Documenti di Didattica
Documenti di Professioni
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4:00 PM
11:30 AM
3:00 PM
Answer Feedback: For
online transactions, the time recorded on the system is used to apply the NAV. It is 11:30
am in this case.
If flexible asset allocation is chosen, the ratio between the asset classes is likely to:
Remain fixed
Remain equal
allocation means the ratio between the assets changes with changes in market value
CAGR is used to measure the returns from mutual funds for periods of ____________.
periods more than one year, it is mandatory to use CAGR to measure returns
Equity shares
Deposits
Bonds
PPF
Answer Feedback: Compared
Asset class G in the NPS is suitable for investors who like to invest in:
Debentures of companies
Government securities
Equity Shares
Bank deposits
Answer Feedback: Class
documents only provide information about the fund making the offer not information about
competing funds
The NAV for an equity fund purchase transaction will be applied based on:
Company factors
Industry factors
Economy factors
Answer Feedback: Return
An investor sells his units in an equity-oriented fund after 6 months, for a profit. What is the taxability of this gain?
Taxable at 10%
Taxable at 15%
Taxable at 20%
Answer Feedback: Gains
from sale within one year is treated as short term capital gain, taxable at 15% for an
equity-oriented fund
A fund manager has sold his holdings while the markets are still going up and is holding cash as a defensive measure. How is the portfolio likely to perform if the markets correct?
Outperform
Underperform
fund manager is in cash and the market corrects, the portfolio will not lose as much as a the
benchmark
AMFI has the powers with respect to registered ARN-holding distributors to:
Cancel registration
Impose penalties
Issue notices
can issue notices, impose penalties and cancel registration of ARN holders.
Transferred to SEBI.
Investments in mutual funds enable investors to reduce the risk in their portfolios through:
Market timing
Stock selection
Sector selection
Diversification
Answer Feedback: Risk
An investor has sold his investments in a mutual fund two years after buying the units. The profits he earns are taxable _________________.
as dividends
at a rate of 10%
Answer Feedback: Gains
from units sold after a year of purchase are treated as long term capital gains
If there is a loss from sale of mutual funds, this cannot be set off against ___________.
from sale of mutual funds cannot be set off against any other head of income
The custodian
The AMC
The sponsor
The trust
Answer Feedback: The
According to the investment management agreement, what is the power the trustee holds with respect to an AMC?
Which of the following constituents is responsible for executing the trades of the fund manager on the stock exchange?
Custodian
R&T agents
Brokers
Banker
Answer Feedback: Brokers
execute the trades for the fund manager. The custodian settles them.
If you receive an application for investing in a mutual fund, which one of the following investors would you reject?
PIOs
HUFs
OCBs
NRIs
Answer Feedback: OCBs
Fully taxable
financial goal has to be defined in terms of time and money, to be acted upon
If an investor conducts a mutual fund transaction on a stock exchange platform, which of the following is NOT true?
exchange transaction is put through a broker, settled using demat or sent to R&T agent, but
NFO transactions
Re-purchase transactions
Answer Feedback: PAN
A mutual fund scheme was launched on October 15. 2010. When is the SID due for the first regular update?
March-12
January-12
January-11
March-11
Answer Feedback: SID
has to be updated every March. But, for schemes launched in the second half of a financial
When investors buy units in an NFO, the amount mobilized by the fund is called:
Initial AUM
Average AUM
Managed capital
Unit capital
Answer Feedback: NFO
is usually priced at face value. The amount mobilised therefore is the unit capital
An investor buying mutual fund units for the first time uses the:
Application form
Switch form
Transaction slip
Statement of account
Answer Feedback: Application
If a distributor invests his own funds in a mutual fund, which of the following is true?
A fund of fund derives its NAV from other funds. Therefore it can publish its NAV by __________
What is the maximum number of AMCs with whom a mutual fund distributor can be empanelled?
20
10
Answer Feedback: There
Equity shares
Title to property
Corporate bonds
Bank deposits
Answer Feedback: Deposits,
If an investor uses the ASBA facility in NFO transactions, he makes the payment for units:
Upfront in advance
In installments
Answer Feedback: ASBA
end funds can be sold before maturity only by selling at the stock exchange
expenses are borne out of the fee it earns and not charged to the fund
The return to the investor in a short term debt fund can be impacted by __________.
cash risk
market risk
expense ratios
liquidity risk
Answer Feedback: A
short term debt fund is impacted the most by expenses, since the market and liquidity risks
Sponsors
AMFI
SAT
Trustees
mutual fund schemes are approved by Trustees. AMFI, SAT or Sponsors do not have
The primary objective of creating a mutual fund trading platform on a stock exchange is to
of units in stock exchanges is intended to increase the reach of the funds, not the
PPF
Company deposits
Corporate bonds
are no tax concessions on bonds and deposits. PPF interest is exempt from tax
If unit holders seek a change in AMC, they should get the support of investors holding __________
holders controlling at least 75% of the unit capital should vote for a change in AMC
The banker
The custodian
The distributor
Answer Feedback: The
The price of a closed end fund that is listed on a stock exchange tends to be:
price of a listed closed end fund depends on liquidity in the market and can be different
The NAV of a fund is Rs. 40. The exit load is 1%. What is the re-purchase price per unit?
Rs.40.40
Rs.39.60
Rs.40
Rs. 39.40
Answer Feedback: Repurchase
money market securities have maturity less than or equal to 364 days.
Portfolio return
The investment objective of an investor is to earn steady income. Which of the following funds is most likely to meet that objective?
fund that seeks to earn a steady income cannot be an equity fund, only a debt or bond fund
Banks
AMC employees
Sponsor
Individuals
Answer Feedback: AMC
Certified by Amfi
Approved by RBI
Answer Feedback: All
Funds
Stocks
Bonds
Sectors
Answer Feedback: A
An application for a gilt fund is received with a cheque for Rs. 2 crore at 11:00 AM. What is the applicable NAV?
Next day
Previous day
Same day
a debt fund, if the value of transaction is over Rs.1 cr, NAV applies on the date of realisation
of the cheque.
It is a non-financial transaction
NFO advertisement
Awards advertisement
Tombstone advertisements
Answer Feedback: Tombstone
or risk factors
An investor in NPS chooses the life cycle option. This means his asset allocation will be based on:
Holding period
Age
Amount invested
Risk profile
Answer Feedback: In
a life cycle option, the asset allocation changes with the age of the investor
Transition phase
Accumulation phase
Reaping phase
Distribution phase
Answer Feedback: If
the rate of return on an asset is higher than the rate of loan, it may be worthwhile taking a loan
to buy an asset
Which of the following is NOT required to be disclosed to the investors in a mutual fund?
A purchase request for an equity fund was accepted at an AMC office on Wednesday, March 11 at 2:30 pm. What is the applicable NAV for the transaction?
NAV of March 10
NAV of March 11
NAV of March 9
NAV of March 12
Answer Feedback: Since
the purchase request was on a working day before cut off time, same day NAV (NAV of
An investor who is conservative in his risk taking ability should avoid which of the following funds?
Liquid funds
conservative investor should avoid sector funds which can be risky, depending on how the
sector performs
KYC norms have to be complied for which of the following mutual fund transactions?
All transactions
Answer Feedback: From
If you had to choose the lowest risk option for your investor, which one of the following would you choose?
Sector funds
Equity funds
balanced fund with fixed allocation maintains the ratio between debt and equity and is
Flexible allocation
Fixed allocation
Tactical allocation
Floating allocation
Answer Feedback: Flexible
allocation allows the proportion invested in assets to change with market value without
revision
The track record of a fund can be used in evaluating funds that are:
Large
Small
record can be used to choose funds that have been in existence for a long period of time
If an investor redeems units from a fund, he is likely to receive an updated statement of account within:
30 days
15 days
10 days
7 days
Answer Feedback: Statement
Which of the following risks is not borne by FMP, who holds to maturity?
Market risk
Default risk
Liquidity risk
Credit risk
Answer Feedback: FMP
Money is paid by the insurer on the death of an insured person, to the ____________.
proceeds of a policy are paid to the nominees if the insured person dies
Return objective
Scheme selection
Asset allocation
determination of goal, objective and asset allocation is done first, and selection of scheme
is done last
Which of the following funds is likely to have a high level of volatility in the NAV?
91-day FMP
Liquid fund
volatility of a debt fund increases with its maturity, a long term gild fund is likely to have a
Overvalued
Undervalued
Fairly valued
Illiquid
Answer Feedback: If
Profiling is done to ensure that investment options are chosen according to the ability of the investor to:
Bear risks
Accumulate
Expect returns
Save
Answer Feedback: Profiling
A company that intends to invest in a mutual fund scheme needs to take approval from:
Board of Directors
SEBI
Registrar of Companies
Answer Feedback: The
An individual investor chooses a dividend reinvestment option in a debt fund. What is the DDT applicable to the dividends that are reinvested?
applies for individuals at 12.5% for both dividend and reinvestment options in a debt fund
The component that is common between offer documents of two schemes of the same mutual fund is:
KIM
MIN
SAI
SID
Answer Feedback: SAI
A mutual fund has been set up by a bank. Who is the regulator of the sponsor of such a fund?
SEBI
Ministry of Finance
RBI
AMFI
fund in this case is regulated by SEBI, but its sponsor, the bank is regulated by RBI.
High PE stocks
based funds will choose low PE stocks with high dividend yield.
Trust
Custodian
AMC
Sponsor
Answer Feedback: Investors
at retirement
closer to retirement
after retirement
Answer Feedback: Retirement
corpus needs to be built during the working years, much before retirement
The price of gold in the spot markets is Rs. 20,000 per 10 gms. It is expected to go up to Rs.21,000. What is likely to happen to the price of gold futures?
Go up
Go down
Do not change
increased volatility
Answer Feedback: If
it is expected that price will go up, prices in the futures market will go up
The assets of a fund are Rs. 200 cr. The current liabilities are Rs. 20 cr. The unit capital is Rs. 50 cr. and the face value per unit is Rs. 10. what is the NAV of the fund?
Rs.40
Rs.36
Rs.32
Rs.44
Answer Feedback: NAV
When an investor plans to will his wealth to his heirs, financial planning is:
Not required
wealth is planned to be passed on, financial planning is required for the beneficiaries
Which one of the following can change, without changing the fundamental attribute of a fund?
Investment Objective
Fund manager
Lock-in period
Asset allocation
Answer Feedback: The
Beta
Excess return
Sharpe ratio
Tracking error
Answer Feedback: Alpha
SAI
KYC
MIN
SID
Answer Feedback: Scheme
Which of the following funds will not be chosen by an investor who seeks liquidity?
Liquid funds
Answer Feedback: Equity
linked saving schemes have a 3-year lock-in and therefore should not be chosen by an
An investor who is unwilling to invest in equity due to the perceived high risk may benefit from:
funds are equity trading are risky options. A small portion in diversified equity is desirable
An investor likes to assume high risks for higher returns. Which of the following funds would he prefer?
Income fund
Answer Feedback: A
small cap growth fund has a higher risk-return ratio compared to a diversified, large cap or
income fund
Which of the following is an appropriate benchmark for a large cap equity fund?
The risk in an equity fund can arise from the portfolio that holds:
Non-index stocks
Stock prices
Shareholding pattern
Trading volume
Financial information
Answer Feedback: Financial
Tax saving
Financial goals
Creating wealth
Retirement
Answer Feedback: Financial
Lock-in period
Overload of choices
Answer Feedback: There
are too many funds to choose from, which is a disadvantage, or a overload of choices
An investor who saves for a large expense in a short period of time is likely to choose:
A term policy
An endowment policy
A ULIP
Answer Feedback: A
Which of the following NAVs of an equity fund is as per minimum regulatory requirement?
Rs. 12.45
Rs.12.4525
Rs.12.452
Rs.12
fund NAVs have to be published to at least 2 decimal points. That is the minimum
requirement
An investor earns long term capital losses from his debt fund investments. He also makes a long term gain from his MIP investments. Which of the following is true?
The loss can be set off only against short term gains
term capital losses can be set off only against long term capital gains
When the interest rates are going down, the prices of debt securities are likely to:
Go up
Remain unchanged
Go down
Cannot say
Answer Feedback: Interest
is a mode of transaction in a fund that reduces average cost. The expense, return or lock-in
do not change.
Remain unchanged
A company investing in a mutual fund is required to submit along with the application: