AMFI Question and Answers

Most of the Arbitrage Funds take Contrary Position of Futures and
1
Option
A TRUE
B FALSE
2 The Offshore Fund is also known as Feeder Fund
A TRUE
B FALSE
3 The 'Most Investor Service Centre' are offices of
A Trustee
B RTA
C Custodian
t
D Fund Accountant
en
4 The Objective of AMFI is
A Providing Training to all Distributor
B Implement the Certification Programme
em
C To develop the Cadre of Agent
D All of These
5 PAN and KYC are mandatory in Ant Mutual Fund
ag
A TRUE
B FALSE
6 The SAI is relevant for all the schemes offered by the same Mutual Fund
7
A
B
TRUE
FALSE
TRAIL Commission is calculated an
M
A A Percentage of net asset value of unit holder
B At Investment amount
C Will not get any Commission
lth
D Fixed Percentage according to SEBI Regulations.

8 Differed Load is only charged in close end schemes
ea
A TRUE
B FALSE
9 The investor cannot set off the Capital Loss if
w
A He is redeeming the investment within 9 months

B He is redeeming within 9 months after record date of Dividend
C He is investing within 3 months prior to the record Date of Dividend
ill
D Both B & C
10 Remittance can be done in Mutual Fund through
dw
A RTGS and NEFT

B IFCR
C MICR
oo
D NRE and NRO A/C

11 NEAT MFSS is open from
A 9 am to 3 pm
G
B 24 hrs
C 10am to 4 pm
D None of These
12 If there are any changes in the fundamental attributes of a scheme, the AMC must
issue
A Addendum
B Addendum in any 2 news paper
C Addendum in one English news paper and one local news paper of AMC’s head office
D Not issue any notice
151 An Investor with Double-Income in Late forties with no children Debt-Equity Portfolio
would be?
A 50 50
B 60 40
C 30 70
D 70 30
152 The NPS consists of ---------------------------
A Asset Class G
B Asset Class C
C Asset Class E
D Life Cycle Fund
153 Which of the following about public provident fund (PPF) are untrue
t
A 50% of the balance of the 4th year can be withdrawn in the 7th year
en
B The interest is tax free
C The rate of interest is 12% p.a.
D Contribution upto Rs.60000 are eligible for tax rebate
em
154 Which of the following is untrue for Public Provident Fund Schemes
A The interest is tax-free
B Post-tax returns are attractive
C Liquidity is rather low
ag
D None of the above
155 Finance Acts of 2000 and 2001 have reduced tax-free interest on Public Provident Fund
to
A
B
C
12%
10.50%
8% an
M
D 11%
156 Annual contribution to Public Provident Fund should be
A Rs.10000.00
lth
B Between 100 and Rs.6000

C Between Rs.600 and Rs.1000
D None of the above
ea
157 Sharpe ratio computes.

A Risk premium of a fund as difference between the funds average return an risk free return
divided by beta of the fund.
w
Risk premium of a fund as difference between the funds average return an risk free return
B
divided by standard deviation of the fund.
Risk premium of a fund as difference between the funds average return an risk free return
ill
C
divided by P/E ratio of fund.
D The fluctuations of funds return around a mean level.
dw
158 Low risk (conservative portfolio) consists of ?

A Portfolio 40% Growth an income funds+ 30% Govt.Bond funds +20%Growth funds +10%
index funds.
oo
B 50% Government securities funds + 50% Money Market Funds.

25% aggressive growth funds +25% international funds 25% Sector funds + 15% High Yield
C
Bond funds + 10% Gold Funds.
D 100% Liquid fund
G
159 Which type of portfolio asset mix would you recommend to your 55 year old client who
plans to retire at age 58? Choose a portfolio that is closest match to the investors
needs ?
A 40% in equity an 60% in balanced funds
B 40% in equity an 60% in Debt funds
C 20% in equity funds, 20% in liquid funds , and 60% in debt funds
D 10% in moonthly income schemes
160 A retired investor needs to generate income for a comfortable post retirement life.Which
phase is the investor in ?
A Transition Phase
B Distribution or reaping Phase
C Intergenerational transfer Phase
D Accumulation phase
161 Your client has won Rs.1crore in "Kaun Banega Crorepati".What would your suggestion
A Invest the entire amount without any delay in "old economy" stocks-since they are back in
favor
Invest the entire amount immediately in an Equity Index Fund-since the index is a historic low
B
Invest in very safe liquid investment options and take the time needed to work out the financial
t
C
plan
en
Invest immdiately in IT stocks, since the valuations are now considered to be attractively low
D
162 Which of the life cycle stage is mention here "couple becomesinterdependent with
em
A Childhood stage
B Young unmarried stage
C Young married stage
D Young married with childern stage
ag
E Married with older childern stage
163 The rupee-cost averaging talks about ?
A Investments for the same amount at regular intervals
B
C
D an
When to buy, sell or switch from one scheme to another
Disgarding the non-performers and keeping the good performers
All of the above
M
164 Which of the following is true about PPF?
A Assured Tax free interest
B Interest is paid every year
lth
C Can be withdrawn after a year

D All of the above
165 Childhood stage and transition stage are examples of Wealth Cycle and Life Cycle?
ea
A TRUE
B FALSE
w
166 Tier I pension account is withdrawable

A TRUE
B FALSE
ill
167 The asset allocation that is worked out for an investor based on risk profiling is called
dw
A Tactical Asset Allocation

B Fixed Asset Allocation
C Flexible Asset Allocation
oo
D Strategic Asset Allocation

168 How much equity would you suggest for a single income family with grown up children
who are yet to settle down?
G
A 50%
B 35%
C 75%
D 40%
169 The Lead of family in the HUF is
A Karta
B inherter
C Godfather
D None of the above
170 Which of the following can invest
A Foreign citizen
B Any entity that is not an Indian resident
C OCBs which is managed by foreigners.
D OCI card holder.
171 The investor needs to attach the doccuments from Notary Public & Gazeted officer for
KYC documentation
A TRUE
B FALSE
172 The place of Know Your Client documentation is
A POS PointOf Service
B POA Point Of Acceptance
t
C CDSL
en
D CVL
173 Which is the having low risk
A Income Fund
em
B Growth Fund
C Money Market Mutual Fund
D Index Fund
174 On which of the following shall an investor invest for high returns
ag
A Bank F.D.
B Corporate Bond
C Debt Securities
175
D Equity Shares
an
Only primary holder needs to be KYC doccumented in case of any one or survivor
M
A TRUE
B FALSE
176 Micro SIP is not available for
lth
A Minor
B Individual
C NRI
ea
D HUF
177 The KYC documentation has to be done only with
A CVL
w
B CDSL
C ONCE
D POS
ill
178 A female member of the family can karta in HUF

A TRUE
dw
B FALSE
179 The investor an give post dated cheque for additional purchase
A TRUE
oo
B FALSE
180 Remittance can be quickly done with
A RTGS
B NEFT
G
C ECS
D Both A&B
181 If an investor dealing with 12000 units & company declared 1:3 bonus. How much units
investor will get
A 400 units
B 4000 units
C Nil
D 16000 units
182 Dubey ji invested Rs.10000 at NAV of 12 on 1st july,2008. The MF declared 1:2 bonus
on 31st December 2008. How much extra units Dubeji will get
A 1250 units.
B 833 units.
C 417 units.
D 416.67 units.
183 If the investor has 1,000 Units in aggressive growth fund. He has given the redemption
on 1st July,2008 at the NAV of Rs.15/- the MF charge 1% exit load find out the amount
he will get.
A Rs.15000/-
B Rs.14850/-
C Rs.14000/-
t
D Rs.14810/-
en
184 Signatory Authority is mentioned in Board Resolution
A TRUE
B FALSE
em
185 Whether the company eligible to invest in mutual fund is mentioned in
A Memorundum & article of assoiation
B Signatory Authority
C Board Resolution
ag
D Appliation form.
186 If an investor given the request in an equity fund for purchase at 2.30pm which days
NAV will be applicable
A
B
C
Same Days Nav
Next Days Nav
Previous Days Nav an
M
D Next working Days Nav
187 If the investor make the online inestment which NAV will be applicable
A According to the time mention in his PC.
lth
B According to the time mention in web browser.

C According to the time mention in web server
D According to investment Amt. & time mention in web server.
ea
188 If an investor give outstation payout of Rs.50,000/- in MIP which days NAV will be
applicable.
A Preceding Days NAV of next working Days.
w
B Preceding Days NAV of Next working Day of fund realisation

C Following Days NAV of application day
D Following Days NAV of Preceding Day of application date.
ill
189 If an investor made the online transation of Rs.2 lac at 2.30 am on wednesday in FOF
which days NAV will be applicable.
dw
A Thursday's NAV
B Friday's NAV
C Wednesday's NAV
oo
D Tuesday's NAV
190 If an inestor make the inestment request of Rs.50,000/- at 2:30pm in Gilt fund which
days NAV will be applicable
A same days NAV
G
B Preceding Days NAV

C Following working days NAV
D Next Days NAV.
191 An AMC launches a new scheme in the market, based on
A The performance of its last scheme
B Inputs from the CIO on the investment objectives that would benefit the investor
C Inputs from the CMO on the interest in the market for the investment objectives
D Only b & c
192 The offer document is prepared by the Trustees
A TRUE
B FALSE
193 The Offer Document is prepared by the Trustees and approved by the AMC
A TRUE
B FALSE
194 The Offer Document is prepared by the AMC and approved by the Trustees.
A TRUE
B FALSE
195 An SID canot be issued in the market until and unless it has been approved by the
Trustees.
A TRUE
t
B FALSE
en
196 Observations made by SEBI on the Offer Document need to be filed in a separate
document.
A TRUE
em
B FALSE
197 An Offer Document has to be filed with SEBI; Any advertising campaign taken for that
particular scheme need to comply with SEBI's advertising code.
A Both the statements are true
ag
B Both the statements are wrong
C Only First Part
D Only Second Part
198
A
B
Partially true
Partially False an
NFO Open Date and Scheme Re-open date are one and the same thing.
M
C Completely True
D Completely False
199 NFO close date is the date after which the units will not be available for sale; NFO close
lth
date is the date after which the units will be available for sale at the prevailing NAV.

ea

C Only Second statement False
D Only Second statement True
w
200 Close ended schemes have and NFO open date and NFO close date; Close ended
schemes do not have Scheme re-opening date.
ill

C Only First Part
dw
D Only Second Part

201 Any NFO launched by the AMC can remain open for a maximum of 15 days.
A TRUE
oo
B FALSE
202 Allotment of units or refund of money needs to be done as per the time mentioned in
the Offer Document of that particular scheme.
A TRUE
G
B FALSE
203 Fundamental aspects of a scheme do not include which of the following
A Address of the Custodian
B Term
C Investment objective
D nature of the scheme
204 Change in fundamental attributes of a scheme require the permission of the Trustees as
well as the investors
A Partially true
B Partially False
C Completely True
D Completely False
205 The offer document is a legal document
A TRUE
B FALSE
206 The offer documents becomes redundent post the investment
A TRUE
B FALSE
207 Which of the following principles is applicable on the mutual fund investments
A Principle of utmost good faith
t
B Principle of indemnity
en
C Principle of caveat emptor
D Principle of insurable interest
208 Investment in mutual funds should be done based on which of the following principles
em
A Ubraime fides
B Principle of indemnity
C Principle of Buyer beware
ag
D Principle of insurable interest
209 SID or the Statement of Additional Information contains the statutory information about
the mutual fund that is offering the scheme.
210
A
B
TRUE
FALSE
an
Individual AMCs create their own SID and SAI documents.
M
A TRUE
B FALSE
211 SAI and SID are applicable on specific schemes offered by the AMC
lth
A TRUE
B FALSE
212 If an investor wants income and can't bear risk at all, then he should opt for
ea
A Gilt fund
B Income fund
C Fixed Deposits
w
B Index Fund
213 In legal parlance, SID and SIA are two separate documents
A TRUE
ill
B FALSE
214 The AMC should include all the disclosures that are material to the investment risk
dw
A TRUE
B FALSE
oo
215 Offer Documents need SEBI approval

A TRUE
B FALSE
G
216 Offer document need to be vetted and verified by SEBI

A TRUE
B FALSE
217 The Draft SID is available for viewing in the AMFI's website for 21 days.
A TRUE
B FALSE
218 When SEBI's observations are incorporated into the Draft SID, then it needs to be
hosted on AMFI's website two days before the issue opens.
A TRUE
B FALSE
219 A bond with a coupon of 9% when interest rates for similar maturities are 11% will sell
A Above par
B Below par
C At par
D At a price unrelated to the prevailing interest rate
220 If an investor taking high risk appetite for long term investment and high capital
appreciation in which type of fund will investor invest
A Real estate
B Sector fund
C Debt fund
t
D Gold
en
221 Young unmaried prefer regular recurring deposit scheme except
A PPF
B NSC
em
C Bank Deposits
D Betting on horse (as a regular income)
222 Which of the following is the safe investment
A PPF
ag
B RBI Relief Bond
C NSC
D Kisan Vikas Patra
223
A
B
The maturity period of RBI Relief Bonds is
5 years
6 years an
M
C 7 years
D 8 years
224 The tenure of an Indira Vikas Patra is
lth
A 7 years
B 6 years
C 5 years
ea
D 3 years
225 The current yield on Indira Vikas Patra works out to
A 10.50%
w
B 11%
C 10%
D 9%
ill
226 The annual yield on RBI Relief Bonds is

A 9.50%
dw
B 9.5% before tax

C 8.5% before tax
D 8.5% after tax
oo
227 Indira Vikas Patra is an investment product popular with

A Rural investors
B Investors in high tax bracket
C Urban investors
G
D Risk taking investors

228 Find NAV. Investment amount is Rs. 100 crore, deivedend accrued but not received 207
crore, bills payable Rs. 55 lacs. No. of units issued to the investor is 1 crore
A Rs. 371.5
B Rs. 307
C Rs.99
D Rs. 207
229 NAV of Mutual Fund
A Mutual fund do not received income in interest
B Interest income is added to the NAV
C Interest income is subtratced to the NAV
D None of these
230 Mutual fund distributor get commission be selling mutual fund as a product and stock
broker also get commission by selling same product.
A TRUE
B FALSE
231 What is essential for Micro SIP except
A Photo identification
B Photo debit card
t
C Photo credit card
en
D Photo employee id
232 Which of the following is international agency
A CRISIL
em
B Morning Star
C Lipper
D Credence Analytics
233 An investor will get maximum exposure to gold be investing
ag
A Gold ETF
B Gold Fund
C Gold Sector Fund
234
D
A
Gold futures
an
If an investor investing in closed end fund, whether Demat A/c is necessary
TRUE
M
B FALSE
235 KYC documentation is necessary for
A Individual only
lth
B Only HUF
C Individual and HUF
D Only institutional investors
ea
236 A bond with a coupon of 9% when interest rates for similar maturities are 11% will sell
A At premium
w
B At discount
C At par
D At a price unrelated to the prevailing interest rate
ill
237 In which commodity mutual fund cannot invest

A Gold
dw
B Art
C Property
D Institutional metal
oo
238 Mutual fund offer wider range of portfolio than NPS

A TRUE
B FALSE
G
239 If number of dependant increases in family, risk appetite

A Increases
B Decreases
C Constant
D Drastic change
240 Age bar of risk appetite are under-
A Family information
B Personal information
C Financial information
D None of these
241 PPF are contributed upto
A Rs. 70,000/-
B Rs. 50,000/-
C Rs.1,20,000/-
D Rs. 500 to Rs. 70,000
242 ARN number is alloted by
A AMFI
B SEBI
C AMC
D Trustee
243 Transaction slip are required by
t
A Existing investor
en
B New investor
C Both new and existing investor
D Distributotor
em
244 Who invest in Sector fund?
A Newly maried
B Married with older childern stage
C Married with 5 depended children
ag
D Newly married both are working
245 Most individuals invest in life insurance policies for
A Risk protection
B Tax benefits
C Easy liquidity
D High returns an
M
246 The amount an insurance company would pay to the nominee if a policyholder died is
known as the
A Premium
lth
B Sum assured
C Face value
D Real value
ea
247 Why should one buy an insurance policy

A It gives high current returns
B It gives capital appreciation over its term
w
C It should be bought due to the need for insurance and not as an investment
D All of the above
248 Who cannot act as a distributor
ill
A AMC employees
B Sponsor
dw
C Associate group of Sponsor

D Distributotor
249 SEBI cannot pay commission to
oo
A Sponsor distributor
B Company distributor
C Investor
D Banks
G
250 The Draft SID should not be made available to the public
A TRUE
B FALSE
251 For schemes launched within the first 6 months of the financial year, the first update of
the SID is due within ______ of the end of the financial year.
A 3 months
B 6 months
C need based
D Both 1 & 3
252 For a scheme launched in April 2008, the first update of the SID would be due by
A Apr-08
B Jun-09
C Jun-10
D Mar-11
253 Minor can earn income from
A Offered Gifts
B Parents and Relatives Contribution
C Parents Income
D All of the above
t
254 SIP is possible through
en
A Standing Instruction
B ECS
C PDCs
em
D All of the above
255 If an investor wants monthly income then he should opt for,
A SIP
B STP
ag
C SWP
D DTP
256 If an investor as an earning having very less income should invest in equity - Debt ratio
A
B
as
50 : 50
25: 75 an
M
C 70 : 30
D 20: 80
257 30: 70 Ratio in equity - debt is for
lth
A Young unmarried stage

B Maried with 2 Children stage
C Just Maried
ea
D Call centre employee

258 If gold market is down gold future investment will,
A Go up
w
B Go down
C React as per margin
D Remains Same
ill
259 Authorised Signatory is required in case of

A NRI
dw
B HNI
C Institutional Tinvestor
D Investor
oo
260 ________________ can sale schemes of only one mutual fund.

A IFA
B Distribution Companies
C Institutional team member of AMC
G
D Financial Planner
261 ____________ schemes have to re-open for sale/ repurchase within 5 business days of
the allotment.
A Open-ended
B Close-ended
C All the schemes
D None of the above
262 Concentration risk can be in investment of
A Sector fund
B Gold fund
C Real estate
D Golld ETF
263 Characterstics of scheme can be known through
A Poftfolio of Scheme
B Operation of scheme
C Portfolio and operation of scheme
D None of the above
264 In joint holding mode when fist holder dies
A Units transfer to nominee
B Units are legally transfer to legal hier
t
C Units are automatically get redeemed
en
D Units are holds or carry by surviving holder
265 In mutual fund maximum joint holder can be
A 2
em
B 3
C 4
D 1
266 To show the performance of scheme or fund, the Mutual fund should
ag
A CAGR
B Annualised Returns
C Absolute Return
267
D
A
Simple return
Model portfolio is a
Flexible Asset Allocation an
M
B Fixed Asset Allocation
C Tactical Asset Allocation
D Strategic Asset Allocation
lth
268 Clearing the certifying examination and getting SEBI's permission are mandatory before
an agent can start selling mutual funds
A TRUE
ea
B FALSE
269 ARN stands for
A Agency Registration Number
w
B Agent Registration Number

C AMFI Registration Number
D AMFI Regulation Number
ill
270 The Synopsis of Offer Document is

A KIM
dw
B SID
C SAI
D None of these
oo
271 AMFI stands for

A Association of Mutual Fund in India
B Associates of Mutual Fund in India
C Associates of Mutual Fund in Indians
G
D Association of Mutual Foundation in India

272 Riskiest fund in equity is :
A Sector Fund.
B Growth Fund.
C Diversified Equity Fund.
D Index Fund.
E Value Fund.
273 In India are tend to invest in physical Assets
A TRUE
B FALSE
274 If an investor is submiting the application form along with the cheque of Rs. 1 lac in an
equity Fund at 2 PM, But there is insuficient balance in his Account, which days NAV
will he get
A Same days NAV
B Following Working Days Nav
C Preceding Working Days NAV
D AMC will not process the transaction and he will not get any units.
275 Where will a person invest if he wants to invest in gold for short term.
A Gold
B Bullion
t
C Gold Futures
en
D Gold ETF
276 New pention Scheme is managed by
A SEBI
em
B IRDA
C PFM
D AMFI
277 To be able to sell mutual fund schemes and earn commissions, a person should
ag
A have an ARN number
B be empanelled with an AMC
C be NISM certified
278
D All of the above
an
Information regarding the minumum and maximum commission to be given to the
distributors have been laid down by SEBI
M
A TRUE
B FALSE
279 Any excess to the total expense in a scheme as laid down by SEBI is
lth
A To be borne by the AMC

B To be borne by the investors
C To be borne by the distributors
ea
D to be borne by SEBI
280 Different AMCs charge different commissions; Same AMC charges different
commissions for different schemes
w
A Totally True
B Totally False
C Partially True
ill
D Partially False
281 Initial or Upfront commission is decided by
dw
A AMC
B SEBI
C Investor
oo
D Distributor
282 Trail commission is calculated by the investor as per the service provided by the
distributor
A TRUE
G
B FALSE
283 Trail commission is usually paid on a _______ basis
A Monthly
B Quarterly
C Half yearly
D Yearly
284 Trail commission is calculated on the net assets attributable to the units sold by the
distributor
A TRUE
B FALSE
285 Initial commission and trail commission are calculated on the same formula
A Totally True
B Totally False
C Partially True
D Partially False
286 Mutual Fund commissions are paid for a limited number of years; Mutual Fund
commissions are paid for as long as the investor's money is held in the fund
A Totally True
B Totally False
C Partially True
t
D Partially False
en
287 AMC is bound by the acts of the distributor, or its agents or sub-brokers
A TRUE
B FALSE
em
288 ACE stands for
A AMFI Code of excellence
B AMC code of ethics
C AMFI code of ethics
ag
D Agent's code of ethics
289 AGNI stands for
A AMFI's guidelines & norms
B AMFI's Guidelines & Norms for Intermediaries
C AMC's guidelines & Norms for Intermediaries
D AMC's guidelines & Norms for Individuals an
M
290 Commission is payable to distributors on investment made through them by their
clients; Commission is payable to distributors on their own investment
A both statements are right
lth
B both statements are wrong

C only first statement is right
D only second statement is right
ea
291 As per SEBI guidelines, the distributor need not disclose the commission to the
investor
A TRUE
w
B FALSE
292 As per __________, offering rebate to investors is banned
A ACE
ill
B AGNI
C SID
dw
D SIA
293 As mutual fund investment is subject to market risk, the AMC can make assumptions in
its advertisements.
oo
A TRUE
B FALSE
294 Each AMC is required to display the disclaimer in a particular format and font as
G
decided by its marketing team.

A TRUE
B FALSE
295 The minimum height of the disclaimer statement on hoardings/ posters should be
_______
A 18 inches
B 8 inches
C 8 centimeters
D 18 centimeters
296 The disclaimer should be written on a __________ background.
A black
B blue
C white
D as per the wishes of the AMC
297 The disclaimer should cover atleast _____ of the display area on a hoarding/ poster.
A 5%
B 10%
C 15%
D 7.50%
298 In audio-visual media, the disclaimer is either required to be displayed on the screen for
t
atleast 5 seconds or communicated through a voice over.
en
A TRUE
B FALSE
299 In an audio-visual, the disclaimer should cover ____of the screen, while the rest
em
____can be used by the name of the mutual fund or the logo, etc
A 20/80
B 25/75
C 75/25
ag
D 80/20
300 In audio advertisments, the disclaimer needs to be read out over a period of
A 2.5 seconds
B
C
D
5 seconds
10 seconds
7.5 seconds an
M
lth
ea
w
ill
dw
oo
G
301 Which of the following informations cannot be included in a tombstone advertisement?
A Logo or trademark
B Name of AMC
C Entry and/ or exit loads
D Declaration of NAV
302 Which of the following informations can be included in a tombstone advertisement?
A Scheme literature
B usage of ranking given by third party
C product launches
D Risk factors
t
303 Risk factors need to be mandatorily mentioned in the tomb advertisements; A general
en
statement to refer to the SID for details needs to be mandatorily mentioned in the tomb
advertisements.
em
304 Any statement if mentioned in the Product Launch advertisement explicitly, need not be
ag
substantiated in the SID & SIA
A TRUE
B FALSE
an
305 The maximum initial commission that an AMC can pay to distributors is __________
A 0.05%
M
B 1%
C 2%
D Nil
306 The distributor can charge a fee from the investor
lth
A TRUE
B FALSE
307 Stock exchange brokers are permitted to distribute mutual funds without the
ea
requirement of passing the certifying test.

A TRUE
B FALSE
w
308 Trail commissions are linked to valuation of portfolio in the market

A TRUE
B FALSE
ill
309 Which of the following is an international asset?

dw
A Real Estate
B Gold
C Currency market
D International Fund
oo
310 Investment objective defines the broad investment charter

A TRUE
B FALSE
G
311 Age come under

A Family information
B Personal information
C Emplyability
D Financial information
312 Risk appetite of investors is assessed through
A Risk Appetizers
B Asset Allocators
C Risk Profilers
D Financial Plan
313 A person working with TCS as a CEO have more risk appetite than a person working as
a CSR in TCS
A TRUE
B FALSE
314 An adventurious and daring person can bear more risk
A TRUE
B FALSE
315 In recessionary period gold gives better return than any other financial product
A TRUE
B FALSE
316 According to strategic asset allocation, a 60 year old retired person from a government
t
job, would invest in
en
A 60% Debt, 40% equity
B 30% liquid, 60% debt and 10% equity
C 70% debt and 30% equity
em
D 100% debt
317 A person working in BPO, the planner would advice to invest in
A Equity
B Debt
ag
C Entire corpus in Equity
D Large amount in equity throgh SIP
318 The psychological need to having an asset under one's possession, provides the
an
customer with ____________ because of which they prefer physical assets.
A Comfort
B Simplicity
M
C Feeling of helping the economy
D Advance impact on society
319 Gold future contracts have an unlimited contract period.
A TRUE
lth
B FALSE
320 Gold future contracts can be renewed at the expiry of the contract period, with no
ea
renewal cost.
A TRUE
B FALSE
321 Gold ETF is an open end scheme; Gold ETF has a fixed maturity period.
w
A Both statements are right

B Both statements are wrong
C Only the 1st statement is right
ill
D Only the 2nd statement is right

dw
322 Investors who buy ETF can hold on to their position indefinitely.
A TRUE
B FALSE
323 Gold holdings, including that used for personal use, attracts Wealth Tax
oo
A TRUE
B FALSE
324 Gold linked mutual fund schemes are exempted from Wealth tax; Gold deposit
G
schemes are exempted from Wealth tax.

C Only the 2nd statement is right
D Only the 1st statement is right
325 Real estate is an illiquid market; Gold has the advantage of liquidity
C Only the 2nd statement is right
D Only the 1st statement is right
326 Under the Deposit Insurance Scheme of the govt, upto Rs _______ per depositor in a
bank is paid by the insurer, incase the bank fails to pay the depositor's money.
A 2 lakhs
B 1 lakh
C 5 lakhs
D Nothing
327 Pre-mature closure of a fixed deposit attracts a penalty.
A TRUE
B FALSE
328 Interest earned in a bank deposit is taxable each year.
t
A TRUE
en
B FALSE
329 PRAN stands for
A Provisional Registration Account Number
em
B Personal Retirement Account Number
C Personal Registration Account Number
D Permanent Retirement Account Number
330 Under new NPS scheme, Tier I is the Pension account while Tier II is a Savings account
ag
A TRUE
B FALSE
an
331 The Pension account is withdrawable; Tier II is non-withdrawable
M
332 The Life cycle fund under NPS will invest the investor's money into
A Equity market instruments
lth
B Debt securities, other than govt securities

C govt securities
D any fund as per the investor's choice
ea
E any fund as per the customer's age

333 Gold futures are superior to ETF Gold as a vehicle for life-long investment in gold
w
A TRUE
B FALSE
334 As regards wealth tax, ETF Gold is superior to physical gold.
ill
A TRUE
dw
B FALSE
335 The New Pension Scheme is regulated by
A SEBI
B IRDA
oo
C PFRDA
D AMFI
336 An investor under the new pension scheme can choose which of the following asset
G
classes
A Equity
B Corporate debt
C govt securities
D Any of the above
337 Tangible assets can also be called as ______________
A Physical assets
B Financial assets
C Non-physical assets
D Real assets
338 A share certificate is a physical asset; A Share certificate is not the asset but only the
evidence supporting the benefit that the investor is entitled to
339 A gold bar and a share certificate of gold exchage fund are both examples of physical
assets.
A TRUE
B FALSE
340 Majority of the wealth of Indians is locked in _________
t
A Physical assets
en
B Financial assets
C Non-physical assets
D Gold and Real estate
em
341 MCX stands for ___________________
A Multi commodity Exchange
B Mega commodity exchange
C Multi consumer exchange
ag
D Mumbai commodity exchange
342 In the formula A=P*(1+I)n, P stands for
A Principle
an
B Profit
C Cost in today's terms
D Cost at the end of the period when the expense will be incurred
M
343 Which of the following might be worth considering while doing a financial planning
A Inflation
B Number of years after which the expense will occur
lth
C Are the expenses to be done in foreign currency

D All of the above
344 An equity portfolio is not a viable investment option to meet short term financial needs
ea
A TRUE
B FALSE
w
345 A comprehensive financial plan takes into account all the financial goals of a person
together, and then startegises the investment plan.
A TRUE
ill
B FALSE
dw
346 ___________captures the estimated inflows from various sources and estimated
outlfows for various financial goals, including post-retirement living expenses
A Goal-oriented Financial plan
B Comprehensive Financial plan
oo
C Staretegic Financial Plan

D Tactical financial plan
347 The comprehensive financial plan includes
G
A Gather Client data, define client goals

B analyse & evaluate client's financial status
C Implement the financial planning recommendations
D Monitor the financial planning recommendations
E All of the above
348 A goal oriented financial plan includes taking a perspective on the Life Cycle and
Wealth Cycle of the investor
A TRUE
B FALSE
349 Equity exposure suits which of these Life Cycle the most
A Young Unmarried
B Young Married
C Childhood
D Married with young children
350 Life insurance becomes absolutely critical for
A young married working couple
B youn married couple, with one spouse working
C young unmarried person
D a child
351 Premiums for Term insurance policies are generally higher than those of the Unit
linked policies
t
A TRUE
en
B FALSE
352 Starting with a health insurance policy early is the best antidote against the __________
clause.
em
A Low premium
B Exclusions
C Co-payment
D Pre-existing illness
ag
353 Health insurance policy claims are generally settled through reimbursement or on
cashless basis
A TRUE
an
B FALSE
354 The Accumulation phase of the wealth cycle correspondes with which of the life cycle
phase/s
M
A childhood to pre-retirement
B young married to married with older children
C young unmarried to pre-retirement
D young unmarried to married with older children
lth
355 In the ________phase of the wealth cycle, the investors tend to increase the proportion
of their portfolio in liquid assets viz money in the bank, liquid schemes etc
ea
A Accumulation
B Sudden wealth
C Transition
w
D Inter-generational transfer
356 __________ phase of the Wealth cycle is the parallel of the retirement phase of the Life
ill
cycle
A Transition
dw
B Accumulation
C Sudden Wealth
D Reaping
357 The Inter-generational transfer phase should not be postponed beyond _________
oo
years of age
A 40
B 35
G
C 45
D 50
358 Regular money is required during the _____________ phase.
A Reaping
B Transition
C Accumulation
D Sudden Wealth
359 During the sudden wealth phase, it is advisable to initially block the money by investing
in a ________ scheme
A
equity
B
liquid
C
debt
D
life insurance
360 Term life insurance policies are the cheapest form of insurance
A TRUE
B FALSE
361 Money back life insurance policies help with regular inflow of cash at periodic intervals
A TRUE
B FALSE
362 Today's costs can be translated into future requirement of funds using the formula
t
en
A A=P* (1+I)^n
B A=P/(1+I)^n
C P=A^n*(1+I)
em
D P=A^n*(1+I)
363 Providing funds for a daughter's marriage is an example of
A Goal-oriented Financial plan
B Comprehensive Financial plan
ag
C financial goal
D none of the above
364 According to the Certified Financial Planner - Board of Standards (USA), the first stage
an
in financial planning is
A Analyse and evaluae client's financial status
B Establish and Define the client-planner relationship
M
C Gather client data, define client goals
D Develop and present financial planning recommendations and/ or options
365 Investors can get into long term investment commitments in _____________________
lth
A Distribution phase
B Transition
C Inter-generational phase
ea
D Accumulation phase
366 Portfolio turnover rate of a fund measure the
A Size of the fund's portfolio
w
B Amount of buying and selling done by the fund

C The average number of units sold by the fund in one day
D None of the above
ill
367 An Investor with Double-Income in Late forties with no children Debt-Equity Portfolio
dw
would be?
A 50:50
B 60:40
C 30:70
oo
D 70:30
368 Black Swan means,
A Opposite of white swan
G
B The sentiments of market

C unexpected scenario in the market, which has not yet been performed in the past
D Fluctuation into the market
369 Riskiest fund in balanced fund is :
A Capital Protection Scheme.
B MIP.
C Fixed Asset Allocation Fund.
D Fliexible Asset Allocation Fund.
370 The investor cannot set off the Capital Loss if
A He is redeeming the investment within 9 months
B He is redeeming within 9 months after record date of Dividend
C He is investing within 3 months prior to the record Date of Dividend
D Both B & C
371 The size of a fund has no bearing on its performance
A TRUE
B FALSE
372 As per SEBI, mutual funds can borrow for short term to the extent of
A Total net assets
B 50% of net assets
C 25% of net assets
D 20% of net assets
t
373 Which of the following is of no relevance in evaluating fund's performance
en
A The performance of the stock market as a whole
B The performance of other mutual funds
C The returns given by other comparable financial products
em
D The change in wholesale price index
374 The choice of an appropriate benchmark for evaluating a fund's performance depends
on
A The fund manager
ag
B The investment objective of the fund
C SEBI
D AMFI
an
375 Investing real estate fund has an advantage except :
A Diversified Portfolio.
B High Ticket Size.
M
C Professional Management.
D Domestic Asset.
376 For evaluating funds, the preferred benchmark would be the
A BSE Sensex
lth
B S&P CNX Nifty

C BSE 200
D S&P CNX Sectoral Indices
ea
377 To evaluate a close-ended debt-fund, a suitable benchmark would be

A BSE Sensex
B I-Sec's I-BEX
w
C CRISIL Debt Index

D S&P CNX Defty
378 When comparing performance of two funds, the following need not be similar
ill
A Risk profiles
dw
B Investment objectives
C Fund size
D Fund managers
379 Financial goals do not include
oo
A Buying a home
B Winning a sports gold medal
C Planning for retirement
G
D Saving for child's education

380 Financial planning allows a person
A To become a billionaire
B To achieve financial goals through proper management of finances
C To invest in foreign countries
D None of the above
381 Financial plans do not alter in any way the amount of tax an investor pays as the tax is
on his income
A TRUE
B FALSE
382 Which of the following works with an investor on his overall financial situation
A Tax Advisor
B Financial Planner
C Insurance Agency
D Financial Advisor
383 A Financial planner takes responsibility for the financial well being of his/her clients
A TRUE
B FALSE
384 Financial planners and their clients should focus on
A Allocating funds to asset classes (e.g.debt,equity etc.)
t
B Allocating funds to individual securities
en
C Tracking stocks, which they feel have potential
D None of the above
385 Financial Planning comprises
em
A Defining a client's profile and goals
B Recommending appropriate asset allocation
C Monitoring financial planning recommendations
D All of the above
ag
386 Financial planning is relevant only for high networth individuals
A TRUE
B FALSE
an
387 Financial planning does work for older clients
A TRUE
B FALSE
M
388 Financial planning is primarily tax planning
A TRUE
B FALSE
389 In financial planning, all responsibility ends with the financial planner and the client has
lth
no responsibilities
A TRUE
B FALSE
ea
390 The constraint on financial planning due to insufficient investable resources can be
remedied to some extent by
A Decreasing the standard of living
w
B Disciplining children
C Disciplined monthly budgeting
D None of the above
ill
391 Which of the following is the least risk in the mutual fund
dw
A Money market mutual fund

B Equity fund
C Growth fund
D Gild fund
oo
392 If an investor keeps investing a fixed amount at regular intervals, the average cost of
his purchases will always be less than if he makes investment at irregular periods
G
A TRUE
B FALSE
393 Which of the following lets an investor book profits in rising market and increase
holdings in a falling market
A Fixed Rates of Asset Allocation
B Flexible Ratio of Asset Allocation
C Investment without any asset allocation plan
D Buy and hold Strategy
394 The strategy advisable for an investor to maximise investment return in the long run is
A Buy and hold on to investments for a long time

B Liquidate poorly performing investments from time to time
C Liquidate good performing investments from time to time
D Switch from poor performers to good performers
395 In India, individual investors do not have direct access to
A Capital market instruments
B Real estate
C Bullion
D Money market instruments
t
en
D All of These
em
397 Which of the following investment products do not give guarantee for return or capital
A Bank deposits
B Public Provident Fund (PPF)
ag
C National Savings Certificates (NSC)
D Units of a mutual fund
398 Investor can do the day transaction in Open end equity fund
an
A TRUE
B FALSE
399 The biggest disadvantage of investment in real estate is
M
A Less potential for capital appreciation
B High purchase price
C Depreciation in value as time passes
D Value gets eroded due to inflation
lth

ea

D All of These
401 Listing of shares at a stock exchange ensures
w
A Guaranteed returns
B Long term capital appreciation
C Low risk
ill
D High liquidity
dw
402 The SAI is relevant for all the scheme offered by Same Mutual Fund
A TRUE
B FALSE
403 Which of the following is not a characteristic of company fixed deposits
oo
A A higher rate of interest

B Higher risk
C Unfavourable effect of tax
G
D Very high liquidity

404 Deffered Loan only charged in close end scheme
A TRUE
B FALSE
405 Individual investors do not normally invest in Government Securities because
A Individual investors are not allowed to invest in Government Securities
B The amount required for investment is very large
C Safety of principal is not guaranteed
D None of the above
406 If the investor cannot pay the premium he can go for term plan in insurance policy
A TRUE
B FALSE
407 Dividends distributed by mutual funds are
A Taxed at source
B Taxed in the hands on the investors
C Are subject to capital gains tax
D Are tax-free in the hands of the investor
408 Investing through mutual fund is a better option than investing directly in the stock
market because
A Identifying stocks is a difficult process
t
B Agents get commissions on mutual fund investment
en
C Returned are guaranteed by mutual funds
D None of the above
409 Interest rate risk is :
em
A Financial Loss.
B Inflation.
C Tax Deferal.
D Tax Benefit.
ag
410 Which of the following debt investments is not rated
A Corporate bonds
B Commercial paper
an
C Company deposit
D Debt fund
411 Gold and real estate are attractive investment options only in high inflation economies
M
A TRUE
B FALSE
412 Deciding on strategies such as long-term compounding, cost averaging, value
lth
averaging, active switching, all depend on the

A Stock market situation on date
B Amount of money to be invested
ea
C Investor's risk tolerance

D Phase through which the economy is passing
413 Financial planning involves
w
A Studying financial management

B Managing the risk of investment
C Financing the client's investments
ill
D None of the above.

dw
414 It is _______ objective to develop a cadre of well trained agent distributors

A SEBI
B AMFI
C RBI
oo
D AMC
415 Capital protected schemes invest zero coupon bond
A TRUE
G
B FALSE
416 There is at least 3 board of trustee required in Mutual Funds
A TRUE
B FALSE
417 The appointment of AMC can terminated by majority of board of trustee
A 75% unit holder
B Majority of board of directors
C Majority of board of directors of AMC
D Both a and b
E Both a and c
418 In NPS the investor can invest in life cycle fund
A TRUE
B FALSE
419 Tier II pension account is withdrawable
A TRUE
B FALSE
420 The benefit of application by blocked amount is
A The amount will debited only when units will be allotted
B The amount will debited only when investor will give the request
C According to SEBI regulation
D Depends upon AMC’S employee
t
421 Indexation means
en
A Capital gain
B Benefit of inflation
C Cost adjusted with the impact of inflation
em
D the technique of reducing the capital gain tax
422 Which of the following is prohibited in Tombstone Advertisement
A Contact details of AMC and RTA
B Entry load and exit load
ag
C Declaration of NAV and performance
D Logo or trade mark
423 In liquid fund returns can be advertised in
an
A 1 yrs, 3yrs, 5yrs, and since inception
B 15 yrs, 30yrs, 5yrs, and since inception
C 7 days, 15 days, 30 days
M
D 7 days, 15 days, and since inception
424 Volatility of an equity fund portfolio is independent of the
A Kind of stocks in the portfolio
B Degree of diversification of the portfolio
lth
C Fund manager's success at market timing

D Number of investors in the scheme
425 Equity price risks are
ea
A Company specific
B Market level
C Sector specific
w
D All of the above

426 Diversification reduces
A Company specific risk
ill
B Market level risk

dw
C Both of the above

D None of the above
427 If the investor is not comfortable with any change then
A He can redeem his investment at prevailing NAV
oo
B He can redeem investment at prevailing NAV within 30 days from the date of change take
place
C Cannot exit at face valve
G
D Can exit at face valve

428 A fund with a high beta coefficient gives greater returns in a rising market, and is more
risky in a falling market
A TRUE
B FALSE
429 Which of the following is a disadvantage of standard deviation as a measure of risk
A Standard deviation measures total risk, not just market risk

B It is based on past returns, which does not necessarily indicate further performance
C It is an independent number
D All types of fund can be measured with standard deviation
430 The role of an agent is to
A Point out the features and benefits of various investment options
B Help the investor develop the right approach to investing
C Recommend some investment option available
D Offer adhoc advise whenever the investor has surplus money available
431 One of the most effective ways to invest through mutual fund is to
A Develop a model portfolio
B Buy a few units of every mutual fund scheme available
C Invest all the money in one fund scheme
D Invest all the money in different schemes of the same fund family
t
432 what is the maximum time period for investing in NFO of equity linked saving fund is,
en
A 15 days
B 20 days
em
C Up to the last date of NFO
D None of this
433 Asset allocation is
A Keeping certificates of the physical securities in proper places
ag
B Allocation the available money to all the securities available
C Allocating the right proportion of funds to equity, debt and money market securities
D None of the above
an
434 Gold sector fund invest in gold
A TRUE
B FALSE
M
435 Which of the following aspects would an investor in a debt scheme give most
importance
A Sector Selection
B Stock selection
lth
C Weighted average Maturity

D No. of securities in portfolio
436 A retired person generally needs a greater proportion of
ea
A Debt funds
B Equity funds
C Money market funds
w
D All of the above

437 To satisfy a young investor's need for growth, a greater proportion of investment
ill
should be advised in
A Gilt funds
dw
B Income funds
C Equity growth fund
D All of the above
438 A very high proportion of investment in all types of equity funds is advisable for
oo
investors
A In distribution phase
B In accumulation phase
G
C In transition phase
D Who are wealth preserving affluent individuals
439 The transition phase of an investor's wealth cycle is when
A The financial goals have been already met
B The investor has retired
C Financial goals are approaching
D Investor suddenly gets a windfall
440 A high proportion of investment in income funds is required by
A Accumulating investors
B Affluent investors
C Investors in the inter-generational transfer phase
D Investors in the distribution phase
441 Retired investor should
A Not draw down on their capital
B Not invest in securities, which bear risk of capital erosion
C Continue holding a major portion of their holding in equity growth funds
D Never invest in equity
442 For older investors who want to transfer their wealth
A No financial planning is required
B The right investment strategy depends upon who the beneficiaries are
C The right investment strategy depends upon the state of the stock market
t
D All the funds can be invested in aggressive equity funds
en
443 Investors who acquire sudden wealth
A Can speculate with all the acquired money in the stock markets
B Should not use any of the new wealth to invest in equity
em
C Should take the effect of taxes into account
D Need not pay any taxes on the newly acquired wealth as it is not a part of their regular income
444 Only if a specialty offshore fund has consistently given very good performance, it can
ag
be considered for investment by a retiree
A TRUE
B FALSE
an
445 Past performance should not be solely relied on for selecting a fund
A TRUE
B FALSE
M
446 Between the past performance of the fund and its suitability for an investor, past
performance is more important
A TRUE
B FALSE
lth
447 What is the excel formula of standard deviation

A S.D=STDEV(range of cells where the periodic returns are calculated)
B S.D=STDEV
ea
C S.D=(range of cells where the periodic returns are calculated)

D S.D=STDEV*(range of cells where the periodic returns are calculated)
448 What is the fourth step of financial planning as per Certified Financial Planner-Board of
w
Standards (USA)?
A Gather Client Data
B Define Goal
ill
C Establish Relationship
dw
D Monitor the Financial Planning Recommendations

451 For which of the following would you consider “average maturity” as an important
factor in selecting the right one for the investor?
A A Debt fund
oo
B A Balanced fund
C A Money market fund
D Both a and b above
G
452 How many time KIM needs to be updated :

A Twice in Growth.
B Every Year.
C Quaterly.
D Every Month.
453 If beta is higher than 1, the fund is:
A Less volatile than market
B More volatile than market
C Equally volatile than market
D No relation
454 Sharpe and Treynor Ratios are measures of:
A Average return
B Risk
C Risk adjusted return
D Beta of the portfolio
455 A criticism of rupee-cost averaging is
A Investment is for the same amount at regular intervals
B Over a period of time, the average purchase price will work out lower than if one tries to guess
the market highs and lows
C It does not tell you when to buy, sell or switch from one scheme to another
D Rupee cost averaging has no serious shortcomings
t
456 If you maintain a flexible ratio of asset allocation, would you
en
A Rebalance the Debt/Equity allocation periodically?
B Rebalance the Debt/Equity allocation very frequently
C Generally avoid portfolio rebalancing?
em
D Keep fixed percentages of equity and debt investments at all times?
457 While deciding on an asset allocation strategy, the investor must consider…
A The stage of his life
B His risk appetite
ag
C The purpose of making investment
D All of these
458 Which of the following is the best investment option for the purpose of getting the
an
maximum benefits of compounding?
A 12% interest paid yearly
B 6% interest paid every 6 months
M
C 3% interest paid every quarter
D 1% interest paid monthly
459 Asset allocation of a portfolio should be re-evaluated every time there is a change in
lth
the…
A Family size and requirement
B Job of the investor
C Dramatic change in the market condition
ea
D All of these
460 Code of ethics should be followed by distributors as:
A It is required by AMFI
w
B It is required by AMC
C Business increases
D All of the above
ill
461 What is insider trading?

dw
A Buying and selling securities ahead of doing the same transaction for the fund
B Buying and selling securities on the basis of privileged information available to the fund by
persons who are insiders to the company
C Both of the above
oo
D None of the above

462 The detailed version of SEBI circular regarding code of conduct for distributors given
by AMFI is known as:
G
A Ethics code
B AGNI
C Front running
D None of the above
463 The regulation of Personal trading is applicable to:
A Key Personnel of the AMC
B The directors of the trustee company
C Sponsor of the fund
D Only 1 and 2
464 A person working as a CEO in TCS has more risk appetite than a small business man.
A FALSE
B TRUE
465 Daring, adventurous and mentally strong people has less risk appetite
A FALSE
B TRUE
466 Investing in the __________funds is recommendable in case the investment horizon is
long.
A Equity
B Debt
C Liquid
t
D Money Market
en
467 An investment horizon if ____________ makes the probability of losing money in
equities negligible
A 5 and less than 5 years
em
B 5 years and above
C upto 3 years
D upto 2 years
468 Index funds are usually considered to be passive funds
ag
A TRUE
B FALSE
469 An Investor with an objective of having an equity growth component in his portfolio
an
should invest in
A Equity fund
B Debt fund
M
C Liquid fund
D Index fund
470 The NAV of an Index fund is directly propotional to the benchmark index
A TRUE
lth
B FALSE
471 Liqidity is the most important differentiater between a Close ended and an Open ended
ea
fund.
A TRUE
B FALSE
472 The price of units of a closed-end scheme in the stock exchange tends to be
w
____________NAV.
A same as the
B lower than the
ill
C higher than the

dw
D none of the above

473 Units of an open-ended scheme can be bought back by the scheme at __________
A NAV less Entry load

oo
B NAV
C NAV plus Exit load
D NAV less Exit load
G
474 The maximum exit load as per SEBI legislations is ____

A 2%
B 3%
C 5%
D 7%
475 Exit load is informed to the investor at the time of his making the investment
A TRUE
B FALSE
476 To provide the facility of liquidity to the investors, a part of the open-ended schemes
are maintained in ___________
A Liquid assets
B Equity funds
C Debt funds
D Sector funds
477 Close ended schemes are subject to the risk of large fluctuations in net assets, on
account of heavy sales or re-purchase.
A TRUE
B FALSE
478 Investing in the __________funds is recommendable in case the investment horizon is
long.
t
A Equity
en
B Debt
C Liquid
D Money Market
em
479 An investment horizon if ____________ makes the probability of losing money in
equities increases
A 5 and less than 5 years
B 5 years and above
ag
C upto 3 years
D upto 2 years
480 If the open end fund is in profit its advisable to wrinkage the investment
an
A TRUE
B FALSE
481 An investor make transaction on internet which time can be a cut off time :
M
A 12 Noon.
B 12 Midnight.
C Server time as per the computer.
D Investor's computer time.
lth
482 Which of the following is disadvantage in LIC

A Individual needs to pay a fixed premium
B Assured policy surrender value
ea
C Low risk
D none of the above
483 The interst and surrender value in PPF is tax free
w
A TRUE
B FALSE
484 The price of units of a closed-end scheme in the stock exchange is to be
ill
____________NAV.
dw
A same as the
B lower than the
C higher than the
D Lower or higher than NAV
oo
485 Black swan is refered as,

A A kind of offer Document
B When the market can behave in a manner not seen in the past
G
C black marketing
D Opposite of white swan
486 Close ended schemes are subject to the risk of large fluctuations in net assets, on
account of heavy sales or re-purchase.
A TRUE
B FALSE
487 A Diversified fund is less risk prone then a Sector fund
A TRUE
B FALSE
488 It can be risky to invest in ________ during periods of economic turmoi
A Large-cap
B Mid-cap
C Small-cap
D Both B & C
E Both A & B
489 Growth funds offer good returns in the initial phases of a bull run; Value funds yield
benefits over large holding periods.
t
490 If an Indian investor invests in the US, then
en
A He would benefit if the US $ becomes stronger
B He would benefit if the Indian Rupee becomes stronger
C He would loose if the US $ becomes stronger
em
D He would loose if the Indian Rupee becomes stronger
491 MIP are perfect investment options for investors who do not wish to take any equity
exposure.
A TRUE
ag
B FALSE
492 For a predictable return, an investor should invest in a
A MIP
an
B FMP
C Equity Fund
D International Equity Fund
M
493 Non-government securities offer higher yields and are not subject to credit risks
A TRUE
B FALSE
494 Longer term debt securities fluctuate more than shorter term debt securities
lth
A TRUE
B FALSE
495 NAV of a long term debt fund might be more volatile than that of a short term debt fund
ea
A TRUE
B FALSE
w
496 Incase the interest rates in the market are expected to go up, then investment would be
best made in a
A Long Term debt fund
ill
B Short Term Debt fund

dw
C Both of the above

D None of the above
497 Use of the term 'liquid plus' as a fund type has been banned by SEBI
A TRUE
oo
B FALSE
498 Balanced schemes invest in a mix of equity and debt securities
A TRUE
G
B FALSE
499 Gold ETF and Gold Sector Funds are one and the same thing
A TRUE
B FALSE
500 Most AMC share the portfolio of all their schemes in their website on a _______basis
A Daily
B Weekly
C Monthly
D Annual
501 While deciding to select an AMC for investment, the investor can look out for
A Fund age
B Tracking error
C Scheme running expenses
D All of the above
E Only 2 & 3
502 Dividend payout option has the benefit of money flow to the investor; Growth option
has the benefit of letting the money grow in the fund on gross basis
t
en
503 Re-purchase transactions in equity schemes are subject to STT
A TRUE
B FALSE
em
504 Equity schemes attract dividend distribution tax
A TRUE
B FALSE
505 It might be better to receive money in an equity scheme in the form of dividend, rather
ag
then re-purchase of units
A TRUE
B FALSE
an
506 If an investor does not want any tax liability he should invest in
A Debt fund growth option
B Dividend Reinvestment, debt fund.
M
C Dividend Payout of Debt Fund.
D Any of the above.
507 Asset Allocation means,
A Don't keep all the egg in one basket
lth
B All the corpus investing in one companies

C Customer is king
D Allocate some units to every investor in India
ea
508 Arbitrage funds enjoy all the tax exemption which is applicable in Equity Fund
A TRUE
B FALSE
w
509 Insurance is more critical for,

A Physical Assets
B Financial Assets
ill
C Both of the above

dw
D none of the above

510 Which of these cannot be distributor
A RBI Branch
B Foreign Bank
oo
C Domestic Bank
D Private Placement
511 Investor invest Rs12,000 where NAV is Rs. 23.45. Face value is Rs. 10 as per the current
G
load. How much unit will be aloted.

A 510 units
B 1200 units
C 500 units
D 600 units
512 Which of the following is physical assets
A Real estate
B Gold fund
C Real estate fund
D Gold ETF
513 Which of the following is not a good selection for investment purpose
A Equity Fund
B ETF
C Life Insurance
D Gold Future
514 Which of the following is not a reason to invest in Gold Fund
A Professional management
B Small Ticket
C International Asset
D Safe haven asset class
515 Which of the following is not a reason to invest in Real estate fund
t
A Professional management
en
B Small Ticket
C International Asset
D Safe haven asset class
em
516 Asset Allocation in Asset Class C is,
A Equity
B Mix of all asset classes
C Debt
ag
D G-Sec.
517 The returns of gold fund is depend on
A Global price of gold
an
B Interest rate
C Rupee cost averaging
D both 1 and 3
M
518 Which of the following is comparable?
A Equity Fund and PF
B Equity Shares and Bonds
C Liquid Fund and Saving Bank account
lth
D Gilt Fund and SENSEX

519 Which of the following is the best product for long term investment
A Gold ETF
ea
B Gold Sector fund

C Gold
D Gold Future
w
520 Which of the following is the best product for short term investment
A Gold ETF
B Gold Sector fund
ill
C Gold
dw
D Gold Future
521 Which of the following is tax free investment
A PPF
B RBI Relief Bond
oo
C G-Sec.
D Kisan Vikas Patra
522 Which of the following cannot invest in Mutual Fund
G
A Common Man
B Institutional Investor
C NBFC
D LIC
523 Initial Stage of life is known as accumulation stage,
A TRUE
B FALSE
524 Mutual Fund can invest in Liquid plus fund
A TRUE
B FALSE
525 There is no need to have insurace policy of the nominee
A TRUE
B FALSE
526 If the employer providing medical policies to the employee of its company then
employee no need to keep their personal medical cover
A TRUE
B FALSE
527 The retired client never invest in equity
A TRUE
B FALSE
528 Foreign nationals are freely permitted to invest in Indian Mutual Funds
t
A TRUE
en
B FALSE
529 STP is a combination of SIP and SWP
A TRUE
em
B FALSE
530 Switch = Repurchase + Sale
A TRUE
B FALSE
ag
an
M
lth
ea
w
ill
dw
oo
G
Q No. Ans. Q No. Ans. Q No. Ans. Q No. Ans. Q No. Ans.
1 A 51 D 101 C 151 C 201 B
2 A 52 C 102 C 152 D 202 C
3 B 53 D 103 D 153 D 203 A
4 D 54 C 104 B 154 D 204 C
5 A 55 C 105 D 155 C 205 A
6 A 56 C 106 B 156 D 206 B
7 A 57 B 107 C 157 B 207 C
8 B 58 C 108 B 158 B 208 C
9 D 59 A 109 B 159 C 209 A
10 A 60 A 110 A 160 A 210 A
11 A 61 E 111 A 161 C 211 A
t
en
12 C 62 D 112 C 162 E 212 A
13 C 63 C 113 B 163 A 213 B
14 A 64 A 114 A 164 A 214 A
em
15 B 65 D 115 D 165 B 215 B
16 C 66 C 116 A 166 B 216 A
17 B 67 B 117 D 167 D 217 B
18 D 68 C 118 C 168 B 218 A
ag
19 A 69 D 119 A 169 A 219 B
20 A 70 D 120 A 170 D 220 B
21 B 71 D 121 B 171 A 221 D
an
22 A 72 A 122 C 172 A 222 B
23 A 73 C 123 C 173 C 223 A
24 B 74 B 124 C 174 D 224 C
M
25 B 75 D 125 D 175 B 225 D
26 B 76 B 126 C 176 D 226 B
27 A 77 D 127 C 177 A 227 C
lth
28 B 78 B 128 D 178 B 228 B

29 E 79 C 129 B 179 B 229 B
30 A 80 B 130 D 180 B 230 A
ea
31 B 81 C 131 C 181 B 231 C

32 D 82 C 132 B 182 A 232 A
33 D 83 C 133 A 183 D 233 D
w
34 D 84 B 134 B 184 A 234 A

35 B 85 C 135 C 185 C 235 C
36 A 86 B 136 B 186 A 236 B
ill
37 A 87 B 137 D 187 C 237 B

38 C 88 A 138 C 188 B 238 A
dw
39 B 89 C 139 A 189 A 239 B

40 C 90 A 140 B 190 A 240 B
41 A 91 A 141 A 191 D 241 A
oo
42 A 92 B 142 C 192 B 242 A

43 A 93 C 143 C 193 A 243 A
44 B 94 B 144 D 194 A 244 D
G
45 D 95 B 145 A 195 A 245 B

46 A 96 D 146 B 196 B 246 B
47 B 97 C 147 A 197 A 247 C
48 A 98 C 148 B 198 D 248 A
49 A 99 D 149 D 199 A 249 C
50 B 100 C 150 D 200 A 250 B
Q No. Ans. Q No. Ans. Q No. Ans. Q No. Ans. Q No. Ans. Q No. Ans.
251 A 301 D 351 B 401 D 451 A 501 D
252 B 302 A 352 D 402 A 452 B 502 A
253 A 303 D 353 A 403 D 453 B 503 A
254 D 304 B 354 C 404 B 454 C 504 B
255 C 305 D 355 C 405 B 455 C 505 A
256 D 306 A 356 D 406 A 456 C 506 C
257 B 307 B 357 D 407 D 457 D 507 A
258 B 308 A 358 A 408 A 458 D 508 A
259 C 309 B 359 B 409 B 459 D 509 A
t
en
260 C 310 A 360 A 410 D 460 A 510 D
261 A 311 B 361 A 411 A 461 B 511 A
262 A 312 C 362 B 412 C 462 B 512 A
em
263 C 313 A 363 B 413 B 463 D 513 C
264 D 314 A 364 B 414 B 464 B 514 C
265 B 315 A 365 D 415 A 465 A 515 C
266 A 316 A 366 B 416 B 466 A 516 C
ag
267 A 317 D 367 D 417 D 467 B 517 A
268 B 318 A 368 C 418 A 468 A 518 C
269 C 319 B 369 D 419 B 469 A 519 B
an
270 A 320 B 370 D 420 A 470 A 520 D
271 A 321 C 371 B 421 C 471 A 521 A
272 A 322 A 372 D 422 C 472 B 522 D
M
273 A 323 A 373 D 423 C 473 B 523 A
274 A 324 A 374 B 424 D 474 D 524 B
275 C 325 A 375 B 425 B 475 A 525 B
lth
276 C 326 C 376 D 426 A 476 A 526 B

277 D 327 A 377 C 427 B 477 A 527 B
278 B 328 A 378 D 428 A 478 A 528 B
ea
279 A 329 B 379 B 429 B 479 D 529 A

280 A 330 A 380 B 430 B 480 A 530 A
281 A 331 B 381 B 431 A 481 C
w
282 B 332 E 382 B 432 C 482 D

283 B 333 B 383 A 433 C 483 A
284 A 334 A 384 A 434 B 484 D
ill
285 B 335 C 385 D 435 C 485 B

286 D 336 D 386 B 436 A 486 A
dw
287 B 337 A 387 A 437 C 487 A

288 C 338 D 388 B 438 B 488 D
289 B 339 B 389 B 439 C 489 A
oo
290 C 340 A 390 C 440 D 490 A

291 B 341 A 391 A 441 B 491 B
292 B 342 C 392 A 442 C 492 B
G
293 B 343 D 393 A 443 B 493 B

294 B 344 B 394 D 444 A 494 A
295 B 345 A 395 D 445 B 495 A
296 C 346 B 396 D 446 D 496 B
297 A 347 E 397 D 447 A 497 A
298 A 348 A 398 B 448 D 498 A
299 D 349 A 399 B 449 - 499 B
300 B 350 B 400 D 450 - 500 C
If an Indian MF sectors sees potential in making investment in China, it will tie up with
13 chinese fund. In India this will be known as Feeder, while in China it will be called
A China made portfolio

B Arbitrage fund
C Host fund
D Offshore fund
14 Investment objective is closely linked to
A Scheme
B Option
C Plan
t
D SIP
en
The useful downloads of all circulars up to last year, which are updated on the website
15
of SEBI, are known as
A Circular
em
B Master circular
C Addendum
D All of these
ag
If the explanation is not sent to AMFI in case of any breach of conduct by then
16
distributor, then AMFI
A Cancels the ARN of distributor
B
C
D
Can empanel the distributor
an
Can cancel the ARN of that distributor and inform to all AMCs
Suspend the distributor
M
17 Offer document of MF is approved by SEBI
A TRUE
B FALSE
lth
18 An institutional distributor builds reach through

A Employees
ea
B Agents
C Sub-brokers
D All of these
w
19 In audio and video advertisements, the disclaimer clause must

A Display on screen for 5 seconds
B Need to cover 50% of screen
ill
C Both a and b
D Need not to be disclose
dw
An investor invested in Gilt Fund for Rs 20,000 for a period of 18 month and at the time
20 of redemption the value of the fund was at Rs 50,000. Find the capital gain tax (ignoring
the indexation)
oo
A Rs 3,000
B Rs 6,000
C Nil
G
D None of these
21 Investor needs to pay wealth tax if he is investing in gold ETF
A TRUE
B FALSE
22 For online transactions, MF allot
A IPIN and user name to existing investor only
B IPN to existing investor only
C IPIN and user name to all new investors
D No need any facility for doing the transaction
23 Which of the following has the least risk in the Mutual Funds
A Money market mutual fund
B Equity fund
C Growth fund
D Gilt fund
24 Rating and ranking is one and the same thing
A TRUE
B FALSE
25 A bond’s rating indicates its
A Reinvestment risk
B Default risk
t
C Inflation risk
en
D Interest-rate risk
26 Fundamental Analyst is also known as Chartist
A TRUE
em
B FALSE
27 Who amongst the following will help to find the perfect company to invest
A Fundamental Analysis
ag
B Tactical fund manager
C Technical Analysis
D Passive Fund Manager
28
A
B
Stock picking is
Top Down approach
Bottom-up approach an
M
C Technical approach
D Fundamental approach
29 Who cannot invest in Mutual Fund
lth
A Foreign companies
B Institutional investor
ea
C Foreign Individual
D The trust where, more than 60% if the beneficial interests is held by NRI
E Both 3 and 4
w
30 The highest rating given by CRISIL is

A AAA
B ABB
ill
C AAA*
D A++
dw
31 Unit Capital is
A No. of units* face value
B No. of units outstanding* face value
oo
C No. of units issued* current market price

D NAV * face value
32 Which of the following investment products do not give guarantee for return or capital
G
A Bank deposits
B Public Provident Fund (PPF)
C National Savings Certificates (NSC)
D Units of a mutual fund
33 All fund have significant similarities except one
A MIP
B Balance fund
C Capital protected fund
D sector fund
34 All are the commodities except
A Gold
B Crops
C Industrial metal
D Real estate
35 MIP is a debt fund
A TRUE
B FALSE
36 Mutual fund is constituted as
A Trust
t
B Company
en
C Financial intermediary
D NBFC
37
em
FMP is mostly a closed end fund
A TRUE
B FALSE
38 Units are repurchase in closed end fund at
ag
A Higher than NAV
B Lower than NAV
C Whatever the price higher than NAV or lower than NAV
39
D At NAV price only
A trustee company function through
A Board of trustee an
M
B Board of directors
C Trust
D Board of directors of the company
lth
40 The function of distributor and RTA is

A Updated NAV
ea
B Maintain the records of the investor

C Issuing and re-purchasing transaction of units
D Sending the Annual account statement of Mutual Fund
w
41 trust deed are contract between Trustee and ___________

A Sponsor
B AMC
ill
C SEBI
D Investors
dw
42 KYC application form are accepted at_______________

A Point of Service
B Point of Acceptance
oo
C RTA
D NSDL
43 Appointment of distributor by fund is basis between distributor
G
A AMC
B Investor
C SEBI
D AMFI
44 Though AGNI is mandate, there is no penalities in case of breach of code.
A TRUE
B FALSE
45 Benchmark for Money market mutual fund
A CRISIL CompBEX
B CRISIL LiquiFEX
C NSE's MIBOR
D Both B and C
46 Benchmark for Money market mutual fund
A CRISIL CompBEX - Composite Bond Index
B CRISIL MIPEX
C CRISIL Banking Index
D CRISIL Debt Hybrid Index
47 Benchmark for MIP
A CRISIL CompBEX - Composite Bond Index
B CRISIL MIPEX
t
C CRISIL STBEX - Short-Term Bond Index
en
D CRISIL Debt Hybrid Index
48 SEBI has stop charging
A Initial Issue expenses
em
B Exit Load
C Deffered Load
D Management fees in liquid fund
ag
49 SEBI has banned Entry load in Mutual Fund from 1st August, 2009
A TRUE
B FALSE
50 Quality of bond can be made out of
A YTM
B Credit rating an
M
C Yield Matrix
D Yield Quality
51 NAV of funds are rounded off
lth
A In equity fund upto 2 decimal

B Except than equity other funds are rounded offupto 4 decimals
ea
C In liquid fund upto 4 decimals and other than liquid upto 4 decimals
D In debt fund upto 4 decimals
52 STT is leived on Re-purchase of unit from mutual fund
w
A 0.125%
B 0.015%
C 0.25%
ill
D 0.017%
53 Mutual fund is liable to fare for
dw
A Income
B Dividend
C Capital Gain
oo
D Dividend Distribution
54 To convert the physical into Demat, investor must approach to
A Depository
G
B NSDL
C Depository Participant
D CDSL
55 An investor asks you in what order he should list the following schemes,going from
the scheme with the least risk to the one with the highest risk -1.balanced fund, 2.A
stock index, 3.A Liquid fund, 4.Pharmaceutical sector fund.
A 1,2,3,4.
B 1,3,4,2.
C 3,1,2,4.
D 2,3,1,4.
56 Debt funds are exposed to ?
A Market specific risks
B Sector specific risks
C Company specifis risks
D Credit risk
57 Standard deviation measures ?
A Fluctuations of a fund result around a mean level.
B Sensitivity of a funds returns to changes in market index.
C Weighted average P/E ratios of all stocks held in portfolio.
D Risk premium of the fund.
t
58 Which of this is not a part of high-risk funds ?
en
A Aggressive growth funds
B Sector funds
C Income funds
em
D Specialized funds
59 Which of these strategies is best to reduce company specific risk ?
A Holding largely diversified portfolio.
ag
B Holding more number of sectors in a portfolio.
C By hedging with futures an options.
D None of above
60
an
For which of the following funds would you consider average maturity as an important
factor in selecting the right one for the investor ?
A A debt fund
M
B A Balanced fund
C Money market fund
D Both 1& 2 above
lth
61 Which of this is not a criteria for consideration while selecting equity funds ?
A Classify the schemes
ea
B Evaluate past returns

C Choose Strategies
D Reviewing funds structural charateristics
w
E Cost
62 Which of this statement is true ?
A Selecting a money market fund is easier than selecting a bond or equity fund.
ill
B Selecting a bond fund is easier than selecting a money market fund

C Selecting a equity fund is easier than selecting a money market fund
dw
D None of above
63 Which of this statement about balanced fund is true ?
A Balanced fund is exactly 50% equity and 50% debt.
oo
B Balanced fund is exactly 40% equity and 60% debt.

C Balanced fund is rarely exactly 50% equity and 50% debt.
D Balanced fund is exactly 60% equity and 40% debt.
G
64 For young investors doing retirement planning ?

A Monthly Income schemes are appropriate
B Long term bond funds are appropriate
C Money market funds are appropriate
D None of above
65 Why should a fund distributor become a financial planner ?
A Because of Strong Potential for such services
B Because of Limited supply of financial planner
C Because of the kind of the money this business offers
D Only 1&2
E Only 1&3
66 Which of the following are true ?
A It’s the duty of the client to set mearsurable financial goals
B It’s the financial planners duty to set mearsurable financial goals for his clients
C Both the clients and financial planners should together set mearsurable financial goals
D None of the above
67 Risk tolerence is ?
A Is the abnormal loss, which the investor is ready ti incur
B Is the extent of loss the client can tolerate psychologically and financially
C Is the normal loss of an invesment category
t
D None of the above
en
68 portfolio rebalancing is ?
A A one time process
B Has to be done in once in fortnight
em
C An indefinite continous process
D Has to done once in a year
69 Which of this is not a step in the financial planning process ?
ag
A Determine the shape and risk tolerence level of the client
B Define the clients goals
C Portfolio rebalancing
70
D Managing the clients finances
an
Which of these is not the clients responsibilities ?
A Set measurable financial goals
M
B Re-evaluate the financial situation periodically
C Have realistic expectations
D Gather and analyze data
lth
The Strategy advisable for an investor to maximize investment return in the long run
71
is?
ea
A Buy and hold on to investments for a long time

B Liquidate poorly performing investments from time to time
C Liquidate good performing investments from time to time
w
D Switch from poor performers to good performers

72 The rupee-cost averaging talks about ?
A Investments for the same amount at regular intervals
ill
B When to buy, sell or switch from one scheme to another

C Disgarding the non-performers and keeping the good performers
dw
D All of the above

73 If you maintain a flexible ratio of asset allocation, would you?
A Rebalance the Debt/Equity allocation periodically
oo
B Rebalance the Debt/Equity allocation very periodically

C Generally avoid portfolio rebalaning
D Keep fixed percentages of equity & debt investments at all times
G
Which of the asset allocation principles talks about adjusting the percentages for each
74
group of investors after taking account of their age ?
A Fixed vs.Flexible asset allocation.
B Strategic asset allocation.
C Tactical asset allocation
D Benjanin Graham's 50-50 Balance
75 What is active switching ?
A Using telephone swithing method to actively move and out of different schemes of different
fund complex
B Using telephone swithing method to actively move and out of different schemes of same fund
complex
C Using telephone switching method to atively move and out of the same scheme of the same
fund complex
D Using telephone switching method to atively move and out of the same scheme of the
different fund complex
Direct investments in stock markets can be a better option over investing through
76
mutual funds if ?
A The investor wants better returns than those offered by mutual funds
B The investor has large capital, knowledge and resources for research
C The investor has identified a bullish phase in the stock market
t
D The investor wants to invest for the long term
en
77 An investor in need of regular income should not select ?
A A bank deposits
B A debt fund
em
C An Equity growth fund
D PPF
78 The without profit insurance policy promices to pays ?
ag
A The sum assured and the bonus declared by LIC from year to year
Certain sum of money to the survivor of the policy taken in the event of death within the term
B
of the policy
79
C None of the above
D BothA and B
an
Which of the following statements is not true about mutual funds ?
M
A Investing In MF divesify portfolios.
B Investing In MF offer liquidity
C Inesting In MF increases transaction cost
lth
D MF offer professional management

80 Investors do not always look for returns while investing in ?
ea
A Mutual Funds
B Real Estate
C Gold
w
D Bank Deposits
81 G-Sec papers are normally issued on a ?
A Short term basis
ill
B Medium term basis

C Long term basis
dw
D Very short term basis

82 Relief bonds issued by government are?
A Highly risky
oo
B Moderate risky
C Vertually risk free
D None of the above
G
83 Which of these instruments is not issued by the corporates ?

A Fixed Deposits
B Commercial Paper
C Debentures
D Bonds
84 Interval Funds are
A Largely open-ended but convert into close-ended at pre-specified intervals
B Largely close-ended but convert into open-ended at pre-specified intervals
C Always open-ended
D None of the above
85 NAV after dividend payment is called
A Re-investment
B Cum Dividend
C Ex-Dividend
D None of the above
86 Individual Investor cannot pledge their units
A TRUE
B FALSE
If a financial advisor gives alternate plans for investment , investor might get confused
87
t
A TRUE
en
B FALSE
88 Redemption is
A NAV minus exit load
em
B NAV plus exit load
C NAV Plus entry Load
D NAV minus entry load
ag
89 KYC is not required incase of minors?
A This statement is true
B KYC of minor is mandatory
90
D KYC is not mandatory in MF
an
C KYC of guardian is require incase if investment is in minors name
Who enables the collection and payment of investments?

M
A Registrar
B SEBI
C AMFI
lth
D RBI
91 Winning lottery is an example of
ea
A Sudden Wealth
B Transition stage
C Wealth Cycle
w
D Life Cycle
92 In India the first mutual fund was established in
A 1963
ill
B 1964
C 1987
dw
D 1993
93 Distributor while getting empanelled also fill self declaration stating that?
A They should receive commission on time
oo
B All employees who are engaged in the sale and distribution shall obtain ARN
C Shall abide with Sebi code of ethics
D None of the above
G
94 Mutual Funds shall be recommended as

A A get rich quick investment option
B Investments to achieve long term goals
C Guaranteed returns
D Direct investment in capital market
95 Black Swan is referred as
A A kind of Offer Document
B When the market can behave in a manner not seem in the past
C Black marketing
D Opposite of White Swan
96 Investments in an Equity Linked Savings (ELSS)
A Entitles the investor to claim income tax rebate
B Requires the investment to be locked in for a period of 3 years
C Automatically leads to investment in equity shares
D All of these
97 Which of the following statement is true?
A Growth and Risk are associated with equity funds
B Stability is associated with debt funds
C Both 1 & 2
D None of the above
t
98 Dividend distribution tax paid on money market instruments is ?
en
A 25%
B NIL
C 25%+surcharge+cess
em
D 20%+surcharge+cess
99 Investor have right to inspect except
A Compliance Report
ag
B Custodial agreement
C Trust deed
D Investment report of the fund manager
100
an
The new platform for trading in NSE and BSE are called as
A NEAT MFSS
B BSE Star Mutual Fund
M
C Both 1 and 2
D NEAT MMF
101 Switch is
lth
A Not allowed in mutual fund

B Is equal to a purchase transaction
ea
C Is a repurchase from one scheme and purchase in another scheme with 1 request
D None of the above
If investor has made a subscription in Rel Gilt Fund at 2:30 pm with a local cheque
102
w
which NAV would be applicable?

A Nav of the same day of application
B Nav of the immediate next working day
ill
C Nav of the same working day.

D None of the above
dw
103 Benefits of Demat A/C are

A Direct credit of bonus units
Making available screen based platforms for purchase and sale of Mutual Fund Schemes
oo
B
C Single point of address change
D All of the above
G
Selected branches/Offices of mutual fund registrars and large distributors serve as

104
__________ for KYC documentation?
A Point of Sale
B Point of Service
C Point of Acceptance
D All of the above
105 Who cannot invest in MF?
A NRI
B HUF
C FII
D Foreign citizen
106 Time stamping is mandatory at
A All offices of AMC
B Offices of AMC and point of acceptance wherever applications are accepted
C Custodian’s Office
D All of the above
107 At the time of turmoil gold prices
A Changes Randomly
B Goes down
C Goes upwards steady
t
D Remains Constant
en
108 Stock picking is ____approach
A Top Down Approach
B Bottom up Approach
em
C Growth Style
D Blended Style
The difference between the yield on Gilt and the yield on a non-government Debt
109
ag
security is called
A YTM
B Yield Spread
110
C Call to Yield
D Floating Rate
The head of expenses are decided by an
M
A SEBI
B AMC
C Trustees
lth
D Stock Exchange
111 A conservative investor will invest in __________
ea
A Diversified Equity
B Mid Cap
C Small Cap
w
D Arbitrage Funds
112 _____ is used to measure fluctuation of fund
A Sharpe Ratio
ill
B Treynor Ratio
C Standard Deviation
dw
D Alpha
113 _____ is not a credit rating agency
A Morning Star
oo
B CDSL
C Credence
D Crisil
G
114 In case of post-NFO investor should receive a/c statement in _____ ?

A 10 working days
B 5 working days
C 7 working days
D 3 working days
115 ____ fees cannot be charged to a scheme
A Service Tax
B Listing fees and Depository Fees
C Registrar and transfer fees
D Software development fees
116 If an investor’s regular income improves then his risk appetite will also
A Increase Gradually
B Increase rapidly
C Increase slowly
D Remain constant
117 Which of the following is an international asset class?
A Real Estate
B Equity
C Debt
D Gold
t
118 ____ is an approach to understand the risk appetite of investor?
en
A Risk Handling
B Risk Approach
em
C Risk Profiling
D Risk Taking
During the recessionary situation in ______ equity markets in many countries fared
ag
119
poorly, but gold prices went up?
A 2007-09
B 2008-10
C
D
2009
None of the above
an
The distribution of an investor’s portfolio between different asset classes is called
M
120
_____?
A Asset Allocation
B Asset Management
lth
C Asset Framework
D None of the above
ea
As the person grows older, the debt component of the portfolio keeps increasing. This
121
is an example of ______
A Tactical Asset Allocation.
w
B Strategic Asset Allocation.

C Model Portfolio’s
ill
_______ is suitable only for seasoned investors operating with large investibles
122
dw
surpluses?
A Model Portfolio’s
B Strategic Asset Allocation.
C Tactical Asset Allocation.
oo

123 Investment advice is dependent on understanding
A Risk appetite of the investor
G
B Risk level of the investment options being considered.

C Both of the above
D None of the above
124 SAI needs to be updated regularly by the end of ______________
A every 3 months
B every 6 months
C every 3 months of every financial year
D every 6 months of every financial year
125 As per SEBI regulations, every application form needs to be accompanied by
A SID
B SAI
C Offer Document
D KIM
126 KIM does not include which of the following
A Risk profile of the scheme
B Bench Mark
C Rights of Unit holders
D Loads & expenses
127 KIM needs to be updated every
A 3 months
t
B 6 months
en
C 12 months
D need based
128
em
Post the initial update, the SID needs to be update ___________
A every 3 months
B every 6 months
C every 9 months
ag
D every 12 months
For a scheme launched in March 2010, the first update of the SID would be due by
129
A
B
C
Apr-10
Jun-11
Jun-12 an
M
D Mar-11
130 Any change in the scheme needs to be
A mentioned in an addendum
lth
B advertised in a national english newspaper

C mentioned in the website of the mutual fund
ea
D All of the above

E None of the above
SID contains the condensed financial inforamtion of the schemes launched in the last
131
w
____ years by the AMC

A 3 years
B 5 years
ill
C 3 financial years
D since the inception
dw
Clearing the certifying examination and getting SEBI's permission are mandatory
132
before a person/ institution can start selling mutual funds
A TRUE
oo
B FALSE
133 Though CIO has investment right it plays limited role in investing in market
A TRUE
G
B FALSE
134 If investor buy 7% debentures and companies rating came from AA to AAA In what
price will investor sell
A At premium
B At Discount
C At par
D Does not have in relation.
135 In which of the following NFO details will be mentioned
A KIM only
B SID
C SID and KIM
D SAI
136 Can a mutual fund invest as per the board resolution, though not as per the rules of
Memorendum of Association
A TRUE
B FALSE
137 NFO for ELSS is for
A 15 days
B Monthly
C 30 days
t
D Date of closure of NFO
en
138 Code of conduct of AMC given in which schedule
A First Schedule
B Fourth Schedule
em
C Fifth Schedule
D Seventh Schedule
139 SEBI stop charging.
ag
A Initial Issue expenses
B CDSC
C RTA
140
D Recuring expenses
an
What would be the NAV if an investor invest in a gilt fund Rs. 1 crore at 3:30 PM by a
local cheque.
M
A Same days NAV
B NAV of realisation date
C NAV of previous day of realisation
lth
D NAV of next days

141 The investor also has the option to convert the demat unit into physical form is
ea
A Rematerialisation
B Dematerialisation
C Demat
w
D Remat
142 Individuals who want to bulid their wealth and are ready to take the risks are ?
A Old investor
ill
B Investor who is in Transition phase

C Wealth creating affluent investors
dw
D Wealth preserving affluent investors

E None of the above
143 Which of the following is not a commodity
oo
A Food crops
B Gold
C Currency
G
D Art
144 TDS on Dividend in Mutual Fund is
A 25%+surcharge+cess
B 12.5%+surcharge+cess
C 20%+surcharge+cess
D NIL
145 Who handles the securities of Mutual Fund
A Custodian
B SEBI
C AMFI
D Fund Accountant
146 If an Investor is investing Rs. 10 Lacs at 4.00 PM in NFO. NAV on that day is Rs. 15.
Find the units alloted to the investor
A 66666.66667
B 100000
C 66667
D 60000
147 If an investor has given the request for redemption of 1000 units at the NAV of Rs. 12
and Face Value is Rs. 10. Find the amount that investor will receive
A Rs. 12000
t
B Rs. 12500
en
C Rs.10000
D Cannot say anything
em
148 DTAA means,
A Dividend tax Authorised Association
B Double Taxation Avoidance Agreement
C Double Taxation Acceptance Agreement
ag
D Double Taxation Authorised Agreement
149 Withholding tax applicable to the non residential investor is ______ according to DTAA
A
B
C
Lower of the rate
Higher of the rate
Same rate an
M
D Either higher or lower of the rate
150 Financial planning is-
A Investing funds to receive the higest rate of return possible
lth
B Restoring to tax planning to keep tases as low as possible

C Planning for retirement with the maximum income possible
ea
D Process of solving financial problems and reaching financial goals

w
ill
dw
oo
G

AMFI Question and Answers

Uploaded by

Copyright:

You might also like

AMFI Question and Answers

Uploaded by

Document Information

Original Description:

Copyright

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

AMFI Question and Answers

Uploaded by

Copyright:

Most of the Arbitrage Funds take Contrary Position of Futures and

D Fixed Percentage according to SEBI Regulations.

A He is redeeming the investment within 9 months

A RTGS and NEFT

D NRE and NRO A/C

B Between 100 and Rs.6000

157 Sharpe ratio computes.

158 Low risk (conservative portfolio) consists of ?

B 50% Government securities funds + 50% Money Market Funds.

C Can be withdrawn after a year

166 Tier I pension account is withdrawable

A Tactical Asset Allocation

D Strategic Asset Allocation

178 A female member of the family can karta in HUF

B According to the time mention in web browser.

B Preceding Days NAV of Next working Day of fund realisation

B Preceding Days NAV

A Both the statements are true

B Both the statements are wrong

B Both the statements are wrong

D Only Second Part

215 Offer Documents need SEBI approval

216 Offer document need to be vetted and verified by SEBI

226 The annual yield on RBI Relief Bonds is

B 9.5% before tax

227 Indira Vikas Patra is an investment product popular with

D Risk taking investors

237 In which commodity mutual fund cannot invest

238 Mutual fund offer wider range of portfolio than NPS

239 If number of dependant increases in family, risk appetite

247 Why should one buy an insurance policy

C Associate group of Sponsor

A Young unmarried stage

D Call centre employee

259 Authorised Signatory is required in case of

260 ________________ can sale schemes of only one mutual fund.

B Agent Registration Number

270 The Synopsis of Offer Document is

271 AMFI stands for

D Association of Mutual Foundation in India

A To be borne by the AMC

B both statements are wrong

decided by its marketing team.

requirement of passing the certifying test.

308 Trail commissions are linked to valuation of portfolio in the market

309 Which of the following is an international asset?

310 Investment objective defines the broad investment charter

311 Age come under

A Both statements are right

D Only the 2nd statement is right

schemes are exempted from Wealth tax.

B Debt securities, other than govt securities

E any fund as per the customer's age

C Are the expenses to be done in foreign currency

C Staretegic Financial Plan

A Gather Client data, define client goals

B Amount of buying and selling done by the fund

B The sentiments of market

B S&P CNX Nifty

377 To evaluate a close-ended debt-fund, a suitable benchmark would be

C CRISIL Debt Index

D Saving for child's education