Question Text Option 1

NAV of a fund increased from Rs. 10 to Rs. 40 in

three years.What is the compounded annual
1 growth rate? 25%

If the NAV of an open-ended fund increases from

2 Rs.8 to Rs.10 in 6 months, the absolute return is 6%

An investor is doing a liquid investment, fund is

available and time is 12.30. NAV would be
3 applicable for the _________________ Next working day
Cut-off time for NAV _____________________
4 Decided by AMC

For an open ended fund the repurchase price

should not be lower than
5 ____________________ NAV

A loads means __________________ An amount recovered from

6 the registrar

The NAV of KBC mutual fund equity scheme is Rs.

10.5 on 3rd October 2012 if the fund charges 0.25
7 % exit load what would be the redemption price. 7.875

Mutual funds transaction on stock exchange is

8 governed by stock exchange redressal system. 1
Asset + income – liabilities – expenses =
9 ______________________ Assets

________________ = Liabilities Accrued expenses + Payables

10 + Other liabilities
11 Funds pay dividend in _________________ Dividend payout option

______________ is an amount that is charged to

investors to compensate for all the sales and
12 distribution related expenses of the units. Initial Issue Expenses

The process of valuing each security in the

investment portfolio of the scheme at its market
13 value is called _____________ Load

The investment grow faster in dividend

reinvestment options as compared to the growth
option because more units are added on
14 dividend reinvest. 1
 The exit load percentage is deducted from the
15 ______________________ AMC
16 Maximum exit load is _______% 7
SEBI does not allow transaction charges
17 on_____________ investments. Direct
Initial issue expense that can be charged to fund
18 is ______________ Nil
Institutional Distributors Build Reach through
19 _____________________ Employees

Which of the following is incorrect – Penalties and fines for

20 “Mutual Funds cannot be charged breaking the law

NAV is to be calculated up to __________decimal

places in the case of index funds, liquid funds and
21 other debt funds. 2

NAV for equity and balanced funds is to be

calculated up to at least _________decimal
22 places. 2

An equity fund has weekly average net assets of

Rs. 1400. Crore outstanding in the year. The
maximum ongoing expenses (excluding
issue/redemption expenses) that may be charged
23 to the fund amount to: Rs. 26.75 crore

A five-star rating in MF schemes indicates which

24 of the following Lowest Expense Ratio

For schemes that have been in existence for less

than a year, past performance will not be
25 provided 1
 Option 2 Option 3 Option 4

100% 300% 58.74%

25% 20% 8%

Closing NAV of Day

immediately Closing NAV of Day
preceding the date of immediately preceding next
Same Day application business day

Same for all schemes By Trustee Prescribed by SEBI

95% OF NAV 93% OF NAV 97% OF NAV

An amount paid to
An amount which is recovered the broker by the An amount paid by the fund
from the investor fund to the exchange

13.125 10.25 10.4737

Liabilities Net assets None of the above

Accrued expenses +
Asset + income – liabilities payables – other Asset – income –
– expenses liabilities liabilities + expenses
Dividend reinvests Both of the above Growth option

Contingent Deferred Sales

Charge Transaction charges Load

Transaction charges Mark to market None of the above

0
 Contingent Deferred
Net Asset Value Sales Charge None of the above
5 6 8

Indirect Both I and II None of the above

1.00% 2.00% 1.75%

Agents Sub brokers Any of the above

Marketing and Corporate advertising and

Fund accounting fees Distribution Costs infrastructure expenses

4 5 8

4 5 8

Rs. 35.00 crore Rs. 19.75 crore Rs. 27.5 crore

Demonstrate
superior
Lowest Load performance Best Portfolio