi
cs
None of
above
Which of this statement about balanced fund is

true ?
Balanced
Balanced
Balanced
Balanced
fund is
fund is
fund is
fund is
exactly
exactly
rarely
exactly
50% equity 40% equity
exactly
60% equity
and 50%
and 60% 50% equity and 40%
debt.
debt.
and 50%
debt.
debt.
For young investors doing retirement planning ?
Monthly
Long term
Money
Income
bond funds
market
schemes
are
funds are
are
appropriate appropriate
appropriate
None of
above
Why should a fund distributor become a financial

planner ?
Because of Because of Because of

Strong
Limited
the kind of
Potential
supply of the money
for such
financial
this
services
planner
business
offers
Only 1&2
63
64
65
Its the
Its the
Both the None of the
duty of the financial clients and
above
client to
planners
financial
set
duty to set planners
mearsurabl mearsurabl
should
e financial e financial
together
goals
goals for
set
his clients mearsurabl
e financial
goals
Risk tolerence is ?
Is the
Is the
Is the
None of the
abnormal
extent of normal loss
above
loss, which
loss the
of an
the
client can invesment
investor is
tolerate
category
ready ti
psychologi
incur
cally and
financially
66
67
A one time
process
68
69
An
indefinite
continous
process
Has to
done once
in a year
Which of this is not a step in the financial planning Determine Define the
Portfolio
Managing
process ?
the shape
clients
rebalancing the clients
and risk
goals
finances
tolerence
level of the
client
Which of these is not the clients responsibilities ?
70
Has to be
done in
once in
fortnight
Set
measurabl
e financial
goals
ReHave
Gather and
evaluate
realistic
analyze
the
expectatio
data
financial
ns
situation
periodically
The Strategy advisable for an investor to maximize

investment return in the long run is?
Buy and
Liquidate
Liquidate
Switch
hold on to
poorly
good
from poor
investment performing performing performers
s for a long investment investment
to good
time
s from time s from time performers
to time
to time
71
Investment When to
Disgarding
s for the buy, sell or the nonsame
switch from performers
amount at
one
and
regular
scheme to
keeping
intervals
another
the good
performers
All of the
above
72
If you maintain a flexible ratio of asset allocation,
would you?
Rebalance Rebalance Generally Keep fixed

the
the
avoid
percentage
Debt/Equit Debt/Equit
portfolio
s of equity
y allocation y allocation rebalaning
& debt
periodically
very
investment
periodically
s at all
times
73
Which of the asset allocation principles talks about
Fixed
adjusting the percentages for each group of
vs.Flexible
investors after taking account of their age ?
asset
allocation.
Strategic
asset
allocation.
Tactical
asset
allocation
Benjanin
Graham's
50-50
Balance
Using
telephone
swithing
method to
actively
move and
out of
different
schemes of
same fund
complex
Using
telephone
switching
method to
atively
move and
out of the
same
scheme of
the same
fund
complex
Using
telephone
switching
method to
atively
move and
out of the
same
scheme of
the
different
fund
complex
The
The
The
investor
investor
investor
wants
has large
has
better
capital,
identified a
returns
knowledge
bullish
than those
and
phase in
offered by resources
the stock
mutual
for
market
funds
research
The
investor
wants to
invest for
the long
term
74
Using
telephone
swithing
method to
actively
move and
out of
different
schemes of
different
fund
complex
75
Direct investments in stock markets can be a
better option over investing through mutual funds
if ?
76
77
An investor in need of regular income should not

select ?
A bank
deposits
A debt fund An Equity

growth
fund
PPF
The without profit insurance policy promices to

pays ?
The sum
assured
and the
bonus
declared by
LIC from
year to
year
Certain
None of the BothA and
sum of
above
B
money to
the
survivor of
the policy
taken in
the event
of death
within the
term of the
policy
78
Which of the following statements is not true
about mutual funds ?
Investing In Investing In Inesting In

MF offer
MF divesify MF offer
MF
professiona
portfolios.
liquidity
increases
l
transaction manageme
cost
nt
Investors do not always look for returns while

investing in ?
G-Sec papers are normally issued on a ?
Mutual
Real Estate
Gold
Funds
Short term
Medium
Long term
basis
term basis
basis
79
80
81
82
83
Relief bonds issued by government are?

Which of these instruments is not issued by the
corporates ?
Interval Funds are
84
Highly risky
Moderate
Vertually None of the
risky
risk free
above
Fixed
Commercia Debentures
Bonds
Deposits
l Paper
Largely
Largely
Always
None of the
opencloseopenabove
ended but ended but
ended
convert
convert
into close- into openended at
ended at
preprespecified
specified
intervals
intervals
NAV after dividend payment is called
Reinvestment
Cum
Dividend
86
Individual Investor cannot pledge their units
87
If a financial advisor gives alternate plans for

investment , investor might get confused
Redemption is
NAV minus
exit load
NAV plus
exit load
85
88
Bank
Deposits
Very short
term basis
ExDividend
None of the
above
NAV Plus NAV minus

entry Load entry load
This
KYC of
KYC of
KYC is not
statement
minor is
guardian is mandatory
is true
mandatory
require
in MF
incase if
investment
is in minors
name
89
90
91
92
Who enables the collection and payment of

investments?
In India the first mutual fund was established in
Registrar
SEBI
AMFI
RBI
Sudden
Wealth
1963
Transition
stage
1964
Wealth
Cycle
1987
Life Cycle
1993
Distributor while getting empanelled also fill self

declaration stating that?
They
All
Shall abide None of the
should
employees with Sebi
above
receive
who are
code of
commissio engaged in
ethics
n on time
the sale
and
distribution
shall obtain
ARN
Mutual Funds shall be recommended as
A get rich Investment Guarantee

Direct
quick
s to
d returns investment
investment
achieve
in capital
option
long term
market
goals
A kind of
When the
Black
Opposite of
Offer
market can marketing
White
Document behave in a
Swan
manner not
seem in
the past
Investments in an Equity Linked Savings (ELSS)
Entitles the Requires Automatica All of these

investor to
the
lly leads to
claim
investment investment
income tax
to be
in equity
rebate
locked in
shares
for a period
of 3 years
Which of the following statement is true?
Growth and Stability is Both 1 & 2 None of the

Risk are
associated
above
associated with debt
with equity
funds
funds
93
94
95
96
97
98
Dividend distribution tax paid on money market

instruments is ?
99
100
The new platform for trading in NSE and BSE are

called as
0.25
NIL
25%
20%
+surcharge +surcharge
+cess
+cess
Complianc Custodial Trust deed Investment
e Report agreement
report of
the fund
manager
NEAT MFSS
BSE Star
Mutual
Fund
Both 1 and NEAT MMF

2
Both 3 and
4
Cost
Only 1&3
Q. No
Question Details
Option A
Switch is
Not allowed in mutual fund
Is equal to a purchase
transaction
Is a repurchase from one

scheme and purchase in
another scheme with 1
request
If investor has made a

subscription in Rel Gilt
Fund at 2:30 pm with a
local cheque which NAV
would be applicable?
Nav of the same day of

application
Nav of the immediate next

working day
Nav of the same working

day.
Direct credit of bonus units
Making available screen

based platforms for purchase
and sale of Mutual Fund
Schemes
Single point of address

change
Selected branches/Offices
of mutual fund registrars
and large distributors
documentation?
Point of Sale
Point of Service
Point of Acceptance
NRI
HUF
FII
Time stamping is
mandatory at
All offices of AMC
Offices of AMC and point of

acceptance wherever
applications are accepted
Custodians Office
At the time of turmoil gold

prices
Changes Randomly
Goes down
Goes upwards steady
Stock picking is
____approach
Top Down Approach
Bottom up Approach
Growth Style
7
8
The difference between the

yield on Gilt and the yield
on a non-government Debt
security is called
YTM
Yield Spread
Call to Yield
The head of expenses are

decided by
SEBI
AMC
Trustees
A conservative investor will

invest in __________
Diversified Equity
Mid Cap
Small Cap
_____ is used to measure

fluctuation of fund
Sharpe Ratio
Treynor Ratio
Standard Deviation
_____ is not a credit rating

agency
Morning Star
CDSL
Credence
In case of post-NFO
investor should receive a/c
statement in _____ ?
____ fees cannot be charged
to a scheme
10 working days
5 working days
7 working days
Service Tax
Listing fees and Depository

Fees
Registrar and transfer

fees
10
11
12
13
14
15
If an investors regular
income improves then his
risk appetite will also
Increase Gradually
Increase rapidly
Increase slowly

international asset class?
____ is an approach to
understand the risk
appetite of investor?
Real Estate
Equity
Debt
Risk Handling
Risk Approach
Risk Profiling
During the recessionary

situation in ______ equity
markets in many countries
fared poorly, but gold
prices went up?
2007-09
2008-10
2009
The distribution of an
investors portfolio
between different asset
classes is called _____?
Asset Allocation
Asset Management
Asset Framework
As the person grows older,

the debt component of the
portfolio keeps increasing.
This is an example of ______
Model Portfolios
_______ is suitable only for

seasoned investors
operating with large
investibles surpluses?
Model Portfolios
16
17
18
19
20
21
22
Investment advice is
dependent on
understanding
Risk appetite of the investor
Risk level of the investment

options being considered.
Both of the above
SAI needs to be updated

regularly by the end of
______________
As per SEBI regulations,
every application form
needs to be accompanied
by
every 3 months
every 6 months
every 3 months of every

financial year
SID
SAI
Offer Document
KIM does not include which

of the following
KIM needs to be updated
every
Post the initial update, the
SID needs to be update
___________
For a scheme launched in
March 2010, the first
update of the SID would be
due by
Risk profile of the scheme
Bench Mark
Rights of Unit holders
3 months
6 months
12 months
every 3 months
every 6 months
every 9 months
Apr-10
Jun-11
Jun-12
Any change in the scheme

needs to be
mentioned in an addendum
advertised in a national
english newspaper
mentioned in the website

of the mutual fund
3 years
5 years
3 financial years
31
SID contains the condensed

financial inforamtion of the
schemes launched in the
last ____ years by the AMC
32
Clearing the certifying

examination and getting
SEBI's permission are
mandatory before a
person/ institution can
start selling mutual funds
23
24
25
26
27
28
29
30
Though CIO has investment

right it plays limited role in
investing in market
If investor buy 7%
debentures and companies
rating came from AA to
AAA In what price will
investor sell
At premium
At Discount
At par
In which of the following

NFO details will be
mentioned
Can a mutual fund invest as
per the board resolution,
though not as per the rules
of Memorendum of
Association
KIM only
SID
SID and KIM
NFO for ELSS is for
15 days
Monthly
30 days
Code of conduct of AMC

given in which schedule
First Schedule
Fourth Schedule
Fifth Schedule
SEBI stop charging.
CDSC
RTA
What would be the NAV if

an investor invest in a gilt
fund Rs. 1 crore at 3:30 PM
by a local cheque.
Same days NAV
NAV of realisation date
NAV of previous day of

realisation
33
34
35
36
37
38
39
40
The investor also has the

option to convert the
demat unit into physical
form is
Rematerialisation
Dematerialisation
Demat
Individuals who want to

bulid their wealth and are
ready to take the risks
are ?
Old investor
Investor who is in Transition

phase
Wealth creating affluent

investors

not a commodity
TDS on Dividend in Mutual
Fund is
Food crops
Gold
Currency
25%+surcharge+cess
12.5%+surcharge+cess
20%+surcharge+cess
Custodian
SEBI
AMFI
46
If an Investor is investing
Rs. 10 Lacs at 4.00 PM in
NFO. NAV on that day is Rs.
15. Find the units alloted to
the investor
66666.6666666667
100000
66667
47
If an investor has given the

request for redemption of
1000 units at the NAV of
Rs. 12 and Face Value is Rs.
10. Find the amount that
investor will receive
Rs. 12000
Rs. 12500
Rs.10000
Dividend tax Authorised

Association
Double Taxation Avoidance

Agreement
Double Taxation
Acceptance Agreement
41
42
43
44
Who handles the securities
of Mutual Fund
45
DTAA means,
48
Withholding tax applicable

to the non residential
investor is ______ according
to DTAA
Lower of the rate
Higher of the rate
Same rate
Investing funds to receive

the higest rate of return
possible
Restoring to tax planning to

keep tases as low as
possible

with the maximum
income possible
An Investor with DoubleIncome in Late forties with

no children Debt-Equity
Portfolio would be?
50 50
60 40
30 70
Asset Class C
Asset Class E
The interest is tax free
The rate of interest is

12% p.a.
Post-tax returns are

attractive
Liquidity is rather low
10.50%
0.08
Between 100 and Rs.6000
Between Rs.600 and

Rs.1000
49
50
51
52
53
54
The NPS consists of

Asset Class G
--------------------------Which of the following
50% of the balance of the
about public provident
4th year can be withdrawn in
fund (PPF) are untrue
the 7th year
The interest is tax-free
untrue for Public Provident
Fund Schemes
Finance Acts of 2000 and
0.12
2001 have reduced tax-free
interest on Public
Provident Fund to
55
56
57
Annual contribution to
should be
Rs.10000.00
Risk premium of a fund as

Risk premium of a fund as
Risk premium of a fund
difference between the funds
difference between the
as difference between
average return an risk free funds average return an risk the funds average return
return divided by beta of the
free return divided by
an risk free return divided
fund.
standard deviation of the
by P/E ratio of fund.
fund.
Low risk (conservative

portfolio) consists of ?
Portfolio 40% Growth an

income funds+ 30%
Govt.Bond funds
+20%Growth funds +10%
index funds.
Which type of portfolio

asset mix would you
recommend to your 55 year
old client who plans to
retire at age 58? Choose a
portfolio that is closest
match to the investors
needs ?

balanced funds
A retired investor needs to

generate income for a
comfortable post
retirement life.Which phase
is the investor in ?
Transition Phase
50% Government securities 25% aggressive growth

funds + 50% Money Market funds +25% international
Funds.
funds 25% Sector funds
+ 15% High Yield Bond
funds + 10% Gold Funds.
58
59

Debt funds
20% in equity funds, 20%

in liquid funds , and 60%
in debt funds
Distribution or reaping Phase Intergenerational transfer

Phase
60
Your client has won
Invest in very safe liquid
Rs.1crore in "Kaun Banega
without any delay in "old
immediately in an Equity
investment options and
Crorepati".What would your economy" stocks-since they Index Fund-since the index is take the time needed to
suggestion be?
are back in favor
a historic low
work out the financial
plan
61
62
Which of the life cycle

stage is mention here
"couple
becomesinterdependent
with shared responsibility
for the achivement of
future goal" ?
Childhood stage
Young married stage
The rupee-cost averaging

talks about ?
Investments for the same

When to buy, sell or switch

from one scheme to another
Disgarding the nonperformers and keeping

the good performers

true about PPF?
Childhood stage and
transition stage are
examples of Wealth Cycle
and Life Cycle?
Assured Tax free interest
Interest is paid every year
Can be withdrawn after a

year
Tier I pension account is

withdrawable
The asset allocation that is
worked out for an investor
based on risk profiling is
called
How much equity would

you suggest for a single
income family with grown
up children
who are yet
to settle down?
0.5
0.35
0.75
The Lead of family in the

HUF is
Karta
inherter
Godfather
63
64
65
66
67
68
69
Which of the following can

invest
Foreign citizen
Any entity that is not an

Indian resident
OCBs which is managed

by foreigners.
The investor needs to

attach the doccuments
from Notary Public &
Gazeted officer for KYC
documentation
The place of Know Your

Client documentation is
POS PointOf Service
POA Point Of Acceptance
CDSL
Which is the having low

risk
Income Fund
Growth Fund
Money Market Mutual

Fund
On which of the following

shall an investor invest for
high returns
Bank F.D.
Corporate Bond
Debt Securities
Only primary holder needs

to be KYC doccumented in
case of any one or survivor
Micro SIP is not available

for
Minor
Individual
70
71
72
73
74
75
76
NRI
The KYC documentation has

to be done only with
CVL
CDSL
ONCE
A female member of the

family can karta in HUF
The investor an give post

dated cheque for additional
purchase
Remittance can be quickly

done with
If an investor dealing with
12000 units & company
declared 1:3 bonus. How
much units investor will get
RTGS
NEFT
ECS
400 units
4000 units
Nil
1250 units.
833 units.
417 units.
82
Dubey ji invested Rs.10000

at NAV of 12 on 1st
july,2008. The MF declared
1:2 bonus on 31st
December 2008. How much
extra units Dubeji will get
Rs.15000/-
Rs.14850/-
Rs.14000/-
83
If the investor has 1,000

Units in aggressive growth
fund. He has given the
redemption on 1st
July,2008 at the NAV of
Rs.15/- the MF charge 1%
exit load find out the
amount he will get.
77
78
79
80
81
Signatory Authority is
mentioned in Board
Resolution
Whether the company

eligible to invest in mutual
fund is mentioned in
If an investor given the
request in an equity fund
for purchase at 2.30pm
which days NAV will be
applicable
Memorundum & article of

assoiation
Signatory Authority
Board Resolution
Same Days Nav
Next Days Nav
Previous Days Nav
If the investor make the

online inestment which
NAV will be applicable
According to the time

mention in his PC.

mention in web browser.

mention in web server
If an investor give
outstation payout of
Rs.50,000/- in MIP which
days NAV will be
applicable.
If an investor
made the
Preceding Days NAV of next

working Days.
Preceding Days NAV of Next

working Day of fund
realisation
Following Days NAV of

application day
Thursday's NAV
Friday's NAV
Wednesday's NAV
same days NAV
Preceding Days NAV
Following working days

NAV
An AMC launches a new

scheme in the market,
based on
The performance of its last

scheme
Inputs from the CIO on the

investment objectives that
would benefit the investor
Inputs from the CMO on

the interest in the market
for the investment
objectives
The offer document is

prepared by the Trustees
84
85
86
87
88
89
90
online transation of Rs.2

lac at 2.30 am on
wednesday in FOF which
days NAV will be
applicable.
If an inestor make the
inestment request of
Rs.50,000/- at 2:30pm in
Gilt fund which days NAV
will be applicable
91
92
93
94
95
The Offer Document is

prepared by the Trustees
and approved by the AMC
The Offer Document is
prepared by the AMC and
approved by the Trustees.
An SID canot be issued in
the market until and unless
it has been approved by
the Trustees.
Observations made by SEBI

on the Offer Document
need to be filed in a
separate document.
96
An Offer Document has to Both the statements are true
be filed with SEBI; Any
advertising campaign taken
for that particular scheme
need to comply with SEBI's
advertising code.
Both the statements are

wrong
Only First Part
Partially False
Completely True

wrong
Only Second statement

False
99
NFO Open Date and

Partially true
Scheme Re-open date are
one and the same thing.
NFO close date is the date Both the statements are true
after which the units will
not be available for sale;
NFO close date is the date
after which the units will
be available for sale at the
prevailing NAV.

wrong
Only First Part
100
Close ended schemes have Both the statements are true

and NFO open date and
NFO close date; Close
ended schemes do not
have Scheme re-opening
date.
97
98
D
None of the above
None of the above
All of the above
All of the above
Foreign citizen
All of the above
Remains Constant
Blended Style
Floating Rate
Stock Exchange
Arbitrage Funds
Alpha
Crisil
3 working days
Software development
fees
Remain constant
Gold
Risk Taking
None of the above
None of the above
None of the above.
None of the above.
None of the above
every 6 months of every

financial year
KIM
Loads & expenses

need based
every 12 months
Mar-11
All of the above
since the inception
None of the above
Does not have in

relation.
SAI
Date of closure of NFO

Seventh Schedule
Recuring expenses
NAV of next days
Remat
Wealth preserving
affluent investors
Art
NIL
Fund Accountant
60000
Cannot say anything

Double Taxation
Authorised Agreement
None of the above
Either higher or lower of

the rate
Process of solving
financial problems and
reaching financial goals
70 30
Life Cycle Fund

Contribution upto
Rs.60000 are eligible for
tax rebate
None of the above
0.11
None of the above
The fluctuations of funds

return around a mean
level.
100% Liquid fund
10% in moonthly income

schemes
Accumulation phase
Invest immdiately in IT
stocks, since the
valuations are now
considered to be
attractively low
Young married with

childern stage
Married with older childern

stage
All of the above
All of the above
Strategic Asset
Allocation
0.4
None of the above
OCI card holder.
CVL
Index Fund
Equity Shares
HUF
POS
Both A&B
16000 units
416.67 units.
Rs.14810/-
Appliation form.
Next working Days Nav
According to investment
Amt. & time mention in
web server.
Following Days NAV of
Preceding Day of
application date.
Tuesday's NAV
Next Days NAV.
Only b & c
Only Second Part
Completely False
Only Second statement

True
Only Second Part
Q. No
1
4
5
6
Question Details
Option A
Any NFO launched by the AMC can remain

open for a maximum of 15 days.
Allotment of units or refund of money
needs to be done as per the time
mentioned in the Offer Document of that
particular scheme.
Fundamental aspects of a scheme do not

include which of the following
Address of the
Custodian
Term
Investment
objective

The offer document is a legal document
Partially true
Partially
False
Completely
True
The offer documents becomes redundent

1
0
post the investment
Principle of utmost good Principle of Principle of
faith
indemnity
caveat
investments
emptor
7
principles
Ubraime fides
Principle of Principle of
indemnity
Buyer
beware

information about the mutual fund that is
offering the scheme.
Individual AMCs create their own SID and

SAI documents.
SAI and SID are applicable on specific
schemes offered by the AMC
If an investor wants income and can't
bear risk at all, then he should opt for
In legal parlance, SID and SIA are two
separate documents
investment
Offer Documents
need risk
SEBI approval
Gilt fund
1
Income
fund
0
9
10
11
12
13
14
15
16
17
18
Offer Document need to be vetted and

verified by SEBI
The Draft SID is available for viewing in
the AMFI's website for 21 days.
incorporated into the Draft SID, then it
needs to be hosted on AMFI's website two
days before the issue opens.

interest rates for similar maturities are
11% will sell
Above par
Below par
If an investor taking high risk appetite for

long term investment and high capital
appreciation in which type of fund will
investor invest
Real estate
Fixed
Deposits
At par
19
20
Sector fund Debt fund
Young unmaried prefer regular recurring

deposit scheme except
PPF
NSC
Bank
Deposits
Which of the following is the safe

investment
PPF
RBI Relief
Bond
NSC
23
The maturity period of RBI Relief Bonds is
5 years
6 years
7 years
24
7 years
6 years
5 years
25
The current yield on Indira Vikas Patra

works out to
The annual yield on RBI Relief Bonds is
10.50%
0.11
0.1
Indira Vikas Patra is an investment

product popular with
Rural investors
Find NAV. Investment amount is Rs. 100

crore, deivedend accrued but not
received 207 crore, bills payable Rs. 55
lacs. No. of units issued to the investor is
1 crore
Rs. 371.5
Rs. 307
Rs.99
NAV of Mutual Fund
Mutual fund do not

received income in
interest
Interest
income is
added to
the NAV
Interest
income is
subtratced
to the NAV
Mutual fund distributor get commission

be selling mutual fund as a product and
stock broker also get commission by
selling same product.
Photo identification
Photo debit
Photo
card
credit card
Which of the following is international

agency
An investor will get maximum exposure to
gold be investing
CRISIL
Morning
Lipper
Star
Gold Fund Gold Sector
Fund
21
22
26
9.50%
9.5%
8.5%
before tax before tax
Investors in
Urban
high tax
investors
bracket
27
28
29
30
31
32
33
34

Gold ETF
Individual only
Only HUF
Individual
and HUF

interest rates for similar maturities are
11% will sell
At premium
At discount
At par
In which commodity mutual fund cannot

invest
Mutual fund offer wider range of portfolio
than NPS
If number of dependant increases in
family, risk appetite
Gold
Art
Property
Increases
Decreases
35
36
37
38
39
Constant
Age bar of risk appetite are under-
Family information
Rs. 70,000/-
AMFI
40
41
42
Personal
Financial
information information
Rs.
50,000/SEBI
Rs.1,20,00
0/AMC
Existing investor
New
investor
Both new
and
existing
investor
Newly maried
Married
with older
childern
stage
Married
with 5
depended
children
Most individuals invest in life insurance

policies for
Risk protection
Tax
benefits
Easy
liquidity
The amount an insurance company would

pay to the nominee if a policyholder died
is known as the
Premium
Sum
assured
Face value
Why should one buy an insurance policy
It gives high current

returns
AMC employees
Sponsor
Sponsor distributor
Company
distributor

For schemes launched within the first 6
months of the financial year, the first
update of the SID is due within ______ of
the end of the financial year.
3 months
6 months
need based
43
44
45
46
It gives
It should
capital
be bought
appreciatio due to the
n over its
need for
term
insurance
and not as
an
investment
47
48
49
50
51
52
For a scheme launched in April 2008, the

first update of the SID would be due by
Apr-08
Jun-09
Jun-10
Offered Gifts
Parents
and
Relatives
Contributio
n
Parents
Income
Standing Instruction
ECS
PDCs
If an investor wants monthly income then

he should opt for,
If an investor as an earning having very
less income should invest in equity - Debt
ratio as
SIP
STP
SWP
50 : 50
25: 75
70 : 30
53
54
55
56
Associate
group of
Sponsor
Investor
Young unmarried stage Maried with Just Maried

2 Children
stage
57
58
59
If gold market is down gold future

investment will,
Go up
Go down
React as
per margin
Authorised Signatory is required in case

of
NRI
HNI
Institutiona
l Tinvestor
________________ can sale schemes of only

one mutual fund.
IFA
____________ schemes have to re-open for

sale/ repurchase within 5 business days of
the allotment.
Concentration risk can be in investment
of
Characterstics of scheme can be known
through
Open-ended
Closeended
All the
schemes
Sector fund
Gold fund
Real estate
Poftfolio of Scheme
Operation
of scheme
Portfolio
and
operation
of scheme
60
61
62
Distribution Institutiona
Companies
l team
member of
AMC
63
In joint holding mode when fist holder
dies
Units transfer to
nominee
Units are
Units are
legally
automatica
transfer to
lly get
legal hier redeemed
64
65
66
67
68
In mutual fund maximum joint holder can

2
3
be
To show the performance of scheme or
CAGR
Annualised
fund, the Mutual fund should
Returns
Flexible Asset Allocation Fixed Asset
Allocation
before an agent can start selling mutual
funds
ARN stands for
Agency Registration
Number
KIM
AMFI stands for
Association of Mutual
Fund in India
Sector Fund.
Growth
Fund.
In India are tend to invest in physical

Assets
4
Absolute
Return
Tactical
Asset
Allocation
Agent
AMFI
Registratio Registratio
n Number n Number
69
70
SID
SAI
Associates Associates
of Mutual
of Mutual
Fund in
Fund in
India
Indians
71
72
73
Diversified
Equity
Fund.
If an investor is submiting the application

form along with the cheque of Rs. 1 lac in
an equity Fund at 2 PM, But there is
insuficient balance in his Account, which
days NAV will he get
Same days NAV
Following
Working
Days Nav
Preceding
Working
Days NAV
Where will a person invest if he wants to

invest in gold for short term.
Gold
Bullion
SEBI
IRDA
Gold
Futures
PFM
To be able to sell mutual fund schemes

and earn commissions, a person should
have an ARN number
be
empanelle
d with an
AMC
Information regarding the minumum and

maximum commission to be given to the
distributors have been laid down by SEBI
Any excess to the total expense in a
scheme as laid down by SEBI is
74
75
76
77
78
be NISM
certified
To be borne by the AMC To be borne To be borne

by the
by the
investors distributors
79
80
81
82
83
84
85
86
87
Different AMCs charge different

commissions; Same AMC charges
different commissions for different
schemes
Initial or Upfront
commission is decided
by
Trail commission is calculated by the
investor as per the service provided by
the distributor
Trail commission is usually paid on a
_______ basis
Trail commission is calculated on the net
assets attributable to the units sold by
the distributor
Initial commission and trail commission
are calculated on the same formula
Mutual Fund commissions are paid for a
limited number of years; Mutual Fund
commissions are paid for as long as the
investor's money is held in the fund
Totally True
Totally
False
Partially
True
AMC
SEBI
Investor
Monthly
Quarterly
Totally True
Totally
False
Totally
False
AMC is bound by the acts of the

distributor, or its agents or sub-brokers
ACE stands for
AMFI Code of excellence
AMC code
of ethics
Totally True
88
Partially
True
Partially
True
AMFI code
of ethics
AGNI stands for
AMFI's guidelines &

norms
AMFI's
AMC's
Guidelines guidelines
& Norms
& Norms
for
for
Intermediar Intermediar
ies
ies
Commission is payable to distributors on

investment made through them by their
clients; Commission is payable to
distributors on their own investment
both statements are

right
both
only first
statements statement
are wrong
is right
89
90
Half yearly
ACE
AGNI
18 inches
8 inches
black
blue
8
centimeter
s
white
0.05
0.1
0.15
98
The disclaimer should cover atleast _____

of the display area on a hoarding/ poster.
In audio-visual media, the disclaimer is
either required to be displayed on the
screen for atleast 5 seconds or
20/80
25/75
99
In an audio-visual, the disclaimer should

cover ____of the screen, while the rest
____can be used by the name of the
mutual fund or the logo, etc
100
In audio advertisments, the disclaimer

needs to be read out over a period of
2.5 seconds
91
92
93
94
95
96
97
As per SEBI guidelines, the distributor

need not disclose the commission to the
investor
As per __________, offering rebate to
investors is banned
As mutual fund investment is subject to
market risk, the AMC can make
assumptions in its advertisements.
Each AMC is required to display the
disclaimer in a particular format and font
as decided by its marketing team.
The minimum height of the disclaimer
statement on hoardings/ posters should
be _______
The disclaimer should be written on a
__________ background.
SID
75/25
5 seconds 10 seconds
nature of
the scheme
Completely
False
Principle of
insurable
interest
Principle of
insurable
interest
Index Fund
At a price
unrelated
to the
prevailing
interest
rate
Gold
Betting on
horse (as a
regular
income)
Kisan Vikas
Patra
8 years
3 years
0.09
8.5% after
tax
Risk taking
investors
Rs. 207
None of
these
Photo
employee
id
Credence
Analytics
Gold
futures
Only
institutiona
l investors
At a price
unrelated
to the
prevailing
interest
rate
Institutiona
l metal
Drastic
change
None of
these
Rs. 500 to
Rs. 70,000
Trustee
Distributot
or
Newly
married
both are
working
High
returns
Real value
All of the
above
Distributot
or
Banks
Both 1 & 3
Mar-11
All of the
above
All of the
above
DTP
20: 80
Call centre
employee
Remains
Same
Investor
Financial
Planner
None of the
above
Golld ETF
None of the
above
Units are
holds or
carry by
surviving
holder
1
Simple
return
Strategic
Asset
Allocation
AMFI
Regulation
Number
None of
these
Association
of Mutual
Foundation
in India
Index Fund. Value Fund.
AMC will
not process
the
transaction
and he will
not get any
units.
Gold ETF
AMFI
All of the
above
to be borne
by SEBI
Partially
False
Distributor
Yearly
Partially
False
Partially
False
Agent's
code of
ethics
AMC's
guidelines
& Norms
for
Individuals
only
second
statement
is right
SIA
18
centimeter
s
as per the
wishes of
the AMC
7.50%
80/20
7.5
seconds
Test Name
Q. No
TEST Full Length

4
340
341
Question Details
Option A
Majority of the wealth of

Indians is locked in
_________
MCX stands for
___________________
Physical assets
Multi commodity Exchange
In the formula A=P*(1+I)n,

P stands for
Principle
Inflation
343
Which of the following

might be worth
considering while doing a
financial planning
344
An equity portfolio is not a

viable investment option
to meet short term
financial needs
345
A comprehensive financial
plan takes into account all
the financial goals of a
person together, and then
startegises the investment
plan.
346
___________captures the
estimated inflows from
various sources and
estimated outlfows for
various financial goals,
including post-retirement
living expenses.
The comprehensive
financial plan includes
Gather Client data, define

client goals
1
348
A goal oriented financial

plan includes taking a
perspective on the Life
Cycle and Wealth Cycle of
the investor
Young Unmarried
349
Equity exposure suits

which of these Life Cycle
the most
Life insurance becomes
absolutely critical for
young married working couple
Premiums for Term

insurance policies are
generally higher than
those of the Unit linked
policies
342
347
350
351
352
353
Starting with a health

insurance policy early is
the best antidote against
the __________ clause.
Low premium
Health insurance policy

claims are generally
settled through
reimbursement or on
cashless basis
The Accumulation
phase of
childhood to pre-retirement
354
the wealth cycle

correspondes with which
of the life cycle phase/s
Accumulation
355
In the ________phase of the

wealth cycle, the investors
tend to increase the
proportion of their
portfolio in liquid assets
viz money in the bank,
liquid schemes etc
Transition
356
__________ phase of the

Wealth cycle is the parallel
of the retirement phase of
the Life cycle
40
357
The Inter-generational
transfer phase should not
be postponed beyond
_________ years of age
Reaping
358
Regular money is required

during the _____________
phase.
equity
359
During the sudden wealth

phase, it is advisable to
initially block the money
by investing in a ________
scheme
360
Term life insurance policies

are the cheapest form of
insurance
361
Money back life insurance

policies help with regular
inflow of cash at periodic
intervals
A=P* (1+I)^n
362
Today's costs can be

translated into future
requirement of funds using
the formula
363
Providing funds for a

daughter's marriage is an
example of
Analyse and evaluae client's

financial status
364
According to the Certified

Financial Planner - Board
of Standards (USA), the
first stage in financial
planning is
Distribution phase
365
Investors can get into long

term investment
commitments in
_____________________
Portfolio turnover rate of a
fund measure the
Size of the fund's portfolio
An Investor with DoubleIncome in Late forties with

no children Debt-Equity
Portfolio would be?
50:50
Black Swan means,
Opposite of white swan
Riskiest fund in balanced

fund is :
Capital Protection Scheme.
The investor cannot set off

the Capital Loss if
He is redeeming the
investment within 9 months
The size of a fund has no

bearing on its performance
As per SEBI, mutual funds

can borrow for short term
to the extent of
Total net assets
366
367
368
369
370
371
372
373
Which of the following is of The performance of the stock

no relevance in evaluating
market as a whole
fund's performance
The fund manager
374
The choice of an
appropriate benchmark for
evaluating a fund's
performance depends on
Investing real estate fund
has an advantage except :
Diversified Portfolio.
BSE Sensex
376
For evaluating funds, the

preferred benchmark
would be the
BSE Sensex
377
To evaluate a close-ended
debt-fund, a suitable
benchmark would be
Risk profiles
378
When comparing
performance of two funds,
the following need not be
similar
375
Financial goals do not

include
Buying a home
Financial planning allows a

person
To become a billionaire
381
Financial plans do not alter

in any way the amount of
tax an investor pays as the
tax is on his income
Tax Advisor
382

works with an investor on
his overall financial
situation
383
A Financial planner takes

responsibility for the
financial well being of
his/her clients
384
Financial planners and

their clients should focus
on
Allocating funds to asset

classes (e.g.debt,equity etc.)
Financial Planning
comprises
Defining a client's profile and

goals
Financial planning is
relevant only for high
networth individuals
Financial planning does

work for older clients
Financial planning is
primarily tax planning
389
In financial planning, all

responsibility ends with
the financial planner and
the client has no
responsibilities
Decreasing the standard of

living
390
The constraint on financial

planning due to
insufficient investable
resources can be remedied
to some extent by
391

the least risk in the mutual
fund
379
380
385
386
387
388
392
393
394
395
If an investor keeps
investing a fixed amount
at regular intervals, the
average cost of his
purchases will always be
less than if he makes
investment at irregular
periods
Which of the following lets Fixed Rates of Asset Allocation

an investor book profits in
rising market and increase
holdings in a falling
market
The strategy
advisable for
Buy and hold on to
an investor to maximise
investments for a long time
investment return in the
long run is
In India, individual
investors do not have
direct access to
Capital market instruments

investment products do
not give guarantee for
return or capital
Bank deposits
Investor can do the day

transaction in Open end
equity fund
The biggest disadvantage
of investment in real
estate is
396
397
398
399
400
401
402
403
404
405
Listing of shares at a stock

exchange ensures
The SAI is relevant for all
the scheme offered by
Same Mutual Fund
not a characteristic of
company fixed deposits
Deffered Loan only
charged in close end
scheme
Individual investors do not
normally invest in
Government Securities
because
Providing Training to all

Distributor
Less potential for capital

appreciation
Providing Training to all
Distributor
Guaranteed returns
1
A higher rate of interest
Individual investors are not

allowed to invest in
Government Securities
If the investor cannot pay

the premium he can go for
term plan in insurance
policy
Dividends distributed by
mutual funds are
Taxed at source
Investing through mutual

fund is a better option
than investing directly in
the stock market because
Identifying stocks is a difficult

process
Interest rate risk is :
Financial Loss.
Corporate bonds
410

debt investments is not
rated
411
Gold and real estate are

attractive investment
options only in high
inflation economies
406
407
408
409
412
413
Deciding on strategies
Stock market situation on date
such as long-term
compounding, cost
averaging, value
averaging, active
switching, all depend on
Studying financial
management
It is _______ objective to
develop a cadre of well
trained agent
distributors.
SEBI
416
Capital protected schemes

invest zero coupon bond
There is at least 3 board of
trustee required in Mutual
Funds
75% unit holder
417
The appointment of AMC

can terminated by majority
of board of trustee
In NPS the investor can
invest in life cycle fund
Tier II pension account is

withdrawable
The benefit of application
by blocked amount is
1
The amount will debited only
when units will be allotted
Indexation means
Capital gain
414
415
418
419
420
421
422
423
424

prohibited in Tombstone
Advertisement
In liquid fund returns can
be advertised in
Contact details of AMC and

RTA
Volatility of an equity fund

portfolio is independent of
the
Kind of stocks in the portfolio
Company specific
Company specific risk
If the investor is not

comfortable with any
change then
He can redeem his investment

at prevailing NAV
A fund with a high beta

coefficient gives greater
returns in a rising market,
and is more risky in a
falling market
Which of the following is a

disadvantage of standard
deviation as a measure of
risk
Standard deviation measures

total risk, not just market risk
Point out the features and

benefits of various investment
options
One of the most effective

ways to invest through
mutual fund is to
Develop a model portfolio
what is the maximum time

period for investing in NFO
of equity linked saving
fund is,
15 days
Asset allocation is
Keeping certificates of the

physical securities in proper
places
Gold sector fund invest in

gold
1 yrs, 3yrs, 5yrs, and since

inception
425
426
427
428
429
430
431
432
433
434
Sector Selection
435

aspects would an investor
in a debt scheme give
most importance
Debt funds
436
A retired person generally

needs a greater proportion
of
Gilt funds
437
To satisfy a young
investor's need for growth,
a greater proportion of
investment should be
advised in
In distribution phase
438
A very high proportion of

investment in all types of
equity funds is advisable
for investors
439
The transition phase of an

investor's wealth cycle is
when
The financial goals have been

already met
440
A high proportion of
investment in income
funds is required by
Financial assets
Non-physical assets
Gold and Real estate
Correct
Option
A
Mega commodity
exchange
Multi consumer exchange
Profit
Cost in today's terms
Number of years after

which the expense will
occur
Are the expenses to be

done in foreign currency
Mumbai commodity
exchange
Cost at the end of the

period when the
expense will be
incurred
All of the above
B
0
A
Comprehensive
Financial plan
Staretegic Financial Plan
Tactical financial plan
B
analyse & evaluate
client's financial status
Implement the financial

planning
recommendations
Monitor the financial

planning
recommendations
All of the
above
A
Young Married
youn married couple,

with one spouse
working
Childhood
young unmarried person
Married with young

children
a child
Exclusions
Co-payment
Pre-existing illness
D
0
A
young married to
married with older
children
young unmarried to preretirement
Sudden wealth
Transition
young unmarried to
married with older
children
Inter-generational
transfer
C
Accumulation
Sudden Wealth
Reaping
D
35
45
50
D
Transition
Accumulation
Sudden Wealth
A
liquid
debt
life insurance
B
0
A
0
A
A=P/(1+I)^n
P=A^n*(1+I)
P=A^n*(1+I)
B
Comprehensive
Financial plan
financial goal
none of the above
Establish and Define

the client-planner
relationship
Transition
Gather client data, define

client goals
Inter-generational phase
Develop and present

financial planning
recommendations
and/ or options
Accumulation phase
D
Amount of buying and
selling done by the
fund
The average number of

units sold by the fund in
one day
None of the above
60:40
30:70
70:30
D
The sentiments of
market
MIP.
unexpected scenario in
the market, which has not
yet been performed in the
past
Fluctuation into the

market

Fund.
Fliexible Asset
Allocation Fund.
He is redeeming within He is investing within 3

9 months after record months prior to the record
date of Dividend
Date of Dividend
C
D
Both B & C
B
50% of net assets
25% of net assets
20% of net assets
D
The performance of
other mutual funds
The investment
objective of the fund
The returns given by other

The change in
comparable financial
wholesale price index
products
SEBI
AMFI
B
High Ticket Size.
Professional Management.
Domestic Asset.
B
S&P CNX Nifty
I-Sec's I-BEX
BSE 200
CRISIL Debt Index
S&P CNX Sectoral

Indices
S&P CNX Defty
C
Investment objectives
Fund size
Fund managers
Winning a sports gold

medal
To achieve financial
goals through proper
management of
finances
To invest in foreign
countries
Saving for child's

education
None of the above
B
Financial Planner
Insurance Agency
Financial Advisor
B
0
A
Allocating funds to
individual securities
Tracking stocks, which

they feel have potential
None of the above
Recommending
appropriate asset
allocation
Monitoring financial
planning
recommendations
All of the above
A
D
B
0
A
0
B
0
B
Disciplining children
Disciplined monthly
budgeting
None of the above
C
Equity fund
Growth fund
Gild fund
A
Flexible Ratio of Asset
Allocation
Investment without any

asset allocation plan
Buy and hold Strategy
A
Liquidate poorly
performing
investments from time to
investments from time
time
to time
Real estate
Bullion
Switch from poor

performers to good
performers
Money market
instruments
Implement the
Certification
Programme
To develop the Cadre of

Agent
All of These

(PPF)
National Savings
Certificates (NSC)
Units of a mutual fund
D
D
D
D
0
B
High purchase price
Depreciation in value as
time passes
Value gets eroded

due to inflation
Implement the
Certification
Programme
To develop the Cadre of

Agent
All of These
Long term capital

appreciation
0
Low risk
High liquidity
B
D
D
A
Higher risk
Unfavourable effect of tax
Very high liquidity
D
0
B
The amount required
for investment is very
large
Safety of principal is not

guaranteed
None of the above
A
Taxed in the hands on
the investors
Are subject to capital

gains tax
Are tax-free in the

hands of the investor
Agents get
commissions on
mutual fund
investment
Returned are guaranteed

by mutual funds
None of the above
Inflation.
Tax Deferal.
A
Tax Benefit.
B
Commercial paper
Company deposit
Debt fund
D
0
A
Amount of money to
be invested
Investor's risk tolerance
Phase through which

the economy is
passing
C
Managing the risk of
investment
Financing the client's

investments
None of the above.
AMFI
RBI
AMC
B
0
B
Majority of board of
directors
Majority of board of
directors of AMC
Both a and b
Both a and
c
A
0
The amount will

debited only when
investor will give the
request
According to SEBI
regulation
Benefit of inflation
Cost adjusted with the

impact of inflation
Depends upon AMCS

employee
A
the technique of
reducing the capital
gain tax
Entry load and exit

load
Declaration of NAV and

performance
Logo or trade mark
15 yrs, 30yrs, 5yrs,

and since inception
7 days, 15 days, 30 days
7 days, 15 days, and

since inception
Degree of
diversification of the
portfolio
Market level
Fund manager's success at Number of investors

market timing
in the scheme
Sector specific
C
D
All of the above
B
Market level risk
Both of the above
None of the above
A
He can redeem
investment at
prevailing NAV within
30 days from the date
of change take place
Cannot exit at face valve
Can exit at face valve
A
It is based on past
returns, which does not
necessarily indicate
further performance
It is an independent
number
Help the investor

develop the right
approach to investing
Recommend some
investment option
available
All types of fund can

be measured with
standard deviation
Buy a few units of

every mutual fund
scheme available
Invest all the money in

one fund scheme
20 days
Up to the last date of NFO
Offer adhoc advise

whenever the
investor has surplus
money available
Invest all the money
in different schemes
of the same fund
family
None of this
C
Allocation the available
money to all the
securities available
0
Allocating the right

proportion of funds to
equity, debt and money
market securities
None of the above
C
B
Stock selection
Weighted average
Maturity
No. of securities in
portfolio
C
Equity funds
Money market funds
All of the above
A
Income funds
Equity growth fund
All of the above
C
In accumulation phase
In transition phase
Who are wealth

preserving affluent
individuals
The investor has

retired
Financial goals are

approaching
Investor suddenly
gets a windfall
Affluent investors
Investors in the intergenerational transfer

phase
Investors in the
distribution phase
B
C
D
Chapters
Scheme Selection
Scheme Selection
Accounting, Valuation
and Taxation
and Taxation
Selecting the Right
Investment products
for Investors

Financial Planning

Financial Planning
Financial Planning

Financial Planning
Financial Planning
Financial Planning

Financial Planning

Financial Planning

Financial Planning

Financial Planning

Financial Planning

Financial Planning
Recommending Model
Portfolios and Financial
Plans
Recommending Model
Plans
Recommending Model
Plans
Recommending Model
Plans
Recommending Model
Plans
and Taxation
Recommending Model
Plans

Financial Planning

Financial Planning
and Taxation
Recommending Model
Plans
Risk, return and

performance of funds
Risk, return and
Risk, return and

Risk, return and
Legal and Regulatory
Environment
Risk, return and
Risk, return and

Risk, return and
Risk, return and
Risk, return and
Risk, return and


Financial Planning

Financial Planning

Financial Planning

Financial Planning

Financial Planning
Financial Planning
Financial Planning
Financial Planning
Financial Planning
Financial Planning

Financial Planning

Financial Planning
Risk, return and
Risk, return and

Recommending Model
Plans
Recommending Model
Plans
Scheme Selection
Environment
Scheme Selection
Investor Services
Scheme Selection
Environment
Fund Distribution and
Sales Practices
Offer Document
Scheme Selection
Offer Document
Scheme Selection
and Taxation
and Taxation
Concept and Role of a

Mutual Fund
and Taxation
Risk, return and
Risk, return and

Risk, return and

Financial Planning

Sales Practices
Scheme Selection
Environment
Environment
Recommending Model
Plans
Scheme Selection
Investor Services
and Taxation

Sales Practices
Risk, return and
Risk, return and
Risk, return and
Risk, return and
Investor Services
Risk, return and

Risk, return and


Sales Practices
Selecting the Right
Investment products
for Investors
Offer Document
Selecting the Right
Investment products
for Investors
Concept and Role of a
Mutual Fund
Risk, return and

Selecting the Right
Investment products
for Investors
Recommending Model
Plans
Selecting the Right
Investment products
for Investors
Financial Planning
Financial Planning

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1

Fund Structure and Constituents

Legal and Regulatory Environment

Fund Distribution and Sales Practices

Accounting, Valuation and Taxation

Risk, return and performance of funds

Understand how to select mutual fund

Understand asset allocation

Fund Structure and Constituents

Legal and Regulatory Environment

Accounting, Valuation and Taxation

Selecting the Right Investment products for Investors

Helping Investors with Financial Planning

tEST-Concept and Role of a MF

TEST Full Length 1

Most of the Arbitrage Funds take

PAN and KYC are mandatory in Ant

Differed Load is only charged in close

Remittance can be done in Mutual

RTGS and NEFT

If there are any changes in the

If an Indian MF sectors sees potential

Investment objective is closely linked

If the explanation is not sent to AMFI Cancels the ARN

Offer Document of MF is approved by

Which of the following has the least

The highest rating given by CRISIL is

Which of the following investment

All fund have significant similarities

All are the commodities except

MIP is a debt fund

Mutual fund is constituted as

FMP is mostly a closed end fund

Units are repurchase in closed end

Higher than NAV

A trustee company function through

The function of distributor and RTA is

SEBI has stop charging

SEBI has banned Entry load in Mutual

NAV of funds are rounded off

STT is leived on Re-purchase of unit

To convert the physical into Demat,

Debt funds are exposed to ?

Standard deviation measures ?

Which of this is not a part of high-risk

For which of the following funds

Which of this is not a criteria for

Which of this statement is true ?

Which of this statement about

For young investors doing retirement

Its the duty of

Which of this is not a step in the

Which of these is not the clients

The rupee-cost averaging talks

If you maintain a flexible ratio of

Which of the asset allocation

Direct investments in stock markets

An investor in need of regular income A bank deposits

Investors do not always look for

Relief bonds issued by government

NAV after dividend payment is called

Individual Investor cannot pledge

KYC is not required incase of minors?

NAV minus exit