AMFI Exam

Financial planning does work for older clients

1 Mark(s)

1
None of these
All of the above

To cover fund distribution expenses, open ended funds

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Charge a fee from agents
Charge entry and loads exit from investors
Create a reserve
Sell investments

Any pending cases or penalties levied on the sponsors or AMC should be disclosed in the offer document

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1
None of these
All of the above

Unit Trust of India's US-64 Scheme

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Is listed on stock exchange
Has a fixed price for sale and reppurchase price declared periodicaly by UTI
Has a fixed price for sale and reppurchase
Has its price determined by market forces

Investing through mutual fund is a better option than investing directly in the stock market because

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Identifing stocks is a diffcult process
Agents get commission on mutual fund investment
Returned are guaranteed by mutual funds
All of the above

Lowest commission are paid on

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Equity funds
Tax bebefit scheme of mutual funds
Debt funds
Long-term investment in mutual funds

The offer document and key information memorandum contain financial information for

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All schemes of all mutual funds in the capital market
All scheme launched by the particular fund during the last 3 fiscal years
None of the scheme
Companies in which investment is proposed

If an investor failed to claim his redemption procceds within 3 years, he can claim the proceeds at

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Par
Prevailing NAV
The on the date he has applied for redemption
15% below the prevailing NAV

Investors who follow the fixed asset allocation approach

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Maintain balance in their portfolio by liquidating a part of the position in the asset class which has given higher return and reinvesting in the other asset class which has lower return
Are not disciplined
Increase their equity position when equity prices tend to climb
None of the above

A bond's rating indicates its

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Reinvestment risk
Default risk
Inflation risk
Interest rate risk

Transfer Agents of a mutual fund are not responsible for

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Issuing and redecming units of the mutual fund
Updating investor records
Preparing transfer documents
Investing the fubds securities markets

In India,Mutual fund agents' rate and services are at present defined by

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SEBI rules
Stock exchange bye-laws
AMFI rules
Convention

Contingent deferred sales charge (CDSE)

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Is higher for investors who stay invested in the scheme longer
Is lower for investors who stay invested in the scheme longer
Is the sane for all insvestors irrespective of how long they stay invested
Is not allowed to be charged to mutual fund investors in India

A high portfolio turnover for a fund indicates

1 Mark(s)

That the fund is active
Higher transaction costs
Both the above
None of the above

Unrated securities in the portfolio of a mutual fund are not to be valued

1 Mark(s)

1
None of these
All of the above

The role of AMFI in the mutual funds industry in not to

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Promote the interests of the unit holders
Set a Code of Ethics
Regulate mutual funds in
Erease public awareness of mutual funds in the coumtry

A small investor can build a diversified portfolio by

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Buying one share each of all listed
Investing in a mutual fund
Borrowing enough money to buy shares of well managed companies
None of the above

Financial planning allows a person

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To become a billionaire
To achieve financial goals through proper mangement of finances
To invest in foreign countries
None of the above

Ex-mark of an equity fund measure its

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Perfomance
Risk
Both the above
None of the above

A close ended scheme is quoted on the stock exchanged at a discount to its NAV when

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The markets are bearish
Investor perceive that the fund will be unable to maintain the NAV
The assets of the fund are undervalued
None of the above

Which Mutual Fund has majority of the agents selling its Mutual Fund units in India

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LIC Mutual Fund
UTI Mutual Fund
SBI Mutual Fund
None of the above

Which of the following in not true as per SEBI regulations for debt funds?

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Investment in rated debt securities of a single issuer should not exceed 15% of NAV
Total investment in unrated debt securities of a single issuer should not exceed 25% of NAV
Total investment in un rated debt securities below investment grade should not exceed 25% of NAV
Total investment in rated debt securities below investment grade should not exceed 25% of NAV

A high proportion of investment in income funds is required by

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Accumulating investors
Affluent investors
Investors in the inter generational transfer phase
Investor in the distribution phase

Value stocks

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Have high current dividend yield
Yield high growth in earnings
Are currently under valued
None of the above

An addendum giving details of material change in the offer documents should be circulated

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Distributors/brokers
Unit holders
SEBI
All of the above

For older investors who want to transfer their wealth

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No financial planning is required
The right investment strategy depends upon who the beneficiaries are
The right investment strategy depends upon the funds state can be invested in
All the funds can be invested in aggressive equity funds

The offer document is not a legal document

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1
None of these
All of the above

An open-ended mutual fund is one that has :

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An option to invest in any kind of security
Units available for sale and repurchase at all times
An upper limit on its NAV
A fixed fund size

Which scheme has the largest investor base?

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ULIP
UTI Mastershare
US-64
SBI Magnum

The size of the market capitalisation of a fund's equity holdings is inversely proportional to the returns that

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Can be expected from the fund
Level of risk assumed by the fund
State of the stock market
All of the above

AMFI Exam : Question 1 of 30