AMFI Exam

UTI Cannot provide

1 Mark(s)

Corporate finance
Enagage in real estate and property development business
Provide merechant banking services
Invest in securities

As per SEBI's requirements each scheme of a mutual fund should have a different fund manager

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1
None of these
All of the above

When selecting equity funds for investing, those at the top of the performance rankings should be avoided

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1
None of these
All of the above

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

Which of the following investment products do not give guarantee for return or capital

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Banks deposits
Public provident fund (PPF)
national saving certificates (NSC)
Units of a mutual fund

Derivatives cannot be based on market indices

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1
None of these
All of the above

Bank owned Mutual Funds are supervised by

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SEBI
RBI
Jointly by SEBI & RBI
AMFI

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

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

A mutual fund may transfer investment from one scheme to another

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Not at all
At current market rates
At cost price
At a fixed premium over market rate

The differentiating factor among debt funds of comparable maturity and quality is

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Gross yields
Costs
Fundage
Tenure of the fund manager

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

Which of the following risk do not affect a debt fund

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Default issuer on payment of interest or principal
Price flactations of the debt securities
Share price movements
Interest volatility

The amount of authority enjoyed by a

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Self-regulatory organisation is defined by
The apex regulatory authority
Company law board
Its own members

Some close-ended funds are quoted at a discount to their NAV because

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Of high expense ratios
Investors do not expect the current NAV to be sustained in future
The repurchase price fixed by the fund in lower then the NAV
Of the inherent risk involved in investing in such type of funds

An ideal money market mutual fund must have

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Lower returns
Lower expenses ratio
Low quality of investments
All the above

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

Financial planning comprises

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

Mutual Fund agents/distributors are not allowed to sell Financial Produets other than Mutual Funds

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1
None of these
All of the above

A sector fund is a

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Low risk fund
Moderate risk fund
High risk fund
Low to moderate rish fund

Financial goals do not include

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Buying a home
Winnning a sports gold medal
Planning for retirement
Saving for child's education

The organisation responsible for a comprehensive set of regulations for all mutual funds in India is

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RBI
SEBI
AMFI
SHCIL

Once a financial advisor works out ideal Asset allocation, it can be used for all investros whom he/she advises

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1
None of these
All of the above

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

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

Dividends distributed by mutual funds are

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Taxed at source
Taxed in the hands of the invertors
Are subject to capital gains tax
Are tax free in the hands of the investors

Which of the following measures are not taken by SEBI for protecting investors of mutual funds

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Mandating minimum levels of diversification for mutual funds
Ensuring that the funds are not used to favour a few companies
Tracking the securities that each fund has invested in
Ensuring that the funds are invested in approved securities only

Indira vikas patra is an investment product popular with

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Rural investors
Investors in high tax bracket
Urban investors
Risk taking investors

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

1 Mark(s)

1
None of these
All of the above

The role of an AMC is to act as

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Promoters
Investment managers
Distribution agents
Regulators

AMFI Exam : Question 1 of 30