You must score at least 80% to complete this chapter.1. Bio Metric document verification procedure is adopted for KYD ProcessKYC ProcessARN ProcessNone of These2. All MF Distributors, agents or any persons employed for distribution of MF products need to pass : NISM Series IV examNISM Series IV-A examNISM Series V-A ExamAMFI Series V exam3. Where the scheme has been in existence for less than _____ year, past performance shall not be provided or advertised. HalfOneTwo Three4. As per Code of Ethics and Code Of Conduct, All Distributors/Market intermediaries have to keep ___________ Interest at the top: Their OwnAMC'sAMFI'sInvestor's5. A distributor is not liable for the acts and defaults of its agents/ sub brokers: TRUEFALSE6. Brokers of Recognised stock exchanges can work as distributors without passing the test of NISM TRUEFALSE7. In Mutual Fund Industry, every AMC gives ARN Number which is to be renewed every three years. True- As per SBI RulesFalse- AMFI gives ARN Number and not AMC8. What does ARN stand for: Agent Recognition NumberApplicant Registration NumberAMFI Registration NumberAgent Registration Number9. What is required to form the basis of appointment of a mutual fund distributor: Approval from SEBIPower of Attorney from AMCAgreement between AMC and DistributorAgreement between AMFI and Distributor10. What is the maximum upfront commission limit paid by an AMC to the distributor? 0.10%0.50%0.05%NIL11. Transaction charges are to be borne by AMFIDistributorInvestorAMC12. If there is a change in the fundamental attributes of a scheme then that can be disclosed through addenda. True or False? TRUEFALSE13. Celebrity endorsement is permissible for a particular Mutual Fund Scheme: TRUEFALSE14. All advertisements shall be accompanied by statutory warning stating 'Mutual Fund Investments are subject to ____________, read all scheme related documents carefully' Own RiskAMC RiskMarket RiskNo Risk15. SEBI Approval is required for an AMC to appoint a distributor TRUEFALSE16. What does NISM stand for : New India Stocks MarketNational Institute of Securities MarketNational India Securities MarketNational Institute of Stocks Market17. Trail Commission is payable till the Investment stays with the Mutual Fund: TRUEFALSE18. 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 ? TRUEFALSE19. Which of the following pair is not correct? IFA - Independent financial advisorsARN - AMFI registration numberKYD - Know your distributorAMFI - Associated Mutual Funds Institute20. Existing investor investing a sum of Rs 10000 and above, transaction charge will be? Rs 100 per transactionRs 150 per transactionRs 170 per transactionNot fixed21. Transaction charges on SIP are applicable if Committed investment is less than Rs. 10000Committed investment is equal to or more than Rs. 10000Committed investment is more than Rs. 10000Not applicable at all22. Professionals working with intermediaries and engaged in sales/marketing process of mutual fund products must obtain EUIN (Employee unique identification number) from KYDAMFINISMNone of the above23. Asset management companies pay _____________ to agents in successive years until the investment is withdrawn. Initial CommissionTrail commissionUpfront commissionNo commission24. Relationship between an AMC and a distributor is on a basis of: Agent to PrincipalPrincipal to AgentAgent to AgentPrincipal to Principal25. Trail commissions are linked to valuation of portfolio in the market-True or false TRUEFALSE26. Mutual Fund Investments are subject to ________, read all scheme related documents carefully. Own RiskYour RiskMarket PriceMarket Risk27. Internet is a distributing channel with a very high cost TRUEFALSE28. The Expense Ratio of the Direct Plan of a particular MF Scheme will be ______the Regular plan of the same scheme: Lower thanHigher thanEqual to29. Maximum commission payable to a distributor on his own investments will be : 0.50%1.00%1.50%NIL 30. Where MF scheme is more than 3 years old, the performance in advertisement will be provided in terms of CAGR for past: 5 years1, 3 and 5 years1, 3 and 5 years and since inception5 and 10 years and since inception31. Advertisement Code for Mutual Fund has been mandated by AMCNISMSEBIKYD Agency32. Trail Commission payable by AMC to distributor is calculated on NAV of related investment based on Yearly balancesQuarterly balancesMonthly balancesDaily balances33. 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 5, 15 and 30 days7,15 and 60 days7,15 and 30 daysOne year34. The Trail commission payable by Mutual Fund to a distributor: Is Calculated on NAVIs paid only for high value transactionsIs bannedIs paid to institutional distributors only35. SID is known as: SEBI information DocumentScheme Information DocumentSalient Information of DistributorSource Information Document36. The investment in Mutual Fund portfolio is valued at market value of portfolio TRUEFALSE37. A distributor needs different ARN for each AMC ? TRUEFALSE38. The CUM - dividend NAV refers to the NAV on the date when trustee approves dividend. TRUEFALSE39. There is no fix criteria of educational qualification to become a MF advisor. TRUEFALSE40. Who executes the sale and purchase (investments) of mutual fund schemes in the stock market. R & T agentCustodianDealerAMC41. What initial commission is paid by investor to the disributor? Nil0.05%0.25%0.00542. Stock Exchange brokers having experience over 10 years can distribute the mutual fund units without passing any certification exam. TRUEFALSE43. 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? The closing NAV of the day preceding the date of applicationThe closing NAV of the next working dayThe closing NAV of the application dayThe NAV of the business day on which the funds are available for utilization before the cut off time of that day44. The Trail commission received by Distributor can be passed on to the investor up to a limit of : 1%0.5%0%1.5%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. TRUEFALSE46. 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. TRUEFALSE47. 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, TRUEFALSE Loading... Categories: Top Debt Funds