1. If a Mutual Fund Scheme is profitable, the true worth of its units will____.

2. Which phase of life cycle is the reaping/ distribution stage of wealth cycle equivalent to?

3. A Non-Resident Indian (NRI) can invest in India and can opt for the sale proceeds not to be transferred abroad on repatriable basis.

4. Open ended funds are the funds which are open for entry or exit any time even after the NFO period.

5. All Mutual Fund Trusts have beneficiaries.

6. Schemes with an investment objective of regular income generation which invest in securities like Government Securities, Treasury Bills, Bonds and Debentures are called Equity scheme.

7. As per SEBI categorisation of Equity Schemes, Large & Mid Cap Funds have to invest a minimum of _______% in Large cap Stocks and _____% in Mid cap stocks out of the total assets:

8. Capital Protection Schemes are ____________schemes with an objective of protecting the capital irrespective of market fluctuations.

9. Enhanced Channels of distribution are one of the factors which has driven the growth of Mutual Funds Industry:

10. Which category of mutual fund schemes are permitted under Section 80C of the Income Tax Act provided new regime of lower tax slabs is not opted for?

11. Which type of asset class in NPS carries risk of default?

12. What is the investment option under which an investor can deposit gold in a bank and earn interest income?

13. The investor must get his PRAN changed within 6 months of changing his employer. True or False?

14. Who manages the Pension Funds?

15. Under Conservative Life Cycle Fund of Active Choice model of private sector NPS, what is the maximum limit of investment in equity?

16. In which of the following asset classes can an investor allocate his investment under National Pension Scheme subject to regulatory limits?

17. Asset class C invests in _______________ as per the National Pension Scheme.

18. A married couple with young children wants to start a retirement fund. Where should they invest money?

19. Of the following four investment options, which is the most appropriate for a person who obtains sudden wealth?

20. According to Certified Financial Planner - Board of Standards, the first stage of financial planning is -

21. An investor invested in mid cap schemes one year ago and earned phenomenal returns. Now he is investing all of his savings in mid cap schemes and advising others to follow his advice as his investment acumen can earn them more than 20% returns p.a. Which bias is he suffering from?

22. After a long recession, the equity market has started to rise. Mr. Khan has withdrawn money from Fixed Deposit to purchase a house, but the final payment has to be made after 2 months. Where should he invest the money?

23. Who among the following will have the largest risk appetite?

24. A minimum of ______of the directors on the Board of AMC should be independent directors i.e. not associated with sponsor or its subsidiaries or trustees :

25. A Mutual Fund can be constituted only as a Trust.

26. A _______________is not appointed by the Asset management Company (AMC)

27. Implementation of Uniform KYC is the responsibility of the Depository participants.

28. Either Individuals could be appointed as trustees or a Trustee Company may be appointed.

29. To be eligible , sponsor should possess a good track record and reputation in the business of financial services for a minimum period of _____ years. They should have a positive net worth in all immediately preceding ______ years.

30. No change will be allowed in the fundamentals of scheme or any other change which may compromise the interest of investors unless communication is done with investors and an option is given to them for exit at NAV without any exit load.

31. Which type of mutual fund scheme would have an investment objective like 'To generate capital appreciation from a portfolio of predominantly equity related securities'

32. Which body regulates mutual funds in India?

33. Who is primarily responsible to create awareness about mutual funds?

34. Who has issued guidelines to prevent circulation of unauthenticated news by intermediaries?

35. Which type of mutual fund scheme would have an investment objective like 'To generate income by investing predominantly in a wide range of debt and money market securities'

36. Can Mutual Funds give loans?

37. How much can a scheme invest in listed securities of group company of sponsor?

38. Without taking an approval of trustees, how much of its net assets can a scheme park in short term deposits of a scheduled commercial bank?

39. If a mutual fund distributor receives commission over ____________ p.a. across industry, he will qualify for due diligence review process.

40. If a scheme is launched in June, 2018, what is the last date by which SID should be updated?

41. Where would be the risk of an Income Fund as per riskometer?

42. SID mentions proposed asset allocation and nature of investment. True or False?

43. How long can SEBI take to offer suggestions on Offer Document?

44. Which document should an investor refer to make an informed investment decision?

45. Does SEBI approve Offer Document of mutual fund schemes?

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

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

48. Transaction charges are to be borne by

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

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

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

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

53. What does NISM stand for :

54. When money market instruments and debt securities with residual maturity of up to 60 days are not traded on a particular day, they shall be valued on __________.

55. Capital Gain can be defined as

56. All funds other than equity funds are treated as debt fund for the purpose of taxation.

57. What does STT stand for?

58. Which of the following statement is correct?

59. Which of the following expenses can be charged to the scheme?

60. According to current tax provisions, Capital Loss, whether long term or short term , can not be set off against any other head of Income.

61. For Debt Schemes, a unit holding period of less than 12 months is called short term and unit holding period of 12 months and above is called long term. True or False?

62. The difference between the NAV and the Re-purchase price is termed as

63. Investors do not have the option to invest directly without routing the investment through distributors under Direct plan.

64. SEBI has not prescribed any cut off timings to ascertain the NAV to be applied to purchase or redemption transactions:

65. In the context of Mutual Funds Industry, MFU stands for:

66. Under Systematic Investment Plan, Investors can book SIPs by investing through Post dated cheques (PDCs).

67. The access of demat facility for mutual fund investor has ________with NSE and BSE providing screen-based platform for transactions in mutual fund schemes:

68. In relation to the transmission of units, In case of a single holder, where there are no nominees, the units are transferred to__________.

69. NAV applicable for processing a mutual fund transaction depends on ________ .

70. What is the formula of Treynor Ratio?

71. Which of the following is a good benchmark for a long term debt fund?

72. Which category of schemes would use 'CRISIL Composite Bond Fund Index [25% allocation] + S&P BSE 200 (TRI) [75% allocation]' as their benchmark?

73. What affects the choice of benchmark of a debt scheme?

74. Which index is most suitable for Overnight Fund?

75. A scheme invests in Government securities of 2 year tenor. Which index is the most suitable?

76. Which debt mutual fund schemes hold their value despite fluctuation in interest rates?

77. Which index would be most suitable for a short term money market scheme?

78. Which type of funds carry the highest risk of wrong sector selection?

79. What is relevant while deciding which benchmark should be chosen for an equity scheme?

80. Who carries out credit rating of the securities in which mutual fund schemes invest?

81. As per CAPM, which risk can be diversified and why?

82. Risk of inflation, political turmoil and recession is systematic risk. True or False?

83. Which type of investment performs the best when there is financial or political turmoil?

84. Which type of mutual fund scheme buys and sells the same security at the same time in different markets and takes advantage of price difference?

85. Which issuing authority issues debenture?

86. G-Secs are guaranteed by Government, hence, they are not prone to fluctuation in value like non-Government securities. Correct or incorrect?

87. What is the PE ratio if the market price of share is Rs. 200 and EPS is Rs. 20?

88. Which funds invest in stocks that are relatively cheap but suitable when investment horizon is long?

89. Which of the following is not a reason to invest money in International Equity Funds?

90. A conservative investor wants to invest in equity for the first time. His objective is to have some equity schemes to counter balance the effect of inflation. Which type of funds would you suggest?

91. Which funds perform better during a downturn in the economy?

92. A person does not want a regular income, falls in low tax slab and has a long investment horizon. Which scheme option should he choose?

93. Which factor should a person check while investing in a non-gilt debt scheme?

94. What is the portfolio turnover ratio if value of securities purchased is Rs. 8,000 Crore, value of securities sold is Rs. 4,000 Crore and the size of net assets is Rs. 10,000 Crore ?

95. For a large cap fund, small fund size is better because it will be able to take advantage of market opportunities in a better manner. True or False?

96. A couple in seventies who has never invested in equity, now wishes to start an SIP of a small amount in equity. Which category of scheme would you suggest?

97. __________ leads to creation of bubble in the market because the investors enter when the market is already overheated.

98. What is the maximum duration for which NFO (except ELSS) can remain open?

99. SEBI has made regulations about the outside liabilities of mutual fund schemes. Which of the following is False?

100. What is the CAGR's formula?


 

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