AMFI Exam

As per SEBI norms, a fund's incestment, in the equity shares of any one company are restrictes to

1 Mark(s)

25% of NAV
10% of NAV
50% of NAV
100% of NAV

Financial planning comprises

1 Mark(s)

Defining a client's profile and goals
Recommending appropriate asset allocation
Monitoring financial planning recommendations
All of the above

The most important reason for an investor to prefer a bank deposit to a mutual fund is

1 Mark(s)

The credit worthiness of the bank
Because the bank does not invest in scurities
That the bank offers a guarantee
All of the above

From whom can a unit holder seek redressal if his complaint is not entertained by the mutual fund

1 Mark(s)

AMC
Board of Trustee
SEBI
RBI

For s close-ended scheme to change its fundmental attributes, it must obtain the consent of

1 Mark(s)

50% of unit holders
50% of trustee
75% of unit holders
None of the above

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

1 Mark(s)

1
None of these
All of the above

Which scheme has the largest investor base?

1 Mark(s)

ULIP
UTI Mastershare
US-64
SBI Magnum

Assured return or guaranted monthly income plans are essentially

1 Mark(s)

Hybrid funds
Growth funds
Debt income funds
Sector funds

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

1 Mark(s)

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

Generally invest in

1 Mark(s)

Unlisted
Market-traded
Thinly traded
Privately placed

A high proportion of investment in income funds is required by

1 Mark(s)

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

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

1 Mark(s)

1
None of these
All of the above

The accounts and all other records of an AMC are filed with

1 Mark(s)

AMFI
Registrar of Companies
Agents Association
UTI

The fund sponsor has to contribute

1 Mark(s)

Nothing to the AMC
The total network of the AMC
Atleast 40% of the AMC's network
Exactly 50%

As per SEBI, mutual funds can borrow for short term to the extent of

1 Mark(s)

Total net assets
50% of net assets
25% of net assets
20% of net assets

In case of listed securities of group companies of the sponsor, mutual funs is not allowed to invest

1 Mark(s)

25% of its net assets
10% of its net assets
>5% of net assets
At all

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

1 Mark(s)

Value fund
Diversified equity fund
Growth funds
Balanced funds

Individual investors do not normally invest in Government securities because

1 Mark(s)

Individual invesrors not allowed to invest in government securities
The amount required for investment is very large
Safety of principle is not guaranteed
None of the above

Which of the following is not an investment philosophy

1 Mark(s)

Capitalising on economic cycles
Focusing on frowth sectors
Capitalisation
Finding value stocls

The transition phase of an investor's wealth cycle is when

1 Mark(s)

The financial goals have been already met
The investor has retired
Financial goals are approaching
Investor suddenly gets a wind fall

When comparing performance of two funds, the following need not be similar

1 Mark(s)

Risk profiles
Investment objectives
Fund size
Fund managers

The responsibilities of a unit-holders do not include:

1 Mark(s)

Monitor his investments carefully
Being aware of information that affects his investment in a major way
Carefully studying the offer document
Talking decisions about where the fund managers should invest

Market capitalalisation of a company is calculated by multiplying the number of outstanding shares by

1 Mark(s)

R.10
Face value of each other
Current market value of each share
Dividend yield

All equity fund can be said to be concentrated when

1 Mark(s)

When it invests in only in two or three stocks
When it invests in may companies of the same sector
When top ten holding account for more than 50% of net assets invested
When top ten holdings account for more than 25% of net assets invested

Fundamental attributes of scheme

1 Mark(s)

Do not include the objective of the scheme
can be changed without the investor's approved or knowledge
Include the terms of the scheme
Are not necessary for deciding whether to invest in the scheme or not

A close-ended scheme of a mutual fund is not governed by

1 Mark(s)

Exchange Rules of the stock exchange where it is listed
Listing Agreement between thr fund the stock exchange
Guidelines issued by the Ministry of Commerce
Companies Act provisions relating to transactions in securities

Which of the following sales practices is prescibed by regulation

1 Mark(s)

AMFI Code of Ethics
SEBI Advertising
AMFI's Code for Agents
None of the above

If fresh litigation cases or adjudication proccedings are referred by SEBI against the fund sponsors or a company associated with the sopnsors, then the offer document needs to be revised

1 Mark(s)

1
None of these
All of the above

Which of the following is not an equity instrument

1 Mark(s)

Preference shares
Equity warrants
Ordinary debentures
Convertible debentures

If a charitable trust approaches a distributibutor with an applications for investment in a mutual fund, the distributor should

1 Mark(s)

Accept the application without wasting time
Reject the application outright
Refer to the document
Accept the application as a direct application

AMFI Exam : Question 1 of 30