AMFI Exam

Which of the following do not apply to the term maturity of a debt security?

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The date on which the certificates becomes old
The term of the bond
The date of redemption
The date on which the issue has to repay the amount

The private sector was granted permission to enter the mutual fund industry in

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1992
1993
1998
1995

The risk level of commodity funds is

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High risk category
Determined by the commodity price movements
Cannot be specified
Low risk category

Constraints imposed by most funds on check writing are:

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Account balance should not fall below the minimum capital required
Check issued must be for at least the minimum amount specified.
Number of check per month must not exceed a specified number
Both a & b above

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

Continuous tracking of the companies in which a mutual fund has invested is done by

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Continuous tracking systems
Equity analysis
Trustee
Security dealers

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

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Risk profiles
Investment objectives
Fund size
Fund managers

As per SEBI regulations for valuation of investment held by mutual funds, a security is considered "non traded" when it

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Has not been traded for 60 days prior to valuation
Has not been traded for 30 days prior to valuation
Is not listed on any stock exchange
Is held by the mutual fund witjout buying or selling

Documents available to investors for inspection do not include

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Memorandum and Articles of Association of AMC
Consent of auditors and legal advisors
Investment management reports
Reports based on which actual investments are made

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

UTI was set up by

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SEBI
AMFI
A special act
RBI

A debt fund distributes a 10% dividend. How much tax the fund have to pay?

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0.1
0.12
0.102
None

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

Anagent's appointment by a fund

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Requires SEBI's approval
is a lengthy and cumbersome process
id mandatorily proceded by an AMFI test
Does not require any approval

Which of the following is untrue of an automatic reinvestment plan?

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The plan allows for automatic reinvestment of all income and gains
Automatic reinvestment allows for accumulation of additional units of the fund
The major benefit of automatic reinvestment is compounding
The benefit of automatic reinvestment is often lost on account of the heavy load charge on the heavy load charge on the reinvestment

A mutual funds investments are guides by the

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AMC
Board of Trustee
Investment objectives
Unit holders

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

A mutual fund is a owned by

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The Govt.of India
SEBI
All its investor
AMFI

The rate of interest paid by a company on debentures issued by it depends on

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The stock market situation
SEBI guidelines
The company's credit rating
The amount of money being raised

After UTI, the first mutual funds were started by

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Private sector banks
Public sector banks
Financial institutions
Non-banking finance companies

In India, individual investors do not have direct access to

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Capital market instruments
Real estate
Bullion
Money market instruments

Structural characterisations of an equity fund include

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Costs of investing
The specific securities in which the fund has invested
The number of employees of the Amc
All of the above

To compare bonds with different coupon rates, matutities and prices, investors would use:

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Current yield
Technical analysis
Yield to maturity
Fundamental analysis is

The income ratio as a measure of a fund's performance is defined by the fund's

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Total income and total assets
Net investment income and net assets
Total income and net assets
None of the above

Direct investment in stock market can be a better option than investing through mutual funds if the investor

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Wants better returns than those offered by mutual funds
Has large caoital, knowledge and resources for research
Has identified a bullish phase in the stock market
Wants to investor for the long term

An equity fund's age abd size are irrelevant when selecting a fund for investment

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1
None of these
All of the above

Which scheme has the largest investor base?

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ULIP
UTI Mastershare
US-64
SBI Magnum

Most eligible investors of Mutual Funds can broadly be grouped into either individual or institutional investors

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1
None of these
All of the above

The names and background of key personal of the AMC

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Need not be disclosed to investors
Are of no relevance as they may change
Are disclosed in the offer document
Are declared in newspaper advertisements

The maximum load that a fund can change is determined by the :

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AMC
SEBI
AMFI
Disturbution agents based on demand for the fund

AMFI Exam : Question 1 of 30