AMFI Exam

In a mutual fund, having many schemes,all securities bought can be held in a general account and transferred later to various schemes to attain certain profit of loss objectives

1 Mark(s)

1
None of these
All of the above

The biggest advantage of investment in gold is

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High returns
High appreciation in value
Low purchase price
Hedge against inflation

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

An offer document contains an AMC's investor grievance's history for the past

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1 fiscal year
2 fiscal year
3 fiscal year
6 months

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

To transfer the management of a scheme from one AMC to another, the consent of the following is required

1 Mark(s)

SEBI
Unit holders
Both SEBI and unit holders
None of the above

The investment policies listed out in the offer document of a fund do not include

1 Mark(s)

The type of securities in which the scheme will invest principally
Asset allocation pattern
Policy of diversification
The specific securities in which the fund will invest

The amount required to buy 100 units of a scheme having an entry load of 1.5% and NAV of Rs. 20 is :

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Rs. 2000
Rs. 2015
Rs. 1985
Rs. 2030

Who among the following are not eligible to invest in M F

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Indian Companies
Banks
Non Banking Finance Companies
Foreign Citizens

The Board of Trustees of a mutual fund:

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Act as a protector of investors' interests
Directly manage the portfolio of securities
Do not have the right ti dismiss the AMC
Cannot supervise and direct the wrking of the AMC

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

1 Mark(s)

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

Anagent's appointment by a fund

1 Mark(s)

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

Offer Document of a mutual fund is

1 Mark(s)

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

Debt funds with long term investment carry higher risk of capital loss

1 Mark(s)

1
None of these
All of the above

A company whose earnings are strongly related to the state of economy is known as

1 Mark(s)

Economy stocks
Cyclical stocks
Value stocks
Growth stocks

Compounding of interest is best explained by a

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Balanced Fund
Growth fund
Value fund
Income fund

Commission rates or loads applicable to big investors and small investors are

1 Mark(s)

Same
Different
Not charges to either
None of the above

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

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

Scheme-wise annual report of a mutual fund need not be

1 Mark(s)

Sent to all unit-holders
Forwarded to SEBI
Published as an advertisement
Stock exchange

Which of the following works with an investor on his overall financial situation

1 Mark(s)

Tax advisor
Financial planner
Insurance agent
Financial advisor

Which of the following characterise the fund that a risk averse investor should choose

1 Mark(s)

Gorss dividend yield 15% Beta 1.5, Ex marks 90
Gross dividend neil 10%, Beta 1, Ex-marks 70
Gross dividend of yield 11%, Beta 0.9, Ex-marks 80
Gross devidend yield 12%, Beta 1.2, Ex marks 80

How many major distributor Companies are there in India selling Mutual Fund units

1 Mark(s)

Approximately 9
Approximately 11
Approximately 10
Approximately 25

The price/Earnings (P/E) Ratio is an important measure of a company's anticipated performance. It is calculted using:

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Market price and dividend
Market price and earning per share
Market capitalisation and dividend
Market price and face value

SEBI regulations for mutual funds were formulated in

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1992
1993
1995
1996

Fundamental analysis involves

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Checking the fundations of the company's factory building
Reserch into the operations and finances of the company
Studying the company's share prices
None of the above

The entry of mutual funds in India was initiated by mutual funds set up by

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Public Sector Banks
Private Sector mutual funds
Unit Trust of India
Mutual funds set up by insurance companies

A mutual fund is a owned by

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The Govt.of India
SEBI
All its investor
AMFI

What document Mutual Fund distributors need to refer for finding out eligible category of investors in a particular Mutual Fund Scheme

1 Mark(s)

SEBI Regulations Manual
AMFI booklet
Offer document
RBI Guidelines

The difference between NAV change and total return as measure of fund performance is

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None
Total return takes dividend into account while NAV change does not
Total return does not take NAVs into account
Total return does not take the time period into account

AMFI Exam : Question 1 of 30