AMFI Exam

A Systematic Withdrawal Plan, allow investors to get back the principal amounts invested in addition to the income on investment

1 Mark(s)

1
None of these
All of the above

The fund need not deseribe its accounting policies in the offer document as these are of no use to an

1 Mark(s)

1
None of these
All of the above

An AMC must explain adverse variation between expenses estimates for the scheme on offer and actual

1 Mark(s)

Expenses for past scheme in
Financial channels on TV
Offer document
AMFI news letter

Who is the primary guardian of unitholders funds/assets

1 Mark(s)

The AMC
The trustees
The registras
The custodians

A put provision in a debt issue allows

1 Mark(s)

Investor to put away the certificates in safe deposit value
Investors in redeem debt prior to maturity
Issuers to redeem debt prior to maturity
Investor to extend the tenure of debt

Which of the following transaction costs are not quantified in the offer document

1 Mark(s)

Brokerage commissions
Dealer spreads
Custodians fees
Registras's fees

A mutual fund in India is a

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Body corporate
Company
Trust
An asset amnagement company

Key information Memorandum is

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An abridged version of the offer document
The Memorandum & Article of Association of the AMC
A sheet containing historical NAVs of other fund schemes
Annual Reports of the AMC

Which of the following is false?

1 Mark(s)

ROI is a measure similar to total return with reinvestment of distribution
Total return with reinvestment of distributions assumes reinvestment at NAV on the dustribution date
As a measure of performance, total return with reinvestment of distribution seels to overcome the short comings of simple total returns
Because of its simplicity, simple total return is prederred in practice to total return with reinvestment of distributions

Sub-brokers service as agentsof the principal broker and a mutual fund is not answerable for their activities

1 Mark(s)

1
None of these
All of the above

The interest Rate Forecasting Unit of a debt fund is generally manned by

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Technicians
Statisticians
Economists & econometricians
Accountants

Generally invest in

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Unlisted
Market-traded
Thinly traded
Privately placed

All equity fund can be said to be concentrated when

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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

an investor buys units in a fund that has given excellent returns in the past but his expectations are not met as the fund does not perform well this year. The investor can

1 Mark(s)

Sue the AMC
Sue the Trustee
Sue the agent
None of the above

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

1 Mark(s)

1
None of these
All of the above

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

Debt securities bought at a discount ti their face value are generally

1 Mark(s)

Interest bearing
Zero coupon bonds
Paying interest at a floating rate
None of the above

An exit load guarantees a higher return

1 Mark(s)

1
None of these
All of the above

The tenure of an Indira vikas patra is

1 Mark(s)

7 years
6 years
5 years
3 years

Which is the most important in selecting debt fund for better return

1 Mark(s)

Past performance
Level of interest rates
Fund expertise
The securities in which it has invested

Volatility of an equity fund portfolio is independent of the

1 Mark(s)

Kind of stocks in the portfolio
Degree of diversification of the portfolio
Fund manager's success at market timing
Number of investors in the scheme

A "glossary" of Defined Terms must be included in the offer document

1 Mark(s)

1
None of these
All of the above

The offer document need not be studied by an investor before investing ina scheme

1 Mark(s)

1
None of these
All of the above

The following information about the constitution of the mutual fund is found in both the offer document and key information memorandum

1 Mark(s)

Activities of the sponsor
Summary of trust deed provisions
Name and address of the board of trustees
All of the above

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

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

Risk arising from a scheme's investment objecctive/strategy and proposed asset allocation is

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Not present
Common to all schemes
Specific to that scheme
Not applicable to debts funds

SEBI restricts mutul fund investment in companies forming part of the same group as the AMC. This is:

1 Mark(s)

Not true
In the interest of investor protection
Applied only to some mutual funds, not all
Not favourable to investor at all

The network of an asset management company should he greater than

1 Mark(s)

Rs. 100 Crores
Can be decided by the Sponsor
Should be atleast Rs. 10 Crores at all times
Should be greater than Rs. 10 Crores

Units from an open-ended mutual fund are bought

1 Mark(s)

On a stock exchange
From the fund it self
from AMFI
From the stock broker

AMFI Exam : Question 1 of 30