Quick Revision – Chapter 5 Crash Course

1. Bio Metric document verification procedure is adopted for

2. All MF Distributors, agents or any persons employed for distribution of MF products need to pass :

3. Where the scheme has been in existence for less than _____ year, past performance shall not be provided or advertised.

4. As per Code of Ethics and Code Of Conduct, All Distributors/Market intermediaries have to keep ___________ Interest at the top:

5. A distributor is not liable for the acts and defaults of its agents/ sub brokers:

6. Brokers of Recognised stock exchanges can work as distributors without passing the test of NISM

7. In Mutual Fund Industry, every AMC gives ARN Number which is to be renewed every three years.

8. What does ARN stand for:

9. What is required to form the basis of appointment of a mutual fund distributor:

10. What is the maximum upfront commission limit paid by an AMC to the distributor?

11. Transaction charges are to be borne by

12. If there is a change in the fundamental attributes of a scheme then that can be disclosed through addenda. True or False?

13. Celebrity endorsement is permissible for a particular Mutual Fund Scheme:

14. All advertisements shall be accompanied by statutory warning stating 'Mutual Fund Investments are subject to ____________, read all scheme related documents carefully'

15. SEBI Approval is required for an AMC to appoint a distributor

16. What does NISM stand for :

17. Trail Commission is payable till the Investment stays with the Mutual Fund:

18. Advertisements regarding Mutual Fund schemes shall not contain statements which directly or by implication or by omission may mislead the investor - State True or False ?

19. Which of the following pair is not correct?

20. Existing investor investing a sum of Rs 10000 and above, transaction charge will be?

21. Transaction charges on SIP are applicable if

22. Professionals working with intermediaries and engaged in sales/marketing process of mutual fund products must obtain EUIN (Employee unique identification number) from

23. Asset management companies pay _____________ to agents in successive years until the investment is withdrawn.

24. Relationship between an AMC and a distributor is on a basis of:

25. Trail commissions are linked to valuation of portfolio in the market-True or false

26. Mutual Fund Investments are subject to ________, read all scheme related documents carefully.

27. Internet is a distributing channel with a very high cost

28. The Expense Ratio of the Direct Plan of a particular MF Scheme will be ______the Regular plan of the same scheme:

29. Maximum commission payable to a distributor on his own investments will be :

30. Where MF scheme is more than 3 years old, the performance in advertisement will be provided in terms of CAGR for past:

31. Advertisement Code for Mutual Fund has been mandated by

32. Trail Commission payable by AMC to distributor is calculated on NAV of related investment based on

33. In case of Money Market, cash or Liquid schemes, performance can be advertised by simple annualization of yield if performance is available for at least

34. The Trail commission payable by Mutual Fund to a distributor:

35. SID is known as:

36. The investment in Mutual Fund portfolio is valued at market value of portfolio

37. A distributor needs different ARN for each AMC ?

38. The CUM - dividend NAV refers to the NAV on the date when trustee approves dividend.

39. There is no fix criteria of educational qualification to become a MF advisor.

40. Who executes the sale and purchase (investments) of mutual fund schemes in the stock market.

41. What initial commission is paid by investor to the disributor?

42. Stock Exchange brokers having experience over 10 years can distribute the mutual fund units without passing any certification exam.

43. If an investor gives a local cheque of Rs 4 crore for investment in Gilt scheme at 11.30 A.M. What NAV would be the applicable to this investment?

44. The Trail commission received by Distributor can be passed on to the investor up to a limit of :

45. Trail commission can be paid upfront by AMC to the distributor in case of inflows through SIPs (upto Rs. 3000/- per month) from new investors.

46. The upfronting of trail commission in case of SIP shall be up to 1% payable yearly in advance, for a maximum period of three years.

47. If the SIP is not continued for the period for which the commission is paid, the trail commission paid upfront shall be recovered on pro-rata basis from the distributors,