Sl

QUESTION
No

As per SEBI regulations, a mutual fund scheme should have at least _____
1
investors

Mutual fund units issued against purchase transaction would be subject to

2
levy of shamp duty at ______ of the amount invested.

3 To Whom does the profits or losses made by the mutual fund belong.?

What action has to be taken before deleting a default bank account from the
4
registered bank account in a mutual fund folio.?

The Asset Management Companies have to disclose the Total Expense

5
Ratios (TER) of the various scheme on their websites on a ______ basis.

If the sale and purchase transactions for a year amounted to Rs.10,000

6 crore, and the average size of net assets is Rs. 5,000 crore, this means that
investments are held in the portfolio, on an average for ______ .
 Investors tend extrapolate the current event into the future and expect a
7
repeat. This is an example of _______ bias.

8 _______ is a proper benchmark for a balanced hybrid scheme.

Long Duration Debt scheme invests in debt instruments with Macaulay

9
duration ________ .

When the asset allocation is maintained as a constant ratio by regular

10
rebalancing of portfolio, it is known as _______ .

11 For which of this documents is Time Stamping mandatory.?

12 Segregated portfolio means ________ .

What is the purpose of ' Credit enhancement' in case of securitised

13
transaction?
14 Banks and NBFC's can lend money against ________ of mutual fund units.

Whom should the investor approch if his complaint is not resolved by the
15
asset management company (AMC)?

16 Inflation Risk is also referred as ________ .

17 Which of these statement(s) is/are FALSE?

Long term capital gains is NOT taxed in which of these funds? A. Balanced
18
Advantage Funds. B. Balanced Funds C. Diversified Equity Funds.

19 In whose beneficial interest is a mutual fund managed.?

The loss booked from a debt investment of 15 months can be set off against
20
_______ .
 Which of these statements are false ? A) While evaluating schemes, the
Expense Ratio will matter much more in Debt Funds than Equity mutual
21 funds. B) A mutual fund with a long track record is always better for
investments as it would give higher retruns in the future C) Ultra short term
debt funds always invest in high credit quality debt securities.

Ultra-short-term Debt scheme invests in debt and money market

22
instruments with Macaulay duration between _______ .

23 Which of these is a physical asset.?

A mutual fund scheme's NAV is said to be cum - dividend from the ________
24
.

The expenses which can be changed by an Asset Management Company to a

25
Mutual Fund scheme are limited by ________ .

26 What is the portfolio of a ' Fund of Funds ' made up of.?

27 Identify the TRUE statement.

Identify the TRUE statement - A) A mutual fund scheme with a beta of less
28 than 1 is less risky than market B) The Diversified stock index has a Beta of 1
C) Unsystematic risk is measured by its Beta.

29 The New Fund Offer dates are published in the ________ .

Which of the below statements is an important advantage of a Exchange

30
Traded Fund (ETF) ?

As per AMFI's code of ethics, an Asset Management Company has to

disclose which of the following scheme related information to the unit
31
holders? A. Investment Pattern B. Annual portfolio turnover C. Annual
securities transactions.

In which of these options can an investor expect a cash flow in his bank
32
account.?
33 Which investment is FALSE with referance to risk appetite.?

If an invstor wants to get updated monthly perforamce and portfolio data on

34
mutual funds , which of the following documents should he read?

35 For how long is the trail commission paid to the mutual fund distributor?

36 Identify the TRUE statement/s

37 Which of these funds has the highest risk?

Which of these statement(s) is/are FALSE with respect to Beachmarks.? A)

Portfolio concentration is an important factor while selecting a beachmark
38 for an equity mutual fund B) Choice of investment universe is not an
important factor while selecting an approprite beachmark for debt mutual
funds.

The opening of time stamping machine needs to be documented and

39
reported to _______ .
40 What is negative Alpha?

Securities and Exchange Board of India (SEBI) functions does not include
41
which of the following?

42 _______ is not a fair selling practice by a mutual fund distributor.

Once a New Fund Offer closes, an open ended mutual fund is open for
43
purchases _________ .

An Investor in india is investing in US Dollar based funds. He/She will benefit

44
when ______ .

45 How is the redemption transaction of a mutual fund priced?

46 Investments are carried at __________ in a mutual fund portfolio.

47 Dividends which are paid by mutual funds can be paid out of __________ .

In case of Floater Fund, what is the required minimum investment in floating

48
rate investment of total assets invested?

The NAV applicable for purchase in a Gilt Fund of Rs. 50 Lakhs if the cheque
49
is received after 2pm will be ________ .

A creditable benchmark of a mutual fund scheme should be in sync with the

(A). size of scheme (B). Investment objective of the scheme (C). Investment
50
strategy of the scheme (D). Expenses ratio of the scheme (E). Asset
allocation pattern of the scheme.

A mutual fund distributor cannot charge a transaction fee on which of these

51
transactions?

Equity Linked Savings Schemes (ELSS) are eligible for deduction under
52 Section 80C of the income Tax Act. However, such schemes have a lock-in
period of ________ from tha date of investment.

When is a Consolidated Account Statement (CAS) dispatched to the

53
investor?

54 In which categories of stocks do Multi Cap equity funds invest in?

 Which of the following information about mutual fund distributors who
have multiple points of presence (more than 20 locations) must be disclosed
55 by the AMCs? A) Distributor-wise gross inflows and net inflows B) Average
assets under management C) Total commission and expenses paid to
distributors.

Multi Asset Allocation funds invest in at least _______ asset classes with a
56
minimum allocation of at least 10 percent in each class.

A bond issued by a company has a coupon of 7% The interest rate in the

57 market for bonds of similar tenor and credit quality is now 8%. An investor
holding the bond will see ______ .

Retrun from a fund is 9% and the risk free rate is 5%, the standard deviation
58 is 3 & beta is 1.6. What will be the numerator for calculating the sharpe
ratio?

A mutual fund application form with multiple holders has to be signed by

59
_______ .

Which type of transactions are allowed on a stock exchange platform for

60 mutual fund trading? A- Redemptions B- Fresh subscription C- Additional
Purchases .

When an investment is done by a minor, what is rule regarding Know Your

61
Customer (KYC) requirement?

For KYC verification, __________ is not accepted as a photo identify

62
documentation for Micro SIP's.

In an Arbitrage Fund, the minimum investment in equity related instruments

63
shall be ________ of total assets.
 The average net assets of a fund were Rs 800 crore and the investment
64 transaction of the fund were Rs 1600 crore. Calculate the portfolio Turnover
Ratio.

What is the investment of a constant amount at regular intervals in a mutual

65
fund scheme called?

By mistake the ARN number is wrongly mentioned in the application from.

66
How will such an application be processed?

A mutual fund has the policy of imposing an exit load of 2% for redemption
upto one year and 1% for redemptions beyond one year. If an investor
67
redeems 2000 units at an NAV of Rs 40 at the end of six months form the
date of investment, will be redemption amount receivable by the investor.

Stamp duty is required to be paid for which of these mutual fund

68 transactions? A. New purchases B. Systematic Investment Plan (SIP) C.
Dividend reinvestment D. Systematic Transfer Plan (STP).

Calculate the Treynor Ratio from the following data - Return from a mutual
69
fund scheme is 7.5% The beta is 0.62 The risk free rate of retrun is 6%.

Which strategy can be used to ensure that a mutual fund scheme is suitable
70
to the investor's need and situation?
71 Where are the ' Standard Risk Factors ' of a Mutual Fund scheme disclosed?

Which certification examination is mandated by SEBI for becoming a mutual

72
fund distributor in the India?

Identify the TRUE statement - A) The AMC is not liable for any losses
suffered by the foreign portfolio due to adverse currency movements B) The
73
AMC has to compensate to foreign portfolio investors for any losses suffered
due to adverse currency movements.

74 What can happen if an investor has an Overconfidence bias?

Which of these is an important criteria for choosing either Growth option or

75
Dividend option in the same mutual fund scheme?

What should an investor see to eveluate the consistency of Mutual Fund

76
scheme performance?

77 Indian mutual funds cannot invest in _________ .

78 What is the role of the custodian of a mutual fund?

 As per the Principles of fair valuation of mutual funds, the valuation of the
79
securities shall be _______ .

80 Identify the duty of a SPONSOR of a mutual fund -

81 Which of these documents have to be updated once in a year?

82 Which amongst the following bias can lead to concentrated portfolio?

Which of these documents is NOT required to be submitted by institutional

83
investors while investing in mutual funds?

84 Asset allocation must primarily match _______ .

_________ is / are Non Financial transaction (s) in a mutual fund?A) Switch

85
B) Pledge of units C) Nomination D) Transmission.

86 Floting interest rate is ________ .

 A mutual fund has to report which of the following information of an
87 investor who comes under the Foreign Account Tax Compliance Act
(FATCA)?

88 The expenses on ________ cannot be charged to the mutual fund scheme.

The loss booked from a equity investment of 18 months can be set off
89
against _________ .

If a person has to trade in units of a closed - ended mutual fund on the stock
90
exchange platform then the units have to be held in _________ .

Which of these investors is/are exempted from providing PAN deatils for
91
investments in Mutual Funds?

SEBI Advertisement Code for Mutual Funds mentions the various guidelines
92
to be followed by _______ .
 Which document will an investor look at if he has to know the fundamental
93
attributes of a mutual fund scheme?

Retrun from a fund is 11% and the risk free rate is 7%, the Standard
94 Deviation is 3 & Beta is 1 - what will be the denominator for calculating the
Sharpe ratio?

With respect to the procedure for getting empanelled as a mutual fund

95
distributor with AMC, the applicant needs sign a declaration for ________ .

When the distributors are empanelled, the mutual funds should categorize
96
the customer relationship and transaction in which of the following ways?

97 Which of these is a key advantage of Exchange Traded Funds (ETFs)?

State True or False - Long term capital loss can only be set off against long
98
term capital gain.

There are so SEBI regulations regarding the minimum or maximum

99
commission that distributors can earn - State True or False ?

The actual performance of an index fund can be better or worse than its
100
benchmark due to _______ .

The main purpose why SEBI has issued norms for investments by mutual
101
fund schemes is to _______ .
 What is the tax applicable on the AMC for the income earned by the mutual
102
fund schemes?

Which of the below investors will require the approval of board before
103
investing in mutual funds?

When compared to Goal based financial planning, Comprehensive Financial

104
Planning requires more time commitment - state True or False?

105 Which of these expenses can be charged to a fund?

Mr?X invests in a liquid fund at 4 pm and the funds are not available for
106 investment the same day?What will be the applicable NAV in this case for
allotment of units?

107 Which tax is payble on the redemption of units of Equity Oriented fund?

Arrange these funds according to their risk sequence - highest to lowest:

108 Fixed Allocation - Monthly Income Plans - Flexible Allocation - Capital
Protection Oriented funds

On every new business day in the morning the time statmping machine is set
109 to serial number 1 and the application received on that day are affixed with
time stamp and serial number starting from 1 - State True or False ?

A company wishes to invest into a specific scheme of a Mutual Fund - which

110
document authorises it to do so?

The auditor appointed to audit the scheme accounts is the same as the
111
auditor of the AMC accounts - State True or False?

112 Which of the following cycle will a financial planner not cosider?
113 Which of these is NOT a function of SEBI?

114 Where are the New Fund Offer dates mentioned ?

115 The Party in whose favour the Units are pledged is called a ________ .

In which of the following cases can Goods and Service Tax (GST) be charged
116 to the mutual fund scheme over and above the Total Expense Ratio of the
scheme?

The Dividend is declared on units which are under a lien will be paid to
117
________ .
118 Which of these is an advantage of Mutual Funds?

What is the maximum number of joint holders allowed per mutual fund
119
applications?

Risk profile of an investor is influenced by ________ ?A) the need to take

120
risks B) the willingness to rake risks C) the ability to take risks.

Fund Age is a more important criteria to be studied while investing in

121
_______ .

Consolidated Account Statement (CAS) has to dispatched to the investors

122
______ .

Dormat investors are those investors who have not transacted during the
123
pervious _______ months.

________ is responsible for settlement of Mutual Fund transactions which

124
are executed on the Stock Exchanges.
 Calculate the NAV for the following information? Value of stock 200 cr,
Value of money market instruments - Rs 25 cr, Dividend accrued but not
125 received - Rs 10 cr, Amount receivable on sale of shares - Rs 5 cr, Amount
payble on purchase of shares : Rs 10.5 cr, Fees Payable - Rs 1 cr, No. of
outstanding unit: 3 cr

Only individuals are allowed to distribute mutual funds in india - State

126
whether True ot False.

127 Which amongst the following has the highest to lowest risk sequence?

Mutual funds offer facilities that help investor invest constant amounts
128
regularly through a _________ .
An investor can convert his Mutual Fund units into demat form but again
129 converting the demat unit into phycial form is not allowed - state True or
False ?

130 Amongst the following options, which of the following is TRUE?

Management fees cannot be charged by liquid scheme and other debt

131 schemes on funds parked in short-term deposits of commercial banks - State
True or False?

Floating rate debt securities tend to hold their values , even if interest rates
132
fluctuate - State True or False ?

Mutual Funds gives more investment options as compared to National

133
Pension Scheme - State True or Flase ?
 A Mutual Fund scheme gives a retrun of 10% and the beta of that scheme is
134
0.5%. The risk free retrun is 7.5%. What is the Treynor Ratio of this scheme?

The mutual fund schemes' sale and purchase of investment are executed by
135
the ________ in the stock market.
The size of equity portfolio of a young unmarried investor is determined by
136
________ .

A major factor affecting the rate of interest of a corporate deposit is

137
_______ .

_________ is the process of determinig the ability of an investor to bear

138
losses from various investments.

139 Amongst the following options, ________ is the most illiquid.

140 Higher the Capital Base, _______ the Risk Appetite.

141 ________ Invests mainly in Corporate Bonds.

As per the AMFI Code of Ethics, an AMC has to disclose which amongst the
142
following information to its unit holders?

Mutual Fund distributors receive commission on investments made by their

143 clients as well as on the investments they make for themselves in their own
name state True or False ?

The details and information provided in Scheme Information Document (SID)

144
and Statement of Additional Information (SAI) are ________ .

145 A Mutual Fund Trust must have beneficiaries - State True or Flase ?
 In which of the following transactions a 'Transaction charge ' can be
146
deducted?

There are various risk profiling tools available on the internet? A financial
147 planner can use any of these as risk profiling is just a process - State True or
Flase ?

148 What is the relationship between Interest Rates and Real Estate prices ?

The unaudited accounts of the Mutual Fund Scheme must be published once
149
in every six months ________ .

STT is ________ on transactions in debt or debt-oriented mutual fund

150
( including liquid fund ) units.

Amit does not have a PAN Card? He wishes to invest Rs 1 Lakh in a mutual
151 fund scheme? He does not fall into any exempt investor category? In which
way can he invest?

Which document is NOT required for the KYC process by a mutual fund
152
investor ?
153 One of the disclosure which an AMC has to make is ________ .

What exception is made for investments by Systematic Invest Plans, if the

154
annual investment is below Rs. 50000 ?

Which is the most appropriate measure of evaluating how closely an index

155
fund is tracking its benchmark?

A company has a Earning Per Share (EPS) of Rs 5 and Price to Earning (PE)
156
ratio of 30, what will be the market price of the shares of this company ?

What would be the most approprite benchmark for a short tern debt
157
scheme?

Monthly Income Plan (MIPs) have no exposure to Equity - State True ot False
158
?

159 Who issues the 'Certificate of Deposit'?

160 Which of the below is / are FUNDAMENTAL ATTRIBUTES of a scheme ?

161 The first step in developing a model portfolio is _______ .

If the ARN code is not mentioned and choice of plan is not indicated in the
162
application from, then the application will be _______ .

163 Which of these assets has the highest risk of loss through theft?

164 Which of the below is used to measure risk-adjusted performance?

With respect to model portfolio for Senior Citizens, it will not have any
165
exposure to equity - State True or False ?

166 What is the Total Expense Ratio for an Index fund or an ETF?

If an investor in a Multicap Fund wants to know the industry wise allocation

167
of the funds then which document should he refer to?

168 Commodities as an asset class does not include?________ .

Indentify which of these statements is / are FALSE ? A) Banks and mutual

169 funds both offer the Gold Deposit Scheme B) Gold ETFs are closed ended
funds.
 An investor in debt oriented mutual fund received the benefit of ________
170
on long term capital gains?A) Indexation B) Tax exemption.

Foreign investors can invest in equity schemes of MFs registered with SEBI
171
after completing KYC process - State True or False?

To maintain neutrality, all AMC's have same commision stucture with

172
respect to commissions payable to distributors - State True or False?

The Valuation of Illiquid securities held by a Mutual Fund is done as per

173
________ .

If a charitable trust wishes to invest in a Mutual Fund, which amongst the

174
following document is not required to be submitted?

Advertisements regarding Mutual Fund schemes shall not contain

175 statements which directly or by implication or by omission may mislead the
investor - State True or Flase ?

176 Risk appetite increases as the number of earning members ________ .

Mr Gupta Invests Rs 1 crore in a Gilt Mutual Fund scheme and gives a local
177 cheque at 1 pm. Which will be the application NAV for allotment of units to
Mr. Gupta?

The facility of ASBA - ' Application Supported by Blocked Amount ' is mainly
178
for additional purchase of Mutual Funds units - State True or False?

Which is the ideal investment class for an investor who wishes to have an
179
hedge against inflation and has a long term perspective?

As per SEBI rules, the NAV has to be pulished _______ , in at least _______
180
daily newspapers having circulation all over India.
181 While making a Comprehensive Financial Plan, ________ .

182 Investors in Mutual Fund are not responsible for ________ .

If an investor wishes to beat the beachmark and is also ready to bear the
183
risks, then he should opt for Actively managed funds - State True or False?

The AMC pays commission to Mutual Fund Agents, but no such commission
184 is paid to stock brokers who trade in mutual funds on the Stock Exchange
platform. State True or Flase ?

While doing an asset allocation for an investor , which amongst the

185
following factors will have the least importance?

" To achieve growth by investing in equity and equity related investments,

balanced with income generation by investing in debt and money market
186
instruments " is the likely investment objective of a Diversified Debt Scheme
- State True or False ?

187 Risk Appetite is influenced by which financial factor(s) ?

Amongst the below given options, which one is NOT an example of

188
Transition Phase?
 The Scheme Information Document (SID) prepared by the AMC is approved
189
by ________ .

Due to _______ the index scheme's porformance could be higher or lower

190
than that of the benchmark.

The trustees / AMC cannot make any change in the fundamental attributes
191
of a scheme, unless approval is received from _________ .

The current market value of the stocks of Mutual Fund scheme portfolio is
192 Rs 12 cr and the current liabilities are 7 cr. The unit capital is Rs 10 cr and the
face value per unit is Rs 10. What is the current NAV of this scheme?

While Deciding on investments for his clients, what should be the right
193
sequence?

What is the NAV if the value of stocks in a Mutual Fund scheme is Rs 100 cr,
Value of Bonds is Rs 10cr, Value of Money Market Instruments is Rs 25cr,
194
Dividend accrued but not received is Rs 3 cr, and Fees payable is Rs 5cr The
number of outstatnding units is 75 lacs.
 Mrs. Reena purchases MF units at NAV Rs. 13. After 500 Days, she redeems
195
it at NAV Rs 15.70 What is the compounded rate of retrun?

196 The full from of AGNI is________ .

When the Capital Base of an investor rises, his or her risk appetite will tend
197
to _________ .

An investor gives a local cheque of Rs 3 cr for investment in Gilt scheme at

198
11:00 am?What would be the applicable NAV for this investment?

199 Which of the below documents can be inspected by the unit holder?

Statement of Additional Information ' SAI Contains Information which is

200
_________ .

After the New Fund Offer , units of the Close Ended fund can be bought and
201
sold through _________ .
 The facility of Application Supported by Blocked Amount (ASBA) can be used
202
for ________ .

Investors in India are usually highly organised in managing their financial

203 transactions and taking decisions related to financial planing - State True or
Flase ?

For those investors who find it difficult to pay for insurance cover, Money
204
back policy is recommended - State True or False?

_________ indicates how much money can be generated per unit of mutual
205
fund in case the scheme is liquidated.

A person gets sudden wealth by winning a big lottery?Which of the below

206
options is not advisable for him?

207 Can Indian mutual funds invest in Real Estate?

208 At which price a Close Ended fund can be sold?

Which one is the Self Regulatory Organisation (SRO) for the mutual fund
209
industry?
 Can an investor transact directly through the websites of some mutual fund
210
companies?

Investment owned by the scheme may be quoted in the market at higher

211 than the cost paid. Such gains in values on securities held are called
__________ .

The sponsor needs to contribute a minimum _________ of the net worth of

212
the AMC.

213 What is the Goal Based approach to Financial Planing focused on?

As per the common disclosure - Investment in mutual funds are subject to

214
market risks and therefore ________ .

The distributors are mainly compensated through _______ by the mutual

215
funds.

A summary of the scheme related information documents is found in the

216
_________ .

The credit rating a bond migrates from AAA+ to AA+. Determine what will
217
the impact of this migration on the market price of the bond?
 Mr Shah gives a local cheque at 2:30 pm of Rs 30 lacs for Investment in an
218 Equity Scheme?which will be the applicable NAV for allotment of units to
Mr?Shah?

A Segregated Portfolio be created out of a debt fund scheme when

219
________ .

Mutual Funds have to follow the regulations of Reserve Bank of India (RBI)
220
for investments in ________ .

221 With which agency are the mutual fund distributors registered?

222 Investment objective is closely linked to _________.

In the top - down approach, sector allocation precedes stock selection - True
223
or False?

224 At what price are the bonus units issued to the unitholder?

Which of the following cannot be considered for the purpose of selecting a

225
scheme's benchmark?

The speciality of a Sector Fund is that it invests in various economic sectors -

226
True or False?
 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
227 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.

_______ style is an approach of picking up stocks, which are valued lower,

228
based on fundamental analysis.

229 Which of the following statments is True?

Day to day management of the Mutual Fund schemes is handled by the

230
Trustees - True or False?

231 Which of the following is an advantage of mutual funds?

If the fund manager is expecting the interest rates to fall, then the manager
232
________ .

If the fund manager of a debt fund is expecting the interest rates to rise , he
233
will __________ .

For life-long investment in gold one should prefer Gold Futures as against
234
Gold ETF - True or False?

Each mutual fund scheme must have a stated investment objective. State
235
whether True or False.
 The maximum initial commission that an AMC can pay to distributors is
236
_______ .

237 KIM has to be updated every _______ .

Mutual funds in india are governed by SEBI ( Mutual Fund ) Regulations ,
238
1996 - True or False ?

239 _________ is the regulator for the National Pension System.

Which of the following statements is ' True ' with respect to celebrity
240
endorsement for mutual funds?

The transparency levels in mutual funds are very low. State whether True or
241
False.

If an investor wants to invest a sum of below Rs 50000 in cash in a Mutual

242
Fund PAN card is not required - True or False?

243 What is the maximum Total Expense Ratio Chargable in case of index funds?

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

 AMFI is an industry body, but not a self-regulatory organization - True or
245
False?

The stock exchanges which provide mutual fund trading facilities also have
246
to provide for settlement guarantee - State True or False?

247 ________ is not a fair selling practice by a mutual fund distributor.

248 Who appoints the trustees of a Mutual Fund?

249 ________ is/are included in the Key Information Memorandum (KIM).

250 Who cannot invest in Mutual Funds in India?

State True or False - The Thematic funds will always have a wider exposure
251
than Sector funds.

The difference between the yield on Gilt and the yield on a non-Goverment
252
Debt security is called its _________ .

253 Gold futures contract _________ .

254 From the listed below, ________ has the highest credit risk.

255 What is the role of the custodian?

Usually active funds give higher retruns as investors bear a higher fund
256
management expense - State True or False?

257 By investing in mutual funds an investor uses services of ________ .

In which type of fund is the risk of investor not selecting the correct sector
258
maximum?

________ Investment style involves buying stocks which are valued lower as
259
per fundamental analysis.

When the interest rates are rising, the bond funds which have short
260
averange maturity are more likely to outperfrom - State True or False?

Tactical Asset Allocation is suitable only for seasoned investors operating

261
with large investible surpluses - State True or False?

262 The offer Document will NOT give any information on _________ .
263 The dividend declared on units under lien is paid to ________ .

An ongoing bond fund will lose value when the interest rates in the market
264
__________ .

The mechanism used to ensure that the cutoff timing is strictly followed is
265
called __________ .

266 The lock in for Equity Linked Savings Scheme (ELSS Funds) is ________ .

267 ________ gives the investor exposure to international assets.

268 Which of the following is an important aspect of an OFFER DOCUMENT ?

Mr. A has a samll business and will generally need more allocation to liquid
269 funds than Mr. B, who is senior manager with a multinational company?-
State True or False?

When should an investor adopt a strategy of limiting equity exposure to

270
index funds?
 State True or False - Gilt schemes have more risks than liquid schemes as
271
their NAV fluctuates more due to changes in the yield market.

As the Unit Certificates are non-transferable , they do not offer any real
272
transactional convenience for the Unit-Holder - State True or False?

273 One of the below options is a function of AMFI - which one?

With respect to KIM - Key Information Memorandum , which of the

274
following statement is NOT true?

When a Mutual fund schemes makes profits or losses, these profits and
275
losses belong to _________ .

The NAV of a mutual fund unit changes every day due to changes in _______
276
.

A board resolution for investing in a mutual fund scheme is compulsorily

277
required by _________ .

Identify the TRUE statements - A) Unsystematic risk is measured by its Beta

278 B) The diversified stock index has a Beta of 1 C) An investment with beta of
0.7 will move 7 percent when markets move by 10 percent.
 The Asset Management Company primarily compensates the mutual fund
279
distributors through ________ .

Identify the true statement as per AMFI's Code of Conduct for

280
Intermediaries of Mutual Funds.

What is the maximum permissible limit of investment a single investor can

281
have in a scheme?

282 Which of these statement is TRUE with respect to Cut-off timings?

In case of ________ , the Net Asset Value has to be declared for upto 4
283
decimal points.

The Key Information Memorandum (KIM) is an abridged version of which of

284
these documents?

285 Distributors can 'opt-out' of charging transaction charges________ .

286 What is the Net Asset Value (NAV) after dividend payment called?
 _________ invest in those securities which have maturity matching the
287
maturity of the scheme.

288 _______ can be used in lieu of dividend payouts.

289 Which of these statement is TRUE with respect to a Switch transaction?

Some of the costs incurred by the Asset Management Companies to manage

290 the mutual fund scheme can be charged to ________ in proporation to
their holding of units in the scheme.

291 What are the guidelines issued by AMFI for intermediaries known as?

Identify the TRUE statement(s) for an Equity Linked Saving Scheme (ELSS)(1)
In Dividend Reinvestment option of an ELSS fund, the units acquired on
account of dividend would be free from any lock-in (2) In Dividend
292
Reinvestment option of an ELSS fund, the units acquired on account of
dividend would be subject to a three year lock in from the date of allotment
(3) ELSS cannot pay any dividend as its under lock-in

Where should the change in status of an individual from a Resident to a

293
Non-Resident Indian updated for mutual fund investments?

The choice of benchmark for a Debt Scheme could be chosen on the basis
294
of : 1. Scheme size 2. Scheme Type 3. Investment Universe.
 On what basis will the payment be made to an investor who claims his
295
erstwhile unclaimed redemption amount within three years?

The indices based on Government securities will be an appropriate

296
benchmark for which type of funds?

Identify the true statement with respect to investments in mutual funds

297
through Stock Exchanges ?

In which of these cases will the ' Lock-in ' in a retirement fund be lower than
298
the prescribed 5 years?

Mr. A has invested Rs. 2,00,000 in a 370 day FMP and on maturity he
299
received Rs. 2,15,832 What is the capital gain in this transaction ?

Identify the FALSE statement (1) Arbitrage funds can invest in both
Futures/Options(F&O) and cash markets (2) The only objective of an
300
Arbitrage fund is to provide capital apperciation (3) Arbitrage funds have
lower risk compared to Equity Funds.

Which of these statement(s) is/are TRUE? (1) There cannot be a price impact
on mutual fund units due to portfolio rebalancing and/or liquidity demands
301
on account of redemptions (2) Market Liquidity of mutual fund units can get
impacted on account of company / sector related events.
 Identify from the following what is not considered as a scheme fundamental
302
attribute?

Mr. A is an existing investor in mutual fund scheme and he is now investing

303 Rs. 5000 in the direct plan of the scheme. What will be his net investment in
the scheme after considering the transaction charges?

Investment have to be made only through authorized signatories for

304
investments by ________ .

As per SEBI Code of Conduct , mutual fund schemes portfolios should be

305
managed in the interest of _______ .

The form for registering a change in the defalut bank account has to be
306
signed _________ .

For which mutual fund distributors, due diligence process is mandated by

307
SEBI?

Mrs. Neeta Needs Rs. 5,00,000 in 3 years from now. The interest rate is 6%
308 By which formula can we calculate the amount which is required to be
invested today to achieve the goal?

What is the investment in equity and equity related instruments in a

309
Balanced Hybrid Fund?

In which of these categories the weightage of equity index would be the

310
lowest?
 The minimum investment limit in equity/equity related instruments of large
311 cap companies for a Large Cap Mutual fund scheme is ________ of total
assets.

Identify which of these is a function of Association of Mutual Funds in India's

312
(AMFI) ?

Identify the true statement with respect to measuring retruns for Mutual
Funds schemes? (1) Simple Retrun can be calculated using the formula : Sale
Price - Cost Price (2) Compounded Annual Growth Rate 'CAGR' technique
313
has been prescribed by SEBI when dividend is paid and compounding is to be
considered (3) CAGR is the recognized standard for calculating retruns for
investment horizon of greater than or equal to 1 year?

If an investor claims his unclaimed redemption amount after 3 years than

314
the payment will be based on the _______ .

Identify the TRUE statement (1) Retail Investors can buy units of Gold ETF (2)
315 Banks as well as Mutual Funds, Both offer Gold deposit schemes (3) Gold ETF
is a closed ended fund and so the holdings are not for perpetuity.

Identify the False statements (s) (A) Authorised signatories have to sign the
request for transactions of institutional investors in mutual funds (B) Even if
316 the Memorandum of Association and Articles of Association does not permit
invest in mutual funds, the company can invest in mutual fund on the basis
of a Board Resolution.
 Rising Sun Mutual Fund holds shares of AAA Ltd. in its portfolio. When the
317 NAV of the scheme is calculated on 10th April , then each share of AAA Ltd.
will be valued at _______ .

Identify the TRUE statement(s) : (a)A diversified index will have a Beta of 1
318 (b) Unsystematic risk can be measured by Beta (c) A portfolio which has Beta
of less than 1 is less risky than the market.

________ Risk arises beacuse of difference in price movement of the

319
derivative vis-a-vis that of the security being hedged.

An investor in interested in buying some units of a Close-ended fund after

320
NFO is over? How can he buy the same?

BSE's platform for Mutual Fund trading is known is BSE Solar Mutual Funds
321
Platform - True or False?

322 Legally SAI part of the SID - True or False?

323 NAV of income funds is to be calculated upto ________ decimals.

Mutual funds can buy and sell securities only on delivery basis. State
324
whether this statement is True or False.
 In case of Mutual fund schemes, dividends can be paid only out of
325
_________ .

The investor cannot pledge the units of a mutual fund as a security to a

326
financier - True or False?

327 NFO's for ELSS schemes can remain open for _________ days

As per SEBI guidelines , how often should the mutual fund scheme's
328
portfolio be published?

Whose job is it to track the various corporate actions like bouns, dividend ,
329
or rights issues in companies where fund schemes has invested?

Open - ended schemes generally offer exit option to investors through a

330
stock exchange.

__________ takes into account all dividends generated from the basket of
331
constituents that make up the index in addition to the capital gains.
332 __________ of the unit-holders can pass a resolution to wind-up a scheme.

333 The main objective of asset allocation is risk management - True or False?

__________ assumes that all dividend payouts are re-invested in the

334
schemes at the ex-dividend NAV.

Offer Documents of mutual fund schemes are approved by SEBI - True or

335
False?
Which amongst the following categories of mutual funds have a fixed
336
maturity date?
The Most appoprite measure of retruns for a scheme in existence for several
337
years is ________ .

Redemption from which of the following mutual fund schemes would attract
338
Securities Transaction Tax (STT) for an investor?

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

In case of capital gains from mutual fund investments, Tax Deduction at

340
Source (TDS) is applicable for: _________.

Its due to loads and taxes that there is a difference between scheme retruns
341
and investor retruns - True or False?
SEBI regulates Mutual Funds as well as Registrars and Transfer Agents - True
342
or False?
 Which of the following statements is ' TRUE ' with respect to the Scheme
343
Information Document (SID) and statement of Additional Information (SAI)?

344 In what form do mutual fund distributors earn revenue?

Mutual funds today are benchmarked to the total return variant of an index
(TRI) and not to price return variant of an index (PRI). What is the advantage
345
of TRI over PRI? (A) It ensures that the performance comparison is fair (B)
Increases transparency

Suresh sees that his friends are investing in finance scheme which is
346 promising very high returns ( a ponzi scheme) he also blindly invests in the
same scheme. Which bias is suresh exhibiting?

347 In which of these funds is securities transaction tax (STT) not charged?

An international fund is investing in US stocks. What would be the impact on

348
it if US dollar depreciated against the indian rupee?
349 How can an investor remit money in an indian mutual fund from abroad?

Which of these statement(s) is/ are TRUE (A) The Asset Management
Company(AMC) is not accountable for the procedures for detecting
350
incorrect valuation (B)It is mandatory for the AMC to disclose the valuation
policy.

351 When is the schemes information document (SID) Updated?

In case of Exchange Traded Funds (ETFs), the minimum investment in

352 securities of a particular index (which is being replicated/ tracked) shall be
____ percent of total assets.

353 Identify the TRUE statement with respect to benchmark for Gold ETFs.

Mr. Sonu reads about the risk factors given in the offere document and
invests in an equity mutual fund scheme. After a few days the stock market
354
crashes and NAV of the equity fund goes down. What can MR. Sonu do in
such a situation?

As per SEBI's manadate, AMCs has to put in place a due diligence process to
355 regulate distributors. Which of these mutual fund distributors would NOT be
subjected to the due diligence process?
 The interim changes in an mutual fund scheme are updated to the invetsors
356
through

357 Which of these is NOT included in the Key information memorandum (KIM)?

358 Which of these investors is allowed to do a nomination?

In which of these options will the unit balance increase in the mutual fund
359
investors folio without any transaction being done by the investor?

360 In India, the mutual funds are constituted as.

361 _____ is the risk of mis- pricing or improper valuation of derivatives.

Which of these funds are suitable for investors who have a long term
362
investment horizon and are looking for growth?

What is the investment objective of a mutual fund which seeks to grow in

363
value over a period of time?

The minimum investment in G-Secs ( as a percentage of total assets) in case

364
of a Gilt fund is

Investors can choose to change their distributor or go direct and AMCs will
365 need to comply after getting a 'No objection Certificate' from the existing
distributor- true or false?
 Dividend warrants have to be sent to investors within 30 days of dividend
366
declaration - True or False?

The principle of caveat emptor (let the buyer beware) applies to mutual
367
fund investment- True or False?

Passive funds are safe, as the NAV of such funds do not go down Even when
368
the Respective Market fall?state wheteher this is true or false.

As SEBI has banned__________ , the sale price of a MF unit is the same as

369
NAV.

The fund that takes contrary positions in different markets/ securities such
370
that the risk id neutralized and return is earned are called __________.

While choosing an Option in a mutual fund scheme, taxtation and liquidity

371 needs are a major factor in deciding which option (Growth or Dividend
payout) to go for -True or False?
In the non-equity oriented funds, the rate of long term capital gains tax
372
is___________.

Benchmarking helps in assessing under- performance or out- performance-

373
True or False?

Which of the following type of analysis tracks the price and volume data
374
related to trading in the security?

375 The Mutual fund application form is attached to the ________.

376 AMC directors are appointed with the permission of SEBI - True or False?
377 Who handles the day to day management of the mutual fund?

378 Stock selection is important in bottom-up approach - true or false?

379 In mutual funds, the assets are held by

Statement of account is to be sent to investors within ___________ days of

380
NFO closure.

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

382 Risk appetie of investors is assessed through_____________.

Mutual funds are allowed to charge differential exit loads based on the
383
amount of investment.

Generally long term investment decisions taken through fundamental

384 analysis and for shorter term speculative decisions, including intra day
trading one uses technical analysis- true or false?

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

385
mutual fund scheme?
Nomination and pledge options are not available for mutual fund investors-
386
True or False?

387 What is real rate of return?

Fundamental analysis is evaluation of the strength of the company's price-

388
volume charts- True or False?

Trail commissions are linked to valuation of portfolio in the market- True or

389
False?
 What is the absoluate return for a mutual fund investor if he had bought at
390
NAV 20 and sold NAV 40 after two years?

In the scheme information document (SID), the condensed finacial

391 information (for schemes launched in last 3 financial years) is mentioned-
True or false?

392 Tax deferral is a key features of.

Mr. Mahesh gives his investment application form to the distributor at 10

393 am. The distributor then goes to the mutual fund office and submits this
application at 1 pm. What is the cut off time for this investment?

394 Accumulation is the phase applicable to______________.

The distribution of an invetsor's portfolio between different asset classes is

395
called asset allocation- True or False?

396 _________ cannot invest in gold mining companies.

For next 30 days after a new fund offer closes, an investor can buy units at
397
face value- true or false?

398 Is Real estate fund a physical asset or a financial asset?

If an institutional investor is making an application for investing in mutual

399
fund, which additional document is required?

400 _______ strategy is supposed to be a risky strategy of asset allocation.

An elderly couple who have no immediate family members should ideally

401
invest in____________.
 To source the data required to track the performance of mutual funds most
402
____ offer free tools on thier websites for this purpose.

403 Gold ETFs cannot be bought by retail invetsors- True or False?

Mutual funds offer various plan/options in accordance to the risk profile of

404
the investor- true or false?

The dividend received by a mutual fund investor will be taxted at a rate of

405
12?%- True or false?

406 An index fund has a beta of 1- state True or False?

"Please read the scheme related documents carefully" - which documents

407
does this line refer to?

Long term debt funds would be sensible in declining interest rate scenarios-
408
True or False?

409 Which of the below expenses can be charged to fund?

410 The transaction slips are used by

While selling mutual fund products of the distributors' group/affiliate/

associated, the distributor shall make diclosure to the customer regarding
411
the conflict of interest arising from the distributor selling such products-
True or false?
Mutual funds are constituted as__________ therefore, they are governed by
412
the _________.
 Relaxation in documentation requirements for Micro -SIPs is available for
413
_____________.

414 Every Trust has beneficiaries - true or false?

_________ arises due to a difference in the price movement of the

415
derivaive vis-a-vis that of the security being hedged.

What is the restriction on a mutual fund scheme investing in the equity

416
instruments of a company?

A board resolution is not required for an institutional investor to invest in

417 mutual fund if the memorandum and article of associaton permit it to do so-
True or false?

There is no Tax Deducted at source (TDS) on dividend payments or Re-

418
purchase payments of mutual funds for indians - True or false?

"To achieve growth by investing in equity related investments, along with

419 income generation by invetsing in debt and money market instrument"
would be the investment objective of a _____________.

420 Which of the following is an important aspects of an OFFER DOCUMENT?

At what rate is the securities transaction tax charged on sale of unit of debt
421
oriented mutual fund in a stock exchange?

The strategy of maintaing a constant ratio of asset allocation is known as

422
__________.

That mutual fund which has an investment charter that provides for a
423 reasonable level of investment in both equity and debt is known as
__________.
Investments in mutual funds can be done only through a AMFI authorised
424
MF distributor- True or false?
425 Who receives and delivers securities on behalf of the mutual fund?

Even though investment in mutual funds are subject to market risks, an

investor who invests in an equity fund after reading the risk factors etc., due
426
to a fall in the stock markets the value of the fund goes down drastically. The
investor_______.
427 Which of the following is a measure of market risk?

You are expecting interest rates (yields) to rise in the markets. Where would
428
you invest your money considering this forecast?

Which of the following scheme categories would be considered the least

429
risky in terms of credit risk?

The peak of earning capacity of an investor reached during the pre-

430
retirement phase - True or False?

In Liquid funds, simple annualised return method is used to show the

431
returns because_____________.

An investor who has a long term view and is looking for capital appreciation
432
and also has high risk tolerance should opt for invetsment in ____________.

The starategy of tactical asset allocation is considered to be a risky

433
strategy?- True or false?

If a person wants to appeal against the ruling of SEBI, he can do so with

434
_________.

Once the new fund offer (NFO) of a close ended fund has closed, a person
435
can buy the listed units of such close ended fund________________.
436 For a young unmarried -which of the following phase is applicable?

Investing in _________ can be a risky prospect during periods of economic

437
turmoil.

438 _____________ is a Non-diversifiable risk

An investor wishes to invest in debt mutual fund but wants high liquidity-
439
should he invest in fixed maturity plans?

To do away with multiple KYC formalities with various intermediaries, SEBI

440 has mandated a unified KYC for the securities market through the depository
partcipants registered with SEBI- True or false ?

Which of the following is true with respect to growth option in mutual fund
441
scheme?

A mutual fund scheme gave an annualised return of 9.86% and the

442 annualised standard deviation of the fund is 3.47% The current risk free
return is 8% Calculate the sharpe ratio.

The floating rate debt securities tend to hold their value, despite changes in
443
yield in the debt market- TRUE OR FALSE?
 An invetsor purcahses through a distributor 5000 units of a mutual fund
scheme at A NAV of Rs. 25 The current NAV of the scheme is Rs.43 What will
444
be the trail commission for today if the trail commisision rate is 1% per
annum.

According to guidelines given by SEBI, every mutual fund scheme should

445
have a minimum of ________ investors.

Smita is a young investor and her parents advice her to invest in fixed
446 deposits of banks so that these funds can be used for her retirement? If
smita follows her parents advice, what risk does she face?

Investors who have not transacted during the perious __________ are
447
known as dormant investors.

Mr. Mohit has filled up an application form for subscribing to a mutual fund
scheme. However the adresss mentioned in the application form is different
448 from the address provided at the time of KYC compliance. Which address
will be included in the mutual funds records once the KYC compliance is
validated?

Who uses the information collected under the foreign account tax
449
compliance act (FATCA)?

Which of these entities can invest in indian mutual funds? A) Foriegn

450
portfolio investor B) Insurance company C) Salaried individual.

Identify the TRUE statements with respect to transmission of mutual fund

units- A) Before the transfer is effected, the mutual fund will insist for an
indemnity against future problems for the mutual fund arising out of the
451 transfer B) Before the transfer is effected, the mutual fund will not insist on
the death certificate of the deceased unit -holder C) Before the transfer is
effected, the mutual fund will insist on the KYC documentation from the
nominee.
452 Which of these is not a function of registrars and transfer agent?

The NAV of an equity fund is Rs. 76.45 and the face value is Rs. 10 An
453 invetsor invests Rs. 30,000 How many units will be allotted to him? (there is
no entry load)
AMFI Code of ethics states that ____________ cannot become a distributor
454
of mutual fund.

455 Identify the TRUE statements -

Identify the true statement(s)- A) a systematic transaction cannot be

456 cancelled B) Assuming a mutual fund scheme is profitable then the investors
can keep encashing some profit through a systematic withdrawal plan

457 The expenses of ____________ cannot be charged to a mutual fund scheme.

Identify the false statement(s) A) When an investor wants to redeem from a

scheme, the distributor must suggest redemption from the scheme with the
458
maximum exit load B) The mutual fund distributors can ignore the impact of
exit load at the time of repurchase

Indicate which of thses funds have the lowest to highest risk sequence? A)
459
Liquid fund B) Credit risk fund C) Corporate bond fund
 Identify the False statement(s) A) For index funds, the NAV is calculated upto
460 4 decimal points B) The AMC and a mutual fund scheme of AMC can have
the same auditor.

461 Long term capital loss from an investment can be set off against__________.

Which of these statements are TRUE with respect to time stamping on

mutual fund documents? A) Time stamping is relevant for Non-financial
462 mutual fund transaction B) The daily rime stamping of application does not
start with serial 1 C) Breakdown of time stamping process or breaking of
seal is mandated to be duly recorded and reported to the trustees.

_______________ ensures that the information contained in the scheme

463
related documents (SID AND SAI) are fully complied with.

464 Cut-off timing guidelines are not applicable for__________.

Registrar and transfer agency function must be independent of the asset

465 management company, and it cannot be retained in-house. State whether
this statement is true or false.

Today's costs can be translated into future requirement of funds using the
466
formula.

467 Investments in mutual funds are allowed using________________.

 The income tax act allowes setting- off the short term capital loss against
468
long term capital gains. State whether true or false.

The purchasing power of currency changes on account of which of the

469
following?

470 _____________ is a basis to select the better scheme in index funds.

471 Investor's KYC details are stored in the server of __________.

Tactical asset allocation is the decision that comes out of calls on the likely
472
behaviour of the market- true or false?

Invetsor have the right to specify upto_______ nominees for their mutual
473
fund investment folios.

Lower the expenses of mutual fund, Lower would be the NAV - true or
474
false?

______________ has to make additional disclosure related to credit

475
evaluation policy, sector and types of investment in the offer deocument.

PAN No. and KYC Documentation is compulsory for mutual fund investments
476
with the only exception of _________.

How many ( Maximum) bank accounts can a resident individual investors

477
register with a mutual fund folio?

478 NAV of equity funds is to be calculated upto______ decimals.

479 Beta as a risk measure is relevant for____________.

480 Which of the following is a truly international asset class?

Liquid schemes are a variant of debt schemes that invest only in debt
481
securitites of upto 60 days' maturity true or false?

482 STP is acombination of SIP AND SWP - true or false?

Which among the following investment avenues does not offer income on a
483
regular basis?

What is minimum percentage of the mutual fund scheme corpus must be

484 invested in euity and related instruments in case equity linked saving
schemes

485 The difference between NAV and Re-purchase price is ________.

The asset allocation that is worked out for an investor based on risk profiling
486
is called __________.

For calculating capital gains, investment in mutual funds for less then 1 year
487
is considered as __________.

Interval funds combine features of both open-ended and close-ended

488
schemes- true or false?

A mutual fund wants to launch a new scheme with a face value of Rs. 50 will
489
it get the required permission?
490 The ARN number is ssigned by_________

491 Arbitrage funds have BASIS risks- True or False?

 Recurring expenses cannot be charged to a mutual fund scheme as it drags
492
down the NAV-True or false?

Which amongst the following asset categories can also be purchased for
493
consumption purposes apart fron investment?

Mutual funds cannot accept cash from investors for investing in thier
494
schemes- True or false?

All the records of the investors of a mutual fund are maintained by the fund
495
manager- True or False?
An important objective of SEBI is to represent to the government , reserve
496 bank of india and other bodies on all matters relating to the mutual fund
industry - True or false?

497 SEBI approval is required for An AMC to appoint a distributor- true or false?

The price earning (PE) ratio of a company is 7 and its earning per share is Rs.
498
10 what is the market price of this company?

A mutual fund scheme has a portfolio of shares whose beta is less than 1.
499
This indicates that the schme is ______________.

For an investor to get a quick sense of the level of risk involved in a mutual
500
fund scheme, SEBI suggested a simplified framework known as __________.

An investor gives a cheque of Rs. 2 lacs for investing in a debt scheme at

501 3:00 pm at a mutual fund office. The NAV of which day will be applicable to
him?
502 As per the income tax act- which of the below option is true?

Of the following documents, which is required to be appended to the

503
application form of a MF scheme?

Pension funds and development authority (PFRDA) is the regulator for the
504
national saving system.

Every trust has beneficiaries and the beneficiaries, in the case of a mutual
505
fund trust, are_________?

All advertisement and sales literature containing an AMC (s) / MUTUAL

506
FUND ranking must prominently disclose__________.
The entry/ exit loads and taxes do not have an impact on the returns to the
507
investors- true or false?

Relaxation in documentation requirement for micro-SIPs is not available

508
for_________.

Expenses incurred to launch a new fund can be charged to the fund- True or
509
false?

Usually diversified equity funds are safer than diversified debt funds-True or
510
false?

An investor purchases through a distributor 20000 units of a mutual fund

511 scheme at NAV of the scheme is Rs. 62 What will be the trail commission for
today if the trail commission rate is 1% per annum.

In case a fund manager is managing more than six funds, then performance
512 data of top_______and bottom______ schemes has to be disclosed in all
performance related advertisements.
513 Gold future contracts____________.

Identify the TRUE statement(s) with respect to risk levels in mutual funds?
A) Corporate bond funds are relatively more riskier than credit risk fund B)
514
The NAV of Gilt funds generally fluctuate more than NAV of Liquid Funds
due to changes in yield.

A mutual fund scheme is known to distribute dividends from time to time?

515
Such MF can be used as a source of ___________.

Once it is finalized, mutual fund scheme's benchmark cannot be changed at

516
a later date? State whether the statement is true or false.

As per the provision of the Income Tax act- Short term capital loss is to be
517 set off against short term capital gain or long term capital gain- True or
false?

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

518
equity Mutual fund scheme?

A mutual fund investor can file a case against the______________ for

519
breach of trust.

Prediction of equity markets in the short run is easier than in the long run-
520
True or false?

521 Which of the following regulates mutual funds in india?

The investment objective of a __________ might read as follows:" To

522 generate capital appreciation from a portfolio of predominantly equity
related securities".
523 Of the below options, what is FALSE with respect to arbitrage funds?

524 The cost of fund management are the highest in __________.

Many AMCs, distribution houses and mutual fund research houses offer free
525 tools in their website which can be used for evaluating a funds performance-
true or false?

Which of the following options from the basis of appointment of a mutual

526
fund distributor?

The stock exchanges which provide facilities for mutual fund trading also do
527
the functions of mutual fund RTAs. True or false?
Open-ended schemes, except ELSS, have to re-open for ongoing sale/ re-
528
purchase within __________ business days of allotment.

529 The trail commission paid by mutual funds to a distributor____________.

Mutual funds can accept cash to the tune of Rs. __________ From small
530
investors who do not have a PAN.

531 Asset allocation means________________.

Which of the given statements below aptly fit the description of actively
532
managed funds?
533 Identify the difference between sharpe ratio and treynor ratio.

534 Gold ETF's are meant only for FI'S and FII's True or false?

As per SEBI regulations, every application form is to be accompanied by

535
________________.

What are the benefits of dematerialisation? A) No inconvenience of

536 safekeeping paper certificates B) reduction in paperwork C) Auto credit of
bonus units etc.

Dividend Distribution Tax (DDT) on equity oriented mutual fund schemes for
537
corporate investors is_______.

The market value of a scheme is Rs. 579 crores. Dividend accrued but not
538 received is Rs 18 crore. The expenses payable are Rs. 3 crore. The total
number of outstanding units is 300 lakhs. What is the NAV of the scheme?

Minors are not legally eligible to contract, so for investing in mutual funds
539
they____________.

"To generate income by investing predominantly in a wide range of debt and

540 money market securities"- this could be the investment objective of
a________
 A B C

10 15 20

0.5% 0.05% 0.005%

The Asset Management

The investors Fund Managers
Company

All the nominees of the

A new folio will have to be
Another account has to be mutual fund scheme have to
opened with the same joint
designated as the default sign on the change from
holding as the new default
bank account. irrespective of the mode of
account.
holding.

Daily Weekly Monthly

2 Months 3 Months 6 Months

 Overconfidence Recency Herd Mentality

CRISIL Hybrid 75+25 , CRISIL Hybrid 25+75 , CRISIL Hybrid 50+50 ,

Conservative Index Aggressive Index Moderate Index

Between 1 Year and 3 Years Below 1 Year Greater than 7 Years

Dynamic asset allocation Flexible asset allocation Fixed asset allocation

Transaction slip for buying

Payment Instrument only Application from only
additional units

A Portfolio which is created

A portfolio which is kept A portfolio which is left after
out of debt or money
aside for a 'rainy day' or removing poor credit quality
market securities affected
contingency fund papers.
by a credit event

Payment of higher coupon Generating capital gain Higher credit wothiness

 Nomination Redemption Pledge

Securities and Exchange

Custodian Company law board
board of india (SEBI)

Credit Risk Liquidity Risk Purchasing Power Risk

If an investor holds his

As the purchase and re-
investment in a debt fund
purchase is done with the
for more than three years,
mutual fund, the investor Both 'a' and 'b' are false
the capital gain will be
does not have to pay any
considered as a long term
capital gain tax
capital gain.

Both A and B Only C Only A

Trustees Unit holders Sponsors

Short term capital gain or

Long term capital loss Short term capital loss
long term capital gain
 A and B are false B and C are false A and C are false

1 to 3 Months 3 to 6 Months 6 to 12 Months

Gold futures Real estate fund Real estate

Date the dividend is Date unit holders appove

Date the dividend is paid
annouced till it is paid out the dividend

Fund Managers Sponsors Investors

Money market securities Equity Stocks Debt Securities

 While calculating scheme While calculating scheme
retruns for an investor, if retruns for an investor,if
there is an entry load,than there is an exit load, then
the initial value of the net the later value of the Net
asset value (NAV) is taken as Asset Value (NAV) is taken
NAV minus Entry Load. as NAV minus Exit Load.

Only A is true B and C are True A and B are True

Both Key Information

Statement of Additional Key Information
Memorandum and Scheme
Information (SAI) Memorandum (KIM)
Information Document

A Person can closely track

the current valuation of an ETFs generally give higher An investor in an ETF can
ETF and buy/sell the units retruns than other Mutual have a control on where his
on stock exchange at those Funds. money can be invested
prices.

Only B A and B B and C

Bouns Dividend Payout Dividend Reinvestment

 Preferred risk appetite is Risk appetite indicates level
Risk appetite can be
different from ideal risk of risk that investor is
assessed by risk profiling.
appetite. comfortable with.

Scheme Information Key Information

Fund Fact Sheet
Document (SID) Memorandum (KIM)

For the first one year only For the first three years only For the first ten years only

Holding period returns

Rolling return are the
(HPR) do not provide an
average annualized returns
accurate picture of retruns Both 1 and 2
calculated for alternate
of fund if its initial value is
holding period
to high or low.

Gilt funds Index funds Money market funds

Only A is false Only B is false Both A and B are false

Sponsors Trustees SEBI

 It is indicative of It is indicative of under- It is indicative of over-
outperformace by the fund performance by the fund hedging by the fund
manager. manager manager

Regulation of Stock Enforcing compliance of its Making regulations for the

Exchanges regulations. Mutual Fund industry

Informing the investor of

Carefully understanding the Encouraging the churning of
the various investment
clients financial needs. investments
options.
by existing investors on the by both exisiting and new
by existing investors only stock exchange platform investors on the stock
only exchange platform only

The US Dollar becomes The US Dollar becomes The US Dollar reamins

weaker stronger steady

NAV plus exit load NAV minus exit load NAV plus entry load

Market Value Face Value Book Value

 Porfits of the Asset All realised and unrealised
Mark to Market profits
Management Company gains

65% 45% 55%

Closing NAV of day

Same day NAV if received Closing NAV of the next
immediately preceding the
before cut off time. business day
date of application

B,C and E A,C and D B,D and E

A new investor making a An existing investor making

Systematic Transfer Plan purchase in a mutual fund a purchase in a mutual fund
scheme scheme

3 year from the date of

3 years from the date of 5 year from the date of
original investment even in
allotment of each individual allotment of each individual
case of subsequent
unit. unit.
purchase

Every month, before the

When ever the investor asks bi-monthly for dormat
10th working day of the
for a CAS investors
following month.

Mostly large cap stocks only Mostly mid cap stocks only Mostly samll cap stocks only
of various companies of various companies of various companies
 B and C A and C A and B

2 3 4

The market price of the The market price of the The coupon of the bond
bond going up bond going down going up

3 6 1.6

Any of the holders All the holders Only the first holder

Only B A,B and C A and B

It depends whether the KYC will be required only if

No KYC is required investment is in equity the transaction is thorough
funds or debt funds. a stock exchange

Employee ID cards issued by Card issued to National

Credit Card companies registered with Pension System (NPS)
Registrar of Companies subscribers

50 Percent 55 Percent 60 Percent

 10 Times 0.5 Times 2 Times

Systematic Withdrawal Plan Systematic Transfer Plan Value Investing

The application will be It will be retruned for

As an Direct Plan application
rejected rectification

76500 79200 80000

A,B and D Only A B and D

11.60 4.77 3.08

Indexation Dividend Stripping Asset Allocation

 Statement of Additional
Fund Fact Sheet Addendum
information (SAI)

NCFM Series VA Mutual NISM Series VA Mutual AMFI VA Mutual Fund

Fund Distributors Fund Distributors Distributors

Only A Only B Both A and B

He will make careful He will take higher risks in His portfolio will have all
investment choices his investments good blue chip shares

Retruns on the scheme Fund Manager Tax status of the investor

Point to Point Standard Deviation Discrete annual retruns

Real Estate Art Securitised Debt

To keep the safe custody of

To issue statement of funds To execute the buy and sell
the securities of the mutual
holding to the investors. orders in the stock market.
fund scheme.
 Done Aggressively Done Conservatively Always Rising

Contributes to the capital of Looks after the day to day

Guards the interest of the
the Asset Management administration of the
mutual fund unit holders
Company mutual fund

Mandatory portfolio Scheme Information

Fund factsheet
disclosures Document

Familiarity Bias Herd Mentality Overconfidence Bias

List of authorised
Profit and Loss Statement PAN Card Copy
signatories

Long term value creation. Investment Needs Financial Goals

A,B and C B,C and D A,C and D

A rate which is payable only

Base Rate + Spread Prime rate of leading
on maturity
The entrie investment value
The identity of the account The identity of the
of all the folios of the
holders. beneficial holders
investor

Depreciation on fixed assets

Custodian fees of Asset Management Trustee Fees
Company

Long term capital loss only Long term capital gain only Short term capital gain only

Dematerialized form Physical form

Systematic investment
Transaction undertaken on
plans, where annual Investor residing in the state
behalf of Central/State
investment does not exceed of Sikkim
government
Rs 50000.

The investors who are

The AMC's while it is The distributors while
interpreting the
advertising the performance advertising their various
performance of thier
of their funds. services.
investments.
 Key Information Scheme information
Addendum
Memorandum (KIM) Document (SID)

4.5 3 1.9

Ensuring that all employess

Guarantee of adding a
Declaring the rebates given who are selling mutual
minimum of 5 investors
back to the investors funds will have more than
every month
on ARN code.

Financial Planning ,
Advisory , Sale Advisory , Execution
Distribution

Investors can control the

ETFs Generally give higher money they have invested
ETFs offer tax benefits
retruns than normal funds. as to where the ETF can
invest

1 FALSE

1 FALSE

Arbitrage Error Tracking Error Systematic Risk

Get better retruns by Improve the credit ratings of Protect the interests of the
mutual fund schemes the mutual funds schemes mutual fund investors
 It is a function of the
marginal rate of tax
Income earned by a mutual 10 percent plus surcharge
applicable to the respective
fund is exempt from taxes and cess
investor in the mutual fund
scheme.

Non Resident investors Institutional Investors High networth investors

1 FALSE

Office salaries of fund Rent of the AMC registered AMC General administration
management team office expenses

Closing NAV of the day Closing NAV of the day

Closing NAV of the day the
preceding the day funds are immediately preceding the
funds are available
available date of application

Dividend distribution tax Securities transaction tax Wealth tax

Capital Protection Oriented , Flexible Allocation , Monthly Monthly Income Plan ,

Flexible Allocation , Monthly Income Plan, Capital Capital Protection Oriented ,
Income Plan Protection Oriented Fixed Allocation

1 FALSE

The Memorandum of
The Articles of Association Share holders resolution
Association

1 FALSE

Business Cycle Karma Cycle Wealth Cycle

 Giving approvals to the
Making regulations for the
appointment of fund Regulating Stock Exchanges
Mutual Fund Industry
managers.

Key Information Scheme Information Statement of Additional

Memorandum - KIM Document - SID Information - SAI

Pledger Pledgee Pledge

GST applicable on AMC fees

GST applicable on
as well as distributor
GST applicable on any fees distributor commission only
commision can be charged
must be within the Total can be charged to the
to the scheme over and
Expense Ratio scheme over and above the
above the Total Expense
Total Expense Ratio
Ratio

The unit holder or lien

The unit holder only The unit lien holder only
holder as per the agreement
Portfolio Customization Choice Overload Control Over Costs

3 4 5

Only C A and B A and C

Debt Schemes Equity Schemes Treasury Bonds

On a monthly basis, before

Only when the investors For every transaction for
the 10th of the succeeding
sends an request for it every folio
month

3 6 12

AMC Stock Exchange Clearing House

 75.83 80.77 76.16

1 FALSE

Capital Protection Oriented Monthly Income Plans - Capital Protection Oriented

Fund - Monthly Incomes Balanced Funds ( Fixed Funds - Balanced Funds
Plans - Balanced Funds Allocation ) - Balanced (Flexible Allocation) -
(Flexible Allocation) Funds (Flexible Allocation) Monthly Income Plans

Systematic Withdrawal Plan Systematic Transfer Plan Systematic Saving Plan

1 FALSE

STT is paid on purchase of

STT is paid on purchase of STT is paid on repurchase /
the units of Equity Mutual
the units of Equity Mutual redemption of the units of
Fund through a stock
Funds from the fund house Equity Mutual Funds
exchange.

1 FALSE

1 FALSE

1 FALSE
 3% 5% 7.5%

Operator AMC Dealer

Liquidity needs Lifestyle Income levels

the market share its product

The assets it has the profits of the company
has

Delta Hedging Asset Allocation Portfolio Churning

Gold Real Estate Shares

Capital base has no effect

Higher Lower
on risk appetite
Diversified Debt Schemes
Diversified Equity Schemes Nifty Index Funds
( Income Fund )

Transaction of purchase and

sale of securities entered
Investment Pattern Portfolio Trunover
into with any of their
associates.

1 FALSE

Applicable only for closed Applicable only for Open Common for all schemes -
ended schemes ended schemes Open or Close ended

1 FALSE
 Systematic tranfer plan Purchases of Rs 10000 or
Online Purchases
(STP) transaction more

1 FALSE

Rise in interest rates lead to Fall in interest rates lead to

fall in real estate prices. fall in real estate prices.

In a minimum of 2
On the AMC Website On the AMFI website
newspappers

Applicable Not Applicable

He can sign up for a SIP and He can provide additional

He cannot invest as PAN
get an exemption from the prescribe photo proofs like
Card is mandatory
requirements of a PAN Card the Aadhaar , Vote Id etc.

Proof of Income Proof of Address Proof of Identify

 The annual report ( Scheme
The commission paid to the The distributor wise amount
wise ) and the abridged
distributors in the finacial mobilised in the financial
summary on the website of
year on the website of AMC. year on the website of AMC
AMC

KYC is not required to be Photo identity is not

PAN Card is not required
done required

Assets Under Management

Total Expense Ratio (TER) Tracking error
(AUM)

Rs. 0.60 Rs. 6 Rs. 150

10 Year dated Gol Security 3 Year dated Gol security 1 year T-Bill

1 FALSE

Government Multinationals Banks

Investment objective (s) of

The type of scheme Terms of the issue
the scheme
 Deciding the size of Selection of the Mutual
Setting of goals
portfolio Fund schemes

Processed as a Direct Plan Processed as a Regular Plan

Rejected
application. application

Real Eastate Commercial Papers Shares and Debentures

Sharpe Ratio Standard Deviation R-Squared

1 FALSE

Total Expense Ratio shall Total Expense Ratio shall Total Expense Ratio shall
not exceed 1.00 per cent of not exceed 2.00 per cent of not exceed 1.5 per cent of
the daily net assets. the daily net assets. the daily net assets.

Investment management
Fund Factsheet SID and SAI
agreement

Food Crops Industrial Metals Gold

Only A is false Only B is false Both A and B are false

 Only A Only B Both A and B

1 FALSE

1 FALSE

The norms prescribed by

The last traded price of that The avarange price of bid
SEBI to arrive at a fair
security on BSE or NSE and ask quotation
valuation

Memorandum and Articles Board Resolution

Trust Deed
of Association authorising the investments

1 FALSE

Decreases Increases Becomes zero

NAV of the business day on

Closing NAV of the day on which the funds are
which the application was available for utilisation Next business day NAV
made before the cut-off time of
that day is applicable.

1 FALSE

Bulechip Equity Shares Gold Real Estate

Daily, 4 Weekly, 2 Daily , 2

 High time commitment is High time commitement is
High time commitment is
required form the investor / required both from the
required form the planner
client. client and planner

Monitoring their Checking the risk factor Reading the offer

investments regularly before investing documents carefully

1 FALSE

1 FALSE

RBI's announcement that

RBI's announcements of Bouns issued by one of the
there could be huge
changes in interested rates MF schemes.
recession.

1 FALSE

Capital Base Regularity of Income Both 1 and 2

House to be purchased Trying to get a better job Children's higher education

 SEBI Board of Trustees Sponsors

Market Volatility Bull Run Tracking error

Unitholders SEBI Sponsors

Rs.10 Rs 12 Rs 19

Selection of scheme - Risk Risk Profiling - Making a Making a Model Portfolio -

Profiling - Making a Model Model Portfolio - Selection Risk Profiling - Selection of
portfolio. of scheme. scheme

173.33 177.33 184

 13.69% 14.70% 15.00%

AMFI Guidlines for

AMFI Guidelines For New AMFI Guidelines for New
Nominations and
Investors issues and Investments
Investments

Decrease Increase Remain Same

The closing NAV of the day

The closing NAV of the next The closing NAV of the
preceding the date of
working day application day
application

Custodial Services Investment Management

Trust Deed
Agreement Agreement

Meant only for close Ended Applicable only for Open

Applicable for all schemes
Schemes Ended Schemes

Close Ended fund cannot be

The offices / Branches of the The Bank in which the unit
bought and sold till the
respective AMC's holder has an account
closure of term
Application for additional Application for New Fund
Application by SIP
purchase of MF units Offers (NFO)

1 FALSE

1 FALSE

Market Price Exit Load Asset Under Management

Investment in STP for Investment in liquid fund for Investment of the full
investing in equities a short period amount in equities

Yes No

At a price higher than NAV At a price lower than NAV At a price same as NAV

SEBI Sponsors Trustees

Yes, they can buy / sell units No, this is not allowed in
on the MFs website. india.

Valuation Gains Notional Gains Valuation Losses

25% 40% 50%

To generate a limited An investment plan which is An investment plan with a

amount of money focused on a specific goal specific risk profile

Will not provide guaruntee

Will provide guarantee of
Will provide insurance of returns or capital
retruns
protection

Commissions Salaries Portfolio profits

Statement of Additional Key Information

Fact Sheet
Information (SAI) Memorandum - KIM

Bond Price will rise Bond price will fall No change in the bond price
NAV of the business day on Closing NAV of the day
Closing NAV of the next
which the funds are availble immediately precending the
business day
for utilisation date of application

A change occurs in the fund

There is a credit event Interest rates move down
management team

Securities Market Gold Money Market

Securities and Exchange

Fund Accounting Team Depositories
Board of India

Plan Scheme Option

1 FALSE

The price is decided by the

The bonus units are allotted At the prevaling NAV
AMC in consultation with
free of cost divided by the bonus ratio
the trustees

Scheme's asset allocation Mutual Fund scheme's

Scheme's past retruns
pattern investment objective

1 FALSE
 Rs. 10.00 Rs. 20.00 Rs. 10.20

Dividend Yield Value Investing Growth Investing

Foreign investors can invest

Hindu Undivided Families in indian mutual fund
(HUFs) are not allowed to Minors cannot invest in schemes, provided they
invest in mutual fund mutual fund schemes. have completed the know -
schemes. Your - Client (KYC)
formalities

0 TRUE

Convenience to buy stocks

and bonds directly from the Customized portfolio Economies of scale
mutual fund

Would buy fixed rate Would buy floating rate Would buy longer term
instruments of shorter tenor instruments fixed rate debt securities.

Increase the exposure to Switch the portfolio towards The Fund Manager cannot
longer term fixed rate debt a higher proportion of do much as all his money is
securities floting rate instruments generally fully invested

1 FALSE

1 FALSE
 0.1% 0.5% 2.5%

Three Months Six Months One Year

1 FALSE

AMFI Commerce Ministry SEBI

SEBI has permitted celebrity

Celebrities can endorse only
Celebrities can endorse only endorsements for
on-going mutual fund
NFOs promotion of individual
schems
mutual fund schemes

1 FALSE

1 FALSE

It depends as the TER

Any amount that the AMC 1 Percent of the daily net
changes in line with the size
may deem appropriate assets.
of the scheme.

Any family member of the

The Minor The Guardian
minor
 0 TRUE

1 FALSE

Informing the investor of

Carefully understanding the Encouraging the churning of
the various investment
clients financial needs. investments.
options.

RBI SEBI Sponsor

Name of the fund manager,

Performance of schemes Asset allocation plan
trustees etc.

Minors HUFs NRIs

1 FALSE

YTM Credit Spread Yield to Call

Are traded in commodity Are not standardized Are available through

exchanges. contracts. mutual funds.
 High yield funds. ELSS Funds Gilt funds

To keep the safe custordy of

To issue account statements To issue statement of funds
the securities of the mutual
to the MF unit holders. holding to the investors
fund scheme.

0 TRUE

A professional insurance A professional investment

A professional actuary
agent manager

Thematic Funds Sector Funds Arbitrage Funds

Tactical Growth Cyclical

1 FALSE

1 FALSE

The name of stocks in which

The risk factors of the Investment objectives of the
the scheme in likely to
scheme scheme.
invest.
 The Lien holder or the unit
Always to the lien holder Always to the unit holder
holder as per the agreement

Rise Fall Remains Same

Stamp time Time Verification Time Stamping

1 Year 2 Years 3 Years

Index Funds ELSS Funds International Funds

To inform the investors To inform the investors on

To provide a comparison of
about the AMC's views on the performance of the
the schemes.
Stock Markets. scheme

1 FALSE

In the Accumulation phase In the Retriement phase In the sudden wealth phase
 1 FALSE

1 FALSE

To make available the data

To Manage the investor on AUM, NAV and other
To compute the NAV
protection fund data of the mutual fund
industry

KIM basically contains only

KIM is basically an abridged The KIM is attached to each
the names of Sponsor , Trust
version of the offer and every mutual fund
and AMC and not their
document application form.
functions.

The AMC The Trustees The Fund Manager

Number of investor in the Market value of the mutual

The size of the portfolio
mutual fund fund portfolio

Hindu Undivided Family -

Non Resident Indians - NRIs Institutional Investors
HUF

A and B are true B and C are true A and C are true

 Commissions Salaries Salary + Commission

Intermediaries should
Intermediaries Should Intermediaries Should split
abstain from making
rebate some of the applications so that they can
negative statements about
commision received by earn higher transaction
any Asset Management
them to the investors. charges.
Company or scheme.

5% of the corpus 10% of the corpus 20% of the corpus

Cut-off timings are Cut-off timings agreed upon

Cut-off timings are different
prescribed by SEBI from between the AMC and the
form AMC to AMC
time to time. collection centers.

Mid Cap and Small Cap

Liquid funds Aggressive Hybrid Funds
Funds

The half yearly statement of

The yearly statement of the The annual accounts of the
the financial statement of
portfolio of the fund. fund
the fund.

At AMC level At investor level At scheme level

Ex - Dividend NAV Ex - Load NAV Cum - Dividend NAV

 Fixed Maturity Plans Exchange Traded Funds ELSS Funds

Systematic Withdrawal Plan Systematic Transfer Plan Systematic Investment Plan

(SWP) (STP) (SIP)

Switch transaction is
Switch transaction is similar Switch transaction is similar
allowed only after one year
to a purchase transaction. to a sale transaction.
from date of purchase.

Distributors Stock Brokers Unit Holders

SEBI Brokers and Know Your Distributor AMFI Guidelines & Norms
Intermediaries guidelines guidelines for Intermediaries (AGNI)

Only 1 Only 2 Only 3

It should be updated with It should be updated with

It Should be updated with
the Registrar and Transfer the directly with the Mutual
the KYC Registration Agency
Agent Fund

Both 1 and 2 Both 2 and 3 Both 1 and 3

 The amount paid will based
The amount paid will based on the NAV at the time of
The amount paid will based
on the NAV at the time of original redemption plus
on the prevailing NAV after
original redemption plus income earned on the
adding the income earned
income earned on the unclaimed amount and
on the unclaimed profits.
unclaimed amount. deducting any penalty on
the same.

Credit Risk Funds Gilt Funds Money Market Funds.

Stock exchanges have now

One can buy mutual fund The mutual fund units
become another important
units on stock exchange but purchased through a stock
channel for mutual fund
cannot sell them on stock exchange have a mandatory
companies to sell their units
exchange. lock-in period of 30 days
to investors.

When tha age of the

When the retriement age is
investor at the time of When the targeted corpus is
earlier than 5 years from the
making initial investment is achieved before 5 year.
date of investment.
not less than 50 years

Rs. 7916 Rs. 13750 Rs. 15832

Only 1 Only 2 Both 2 and 3

Only 1 Only 2 Both 1 and 2

 Type of scheme Investment Objective Investment Pattern

Rs. 4950 Rs. 4900 Rs. 4875

Hindu Undivided Family -

Institutional Investors Non Resident Indians (NRI)
HUF

Trustees Sponsors Brokers

By all the holders of the According to the mode of

By the first holder only
folio holding of the folio

A mutual fund distributor

A mutual fund distributor
A mutual fund distributor who brings in investments
who receives commission of
who services more than 25 from investors of over Rs. 1
over Rs. 50 Lakhs from a
investors. Crore for a single mutual
single mutual fund.
fund.

500000*(1+0.06)*3 500000 / (1+0.06)^3 500000 / (1+0.06)*3

Between 20% to 30% of Between 10% to 20% of Between 40% to 60% of

total assets total assets total assets

Super Aggressive hybrid

Aggressive hybrid fund Balanced hybrid fund
fund
 70% 80% 85%

To make available the AUM,

To calculate the correct NAV and other important To regulate and control
NAVs data of the mutual fund insider trading.
industry.

1 and 2 2 and 3 3 and 1

Averange of the NAVs ie.

current NAV amd NAV at NAV at the end of three
Current NAV
the time of original years
redemption.

Only statement 1 is true Only statement 2 is true Only statement 3 is true

Both Statements A and B

Statement A is false Statement B is false
are false
 Averange traded price of
Opening price of AAA Ltd. Closing price of AAA Ltd. on
AAA Ltd.on 10th April across
on 10th April at BSE/NSE 10th April at BSE/NSE
all stock exchanges.

a and b a and c b and c

Model Risk Basis Risk Market Liquidity Risk

He can buy the units on the He can buy the units from
He can buy the units on the
stock exchange from other the mutual fund itself when
stock exchange from market
investors who were alloted they open the sale at
makers appointed by the
the units and are interested periodic intervals as
mutual fund.
in selling announced by the fund.

1 FALSE

1 FALSE

1 2 3

1 FALSE
 Distributable surplus
Unit Capital Premium reserve account
generated by the scheme

1 FALSE

10 15 20

Monthly Half-yearly Annually

Registrar and Transfer

Custodian Unitholders
Agency

1 FALSE

Price retruns index Dividend retrun index Total retrun index

 25% 50% 60%

1 FALSE

Compounded Annual
Compounded Retruns Annualised Retruns
Growth Rate

1 FALSE

Exchange Traded Funds Open-ended funds. Close-ended funds

CAGR Annualised Retrun Dividend Retrun

Liquid Fund Overnight Mutual Fund Multi-cap mutual fund

At least once every six

At least once a month At least once a year
months

All investors, who have

TDS is not applicable in case
invested more than Rs.5 Minor through guardian
of mutual funds.
Lacs

0 TRUE

1 FALSE
 These two documents are These two documents are
prepared in the format prepared in the format These two documents are
prescribed by Association of prescribed by Association of prepared in the format
Mutual Funds in India as Mutual Funds in India as prescribed by Securities and
part of AMFI's Code of part of AMFI's Best Practices Exchange Board of India.
Conduct. Circular

Commission received from

Investment advisory fee Fees collected from the
Association of Mutual Funds
from mutual funds. investors.
in India.

Only A Only B Both A and B

Herd mentality Loss Aversion Confidence bias

ELSS-Equity linked saving

Fixed maturity Plans (FMPs) Equity index (ETFs)
schemes.

The NAV of the scheme in The NAV of The scheme in No impact on the fund as its
Indian Rupees will indian Rupees will invetsing in stocks and not
depreciate appreciate currency.
 Through Society for
worldwide interbank Through immediate Through Real time gross
financial telecommunication Payment service(IMPS) settlement(RTGS)
(SWIFT)

Only A is true Only B is true Both A and B are true

Every year Every month Every two years

100 95 85

CRISIL Gilt fund index is

Gold ETFs are benchmarked There can be no benchmark
widely used as a benchmark
against gold prices for Gold ETFs
for gold ETFs

He can appeal to SEBI And He can get a remedy from He is not likely to get any
get a remedy the AMC remedy from the AMC.

AUM raised of Rs. 60 crore Commission recieved of

Multiple point presence in
across industry in the non- over Rs. 125 lakhs p.a across
more than 25 locations
institutional category. industry
 Key information Satatement of additional
Addendum
memorandum (KIM) information (SAI)

Dates of issue Opening,

issue closing and Re- Investment Objective. Risk profile of the scheme
opening

Only Equity Mutual fund

Only SIP invetsors Only Institutional Investors.
investors

Dividend Re-investment
Redemption Dividend payout Option
option

Non-government
Limited company Self regulatory organisation
Organisation

Counterparty risk Model risk Basis risk

Income funds Lomg duration funds Equity funds

Capital adequacy Capital Apperciation Safety of Capital

0.9 0.95 0.8

1 FALSE
 1 FALSE

1 FALSE

1 FALSE

Entry load Exit load Commission Refund

Thematic funds Dividend yield schemes Arbitarge funds

1 FALSE

10 percent without
10 percent with indexation 20 percent with indexation
indexation

1 FALSE

Situation analysis Technical analysis Fundamental Analysis

KIM SAI SID

0 TRUE
 Registrar and transfer
Unitholders Mutual fund trustees
agency

1 FALSE

Fund manager of that

Registar and transfer agent Custodian
scheme

3 5 10

10.00 percent 12.50 percent 15.00 percent

Asset allocators Financial plan Risk profilers

1 FALSE

1 FALSE

Standard deviation Beta Variance

1 FALSE

Return that the investor get return that the investor gets Return that the invetor gets
after adjusting inflation. after adjusting the risks. after taxes.

1 FALSE

1 FALSE
 1 0.5 0.25

0 TRUE

Dividend option Growth option Arbitarge funds

1 pm 10 pm

Young unemployed Young unmarried 10th pass

1 FALSE

Gold Sector fund Gold ETF Tax Saving ELSS fund

1 FALSE

Physical asswet Financial asset

Audited acconts for the last

Bank statements Board resolution
3 3 years

Strategic asset allocation Tactical asset allocation Both 1 and 2

ELSS Fund Debt fund Sectoral funds

 AMC's Distribution houses MF Research companies

0 TRUE

1 FALSE

1 FALSE

0 TRUE

Scheme information Statement of additional

Trust deed and key
document and statement of information and fun fact
information memorandum.
additional information. sheet

1 FALSE

Expansesto launch a new

Expenses to manage a fund Expenses done by the AMC
fund

First time investors of

NFO Investors Existing investors
mutual funds

1 FALSE

Companies , Indian Investment agencies, SEBI

Trust, indian trust Act.
companies Act act
 Non resident indians Non individuals Hindu undivided family

1 FALSE

Model risk Interest risk Counterparty risk

2% of the net assets 5% of the net assets 7.5% of the net assets

1 FALSE

1 FALSE

debt fund balanced scheme ELSS fund

To inform the investors To inform the investors on

To provide a comarison of
about the AMC's views on the performance of the
the schemes
stock markets scheme

0.0001 0.001 0.00125

Dynamic asset allocation Fixed asset allocation Flexible asset allocation

Fixed maturity Plans Hybrid fund ELSS fund

1 FALSE
 The AMC to which the fund
Authorised stock brokers Custodian
belongs

Can get some remedy if he Can get some remedy if he Can get some remedy if he
appeals to SEBI appeals to AMC. appeals to AMFI

Beta Coefficient Sharpe ratio Treynor ratio.

Long terms debt funds short term debt funds. Equity funds

Dynamic bond Gilt fund Corporate bond fund

1 FALSE

Its a simpler way to

The investment made is The return is calculated over
calculate and investor
fixed for 30-90-180 days. smaller time horizons
understand it easily.

Gold Equities Fixed deposits

1 FALSE

RBI Commerce Ministry Company law board

At prices usually higher than At price usually lower than At price which can higher or
NAV NAV lower than NAV
 Accumulation Distribution Transfer

Gilt securities Debt fund Mid cap funds

Unsystematic risk Systematic risk

Yes No

1 FALSE

The change in NAV captures Units rise or fall depending The NAV falls as and when
the scheme performance on the scheme performance dividend is declared

0.89 0.72 0.49

1 FALSE
 Rs.2150 Rs. 33.1854 Rs. 3.4246

10 20 25

She has to select the correct

There is a high risk of
bank which is financially There is risk of low returns
default in her portfolio
strong

15 months 12 months 9 months

The adress provided for KYC The adress provided in the Mr. mohit can indicates
compliance application form which address is correct

Foreign government or
Indian government Indian tax authorities
foreign agencies

Only C A and B B and C

A and B are true B and C are true A and C are true

 analysing mutual fund
Maintaining investor Processing redemprion and
performance and making it
records. dividend payouts
available to investors.

1866.43 477 392.41

Banks HNIs Employees of AMC

The mutual fund investor Once an investor had Once an invetsor had
has the complete freedom invested through a invested by online method,
to change the distributor distributor, he cannot he cannot change the
any time he wants. change the distributor distributor.

Only A us True Only B is True Both A and B are true

Registrar services fo transfer

Custodian fees Software development
of units sold.

Both statement A and B are

Only statement A is false Only statement B is false.
false.

B-C-A C-A-B A-B-C

 Only A is false Only B is false Both A and B are false

Short term capital gain or

Short term capital gains only Long term capital gains only
long term capital gain

A and B are true B and C are true A and C are true

The trustees The sponsor The fund manager

International Funds New Fund Offer (NFO) Both of the above

1 FALSE

A= P /(1+i) ^n A= P*(1+i)^ N P= A^n*(1+i)

ASBA Cheque/DD Remittance

 1 FALSE

Diversification Inflation Compound interest

Tracking error Beta 5 Year performance

AMFI AMC KRA

0 TRUE

1 2 3

1 FALSE

ELSS Fund Debt fund Sectoral fund

ELSS Fund Micro SIPs Gilt funds

1 2 3

1 2 3
 Both equity and debt
Only equity schemes Only Debt schemes
schemes

Gold Equity share Real estate

1 FALSE

1 FALSE

Stocks Real estate Debentures

0.65 0.7 0.8

Commission of the MF
Exit load. Entry load
agent

Strategic asset allocation Fixed asset allocation. Tactical asset allocation

Long term Medium term short term

0 TRUE

Yes No
The AMC SEBI AMFI

1 FALSE
 1 FALSE

Bonds Real estate Debentures

1 FALSE

1 FALSE

1 FALSE

1 FALSE

49 70 700

Very Very risk compared to Some what risky than the

Less risky than the market
the market' market

Risk factors Investor's risk profile Risk -o-meter

NAV of the next business NAV of the day on whcih

NAV of the same day
day funds will be available
Capital loss , short term or
Long term capital loss can
long term, can be set off Short term capital gains is a
be set off against long term
against aby other head of tax free income.
and short term capital gain
income

Statement of additional Scheme information

addendum
information-SAI document-SID

1 FALSE

The investors who invest in

The employees of the
the Trustees of the AMC various schemes of the
mutual fund company.
mutual fund.
The publisher of the ranking Criteria on which the The name of the ranking
data. ranking is based. entity.

1 FALSE

Non resident indians Hindu Undivided Family Individuals

1 FALSE

1 FALSE

RS. 35.6164 RS. 33.9726 RS. 19.5543

2,2 3,3 4,4,

 are traded on the are not standardised can be bought through
commodity exchanges products mutual funds

Only A us True Only B is True A and B are true.

Good capital appreciation Regular income Safety of capital

1 FALSE

1 FALSE

Variance Modified duration Jensen's Alpha

Mutual fund Trustees Stock exchange

1 FALSE

Asset management Securities and exchange Board of trustees of mutual

companies board of india funds.

Money market fund Balanced fund Arbitrage fund

 Arbitrage funds invest in
Arbitrage funds have basis Arbitrage funds invest in
both spot and futures
risks equity markets
market.

Passive fund Active funds Index funds

1 FALSE

An agreement between the Power of attorney from the

Approval from SEBI
AMC and the distributor AMC.

1 FALSE

3 5 10

Is paid only for high valued

Is linked to the NAV Grows at a steady rate
transactions

No cash can be accepted By

Rs. 50000 Rs. 20000
a MF

Distribution of funds
Distribution of funds Distribution of funds
between fund managers in a
between various asset between various asset
mutual fund managers in a
classes In a portfolio classes in a portfolio
Mutual fund.

Increased role of fund Decreased role fund Decreased role of fund

manager and high running manager and high running manager and low running
cost cost cost
 Sharpe ratio used for
Sharpe ratio uses standard
underperforming scemes
deviation for its calculations
Both are same whereas treynor ratio is
whereas treynor ratio uses
used for outperforming
beta.
schemes.

1 FALSE

Key information Scheme information

Addendum.
Memorandum (KIM) document (SID)

A and C B and C. A and B

0.1 0.25 0.3

188 198 208

Have to become 18years can invest through their can invest only in long term
before investing. guardians capital gains funds

Diversified debt scheme Diversified equity scheme ELSS Scheme

 D ANSWER

25

0.01%

Trustees

Annual

12 Months
 Familiarity

6 Months and 12 Months

Variable asset allocation

Both for application form /

transaction slip and
payment instrument.

All of the above

 All of the above

Ombudsman

Capital gains from all types

of mutual funds are taxed
subject to certain conditons.

AMC

It cannot be set-off
 All A,B and C are false

1 Year to 3 Year

Mortgaged backed
securities

Date of notice of meeting

SEBI

Mutual fund schemes

All A,B and C are True

Scheme Information
Document (SID)

All of the above

A,B and C

Growth
 Pepole of same age will
have same risk appetite.

Statement of Additional
Information (SAI)

Till the money is held in the

fund

None of the above

Sector funds

Asset Management
Company
 It is indicative of under-
hedging by the fund
manager

Approving the fund

managers which have been
appointed by the AMC.

Giving personalised after

sales service.

by both existing and new

investors

NAV minus entry load

Cost Value
Distributable surplus only

75%

NAV of the business day on

which the funds are
available for utilisation.

A and B

Systematic Investment Plan

(SIP)

If tax exemption is NOT

availed, there will not be
any lock-in period.

When ever there is a

transaction in the folio

A mix of large, mid and

small cap stocks
 All A,B and C

No change in the market

price

Only the first two holders

B and C

KYC of the guardian is

required

Photo Debit Card

65 Percent
 20 Times

Systematic Investment Plan

As a Regular Plan, provided

the error being corrected
within a time frame.

78400

A,B,C and D

2.42

Tax harvesting
 Scheme Information
Document (SID)

SEBI VA Mutual Fund

Distributors

He will keep the risks low in

his investment portfolio

Assets Managed by the

scheme

Beta

Gold

To issue account statements

to the Mutual Fund unit
holders.
Reflective of the realizable
value of the securities.

Regularly report to SEBI on

the working of the fund.

All of the above

Recency Bias

Memorandum of
Association and Articles of
Association.

Tax saving needs

C and D

The yield on spread

 All of the above

Marketing Expenses

Short term capital gain or

long term capital gain

All of the above

The fund managers while

monitoring the
perfoamance of the
schemes they manage.
 Statement of Additional
Information (SAI)

11.5

Commitment to abide by
statutory codes, guidelines
and circulars.

Priority Sale , Retail Sale

Investors can buy or sell

ETFs on stock exchange at
prices which are close to
current valuations.

Investment Objective

Protect the interests of the

mutual fund industry
It is a function of the type of
income since dividends,
short term capital gains and
long term capital gains
attract different tax rates.

Retail Investors

Custodian and Fund

Administrator fees

Closing NAV of the day of

the date of application

Alternate dividend tax

Monthly Income Plan, Fixed

Allocation, Capital
Protection Oriented

Specific Board resolution

Life Cycle
Enforcing compliance of its
regulations.

Both SID and KIM

Pledion

GST applicable on AMC fees

only can be charged to the
scheme over and above the
total Expense Ratio

The Unit holder or lien

holder as per the terms of
issue of mutual fund units.
Economies of scale

All A,B and C

None of the above

Quarterly for dormat

investors

24

AMFI
 79.17

Balanced Funds (Flexible

Allocation) - Monthly
Income Plans - Capital
Protection Oriented Funds

Systematic Investment Plan

STT is paid on purchase of

the units of Debt Mutual
Funds.
 10%

Sponsor

All of the above

the credit rating assigned to

it

Risk Profiling

Bank Fixed Deposits

No Change

Gold Funds

All of the above

Applicable only for a

particular scheme
 Purchase made on stock
exchanges

Both - On the AMC website

and in a minimum of 2
newsappers

PAN Card
 All of the above

None of the above

Treynor ratio

Rs. 75

No Such benchmark exists

Mutual Funds

All of the above

 None of the above

Treated as incomplete
application and will be
retruned ot the investor for
completion.
Gold

Beta Coefficient

Total Expense Ratio shall

not exceed 0.50 per cent of
the daily net assets.

Annual accounts of the AMC

Real Estate
 Neither A nor B

The lowest price calculated

as per the above three
methods.

List of authorised
signatories

None of the above

Closing NAV of the day

immediately preceding the
application day.

Government Bonds

Weekly , 4
Not much time commitment
as all the planing is done in
the computer.

Taking investment decisions

of behalf of the fund
manager

Changes in prices of equity

shares

None of the above

Marriage approaching
 Stock Exchanges

Systematic Risks

Fund Manager of that

scheme

Rs 5

Selection of scheme - Model

Portfolio - Risk Profiling

186.74
 15.88%

AMFI Guidelines and Norms

for Intermediaries

Change Randomly

The NAV of the business day

on which the funds are
available for utilisation

All of the above

Meant only for one

particular scheme

Stock Exchanges
 Fresh purchase by a new
investor of an existing
scheme

Net Asset Value

Revisiting his financial plan

At a price which can be

higher or lower or same as
NAV

None of the above

 Notional Losses

66%

A specific option of
investment

Will gurantee capital

protection in the long run

Annual fees

Addendum

The price can rise or fall

depending on the market
conditions
 Same day NAV if received
before cut off time.

Interest rates move up

Commodity Market

Association of Mutual Funds

in India

Maturity

At the prevailing NAV

Investment strategy of the

MF scheme
 Rs. 20.40

Top Down Approach

None of the above

None of the above

 NIL

Five Year

PFRDA

SEBI has permitted celebrity

endorsement at the industry
level for the purpose of
increasing the awareness of
mutual funds

1.5 Percent of the daily net

assests

No KYC is required in case of

applications by minors
Giving personalised after
sales service.

AMC

All of the above

All of the above

Risk Spread

None of the above

 Index Funds

To execute the buy and sell

orders in the stock market

A professional tax planner

Index Funds

Value

The features of the portfolio

of the scheme.
 Units under lien do not
receive any dividends

Will be equal to yields

Auditing

5 Years

Arbitrage Funds

To inform the investors on

the detailed information
about the scheme.

None of the above

To regulate insider trading.

KIM has to be provided only

if the investors ask for it

The Investor

The units remining in the

portfolio

Minors

All A,B and C are true

 Shares in AMC's profit

25% of the corpus

Cut-off timings are different

for different RTAs

ELSS Funds

Scheme related documents.

At distributor level

Net - NAV
 High Yield Funds

Total Redemption

Switch transaction is a
redemption from one
mutual fund scheme and
simultaneous purchase in to
another scheme.

Independent Financial
Advisors

Only 2 and 3

It can be upated with any of

the three options provided.

All 1,2 and 3

The amount paid will based
on the average of the NAV
at the time original
redemption and todays NAV
after accounting for income
earned and penalty if any.

Liquid Funds

None of the above are true

All of the above

Insufficient Data

Both 1 and 3
 Name of fund manager

Rs. 5000

High net worth individuals

(HNI)

All classes of unit holders

By all the holders of the

bank account.

All of the above

500000*(1+0.06)^3

Between 60% to 80% of

total assets

Conservative hybrid fund

 90%

To manage the investor

Protection Fund

1,2 and 3

NAV at the time of original

redemption

All 1,2 and 3 are true

Averange traded price of
AAA Ltd.on 10th April at
BSE/NSE

Only b

Credit Risk

He cannot buy units of a

close ended fund

4
Mark-to-market profits

30

Quarterly

Auditors of the Asset

Management Company
 75%

Simple Returns

Interval Funds

Simple Return

Government Securities Fund

It need not be updated after

it is issued once

Non-Resident Indians (NRIs)

 Each Asset Management
Company is free to prepare
these documents in the
format they desire.

Commission from mutual

funds for distribution of the
schemes.

Anchoring

Blue chip equity funds

Through National electronic
funds transfer (NEFT)

Both A and B are false

As per AMC decision

75

Internationally it is proven
that there is no need of any
type of benchmark for Gold
ETFs

He is likely to get a remedy

from the trustees of the
AMC

Commission received of
over Rs. 75 lakhs from a
single mutual fund
 Scheme Information
Document(SID)

Functions of the sponsor,

trustee and AMC.

Only Individual investors

Growth Option

Trusts

Credit risk

Liquid funds

Regular Returns

0.75
SIP Transaction charges

sector funds

20 percent without
indexation

Quantitative analysis

AMC Memorandum
 Asset management
company

Trustees

30

11.11 percent

Risk appetizers

Sharpe ratio

Return that the investor

gets after payment of all
expenses.
 Insufficient data

Liquid funds

Retired manager

Balanced Fund

Approval letter from SEBI

None of the above

Blue chip equity funds

 all of the above.

Scheme information
Documentmand audited
balance sheet of the asset
management company

Expenses done by the

investors.

Relatives of existing
investors

NGOS, NGO act

 None of the above

Basis risk

10% of the net assets

Sectoral Equity fund

To inform the investors on

the detailed information
about the scheme

SIP

Liquid funds
 Merchant bankers

Cannot get any remedy

from the AMC

None of the above

Banking sector funds

Credit risk fund

The amount invested is

usually small

High Interest bearing junk

bonds

Securities Appeallate
Tribunal.

Units of a close ended fund

cannot be bought after NFO
 None of the above

Large cap Funds

Dividend distribution tx is
applicable

0.53
 Rs. 5.8904

50

there is no risk as fixed

deposits are quite safe

6 months

The address provided in the

application form will be
used for all
communications.

All of the above

All A,B and C

All A,B and C are true

Updating unit capital fund.

3000

Empanelled distributors

Once an investor had

invested through a
distributor , he cannnot
invest directly with the
mutual fund house

GST- goods and service tax.

A-C-B
Long term capital loss
cannot be set off

A,B and C are true.

The AMC

None of the above.

P=A^n*(1+i)^n

Any of the above

 Asset allocation

Fund managers past record

SEBI

Equity funds

Government mutual funds

4
 FMP'S

Debt

Physical gold.

0.95

Dividend stripping.

Flexible asset allocation

Ultra short term.

Stock exchange
 Stocks

10

Equally risky as the market

Fact sheet

None of the above.

Short term capital loss is to
be set off against short term
capital gain or long term
capital gain.

Key information
memorandum-KIM

The chairperson and

managing director of the
AMC.

All of the above

All of the above

RS. 28.1217

6,6
 None of the above.

A and B are false.

Tax planning.

Sharpe Ratio

No, a MF Investor cannot

file a suit.

Association of mutual funds

in india.

Diversified equity fund

Arbitrage funds are more
riskier than sectoral funds

None of the above.

An agreement with AMFI

30

Is paid to the corporate and

bank distributors only

Rs 5,000

Distribution of funds
between various persons
after the death of a person

Increased role of fund

manager and low running
cost
 Statement of additional
information.

All A,B and C

NIL TAX

218

can invest in specific minors

only mutual funds

Arbitrage funds
EXPLANATION