AMFI Exam

For investors to correctly compare performance of different funds SEBI's advertising codes include

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Uniform computation of yields
Uniform presentations of dividends
Identical time periods
All of the above

The choice of an appropriate benchmark for evaluating a fund's performance depends on

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The fund manager
The investment objective of the fund
SEBI
AMFI

Which of the following, which would be suitable for a retiree with a modest risk appetite

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Value fund
Diversified equity fund
Growth funds
Balanced funds

An application form for investment ina mutual fund is available with

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The offer document
The abridged annual report
The key information memorandum
A bank challan

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 of the following is not an advantage of mutual fund investment over direct investment

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Higher liquidity
Lower transaction costs
Greater convenience
Guaranteed returns

The largest proportion of trades done in the wholesale debt market is accounted by

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Mutual funds
Foreign banks
Indian banks
Financial institutions

Investment policies of a mutual fund are determined by

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The fund manager
The AMC management
The marketing department based on what distributors want
The investors

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

Listing of shares at a stock exchange ensure

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Guaranteed returns
Long term capital appreciation
Low risk
High liquidity

Which of the following is most risky?

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Investing in a money market mutual fund
Investing in an index fund
Shortterm investment in an equity fund
Long term investment in an equity fund

Buy their very nature, growth funds are considered as high risk funds

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1
None of these
All of the above

When as agent purchases, offer of sells units, ensuring compliance with applicable regulations is the responsibility of

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The fund
The agent
AMFI
SEBI

Past performance of a sponsor/AMC mutual fund is not indicative of the future performance of the scheme. This is

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Not true
A standrad risk factor for all schemes
A scheme-specific risk factor
Applicable only to gilt funds

A debt fund's age and size are not important when selecting a fund for investment

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1
None of these
All of the above

The biggest disadvantage of investment in real estate is

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Less potential for capital appreciation
High purchase price
Depreciation in value as time passes
Value gets croded due to inflation

Which of the following is generally true for a growth stock?

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Steady capital appreciation and steady dividends yields
High capital appreciation and high dividend yields
High capital appreciation but low dividend yields
Steady capital appreciation but high dividend yields

The following need not be covered in a Key information Memorandum

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Risk Factors
Opening, Closing and earliest Closing Date of the offer
Disclaimer Clause
Functions and responsibilities of the sponsor, trustees. AMC and Custodian responsibilities

A bond with a coupon of 9% when interest rates for similar maturities are 11% will sell

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Above per
Below Per
At per
At a price unrelated to the prevailing interest rate

The AMC and directors are answerable to

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Stock Exchanges
The Board of Trustee
Agents and distributors
Stock broker

The current yield on Indira vikas patra works out to

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0.105
0.11
0.1
0.09

The prospectus of a close-ended fund is issued

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Every year
Only once at the time of issue
Every quarter
Every six months

Which of the following is not a characteristie of company fixed deposits

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A higher rate of interest
Higher risk
Unfavourable effect of tax
Very high liquidity

During the period 1992-99, the mobilisation of funds by the mutual fund industry was about

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5%-6% of gross domestic savings
2%-4% of gross domestic savings
7%-10% of gross domestic savings
25%-40% of gross domestic savings

For a scheme that has a load, the AMC can change an investment fee not exceeding

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0.015
0.02
0.0125
0.005

Offer Document of a mutual fund is

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Required by investors
Required by the AMC for its own reference
Required as per SEBI regulations
Not mandatory as per SEBI

Initial issue expenses are charged to a scheme in the first year itself

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1
None of these
All of the above

A fixed Term plan Series is

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An open-ended fund
A close-ended fund
A fixed term bank deposit
A fixed term corporate bond

The units of a scheme being sold and repurchase as per the procedure laid down is one of the fundamental attributes of a scheme

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1
None of these
All of the above

Annual contribution to public provident fund should be

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Rs. 10000
Between 100 and Rs. 6000
Between 600 and Rs. 1000
None of the above

AMFI Exam : Question 1 of 30