Q1.
From the listed below, ________has the highest credit risk
1. High yield funds
2. Els funds
3. gilt funds
4. index funds
Q 2. Usually, active funds give higher returns as investors beer higher fund management
expenses state true or false
1. True
2. False
Q3. The main purpose why SEBI has issued norms for investments by mutual fund schemes
is to______
1. Get better returns by mutual fund schemes
2. Improve the credit ratings of the mutual fund schemes
3. Protect the interests of the mutual fund investors
4. Protect the interests of the mutual fund industry
Q4. The lock in for Equity Linked Savings Scheme (ELSS funds) is______
1. 1 year
2. 2 years
3. 3 years
4. 5 years
Q5. As the unit certificate are non-transferable, they do not offer any real transactional
convenience for the Unit-holder- State true or false.
1. True
2. False
Q6. What does a portfolio which has a beta less than 1 mean?
1. Highly risky as compared to market
2. More risky than market
3. Less risky than market
4. Same risk as that of the market
Q7. When should an investor adopt a strategy of limiting his equity expenses via equity index
funds?
1. In the accumulation phase
2. In the retirement phase
3. In the sudden wealth phase
4. None of the above
Q8. When the interest rates are rising, the bond funds which have short average maturity are
more likely to outperform. – State true or false
1. True
2. False
Q9. Where are the New Fund Offer dates mentioned?
1. Key Information Memorandum – KIM
2. Scheme Information Document – SID
3. Statement of Additional Information – SAI
4. Both SID and KIM
Q10. Which of the below investors will require the approval of board before investing in
mutual funds?
1. Non-Resident Investors
2. Institutional Investors
3. High Networth Investors
4. Retail Investors
Q11. Condensed Financial information for schemes launched in the last 3 financial years is
mentioned in ______
1. Scheme Information Document
2. Statement of Additional Information
3. Fact Sheet
4. Prospectus
Q12. Which of the following do not impact the calculation of NAV
1. Change in the value of investments held by the scheme
2. Daily accrual of expenses
3. Daily accrual of income
4. Change in the number of investors in the fund
Q13. Mr. tarun is in his 30s and has a steady job. He is investing most of his savings in bank
deposits. Due to lowrate of return on bank deposits, he is putting his financial goals at risk.
Which behavioral bias is his portfolio suffering from?
1. Familiarity bias
2. Anchoring
3. Herd mentality
4. Confidence bias
Q14. Mr. Ashu holds his mutual fund units in demat form. If he wants to change his nominee
or his bank account, he has to contact the _____ and complete the required procedure.
1. Stock Exchange
2. Depository Participant
3. R&T agent of the mutual fund
4. AMC/ Mutual Fund
Q15. Redemption proceeds has to be paid to the mutual fund unit holders within the time
specified by ______ from time to time.
1. AMFI
2. SEBI
3. Registrar of Companies
4. Ministry of Finance
Q16. What is required for the termination of the services of an Asset Management Company
(AMC)?
1. 75% of the mutual funds distributors should approve the termination of the AMC
2. 75% of the unit holders should approve the termination of the AMC
3. The custodian should approve the termination of the AMC
4. AMFI should approve the termination of the termination of the AMC
Q17. Ms. Priya redeems 2000 units at an NAV of Rs. 13. If the exit load is 1 percent, what is
the redemption value of the investment?
1. Rs. 25500
2. Rs. 26250
3. Rs. 26000
4. Rs. 25740
Q18. As the complete exposure is to a single sector, Sector Funds are high on_____
1. Credit Risk
2. Concentration Risk
3. Interest Rate Risk
4. Liquidity Risk
Q19. These debt mutual funds have been arranged from Lowest risk to highest risk. Identify
the risk which we are discussing:
A. Liquid Funds B. Money Market Funds C. Medium term bond funds
1. Interest Rate Risk
2. Concentration Risk
3. Default Risk
4. Credit Risk
Q20. _______ is an example of physical asset.
1. Bank deposit
2. Shares and Debentures
3. Land and building
4. Futures and Options
Q21. Performance of a portfolio is influenced by_______
1. Stock Selection
2. Investment Policy
3. Asset Allocation Strategy
4. All of the above
Q22. What would be the impact on an international fund investing in US stocks when the US
Dollar appreciates against the Indian Rupee
1. The NAV of the scheme in Indian Rupee will appreciate
2. The NAV of the scheme in Indian Rupee will depreciate
3. No impact on the fund as it is investing in stocks and not currency
Q23. Identify the false statement/s:
A. For equity mutual fund schemes which are actively managed (e.g Diversified equity
fund/Balance funds), the NAV need not be declared upto 4 decimal points
B. Each Mutual fund scheme’s account is combined with the accounts of the Asset
Management Company
1. Only A is false
2. Only B is false
3. Both A and B are false
Q24. Calculate the average holding period if the portfolio ratio is 25percent
1. 25 months
2. 48 days
3. 40 months
4. 4 years
Q25. Key Information Memorandum (KIM) and the Scheme Information Document (SID)
are two broad types of scheme document – State True or False
1. True
2. False
Q26. Identify the TRUE statement/s with respect to Statement of Additional Information
(SAI)
A. Regular update has to be dine by the end of 3 months of every financial year
B. Material changes have to be updated on an ongoing basis and uploaded on the
websites of the mutual fund and AMFI
1. Only A is true
2. Only B is true
3. Both A and B are true
4. None of the above
Q27. Which of these investors CANNOT do cash investments in Mutual funds upto a limit of
Rs. 50,000
1. Investments made by a PIO (Person of Indian Origin)
2. Investment made by Sole Proprietorship firm
3. Investments made by a Minor
4. Investments made by resident Indian Investors without PAN
Q28. Identify the False statement
1. Mutual fund units which have been purchased on a stock exchange have a compulsory
lock-in period
2. Mutual funds units can be bought on a stock exchange by they cannot be sold there
3. Both of the above are false
Q29. Mr. Suresh invests Rs. 30000 in an equity fund. The face value of this scheme is Rs.10
and the NAV is Rs.12. The exit load is 2%. How many units will be allotted to Mr. Suresh?
1. 3000
2. 2142.8571
3. 2500
4. 2411.1574
Q30. Which of these statements is/are incorrect?
A. The impact of exit load can be ignored by the distributor at the time of repurchase of a
mutual fund unit
B. When the investor wants to redeem mutual fund units, the distributor must suggest
redemption from the scheme with maximum exit load.
1. Only statement A is incorrect
2. Only statement B is incorrect
3. Both statements A and B are incorrect
Q31. Where is the information regarding investor service centres, minimum investment
amount and how to make the purchase of mutual funds mentioned?
1. Application form
2. Nomination form
3. Transaction form
4. Key Information Memorandum (KIM)
Q32. In an arbitrage fund, the minimum investment in equity and equity related instruments
shall be ______ of the total assets.
1. 50%
2. 55%
3. 60%
4. 65%
Q33. When a dividend is paid, the NAV of the units _______ to the extent
1. Rises
2. Falls
3. There is no change
Q34. What is the portfolio of a ‘Fund of Funds’ made up of?
1. Monet Market securities
2. Equity Stocks
3. Debt Securities
4. Mutual fund schemes
Q35. Which of these documents is not required to be submitted for investing in mutual funds
by a charitable organisation?
1. List of authorised signatories
2. Trust deed
3. Board resolution
4. Memorandum and Articles of Association
Q36. A mutual fund has the policy of imposing an exit load of 2% for redemption upto 1 year
and 1% for redemption beyond 1 year. If an investor redeems 2000 units at an NAV of Rs.40
at the end of six months from the date of investment, what will be redemption amount
receivable by the investor.
1. Rs. 76500
2. Rs. 79200
3. Rs. 80000
4. Rs. 78400
Q37. Among these funds, which will have the lowest interest rate risk?
1. Money Market fund
2. Diversified equity fund
3. Pharma Sector fund
4. Dynamic Bond Fund
Q38. For how long is the trail commission paid to the mutual fund distributor?
1. For the first one year only
2. For the first three years only
3. For the first ten years only
4. Till the money is held in the fund
Q39. An existing bond fund will tend to lose value when market interest rates_______.
1. Rise
2. Fall
3. Remains constant
4. Are equal to yields
Q40. What should an investor see to evaluate the Consistency of Mutual Fund scheme
performance?
1. Point to point
2. Standard deviation
3. Discrete Annual Returns
4. Beta
Q41. In which categories of stocks do Multi Cap equity funds invest in?
1. Mostly large cap stocks only of large companies
2. Mostly mid cap stocks only of large companies
3. Mostly small cap stocks only of large companies
4. A mix of large, mid and small cap stocks
Q42. When can mutual funds charge an additional expense of 0.30% of daily net assets of the
scheme?
1. If the new inflows from beyond top 30 cities are at least (a) 30 percent of gross new
inflows in the scheme or (b) 15 of the average assets under management (year to date)
of the scheme.
2. If the new inflows from beyond top 20 cities are at least (a) 30 percent of gross new
inflows in the scheme or (b) 5 of the average assets under management (year to date)
of the scheme.
3. If the new inflows from beyond top 15 cities are at least (a) 25 percent of gross new
inflows in the scheme or (b) 15 of the average assets under management (year to date)
of the scheme.
4. If the new inflows from beyond top 15 cities are at least (a) 10 percent of gross new
inflows in the scheme or (b) 5 of the average assets under management (year to date)
of the scheme.
Q43. Identify the true statement/s –
A. The nominee is the beneficial owner of the mutual funds units
B. Nomination does not create any title or beneficial interest in the units in favour of the
nominee after the death of the unit holder
1. Only A is true
2. Only B is true
3. Both A and B are true
4. Both A and B are false
Q44. Identify which of the these statements is / are FALSE?
A. Banks and mutual funds both offer the Gold Deposit Scheme
B. Gold ETFs are closed ended funds
1. Only A is false
2. Only B is False
3. Both A and B are false
Q45. On which of the following factors does the returns from an international fund depend
on?
1. Asset Class performance
2. Foreign Currency exchange rates
3. Both 1 and 2
Q46. In case of any conflict between the Principles of Fair Valuation and AMC’s Valuation
guidelines_____
1. The Valuation guidelines will prevail
2. The Principles of fair valuation will prevail
3. Both are same so there will never be an conflict
4. SEBI will decide which is correct
Q47. Securities and Exchange Board of India functions does not include which of the
following ?
1. Regulation of Stock Exchanges
2. Enforcing compliance of its regulations
3. Making regulations for the Mutual fund industry
4. Approving the fund managers which have been appointed by the AMC
Q48. What is Indexation?
1. Reduction of short and long term capital gains tax by using an index based calculation
2. Benchmarking the index against a suitable index like Sensex/Nifty
3. Adjusting the cost of acquisition upwards to reflect the impact of inflation
4. Adjusting the cost of acquisition downwards to reflect the impact of inflation
Q49. What is the maximum percentage of holding can a single investor have in a mutual fund
scheme?
1. 5%
2. 10%
3. 20%
4. 25%
Q50. _______ is considered as an Institutional Investor.
1. Non- resident Indians
2. Trusts
3. Person of Indian Origin (PIO)
4. High Networth Individuals
Q51. Mr. A is an existing investor in a mutual fund scheme and he is now investing Rs. 5000
in the direct plan of the scheme. What will be his net investment in the scheme after
considering the transaction charges?
1. Rs. 4950
2. Rs. 4900
3. Rs. 4875
4. Rs. 5000
Q52. A board resolution for investing in the mutual fund scheme is compulsorily required
by________
1. NRIs
2. Hindu Undivided Families – HUF
3. Institutional Investors
4. Minors
Q53. Manager is planning to invest in Indian farmer companies as these companies are
setting up new manufacturing capacities identify the Investment style of the fund manager
1. value investment Style
2. cyclical investment Style
3. targeted investment Style
4. growth investment Style
Q54. What are the guidelines issued by AMFI for intermediaries known as?
1. sebi brokers and intermediaries guidelines
2. know your distributor guidelines
3. amfi guidelines and norms for intermediaries (AGNI)
Q55. at what price can investors buy or sell units often open ended fund after the new fund
offer?
1. The NAV of the mutual units
2. the new fund offer price
3. the face value
4. the monthly average price
Q56. a minor has one more year to become a major. 3 year SIP is started in the minor folio.
which of the following statement is true in this case?
1. the sip will be registered for three years
2. the sip will be registered for only two years
3. the sip will be registered for only one year till the Investor attains majority
4. the sip will be registered for three years from the date of attaining majority
Q57. Rising Sun mutual fund holds shares of AA Limited in its portfolio. when the NAV of
the scheme is calculated on the 10th April then each year of AA limited will be valued at—---
---?
1. average trade price of AA limited on the 10th April across all stock exchanges
2. opening price of AA Limited on the 10th April at BSE / NSE
3. closing price of AA limited on 10th April at BSE / NSE
4. average credit price of AA limited on 10th April at BSE / NSE
Q58. identify which of these is a function of association of mutual funds in India (amfi)?
1. to calculate the correct NAVs
2. to make available the AUM, NAV and other important data of the mutual fund
industry
3. to regulate and control insider trading
4. to manage the Investor Protection Fund
Q59. Mutual fund distributor cannot charge a transaction fee on which of these transactions?
1. systematic transfer plan
2. a new investor making a purchase in a mutual fund scheme
3. an existing investor making a purchase in the mutual fund scheme
4. systematic investment plan
Q60. the NAV applicable for Purchase in a gilt fund of rupees 50 lakhs if the check is
received after 2 pm will be_______
1. Same day anyway if received before cut off time
2. Closing NAV of d immediately preceding the date of application
3. closing NAV of the next business day
4. NAV of the business day on which the funds are available for utilization
Q61. SEBI investment code for mutual funds mentions the various guidelines to be followed
by _______
1. The investors who are interpreting the performance of the investments
2. The AMC's while it is advertising the performance of their funds
3. the distributors by advertising their various services
4. The fund managers while monitoring the performance of the schemes they manage
Q62. Information and foreign account tax compliance act (FATCA) is provided______
1. only if the Investment is made from a foreign bank account
2. if the country of birth / citizenship/nationality/ text residency is other than India
3. Only if an NRI is doing the investment
4. Only if the Investor is a resident of USA or Europe
Q63. Which certification examination is mandated by SEBI for becoming mutual fund
distributor in India
1. NCFM series VA mutual fund distributors
2. NISM series VA mutual fund distributors
3. AMFI VA Mutual Fund Distributors
4. SEBI VA Mutual Fund Distributors
Q64. Mr Sandesh invests rupees 75 lakh in a great fund and gives a local check at 3:30
pm. to work will be the applicable and AV for a lot of moment of units?
1. NAV of the business day on which the funds are available for organization
2. same day NAV if received before cut off
3. Closing NAV of the next business day
4. closing NAV of day immediately preceding the day of application
Q65. A trader believes that he can always outperform the market. this is an example of
1. Recency bias
2. over confidence
3. Herd mentality
4. Anchoring
Q66. Which of these is not a function of registras and transfer agents?
1. Maintaining investors records
2. Processing Redemption and dividend payouts
3. Analyzing mutual fund performance and making it available to investors
4. updating unit capital of fund
Q67. The asset management companies have to disclose the total expense ratios of the
various schemes on their websites on ______ basis
1. Daily
2. Weekly
3. Monthly
4. Annual
Q68. What does asset allocation mean?
1. Allocating of portfolio to cash
2. allocating various mutual funds to investors
3. Allocating units to unit holders
4. Allocating a portfolio to different asset classes
Q69. Which investor need not provide PAN card at the time of making a mutual fund
investment?
1. Investor who is investing up to rupees 50,000 in the mutual fund scheme excluding
SIP per year per mutual fund
2. Investor who is investing up to rupees 50,000 in the mutual fund scheme including
SIP per year per Mutual fund
3. investor who is investing up to rupees one lakh in a mutual fund scheme excluding
SIP per year per mutual fund
4. Investor who is an investing up to rupees one lap in a mutual fund scheme including
SIP per year per mutual fund
Q70. to whom does the profits and losses made by the mutual fund belong
1. The investors
2. the asset management company
3. Fund managers
4. Trustees
Q71. to segregated portfolio be created out of debt fund scheme when
1. there is a credit event
2. a change occurs in the fund management team
3. interest rates moved down
4. interest rates move up
Q72. Returns from a fund is 9% and the risk free rate is 5% this standard deviation is 3 and
beta is 1.6. what will be the numerator for calculating the sharpe ratio
1. 3
2. 6
3. 1.6
4. 4
Q73. _________forms the basis of appointment of a distributor by an AMC
1. SEBI approval
2. agreement between the Investor and distributor
3. power of attorney from the AMC
4. an agreement between the AMC and the distributor
Q74. In case of a securitized asset, _________ will not be an originator to a special purpose
vehicle?
1. Housing finance company
2. Non-banking finance company
3. Commercial Bank
4. Reserve Bank of India
Q75. Multi asset allocation funds invest in at least dash asset classes with a minimum
allocation of at least 10% in each class
1. 2
2. 3
3. 4
4. 5
Q76. Identifying the true statement?
1. Mutual funds which are bank sponsored are regulated by reserve Bank of India and
not SEBI
2. SEBI and AMFI both regulate mutual funds in India
3. Stock exchanges regulates mutual funds in India
4. SEBI regulates mutual funds in India
Q77. Which of these statements are false?
A. while evaluating schemes, the expense ratio will matter much more in debt funds
then equity mutual funds
B. a mutual fund with a long track record is always better for investments as it would
give higher Returns in the future
C. Ultra short term debt funds always invest in high credit quality securities
1. A and B are false
2. B and C are false
3. A and C are false
4. all A B and C are false
Q78. Identify the true statement with respect to investments in mutual funds through stock
exchanges
1. stock Exchanges have now become another important channel for mutual fund
companies to sell their units to investors
2. one can buy mutual fund units on stock exchange but cannot sell them on the stock
exchange
3. The mutual fund units purchased through a storage exchange have a mandatory lock
in period of 30 days
4. none of the above are true
Q79. Identify the false statement with respect to mutual fund scheme related documents
1. KIM and SID are two broad types of scheme documents
2. SID has details of the particular scheme
3. SAI has statutory information about the mutual fund
4. KIM is essentially a summary of the SID and SAI
Q80. Which risk is higher in a guilt fund when compared to a corporate bond fund?
1. concentration risk
2. credit risk
3. Interest rate risk
4. duration risk
Q81. What is the risk known as which are rises out of the mispricing or improper evaluation
of derivative contracts?
1. credit risk
2. basis risk
3. model risk
4. duration risk
Q82. Mr Sachin wants to initiate a systematic investment plan in the middle fund scheme.
which of the following statement is correct?
1. SIP can be done only in an existing folio
2. SIP can be used to initiate the fresh purchase of mutual funds
3. SIP cannot be done in new fund offer
4. SIP can be done in a close end fund
Q83. ___________ funds will benchmark themselves against indices based on government
Securities
1. credit risk
2. Liquid
3. Overnight
4. Gilt
Q84. Which of the following is/are also stamped on the application form along with the time
stamp?
A. local code
B. serial number
C. machine identifier
1. only A and B
2. only B and C
3. only A and C
4. All A, B and C
Q85. The information which is provided in the mutual fund advertisement has to be_____
1. published in one English and one regional language newspaper
2. approved by the security and exchange board of India
3. Timely
4. valid for at least six months investment Horizon
Q86. Normally a fund manager will have to provide the maximum liquid assets for which of
these funds?
1. open end schemes
2. close end schemes
3. ETF gold
4. ETF equity
Q87. As per SEBI regulations _______ is required while declaring mutual fund scheme
performance
1. the new fund open and closing dates
2. returns of the peer group mutual fund schemes
3. returns of this scheme compared to other financial products
4. returns of the scheme compared to the benchmark
Q88. Identify from the following practices which are not approved Practice by a registered
mutual fund distributor?
1. not levying transaction charges on investors based on the value of their investments
2. attracting new investors by offering them monetary incentives
3. Both of the above
4. none of the above
Q89. An investor who wants liquidity in his investment will invest in
1. equity linked saving scheme
2. fixed deposits
3. PPF
4. liquid funds
Q90. Tactical asset allocation is the decision that comes out of calls on the likeli behavior of
the market. state true of false
1. True
2. False
Q91. Who can attest the copies of supporting documents in the kyc procedure
1. Gazetted officer
2. manager of a scheduled Commercial Bank
3. both of the above
4. mutual fund distributors
Q92. Who has to sign the form for registering a change in the default bank account in the
mutual fund folio?
1. by all the holders of the folio
2. by all the holders of the folio as per the mode of holding
3. only by the first holder of the folio
Q93. Identify the true statement
a. the turnover ratio will be higher in a memo momentum oriented investment strategy
of an Equity oriented mutual fund
b. it's always simpler to invest in balanced mutual funds as compared to investing
separately in equity and dead funds but this limits choices
1. only a is true
2. only B is true
3. both a and b true
4. neither a nor B is true
Q94. What will happen to the scheme net asset value after the dividend is paid?
1. the NAV will rise
2. the NAV will fall
3. the NAV will remain same
Q95. Thematic funds are risky because of_______ in One theme.
1. Under exposer
2. high beta
3. Diversification
4. Concentration
Q96. Identified the true statement with respect to regulation of mutual funds in India
1. AMFI along with SEBI regulates the mutual funds in India
2. the two stock exchanges NSE and BSE regulate the open and mutual fund schemes
3. SEBI regulates the mutual funds in India
4. RBI along with SEBI regulate the bank sponsored mutual funds in India
Q97. Which of these expenses can be charged to a mutual fund is scheme by the AMC?
1. office salaries of fund management team
2. rent of the AMC registered office
3. AMC general administration expenses
4. custodian and fund administrator fees
Q98. Identified the false statements
A. all investors of the similar age group should have the same asset allocation in there
portfolio
B. risk profile of the Investor should not be considered if his mutual fund distributor
understands the risk associated with the mutual fund scheme
1. only A is false
2. only B is false
3. both A and B are false
4. neither A nor B is false
Q99. Identify the security which will be most impacted By interest rate movements in the
economy?
1. public sector units bonds
2. money market Securities
3. government Securities
4. corporate debentures
Q100. The key information memorandum is attached to which of these documents?
1. the application form
2. the scheme information document
3. the statement of additional information
4. the transaction slip
