Q1.

A close-ended mutual fund has a fixed NAV Tenure rate of return number of distributors

Q2."Sales Practices" cover the following areas. Desirable marketing practices Agents" responsibilities to the investor Ethical code of conduct All of the above

Q3.A "glossary" of Defined Terms must be included in the offer document. TRUE FALSE

Q4.A change in key personnel, especially the fund manager of an AMC does not nec essitate a revision of the offer document. TRUE FALSE

Q5.A company whose earnings are strongly related to the state of economy is know n as Economy stocks Cyclical Stocks Value Stocks Growth stocks

Q6.A Compliance Officer stands guarantee to the information contained in the offer document belongs to SEBI cannot certify that the AMC"s legal and procedural obligations are fulfilled cannot be appointed by the AMC

Q7.A copy of all changes in the offer document has to be filed with SEBI. TRUE FALSE

Q8.A due diligence certificate does not certify that the draft offer document forwarded to SEBI is in accordance with SEBI regulation s all legal requirements connected with launching of the scheme have been complied with disclosures made in the offer document are true, fair and adequate the AMC guarantees a good performance

Q9.A Fixed Term Plan Series is an open-ended fund a close-ended fund a fixed term bank deposit a fixed term corporate bond

Q10.A gilt fund is a special type of fund that invests in in in in very high quality equity only instruments issued by companies with a sound track record short-term securities government securities only

Q11.A Growth stock refers to shares of a company whose earnings are projected to grow at the normal market rates. TRUE FALSE

Q12.A mutual fund is not TRUE

FALSE owned jointly by all investors a company that manages investment portfolios of high networth individuals a pool of funds used to purchase securities on behalf of investors a collective investment vehicle

Q13.A mutual fund is owned by the Govt. of India SEBI all its investors AMFI

Q14.A Systematic Withdrawal Plan, allows investors to get back the principal amo unt invested in addition to any income on investment. TRUE FALSE

Q15.Agents are compensated by mutual funds through salaries through commissions through an annual fee not in cash but in kind

Q16.All buy orders through an agent do not become valid till the fund accepts an d confirms the orders. TRUE FALSE

Q17.Along with the application, it is mandatory to distribute investment rebate offer document key information memorandum None of the above

Q18.An agent can offer and sell a fund"s units at any price he chooses a price determined by competition among agents a price based on demand for that fund"s units the public offering price currently in effect

Q19.An equity mutual fund generally invest in unlisted securities market-traded securities thinly traded securities privately placed securities

Q20.An open-ended mutual fund is one that has an option to invest in any kind of security units available for sale and repurchase at all times an upper limit on its NAV a fixed fund size Q21.An owner of preference shares is given which of the following rights? Voting rights Fixed dividend income from post-tax profits Voting rights and unlimited dividend income No guaranteed rights

Q22.Any pending cases or penalties levied on the sponsors or AMC should be discl osed in the offer document. TRUE FALSE

Q23.A better performance than the benchmark index is given by passive fund manager an active fund manager all fund managers

non fund manager

Q24.Commission rates or loads applicable to big investors and small investors ar e same different not charges to either None of the above

Q25.Distribution and sales practices are only partly regulated by SEBI at presen t. TRUE FALSE

Q26.Dividend yield for a stock is dividend dividend dividend dividend per per per per share face value share to current market price share to current market price

Q27.Documents available to investors for inspection do not include Memorandum and Articles of Association of AMC consent of auditors and legal advisors investment management reports reports based on which actual investments are made

Q28.Equity of private companies Default by issuer on payment of interest or principal Price fluctuations of the debt securities Share price movements Interest volatility

Q29.Excess distribution expenses are to be borne by the AMC unit holders SEBI AMFI

Q30.For investors to correctly compare performance of different funds SEBI"s adv ertising codes include uniform computation of yields uniform presentations of dividends identical time periods all of the above Q31.Generally, which category of investors need advice for Investing in Mutual F unds? Non Banking Finance Companies Insurance Companies Foreign Institutional Investors Individuals

Q32.If fresh litigation cases or adjudication proceedings are referred by SEBI a gainst the fund sponsors or a company associated with the sponsors, then the off er document needs to be revised. TRUE FALSE

Q33.If the AMC is managing a fund for the first time, this information can be fo und in newspapers SEBI SEBI Offer document

Q34.In a mutual fund investors" subscriptions are accounted for as liabilities

deposits unit capital None of the above

Q35.In which of the following do debt funds not invest? Government debt instruments Corporate paper Financial institutions" bonds Equity of private companies

Q36.Information about trusteeship fees is included in the offer document but not in the key information memorandum. TRUE FALSE

Q37.Investments made by a mutual fund on behalf of investors are accounted as assets liabilities capital None of the above

Q38.Investors" rights under a scheme are uniform for all schemes of all funds not defined listed in the offer document available with stock exchanges

Q39.It is compulsory to use fund agents / intermediaries for investing MFs. TRUE FALSE

Q40.Liabilities in the balance sheet of a mutual fund are

in the form of strictly short combination of not allowed as

long-term loans term in nature long term and short term per regulations

Q41.Lowest commissions are paid on Equity funds tax benefit schemes of mutual funds debt funds long-term investments in mutual funds

Q42.Market capitalisation of a company is calculated by multiplying the number o f outstanding shares by 10 Face value of each share Current market value of each share dividend yield

Q43.Most eligible investors of Mutual Funds can broadly be grouped into either i ndividual or institutional investors. TRUE FALSE

Q44.Mutual Fund agents / distributors are not allowed to sell Financial Products other than Mutual Funds. TRUE FALSE

Q45.Mutual funds are allowed to borrow freely to meet their requirements for investment purposes only to meet redemption demands not allowed at all

Q46.Mutual Funds often use their own employees to mobilise funds from retail investors High Networth individuals / institutional investors all investors foreign investors

Q47.NAVs of equity funds are not affected directly by Stock market movements Events affecting the industry / company in which the fund has invested real estate prices

Q48.NRIs are eligible to invest in Mutual Funds. TRUE FALSE

Q49.Of the following fund types, the highest risk is associated with Balanced Fund Gilt Funds Equity Growth Funds Debt Funds

Q50.Past performance of a sponsor / AMC mutual fund is not indicative of the fut ure performance of the scheme. This is not true a standard risk factor for all schemes a scheme-specific risk factor applicable only to gilt funds Q51.Procedure for redemption or repurchase need not be described in the offer document include how redemption or repurchase price of units would be determined include names of centres where redemption can be effected indicate the redemption or repurchase price as at the end of the current fiscal

year

Q52.Retail distribution channels are a critical element in the distribution of m utual funds in India. TRUE FALSE

Q53.Risk arising from a scheme"s investment objective / strategy and proposed as set allocation is not present common to all schemes specific to that scheme not applicable to debt funds

Q54.Sales practices are never mandated by regulators, but arise from convention only. TRUE FALSE

Q55.SEBI"s advertising code mandate that all performance calculations in a fund" s advertisement should be based on NAV the NSE Nifty Index the BSE Sensex None of the above

Q56.Shares of companies with larger market capitalisation have greater growth potential are more liquid are not available None of the above

Q57.Sub-brokers serve as agents of the principal broker and a mutual fund is not answerable for their activities. TRUE FALSE

Q58.Tax treatment of investments does not form a section in the offer document describe the tax elements applicable to investors who invest in the fund form a section in the key information memorandum offer tax advice to investors

Q59.The "load" charged to an investor in a mutual fund is entry fee cost of the paper on which the unit certificates are printed the fee the agent charges to the investor the expenses incurred by the AMC for marketing a mutual fund scheme

Q60.The accounting policies of a fund should be in accordance with GAAP SEBI regulations ICAI Guidelines American GAAP Q61.The AMFI code of ethics does not cover the following prescriptions. Adequate disclosures should be made to the investors Funds should be managed in accordance with stated investment objectives Conflict of interest should be avoided in dealings with directors or employees Each investment decision should be approved by investors

Q62.The amount required to buy 1000 units of a scheme having an entry load of 1. 5% and NAV of Rs. 20 is Rs. 20000 20150 19850 20300

Q63.The circumstances for refund of investment in the initial offer and period w ithin which refund must be carried out are not specified in the offer document, but only on the application. TRUE FALSE

Q64.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. TRUE FALSE

Q65.The code of ethics for mutual funds published by AMFI is mandatory is in the form of recommended practices is unfavourable to investors does not cover distribution and selling practices

Q66.The drawback of an ordinary share is possibility of capital appreciation ownership privilege of the company guaranteed dividend income no guaranteed income or security

Q67.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 an executive director of the AMC the compliance officer Investor relations officer

Q68.The following are not termed as "sales practices".

Agents commission Before-and after-sales service to investors Advertising of schemes Stock broking

Q69.The following do not form a part of the investment procedure described in an offer document. Various Minimum Details Details plans under the scheme (e.g. dividend reinvestment plan) initial (and subsequent) investment of who can invest of other competing mutual funds

Q70.The following need not be covered in a Key Information Memorandum. Risk Factors Opening, Closing and earliest Closing Date of the offer Disclaimer Clause Functions and responsibilities of the sponsor, trustees, AMC and Custodian respo nsibilities Q71.The front page of an offer document need not cover opening, closing and earliest closing date of the offer disclaimer clause legal and regulator compliance price of units

Q72.The functions and responsibilities of the sponsor, AMC, trustees and custodi an of the mutual fund are listed in offer document only key information memorandum both offer document and key information memorandum None of the above

Q73.The fund need not describe its accounting policies in the offer document as these are of no use to an investor. TRUE FALSE

Q74.The greatest potential for appreciation in capital is offered by debt funds gilt funds growth funds balanced funds

Q75.The investment objectives of the fund an investor selects for investment are of should change change no relevance be the same as his own investment objectives with market movements with change in the AMC"s key personnel

Q76.The investment policies listed out in the offer document of a fund do not in clude the type of securities in which the scheme will invest principally asset allocation pattern policy of diversification the specific securities in which the fund will invest

Q77.The legal responsibility for the accuracy of the statements made in the offe r document lies with SEBI the AMC AMFI the Company Law Board

Q78.The maximum load that a fund can charge is determined by the AMC SEBI AMFI distribution agents based on demand for the fund

Q79.The most important advantage of a money market mutual fund is quick capital appreciation high regular income safety of principal no loads

Q80.The most important link between Mutual Fund and Investors is Government SEBI Fund distributors AMFI

Q81.The names and background of key personnel of the AMC need not be disclosed to investors are of no relevance as they may change are disclosed in the offer document are declared in newspaper advertisements

Q82.The NAV of a mutual fund is always constant keeps going up at a steady rate fluctuates with market price movements cannot go down at all

Q83.The NAV of each scheme should be updated on AMFI"s website every every every every quarter month hour day

Q84.The offer document for a scheme should describe how the NAV of the scheme is to be computed. TRUE

FALSE

Q85.The offer document is not a legal document. TRUE FALSE

Q86.The offer document need not be revised if the management or the controlling interest in the AMC change. TRUE FALSE

Q87.The Price / Earnings (P / E") Ratio is an important measure of a company"s a nticipated performance. It is calculated using Market Market Market Market price and dividend price and earning per share(EPS) capitalisation and dividend price and face value

Q88.The risk of a scheme"s NAV moving up or down on the basis of capital market movements is a standard risk factor. TRUE FALSE

Q89.Though the offer document of a scheme is prepared as per SEBI Regulations an d is filed with SEBI, SEBI does not certify the accuracy or adequacy of the docu ment. TRUE FALSE

Q90.To sell funds effectively, an agent need not

be fully aware of the important characteristics of the scheme know his / her client"s risk profile give after sales service offer large investment rebates

Q91.Trail commission means paying no commission at all the entire commission up-front part of the commission up-front and the balance in phases the entire commission after five years

Q92.Units from an open-ended mutual fund are bought on a from from from stock exchange the fund itself AMFI a stock broker

Q93.Valuation norms for non-traded securities should be disclosed at the end of every financial year every quarter in the offer document at the time of launch of the scheme should not be disclosed, being confidential information

Q94.Value stocks are currently under valued yield high growth in earnings have high price / earning ratio None of the above

Q95.What document Mutual Fund distributors need to refer for finding out eligibl e category of investors in a particular Mutual Fund Scheme? SEBI Regulations Manual AMFI booklet Offer document RBI Guidelines

Q96.When an agent purchases, offers or sells units, ensuring compliance with app licable regulations is the responsibility of the fund the agent AMFI SEBI

Q97.When comparing a fund"s performance with that of its peer group, the followi ng cannot be compared. Two debt funds with 5 year maturities Two debt funds with 5 year maturities A bond fund with a bond A government securities fund with a government security

Q98.Which of the following distribution channels is preferred by private mutual funds? Individual Agents Small Distribution companies Established distribution companies The Internet

Q99.Which of the following is generally true for a growth stock? Steady capital appreciation and steady dividend yield High capital appreciation and high dividend yield High capital appreciation but low dividend yield Steady capital appreciation but high dividend yield

Q100.Which of the following sales practices is prescribed by regulation? AMFI Code of Ethics SEBI Advertising AMFI"s Code for Agents None of the above

Q101.Who among the following are not Institutional Investors? Banks Resident Individuals Provident Funds Non Banking Finance Companies

Q102.The number of mutual fund schemes in India is about: 100 500 800 2000

Q103.Open-ended schemes generally offer exit option to investors through a stock exchange True False

Q104.Sector funds invest in a diverse range of sectors True False

Q105.High yield bond schemes invest in junk bonds True False

Q106.Investment objective is closely linked to Scheme Option Plan SIP

Q107.The assets of the mutual fund are held by AMC Trustees Custodian Registrar

Q108.Minimum networth requirement for AMC is Rs Rs Rs Rs 10 crore 5 crore 4 crore 2 crore

Q109.AMC directors are appointed with the permission of Trustees True False

Q110.Most investor service centres are offices of Trustees Registrar Custodian Fund Accountant

Q111.Fund accounting activity of a scheme is to be compulsorily outsourced True False

Q112.SEBI regulates Mutual Funds Depositories Registrar & Transfer Agents All the above

Q113.Investment objective defines the broad investment charter True False

Q114.Statement of Account is to be sent to investors within ___ days of NFO clos ure 3 5 7 15

Q115.Within ___ days of dividend declaration, warrants will have to be sent to i nvestors. 7 10 15 30

Q116.Unit holders can hold their units in demat form True False

Q117.NFOs other than ELSS can be open for a maximum of: 7 days 10 days 15 days 30 days

Q118.Legally, SAI is part of the SID True

False

Q119.Offer documents of mutual fund schemes are approved by SEBI True False

Q120.Application form is attached to SID SAI KIM None of the above

Q121.KIM has to be updated every 6 months True False

Q122.Institutional distributors build reach through Employees Agents Sub-brokers Any of the above

Q123.The maximum initial commission that an AMC can pay to distributors is: Nil 0.05% 1% 2%

Q124.The distributor can charge a fee from the investor. True False

Q125.Stock exchange brokers are permitted to distribute mutual funds without the requirement of passing the certifying test True False

Q126.Trail commissions are linked to valuation of portfolio in the market True False

Q127.Net assets of a scheme is nothing but its investment portfolio True False

Q128.The difference between NAV and re-purchase price is Entry Load Exit Load Expense Dividend Stripping

Q129.NAV of income funds is to be calculated upto ___ decimals 4 3 2 1

Q130.Securities Transaction Tax is applicable to Equity Schemes True False

Q131.Wealth tax is payable at the applicable rates on equity mutual fund units True False

Q132.Foreign nationals are freely permitted to invest in Indian mutual funds True False

Q133.PAN Card is compulsory for all mutual fund investments above Rs 50,000, inc luding SIPs True False

Q134.Investments in mutual fund can be made using Cheque / DD Remittance ASBA Any of the above

Q135.Cut-off timing guidelines are not applicable for NFOs International Funds Both the above None of the above

Q136.STP is a combination of SIP and SWP True False

Q137.Fundamental analysis is a evaluation of the strength of the company s price-v olume charts. True False

Q138.In a top-down approach, sector allocation precedes stock selection True False

Q139.Which of the following is a truly international asset class Real Estate Equity Debt Gold

Q140.Loads and taxes may account for the difference between scheme returns and i nvestor returns. True False

Q141.The most appropriate measure of returns for a scheme in existence for sever al years is: Simple Return Dividend Return Annualised Return CAGR

Q142.Risk can be measured by Variance Standard Deviation Beta Any of the above

Q143.Equity markets are more predictable in the long term than the short. True False

Q144.Arbitrage funds are meant to give better equity risk exposure True False

Q145.Which of the following aspects of portfolio would an investor in a debt sch eme give most importance Sector selection Stock selection Weighted Average Maturity Number of securities in portfolio

Q146.Mutual fund ranking and rating amount to the same. True False

Q147.Gold Futures are superior to ETF Gold as a vehicle for life-long investment in gold. True False True False

Q148.As regards wealth tax, ETF Gold is superior to physical gold. True False True

False

Q149.The New Pension Scheme is regulated by SEBI IRDA PFRDA AMFI

Q150.An investor under the new pension scheme can choose which of the following asset classes Equities Corporate debt Government Securities Any of the above