1.

An investment application form for mutual fund units with multiple holders should be signed
by
ALL THE HOLDERS
2. Mutual funds in India are not permitted to invest in
ART
3. The ultra short duration fund invests in debt and money market instruments with Macaulay
duration between
3 TO 6 MONTHS
4. An Indian investor in a US dollar based fund benefits when
USD becomes stronger
5. As per the AMFI’s code of conduct for intermediaries of mutual funds, if a second violation
against the intermediary is proved, the registration will be.............. and intimation shall be
sent to all AMCs.
CANCELLED
6. The sponsor.......
Contributes capital to the asset management company
7. Mutual Fund Distribution Certification Examination offered by ................ is required for
becoming a mutual fund distributor in Indian securities markets.
National institute of securities market
8. Belief that one can always outperform the market is an example of ......... bias.
FAMILIARITY
9. Which amongst the following expenses CANNOT be charged to mutual fund scheme by an
asset management company?
Depreciation of fixed assets of the asset management company
10. What is the meaning of a segmented portfolio?
It is a portfolio created out of debt or money market securities affected by a credit event
11. The value of the invested amount in a mutual fund.........
Varies over time
12. Which of the following transactions are not eligible for charging a transaction fee by the
distributor?
Systematic transfer plan
13. In order to find out the fundamental attributes of the scheme, an investor needs to loom at
which amongst the following?
Scheme information document (SID)
14. The asset management company.............
Promotes the mutual fund
15. An investor has to provide which of the following information to be identified as an existing
investor in the mutual fund?
Folio Number
16. One of the ways to ensure suitability of the mutual fund scheme to the investor’s situation
is to follow a strategy known as......
Asset Allocation
17. Which of the following investors require investment approval through Board resolution for
investing in a mutual fund schemes?
 Institutional investors

18. State which of the following statement is/are false?

Since re-purchase is done with the mutual fund, investor does not to bear a tax on
the capital gain.

19. Which of the following statements is/are true?

Arbitrage funds aim at taking advantage of price inefficiencies in different markets.

20. The risk arising out of the mis-pricing or improper valuation of derivative contract is known
as?
Model risk

21. What information of an investors account identified under the foreign account tax
compliance act (FATCA) will be reported by the mutual fund?
All of the choices provided here.

22. State which of the following statement is/are true?

The proceeds of redemption as well as the dividend pay-out are credited to the
bank account linked to the Demat account for those mutual funds who opt for
Demat.

23. A mutual fund is managed in the beneficial interest of the?

Unit holders.

24. A scheme Net Asset Value (NAV) is said to be cum dividend from?
The date dividend announced

25. Which of the following needs to be done before deleting a default bank account from
registered bank account in a follow?
An alternate bank account has to be designated as default account .

26. In which of the following options the investor can expect a cash flow in one’s bank account?
Dividend payout.

27. Which of the following factor influence portfolio performance?

Asset allocation
Investment policy
Stock selection

28. An investor redeems an investment at an NAV of Rs 15. The investment made at Rs 10. What
is the redemption price if the exit load is 1% ?
 14.85

29. Typically which amongst the following is false about risk appetite?
People of same age will always have risk appetite.

30. Can minors invest in mutual fund schemes?

Yes, only through guardians.

31. Time stamping in context of mutual funds is mandatory for ?

Both application form or transaction slip and payment instrument.

32. Appeals against the rulings of securities and exchange board of India (SEBI) can be made
with the ?
Securities Appellate Tribunal.

33. Which of the following categories of investors are exempt from providing a PAN card at the
time of making a mutual fund investment ?
Investors investing up to 50,000 in a mutual fund scheme (including SIP) per year
per mutual fund.

34. Mutual funds accept cash for investment ________ per mutual fund, per year, for investors
who do not have a PAN?
Only up to Rs 50,000 .

35. An investment application form for mutual fund units with multiple holders should be signed
by?
All the holders.

36. Which of the following documents is updated once a year?

Scheme Information Document.

37. Change in the status of the individual from resident to non-resident Indian (NRI) has to be
updated in a mutual fund investment in which of the following way?
Any of the options provided here .

38. An Investors selects a mutual fund scheme based on whether his _______ matches with that
of the scheme?
Investment Strategy.

39. ________ of the unit holders can pass a resolution to wind up a scheme?
75%.
 40. The benchmark for a debt mutual fund scheme could be chosen on the basis of which of the
following?
Scheme type
Investment universe

41. Mutual fund must dispatch the consolidated account statement (CAS) to investors
__________?
Monthly before the 10th working day of the following month.

42. Which among the following investment avenues does not offer income on a regular
basis? Physical Gold

2. Which amongst the following asset categories can also be purchased for
consumption purposes apart from investment?
Real estate

3. The purchasing power of currency changes on account of which of the following?

Inflation

4. What is real rate of return?

Return that the investor gets after adjusting inflation

5. When interest rate in the economy increases, the price of existing bonds
Decreases

Net Asset Value indicates how much money can be generated per unit of mutual fund in case
the scheme is liquidated.

Each mutual fund scheme must have a stated investment objective. State whether
True or False.
True

Which of the following is an advantage of mutual funds?

Economies of scale

The transparency levels in mutual funds are very low. State whether True or False.
False

Which amongst the following categories of mutual funds have a fixed maturity date?
Close-ended funds

Mutual funds are constituted as ‘Trusts’ in India. Who are the beneficiaries of the
trust?
The mutual fund distributors

Who handles the day-to-day management of the mutual fund?

Asset Management Company
Whose job is it to track the various corporate actions like bonus, dividend, or rights issues in
companies where the mutual fund scheme has invested?
Custodian

Registrar and Transfer Agency function must be independent of the Asset

Management Company, and it cannot be retained in-house. State whether this
statement is True or False.
False

With which agency are the mutual fund distributors registered?

Association of Mutual Funds in India

Which of the following regulates mutual funds in India?

Securities and Exchange Board of India

Mutual funds can buy and sell securities only on delivery basis. State whether this
statement is True or False.
True

What minimum percentage of the mutual fund scheme corpus must be invested in
equity and related instruments in case of Equity Linked Savings Schemes (ELSS)?
80 percent

Which of the following statements is ‘True’ with respect to celebrity endorsement

for mutual funds?
SEBI has permitted celebrity endorsement at the industry level for the purpose of
increasing the awareness of mutual funds

Investors have the right to specify upto Three nominees for their mutual fund investment
folios.
“Please read the scheme related documents carefully” – which documents does this line refer
to?
Scheme Information Document and Statement of Additional Information

Which of the following statements is ‘TRUE’ with respect to the Scheme Information
Document (SID) and Statement of Additional Information (SAI)?
These two documents are prepared in the format prescribed by Securities and
Exchange Board of India

How often should the Key Information Memorandum (KIM) be updated?

At least once a year

As per the SEBI guidelines, how often should the mutual fund scheme’s portfolio be
published?
Half-yearly

Which among the following is not a statutory document?

Fund factsheet
Only individuals are allowed to distribute mutual funds in India. State whether True
or False. FALSE

Mutual Fund Distributors Certification Examination offered by __________ is

required for becoming a mutual fund distributor. National Institute of Securities Markets

In what form do mutual fund distributors earn revenue?Commission from mutual funds for
distribution of the schemes

Mutual fund distributors can only earn upfront commission from the mutual funds.
State whether True or False. False

Mutual fund distributors earn no commission when the investor chooses to invest
in “direct” plans. State whether True or False. True

Investors have bought 20 crore units of a mutual fund scheme at Rs. 10 each. The
scheme has thus mobilized 20 crore units X Rs. 10 per unit i.e. Rs 200 crore. An
amount of Rs. 140 crore is invested in equities. The balance amount of Rs 60 crore,
mobilized from investors, was placed in bank deposits. Interest and dividend
receivable (accrued but yet not received) by the scheme is Rs 8 crore, scheme
expenses payable (accrued but not paid yet) is Rs 4 crore. Calculate the scheme’s
NAV per unit.Rs. 10.20

What is the maximum Total Expense Ratio chargeable in case of index funds?
1 percent of the daily net assets

In case of mutual fund schemes, dividends can be paid only out of Distributable surplus
generated by the scheme

Mutual funds are allowed to charge differential exit loads based on the amount of
investment. False

What is the tax applicable on the income earned by the mutual fund schemes? Income
earned by a mutual fund is exempt from taxes

Redemption from which of the following mutual fund schemes would attract
Securities Transaction Tax (STT) for an investor? Multi-cap mutual fund

In the non-equity oriented funds, the rate of long term capital gains tax is
20 percent with indexation

In case of capital gains from mutual fund investments, Tax Deduction at Source (TDS) s
applicable for: Non-Resident Indians (NRIs)

The Income Tax Act allows setting-off of the short term capital loss against long term
capital gains. State whether True or False. True
What term is used to describe the Net Asset Value (NAV) of the scheme after the
dividend is paid out (Remember the NAV would have dropped to the extent of the
dividend paid). Ex-Dividend NAV

At what price are the bonus units issued to the unitholder? The bonus units are allotted free
of cost

Which of the following statements is True?

Foreign investors can invest in Indian mutual fund schemes, provided they
have completed the Know-Your-Client (KYC) formalities

Whose KYC needs to be completed in case of an application by a minor?

The guardian

How many (maximum) bank accounts can a resident individual investor register with a
mutual fund folio? 5

Government securities can be considered to be completely risk-free. State whether

True

Unsystematic risk can be reduced through diversification. State whether True or

False. True

Which of the following type of analysis tracks the price and volume data related to
trading in the security? Technical analysis

An investor invested in scheme A when the scheme’s NAV was Rs. 120 per unit. The
investor redeemed the investments at the NAV of Rs. 135. Calculate the simple
return 12.50 percent

Which of the following is a measure of fluctuation in periodic returns in an equity

mutual fund scheme?Variance

‘Once it is finalized, a mutual fund scheme’s benchmark cannot be changed at a later date.’
State whether the statement is True or False.
False

Which amongst the following is a measure of risk-adjusted returns of mutual fund

scheme? Sharpe ratio

Which of the following cannot be considered for the purpose of selecting a scheme’s
benchmark? Scheme’s past returns

Total return index takes into account all dividends generated from the basket of
constituents that make up the index in addition to the capital gains.
Which is the most appropriate measure of evaluating how closely an index fund is
tracking its benchmark?Tracking error

Which of the following scheme categories would be considered the least risky in
terms of credit risk? Gilt fund

For an investor to get a quick sense of the level of risk involved in a mutual fund
scheme, SEBI suggested a simplified framework known as Risk-o-meter

Passive funds are safe, as the NAV of such funds do not go down even when the
respective markets fall. State whether this is True or False.False

Which among the following schemes would have lower risk of concentration?Multi-cap
fund

Fixed maturity plans (FMPs) are close-ended debt funds.

What day NAV will be applicable for equity funds presented at 4 pm? Next Day

What is tracking error?

Difference between scheme and index/ market performance

SID is vetted by SEBI, here vetting means?

SEBI doesn’t approve or reject SID but only offers observations

For purchase of equity oriented scheme units through stock exchange the rate of STT to be
paid by the customer is 0.001%

A MF is constituted in India as Trust

As per SEBI guidelines every MF application form is accompanied by KIM

Nomination and pledge is available for mutual fund investors Yes

CAGR stands for Compounded annual growth rate

Price to Earnings ratio is Market Price / EPS

Maximum period for allotting units or refund in respect of NFO other than ELSS can be 5
business Days

Statement of account must be dispatched with 5 days from the date of closure of NFO

Statement of account for Post NFO statement must be dispatched within 10 days

NFO other than ELSS can be opened for a maximum period of

15 days
For investing in a Mutual fund PAN No and KYC Required

Simple return on Mutual Fund can be calculated by

[(Later value-Initial vlalue)*100]/Initial value

ASBA is a convenient way of buying additional units of a MF

True

As money is the root of all evils, we don’t talk about money with children False

The operations of MFs is regulated by SEBI alone

Risk appetite of investors is assessed through Family information, personal information and
financial information i.e. risk profile of the investor

Model Portfolios are a waste of time for financial planners False

Risk can be measured by Variance

A fund with face value of Rs 10, having a NAV of Rs 15,with an exit load is 1.0% what is
the repurchase NAV? 14.85

An individual with an age of 30 yrs, single income and is married.what is the debt to equity
ratio advisable to him.? 60:40

For an investment of Rs1.5 cr in a debt scheme, what is the applicable NAV Closing NAV of
day the funds are available/cleared.

The balanced funds in India do general have equity and debt in the proportion of 65:35

The minimum initial commision that an AMC can pay to distributors is Nil

Dividend warrants have to be dispatched to investors within 15 days from date of declaration
of dividend

ACE sets out the standard of good practice to be followed by AMC

The maximum load that a fund can charge is determined by SEBI

Sharpe Ratio is (Rs - Rf) / std. deviation

Which among the following factors is not the personal information of investors risk profile
Life Expectancy

Trail commission is calculated as a percentage on AUM

Future transaction of buying and selling of units, can be carried out by an investor with the
fund house itself in respect of Open ended funds

Sectoral Funds by their objectives invest in Only a specific sector

Tracking error occurs in index funds

PAN is not required for first time for and up to an amount of below 50,000

Purchase and sale of transactions are executed by Registrar

Statement of account post NFO on a ongoing basis should be dispatched within 10 working
days

Who can not invest in mutual funds? OCBs

Directors of an AMC are appointed with the prior approval of

Trustees

In case fund of fund NAV has to be updated by what time?10 a.m of following day

Interest has to be paid in case of delay in dispatch of dividend warrant can be charged to
scheme False

Interest is paid at 15 % in case of delay in the dispatch of dividend warrants

Within how many days an investor can claim his money from the scheme No limit
Scheme wise annual report or an abridged summary has to be mailed to all unit holders
within six months of the close of financial year

Which document has statutory information about the mutual fund that is offering the
scheme SAI

Initial issue expenses need to be borne by AMC

The asset allocation that is worked out for an investor based on market behavior is called
Tactical asset allocation

Exchange Traded funds (ETF) open-ended index funds that are traded in a stock exchange.

Arbitrage funds are classified as Equity funds

Day to day management of the schemes is handled by Asset Management Company (AMC)

The difference between a scheme’s actual return and its optimal return is its Alpha

Commercial papers are short term securities (upto 1 year) issued by companies
Price to Book Value Market Price ÷ Book Value per Share

SAI IS PART OF SID

Financial planning needs to satisfy Financial goals.

OPEN ENDED SCHEME GENERALLY OFFER EXIT OPTION TO INVESTORS

WHICH ONE OF THE ABOVE IS NOT ADVANTAGE OF MF?

LACK OF PORTFOLIO CUSTOMIZATION

STT is applicable on Equity Trade

A retail investor cannot become shareholder of a company through

buying a debenture

Who appoints distributor? AMC

Relationship between KIM and Offer document is KIM is a summary of offer Document

Who is not seen as an agent for Mutual funds? RBI

In time of financial turmoil one should invest in Gold

If an investor holds 1500 shares of a company priced at Rs. 10 per share and the company
offers bonus shares in the ratio of 3:1, then what is the amount he has to pay for the bonus
shares? Zero

If an investor invests in debt funds what is the STT payable by him?

Zero

After dividend is paid out, the NAV reduces and this NAV after
pay-out of the dividend is called Ex- dividend NAV

An investor opts for the growth plan, the NAV after dividend pay-out would Remain
unchanged

Technical Analysts are also known as Chartist

Which of the following has international exposure ? International fund

The scheme which is first made available for investment is called
NFO

Sponsor should have a positive net-worth for the past 5years

Who accepts and gives delivery of securities for the purchase and sale transactions of the
various schemes of the fund Custodian

STP is a combination of SIP&SWP

Interval funds are mostly close ended

What is the max No of invest in joint account holders Three

What is the applicable NAV for repurchase in respect of a liquid scheme received before
3pm Closing NAV of the same day

What are short term debt Govt Securities T- bills

Which one of the following is not a financial asset? Gold

SEBI prohibits investing in junk bonds True

The most appropriate measure of returns for a scheme in existence for several years is:
CAGR

Considering the todays cost Future cost can be arrived by A=P/(1+i)n

Which is the highest CRISIL rating? AAA

1. Which among the following investment avenues does not offer income on a regular basis?
Physical Gold

2. Which amongst the following asset categories can also be purchased for
consumption purposes apart from investment?
Real estate

3. The purchasing power of currency changes on account of which of the following?

Inflation

4. What is real rate of return?

Return that the investor gets after adjusting inflation

5. When interest rate in the economy increases, the price of existing bonds
Decreases

Net Asset Value indicates how much money can be generated per unit of mutual fund in case
the scheme is liquidated.

Each mutual fund scheme must have a stated investment objective. State whether
True or False.
True
Which of the following is an advantage of mutual funds?
Economies of scale

The transparency levels in mutual funds are very low. State whether True or False.
False

Which amongst the following categories of mutual funds have a fixed maturity date?
Close-ended funds

Mutual funds are constituted as ‘Trusts’ in India. Who are the beneficiaries of the
trust?
The mutual fund distributors

Who handles the day-to-day management of the mutual fund?

Asset Management Company

Whose job is it to track the various corporate actions like bonus, dividend, or rights issues in
companies where the mutual fund scheme has invested?
Custodian

Registrar and Transfer Agency function must be independent of the Asset

Management Company, and it cannot be retained in-house. State whether this
statement is True or False.
False

With which agency are the mutual fund distributors registered?

Association of Mutual Funds in India

Which of the following regulates mutual funds in India?

Securities and Exchange Board of India

Mutual funds can buy and sell securities only on delivery basis. State whether this
statement is True or False.
True

What minimum percentage of the mutual fund scheme corpus must be invested in
equity and related instruments in case of Equity Linked Savings Schemes (ELSS)?
80 percent

Which of the following statements is ‘True’ with respect to celebrity endorsement

for mutual funds?
SEBI has permitted celebrity endorsement at the industry level for the purpose of
increasing the awareness of mutual funds

Investors have the right to specify upto Three nominees for their mutual fund investment
folios.
 “Please read the scheme related documents carefully” – which documents does this line refer
to?
Scheme Information Document and Statement of Additional Information

Which of the following statements is ‘TRUE’ with respect to the Scheme Information
Document (SID) and Statement of Additional Information (SAI)?
These two documents are prepared in the format prescribed by Securities and
Exchange Board of India

How often should the Key Information Memorandum (KIM) be updated?

At least once a year

As per the SEBI guidelines, how often should the mutual fund scheme’s portfolio be
published?
Half-yearly

Which among the following is not a statutory document?

Fund factsheet

Only individuals are allowed to distribute mutual funds in India. State whether True
or False. FALSE

Mutual Fund Distributors Certification Examination offered by __________ is

required for becoming a mutual fund distributor. National Institute of Securities Markets

In what form do mutual fund distributors earn revenue?Commission from mutual funds for
distribution of the schemes

Mutual fund distributors can only earn upfront commission from the mutual funds.
State whether True or False. False

Mutual fund distributors earn no commission when the investor chooses to invest
in “direct” plans. State whether True or False. True

Investors have bought 20 crore units of a mutual fund scheme at Rs. 10 each. The
scheme has thus mobilized 20 crore units X Rs. 10 per unit i.e. Rs 200 crore. An
amount of Rs. 140 crore is invested in equities. The balance amount of Rs 60 crore,
mobilized from investors, was placed in bank deposits. Interest and dividend
receivable (accrued but yet not received) by the scheme is Rs 8 crore, scheme
expenses payable (accrued but not paid yet) is Rs 4 crore. Calculate the scheme’s
NAV per unit.Rs. 10.20

What is the maximum Total Expense Ratio chargeable in case of index funds?
1 percent of the daily net assets

In case of mutual fund schemes, dividends can be paid only out of Distributable surplus
generated by the scheme
Mutual funds are allowed to charge differential exit loads based on the amount of
investment. False

What is the tax applicable on the income earned by the mutual fund schemes? Income
earned by a mutual fund is exempt from taxes

Redemption from which of the following mutual fund schemes would attract
Securities Transaction Tax (STT) for an investor? Multi-cap mutual fund

In the non-equity oriented funds, the rate of long term capital gains tax is
20 percent with indexation

In case of capital gains from mutual fund investments, Tax Deduction at Source (TDS) s
applicable for: Non-Resident Indians (NRIs)

The Income Tax Act allows setting-off of the short term capital loss against long term
capital gains. State whether True or False. True

What term is used to describe the Net Asset Value (NAV) of the scheme after the
dividend is paid out (Remember the NAV would have dropped to the extent of the
dividend paid). Ex-Dividend NAV

At what price are the bonus units issued to the unitholder? The bonus units are allotted free
of cost

Which of the following statements is True?

Foreign investors can invest in Indian mutual fund schemes, provided they
have completed the Know-Your-Client (KYC) formalities

Whose KYC needs to be completed in case of an application by a minor?

The guardian

How many (maximum) bank accounts can a resident individual investor register with a
mutual fund folio? 5

Government securities can be considered to be completely risk-free. State whether

True

Unsystematic risk can be reduced through diversification. State whether True or

False. True

Which of the following type of analysis tracks the price and volume data related to
trading in the security? Technical analysis

An investor invested in scheme A when the scheme’s NAV was Rs. 120 per unit. The
investor redeemed the investments at the NAV of Rs. 135. Calculate the simple
return 12.50 percent

Which of the following is a measure of fluctuation in periodic returns in an equity

mutual fund scheme?Variance

‘Once it is finalized, a mutual fund scheme’s benchmark cannot be changed at a later date.’
State whether the statement is True or False.
False

Which amongst the following is a measure of risk-adjusted returns of mutual fund

scheme? Sharpe ratio

Which of the following cannot be considered for the purpose of selecting a scheme’s
benchmark? Scheme’s past returns

Total return index takes into account all dividends generated from the basket of
constituents that make up the index in addition to the capital gains.

Which is the most appropriate measure of evaluating how closely an index fund is
tracking its benchmark?Tracking error

Which of the following scheme categories would be considered the least risky in
terms of credit risk?
Gilt fund

For an investor to get a quick sense of the level of risk involved in a mutual fund
scheme, SEBI suggested a simplified framework known as
Risk-o-meter

Passive funds are safe, as the NAV of such funds do not go down even when the
respective markets fall. State whether this is True or False.
False

Which among the following schemes would have lower risk of concentration?
Multi-cap fund

Fixed maturity plans (FMPs) are close-ended debt funds.

What day NAV will be applicable for equity funds presented at 4 pm? Next Day

What is tracking error?

Difference between scheme and index/ market performance

SID is vetted by SEBI, here vetting means?

SEBI doesn’t approve or reject SID but only offers observations

For purchase of equity oriented scheme units through stock exchange the rate of STT to be
paid by the customer is 0.001%
A MF is constituted in India as Trust

As per SEBI guidelines every MF application form is accompanied by KIM

Nomination and pledge is available for mutual fund investors Yes

CAGR stands for Compounded annual growth rate

Price to Earnings ratio is Market Price / EPS

Maximum period for allotting units or refund in respect of NFO other than ELSS can be 5
business Days

Statement of account must be dispatched with 5 days from the date of closure of NFO

Statement of account for Post NFO statement must be dispatched within 10 days

NFO other than ELSS can be opened for a maximum period of

15 days

For investing in a Mutual fund PAN No and KYC Required

Simple return on Mutual Fund can be calculated by

[(Later value-Initial vlalue)*100]/Initial value

ASBA is a convenient way of buying additional units of a MF

True

As money is the root of all evils, we don’t talk about money with children False

The operations of MFs is regulated by SEBI alone

Risk appetite of investors is assessed through Family information, personal information and
financial information i.e. risk profile of the investor

Model Portfolios are a waste of time for financial planners False

Risk can be measured by Variance

A fund with face value of Rs 10, having a NAV of Rs 15,with an exit load is 1.0% what is
the repurchase NAV? 14.85

An individual with an age of 30 yrs, single income and is married.what is the debt to equity
ratio advisable to him.? 60:40

For an investment of Rs1.5 cr in a debt scheme, what is the applicable NAV Closing NAV of
day the funds are available/cleared.
The balanced funds in India do general have equity and debt in the proportion of 65:35

The minimum initial commision that an AMC can pay to distributors is Nil

Dividend warrants have to be dispatched to investors within 15 days from date of declaration
of dividend

ACE sets out the standard of good practice to be followed by AMC

The maximum load that a fund can charge is determined by SEBI

Sharpe Ratio is (Rs - Rf) / std. deviation

Which among the following factors is not the personal information of investors risk profile
Life Expectancy

Trail commission is calculated as a percentage on AUM

Future transaction of buying and selling of units, can be carried out by an investor with the
fund house itself in respect of Open ended funds

Sectoral Funds by their objectives invest in Only a specific sector

Tracking error occurs in index funds

PAN is not required for first time for and up to an amount of below 50,000

Purchase and sale of transactions are executed by Registrar

Statement of account post NFO on a ongoing basis should be dispatched within 10 working
days

Who can not invest in mutual funds? OCBs

Directors of an AMC are appointed with the prior approval of

Trustees

In case fund of fund NAV has to be updated by what time?10 a.m of following day

Interest has to be paid in case of delay in dispatch of dividend warrant can be charged to
scheme False

Interest is paid at 15 % in case of delay in the dispatch of dividend warrants

Within how many days an investor can claim his money from the scheme No limit
Scheme wise annual report or an abridged summary has to be mailed to all unit holders
within six months of the close of financial year

Which document has statutory information about the mutual fund that is offering the
scheme SAI

Initial issue expenses need to be borne by AMC

The asset allocation that is worked out for an investor based on market behavior is called
Tactical asset allocation

Exchange Traded funds (ETF) open-ended index funds that are traded in a stock exchange.

Arbitrage funds are classified as Equity funds

Day to day management of the schemes is handled by Asset Management Company (AMC)

The difference between a scheme’s actual return and its optimal return is its Alpha

Commercial papers are short term securities (upto 1 year) issued by companies

Price to Book Value Market Price ÷ Book Value per Share

SAI IS PART OF SID

Financial planning needs to satisfy Financial goals.

OPEN ENDED SCHEME GENERALLY OFFER EXIT OPTION TO INVESTORS

WHICH ONE OF THE ABOVE IS NOT ADVANTAGE OF MF?

LACK OF PORTFOLIO CUSTOMIZATION

STT is applicable on Equity Trade

A retail investor cannot become shareholder of a company through

buying a debenture

Who appoints distributor? AMC

Relationship between KIM and Offer document is KIM is a summary of offer Document

Who is not seen as an agent for Mutual funds? RBI

In time of financial turmoil one should invest in Gold

If an investor holds 1500 shares of a company priced at Rs. 10 per share and the company
offers bonus shares in the ratio of 3:1, then what is the amount he has to pay for the bonus
shares? Zero

If an investor invests in debt funds what is the STT payable by him?

Zero

After dividend is paid out, the NAV reduces and this NAV after
pay-out of the dividend is called Ex- dividend NAV

An investor opts for the growth plan, the NAV after dividend pay-out would Remain
unchanged

Technical Analysts are also known as Chartist

Which of the following has international exposure ? International fund

The scheme which is first made available for investment is called
NFO

Sponsor should have a positive net-worth for the past 5years

Who accepts and gives delivery of securities for the purchase and sale transactions of the
various schemes of the fund Custodian

STP is a combination of SIP&SWP

Interval funds are mostly close ended

What is the max No of invest in joint account holders Three

What is the applicable NAV for repurchase in respect of a liquid scheme received before
3pm Closing NAV of the same day

What are short term debt Govt Securities T- bills

Which one of the following is not a financial asset? Gold

SEBI prohibits investing in junk bonds True

The most appropriate measure of returns for a scheme in existence for several years is:
CAGR

Considering the todays cost Future cost can be arrived by A=P/(1+i)n

Which is the highest CRISIL rating? AAA

1- In which of the following transmission cases of mutual funds is it necessary to comply with the KNOW
YOUR CUSTOMER (KYC) norms?

a) Transmission to a minor who has just attained majority

B) Transmission to a nominee

c) Transmission to claimant when there is no nominee on death of sole / all unit holders

ABC

2-The information on minimum investment amount investor service centers and how to make a purchase is
provided in the KEY INFORMATION MEMORANDUM

3-The information provided in the statement of additional information is COMMON TO ALL SCEHEMES

4- In case of conservative hybrid fund the investment range in equity instruments is between 10 PERCENT &
25 PERCENT of the total assets.

5-The profit or losses in a mutual fund scheme belongs to the INVESTORS.

6-Which amongst the following is classified as physical asset? REAL ESTATE

7-Stock exchange platform for mutual fund transactions allows for which of the following

a) Fresh subscriptions

b) Additional purchases

c) Redemptions

ABC

8-What is the minimum investment limit in equity and equity related instruments of large cap companies for a
large cap mutual fund scheme? 80%

9-What is the purpose of credit enhancement in case of secuntised assets? ENSURING TIMELY PAYOUT
TO THE INVESTORS IN CASE THEACTUL PAYMENT FROM THE POOL SHORT FALL

10-Risk profiling is important to decide STRATEGIC ASSET ALLOCATION

11-Mutual funds can pay dividends out of ONLY DISTRIBUTABLE PURPOSE

12-SEBI'S advertising code for mutual funds lays down guidelines to be followed BY AMCs WHILE
ADVERTISING THE PERFORMANCE OF THEIR FUNDS.

13-Which amongst the following is false?

a) The objective of arbitrage funds is to provide only capital appreciation

b) Arbitrage funds invest in both cash as well as F&O markets

c) The risk in arbitrage funds are relatively low compared to equity funds.

I only
14-The highest risk of loss through theft is in PHYSCIAL GOLD.

15-Which of the following statement(s) is/are true pertaining to risk levels in mutual fund schemes?

a) NAV of gilt schemes can fluctuate a lot more in comparison to liquid funds due to charges in yield in the
market.

b) Credit risk fund has relatively lower risk of default compared to corporate bond fund.

A&B

16-SEBI's function does not include APPROVING SPPOINTMENT OF FUND MANAGER IN AN AMC

17-Which would be the average holding period if the portfolio turnover ratio is 40%? 2.5 years

18-Net Asset Value is the basis for pricing of which transaction of an open ended fund? BOTH PURCHASE
AND REDEMPTION OF UNITS

19-AMFI CODE OF ETHICS (ACE) prescribes that mutual fund scheme portfolio should be managed in the
interest of ALL CLASSES OF UNIT HOLDER

20-Which amongst the following is most liquid? REAL ESTATE

21-An existing investor in mutual funds invests rs. 10,000 in XYZ scheme’s direct plan. What is the amount that
will be the net investment made in the scheme after accounting for transaction charges? 10000

22-A sponsor of the mutual fund can be compared to PROMOTER OF THE COMPANY

23-Which amongst the following represents the appropriate risk sequence of open ended debt schemes (lowest
to highest) a) corporate bond fund b) liquid fund c) credit risk fund

B<A<C

24-What is the lock-in period applicable in case of units of Equity Linked Savings Scheme (ELSS)? 3
YEARS FROM THE DATE OF ALLOTMENT OF EACH INDIVIDUAL UNIT

25-Which amongst the following are the benefits of dematerialization?

a) Less paper work

b) Direct credit of bonus unit

c) No hassle of safekeeping of physical certificates

ABC

26-Which amongst the following is a function of mutual fund scheme related documents? TO PROVIDE
SCHEME RELATED INFORMATION TO THE INVESTOR

27-The investment in mutual fund portfolio are carried at MARKET VALUE

28- An investor invested rp 1,00,000 in a 370 day FMP and got rs. 107,750 on maturity. What is the capital
gain in this case? 7750

29- Is there any Know your customer (KYC) process required for investment in the name of minor? KYC OF
THE GUARDIAN IS REQUIRED IN CASETHE INVESTOR IS MINOR

30-Which of the following statement is true? ANY CHANGE IN TOTAL EXPENSE RATIO OF ANY
MUTUAL FUND SCHEME MUST BE COMMUNICATED TO THE SCHEMES INVESTORS

31-A custodian of a mutual fund scheme performs which of the following functions? KEEP SAFE
CUSTODY OF THE SECURITIES HELD BY THE MUTUAL FUND SCHEME.

32- Which of the following is true for nominations made in favor of a minor? THE DETAILS OF THE
GUARDIAN HAVE TO BE PROVIDED

33- An investor has bought units of an equity mutual fund after reading the information on risk factors in the
offer document. The value of the fund goes down after a stock market crash in such a case? THE INVESTOR
ISNOT LIKELY TO GET ANY REMEDY FROM THE AMC

34-Banks often lends money against PLEDGE of units.

35-Which amongst the following statement is true? INVESTOR HAS THE RIGHT TO CHANGE THE
DISTRIBUTOR AT ANY TIME AND ANY NUMBEROF TIMES.

36-An index against which performance of a fund must be measured is called BENCH MARK

37-An investor wants to make additional investment in a mutual fund scheme as a sole holder. The investor
already holds a folio in the mutual fund as a joint holder. How can the investor make the change? THE
INVESTOR WILL HAVE TOINVEST UNDER ANEW FOLIO AND SELECT THE MODE OF
HOLDING AS SINGLE.

38- Asset Management companies (AMC) may change certain expenses for managing the mutual fund scheme
to UNIT HOLDERS in proportion to their holding of units in a scheme.

39-Which amongst the following is a function of an AMF? MAKING AVAILABE AUM, NAV AND
OTHER DATA ON THE MUTUAL FUND INDUSTRY

40- In case of a floater fund what is the required minimum investment in floating rate instruments of the total
assets invested in the fund? 65%

41- Schemes NET ASSET VALUE (NAV) is said to be cum-dividend from THE DATE DIVIDEND
ANNOUNCEMENT UNIT IT IS PAID OUT

42- An investor invests rs50 lakh in an equity scheme at 2:30pm. With a local cheque. What would be the
applicable NAV of allotment of units? NAV OF THE BUSINESS DAY ON WHICH THE FUNDS ARE
AVAILABLE FOR UTILIZATION

43-If an investor claims erstwhile unclaimed redemption amount after three years, the payment will be based
on which of the following? NAV AT THE END OF THREE YEARS

44-Returns in an international fund depend on which of the following factors

a) exchange rate b) assets class performance?? AB

45-Mutual fund distributors are compensated by the asset management company primarily through
COMMISSIONS

46-Which amongst the following is one of the important factors while defining the financial goal of the client?
CLIENT’S TIME HORIZON

47-A due diligence process is mandated for mutual fund distributors WHO RECEIVES MORE THAN RS
50 LAKHS AS COMMISSION FROM a SINGLE MUTUAL FUND

48-Which of the following statements is/are true? UNITS OF GOLD ETFS CAN BE BOUGHT BY
 RETAIL INVESTORS

49- Which amongst the following funds invest in securities with maturity matching the maturity of the scheme
FIXED MATURITY PLANS

50-Risk profile of an investor is influenced by which of the following factors?

A) Need to take risk B) ability to take risk c) willingness to take risk

II and III

51-A mutual fund can change the additional expense of 0.30 percent of daily net assets of the scheme in which
of the following situations? {AUM Assets under management YTD Year to date} IF THE NET INFLOWS
FROM BEYOND TOP 30 CITIES IS ATLEAST a) 30 % OF THE GROSS NEWINFLOWS IN THE
SCHEME OR b) 15% OF THE AVERAGE AUM (ytd) OF THE SCHEME WHICH EVERIS HIGHER

52- State which of the following statement(s) is/are true? THE TRUSTEES ARE NOT LIABLE FOR ANY
LOS TO FOREIGN INVESTORS ARISING FROM CHANGES IN EXCHANGE RATES

53-When will be the net asset value (NAV) of the segregated portfolio be disclosed? DAILY AFTER THE
CREDIT EVENT

54-One of the ways to ensure suitability of the mutual fund scheme to the investor’s situation is to follow
strategy known as ASSET ALLOCATION

55-In which of the following categories of mutual fund schemes the net asset value has to be declared for up to 4
decimal points LIQUID FUNDS

56-The form for registering a change in the default bank account has to be signed BY ALL THE HOLDERS
OF THE FOLIO

57-Which of the following statement(s) is/are true?

a) Addendum is a part of scheme related document

b) When the addendum is issued ,it must be accompained by the KIM I & II

58-Short term capital loss from an investment CAN BE SET OFFF AGAINST LONG TERM AND SHORT
TERM CAPITAL GAINS

59-During empanelment with AMC the distributor has to sign a declaration for COMMITMENT TO ABIDE
BY THE STATUTORY CODES GUIDELINES AND CIRCULARS

60-A switch transaction is A REPURCHASE FROM ONE SCHEME AND APURCHASE INTO
ANOTHER HAPPENING SIMULATENOUSLY

1. State which of the followings statements is/are true in context of benchmarks.

(a) In case of selection of a benchmark for an equity mutual fund. Portfolio concentration is an
important factor.
(b) Choice of investment universe is not important for selecting a benchmark for debt mutual
fund.
 Option A only

2. Key Information Memorandum (KIM) is abridged version of the

Scheme related documents

3. The return of a mutual fund scheme is 7.5% and the standard deviation is 0.5. If then risk
free rate of return is 4% what is the Sharpe Ration?

4. The guidelines issued by AMFI for intermediaries are known as

AMFI guidelines and noms for intermidiateries

5. The profit or losses in a mutual fund scheme belong to the

INVESTORS

6. Mutual funds CANNOT distribute dividends out of

7. In which of the following categories of mutual fund schemes, the net asset value (NAV) has
to declare up to 4 decimals points?

LIQUID FUNDS
8. Which amongst the following is true about Gilt securities?
GILT SECURITIRS ARE SECURITIES WHICH ARE ISSUED BY THE GOVERNMENT

20. An investment application form for mutual fund units with multiple holders should be signed
by

ALL THE HOLDERS

9. At what rate securities transactions tax levied on re-purchase of units of debt mutual fund?

NO STT IS APPLICABLE

10. During impalement with the asset management company (AMC) the mutual fund distributor
has to sign a declaration. Indicate which of the aspects are covered I =n the declaration?
(a) Commitment to abide by statutory codes, guidelines and circulars.
(b) Correctness and completeness of information provided.
(c) Provide all the information and documents that the AMC may ask for time to time.

A,B,C

11. A credible benchmark of a mutual fund scheme should be in sync with which of the
following?
(a) The investment objective of the scheme.
(b) The expense ratio charged by the scheme.
 (c) The schemes asset allocation pattern.
(d) The size of the scheme.
(e) The investment strategy of the scheme.

(1)(3)and (5)

12. Commodities as asset class does not include

FIBERS, SPICES, ENRGY PRODUCT, ART

ART

13. What is asset allocation?

A Deciding how to invest money across various asset……..

14. What would be the average holding if the portfolio turnover ratio is percent?

15. Which of the following statements are/is true?

(a) If there is entry load on a mutual find scheme then while calculating the scheme returns the
initial value of the net asset value (NAV) is taken as NAV minus entry load.
(b) If there is an exit load on a mutual fund scheme then while calculating the returns, the later
value of NAV is taken as NAV minus exit loads.

B----- B only

16. State whether the statement is/are true or false.

(a) If a mutual fund scheme is profitable, then through a systematic withdraw plan (investor
in post-retirement period) can keep encashing some profit.
(b) A systematic transaction can never be cancelled.

A------- A ONLY

17. Which of the following are advantages of benchmarking of mutual fund schemes to total
return variant of the index TRI compared to the price return variant of the index?
(a) Increase in transparency
(b) Ensures fair performance comparison

B only
18. Which of the following statements are/is true?
(a) The additional yield needed to bear credit risk is called “yield credit”.
(b) Beta is a measure of risk for equity mutual fund schemes.
(c) Variance is a measure of risk for both equity and debt mutual fund schemes

B,c

19. Sponsors that are banks are also regulated by ________ apart from SEBI.

C------ BSE

20. What happens for the market price of a bond when the credit rating migrates from AAA to
AA+?

B---- THE PRICE OF THE BOND FALLS.

21. Standard risk factor are disclosed in the __

A----- SID

22. Which of the following documents is best suited to get updated monthly performance and
portfolio data on mutual funds?

A------- FUNDS FACT SHEET

23. Know your customer (KYC) compliance for mutual funds transactions is valid for_

A- ALL MUTUAL FUIND TRANSACTIONS

24. Which of the following statements is false?

(a) At the time of redemption, the mutual fund distributor must ask the investor to
redeem from the scheme with the maximum exit load.
(b) At the time of repurchase the mutual fund distributor must ignore the impact of the exit
load.

C----- A AND B

25. Which of the following statements is TRUE?

(A) Mutual fund can be purchased through stock exchange but cannot be sold there.
(B) Mutual fund purchased through stock exchange have a lock in period.
 (C) Stock exchange offer another channel for mutual fund companies to reach out to
the investor.

26. The portfolio of a fund of funds is made up of______

C---------- MUTUAL FUND SCHEMES

27. If one of the joint holder dies

UNITS TO BE CONTINUED TO BE HELD BY THE SURVIVNG JOINT HOLDERS.

28. What is the weakness of comparing mutual fund schemes by looking at their relative
returns?

C--- THE RELATIVE RETURN OF TWO DIFFERENT SCHEMES CVANNOT BE

COMPARED

29. In which of the following schemes long term capital gains is not taxes?

(a) Balanced funds

(b) Diversified equity funds
(c) Balanced advantage

C------- CAPITAL GAINS FROM ALL TYPES OF MUTUAL FUNDS SCHEMES IS

TAXABLE, SUBJECT TO CERTAIN CONDITONS

30. The process of offering a mutual fund scheme to the public for the first time for
subscription is known as _____

B—NEW FUND OFFER (NFO)

31. Which of the following statements are/is true pertaining to risk levels in mutual fund
schemes?

(A) NAV of gilt schemes can fluctuate a lot more in comparison to liquid funds
due to change in the market.
(B) Credit risk fund has relatively higher risk of default compared to corporate
bond fund.

C--- B AND A

32. KEY INFORMATION MEMORANDOM has to be updated at least___

 A—ONCE A YEAR

33. Which amongst the following may be a proper benchmark for a balanced hybrid scheme?

B—CRISIL HYBRID 50-50 MODERATE INDEX

34. As per SEBI guidelines every mutual fund scheme should have at least __ investors.

D--- 20

35. People who want to retain liquidity in investment may invest in______

C—LIQUID FUNDS