UnAttempted

CORRECT ANSWER:

False

Explanation:

Stock Exchanges trading facility for MFs is essentially an

order routing system between the investors and the AMC, the
exchanges do not offer Settlement Guarantee.

Responsibility for settlement is that of the AMC.

Q 2. _______ is not a fair selling practice by a mutual fund

distributor.
Informing the investor of the various investment options
Carefully understanding the clients financial needs
Encouraging the churning of investments
Giving personalised after sales service

UnAttempted

CORRECT ANSWER:

Encouraging the churning of investments

Explanation:
 Churning means frequent buying and selling.

Encouraging over transacting and churning of Mutual Fund

investments to earn higher commissions by MF agents is a
bad practice.

Q 3. Who appoints the trustees of a Mutual Fund ?

RBI
SEBI
Sponsor
AMC

UnAttempted

CORRECT ANSWER:

Sponsor

Explanation:

The sponsor appoints the Trustees.

The operations of the mutual fund trust are governed by a

Trust Deed, which is executed between the sponsors and the
trustees.

Q 4. ________ is/are included in the Key Information Memorandum

(KIM).
Name of the fund manager, trustees etc.
 Performance of schemes
Asset allocation plan
All of the above

UnAttempted

CORRECT ANSWER:

All of the above

Explanation:

KIM is essentially a summary of the SID and SAI. It contains

the key points of the offer document that are essential for the
investor to know to make a decision on the suitability of the
investment for their needs.

All the above details and more are included in the KIM.

Q 5. Who cannot invest in Mutual Funds in India ?

Minors
HUFs
NRIs
All of the above

UnAttempted

CORRECT ANSWER:
 Minors

Explanation:

Minors i.e. persons below the age of 18, are not legally
eligible to enter into a contract. They need to invest through
their guardians.

Hindu Undivided Families (HUFs) and Non-Resident Indians

(NRIs) can invest in Indian MFs as per guidelines.

Q 6. State True or False - The Thematic funds will always have a

wider exposure than Sector funds.
True
False

UnAttempted

CORRECT ANSWER:

True

Explanation:

Thematic funds invest in line with an investment theme. For

example, an infrastructure thematic fund might invest in
shares of companies that are into infrastructure construction
plus in toll-collection, cement, steel, telecom, power etc.
 The investment is thus more broad-based than a sector fund.

Sector funds invest in only a specific sector. For example, a

banking sector fund will invest in only shares of banking
companies.

Q 7. The difference between the yield on Gilt and the yield on a

non-Government Debt security is called its ______ .
YTM
Credit Spread
Yield to Call
Risk Spread

UnAttempted

CORRECT ANSWER:

Credit Spread

Explanation:

The yield on Gilt (Govt. securities) is generally the lowest in

the market for a given tenor. Since non-Government issuers
can default, they tend to offer higher yields for the same
tenor.

The difference between the yield on Gilt and the yield on a

non-Government Debt security is called its credit spread.

Q 8. Gold futures contract ________ .

 are traded in commodity exchanges
are not standardized contracts
are available through mutual funds
None of the above

UnAttempted

CORRECT ANSWER:

are traded in commodity exchanges

Explanation:

Gold futures contracts are standardised and are traded in

commodity exchanges like the National Commodities
Exchange (NCDEX).

Q 9. From the listed below, ______ has the highest credit risk .
High yield funds
ELSS Funds
Gilt funds
Index funds

UnAttempted

CORRECT ANSWER:

High yield funds

 Explanation:

Junk bond schemes or high yield bond schemes invest in

securities that have a lower credit rating indicating poor
credit quality. This leads to high credit risk / default risk.

Q What is the role of the custodian ?

10. To issue account statements to the MF unit holders
To keep the safe custody of the securities of the mutual
fund scheme
To issue statement of funds holding to the investors
To execute the buy and sell orders in the stock market

UnAttempted

CORRECT ANSWER:

To keep the safe custody of the securities of the mutual fund

scheme

Explanation:

The custodian has custody of the assets of the fund. As part

of this role, the custodian needs to accept and give delivery
of securities for the purchase and sale transactions of the
various schemes of the fund. Thus, the custodian settles all
the transactions on behalf of the mutual fund schemes.
Q Usually active funds give higher returns as investors bear a
11. higher fund management expense - State True or False ?
False
True

UnAttempted

CORRECT ANSWER:

False

Explanation:

Higher fund management does not mean better performance.

Also some time passive funds like index funds can give better
returns than active funds due to the fund managers wrong
analysis.

Q By investing in mutual funds an investor uses the services of

12. ______ .
a professional actuary
a professional insurance agent
a professional investment manager
a professional tax planner

UnAttempted

CORRECT ANSWER:
 a professional investment manager

Explanation:

Mutual Funds employ professional investment experts to

manage the money of investors by investing in suitable
stocks / debt etc.

Q In which type of fund is the risk of investor not selecting the

13. correct sector maximum ?
Thematic Funds
Sector Funds
Arbitrage Funds
Index Funds

UnAttempted

CORRECT ANSWER:

Sector Funds

Explanation:

Sector funds suffer from concentration risk - the entire

exposure is to a single sector. If that sector does poorly, then
the scheme returns are seriously affected. Sector funds are
considered to carry the highest risk among the equity mutual
 funds.

Q _______ investment style involves buying stocks which are

14. valued lower as per fundamental analysis.
Tactical
Growth
Cyclical
Value

UnAttempted

CORRECT ANSWER:

Value

Explanation:

Value investment style is an approach of picking up stocks,

which are priced lower than their intrinsic value, based on
fundamental analysis.

The belief is that the market has not appreciated some

aspect of the value in a company’s share – and hence it is
cheap. When the market recognizes the intrinsic value, then
the price would shoot up.

Q When the interest rates are rising, the bond funds which have
15. short average maturity are more likely to outperform - State
True or False ?
True
 False

UnAttempted

CORRECT ANSWER:

True

Explanation:

Short-term debt funds help earn higher interest income in a

rising interest rate scenario.

( Bonds are essentially loans. If prevailing interest rates on

loans, including bonds, are rising, bond investors tend to
demand the higher yielding bonds to make more money on
their bond investments )

Long term debt funds help investors earn higher returns from
capital gains in falling interest rate scenario.

Q Tactical Asset Allocation is suitable only for seasoned

16. investors operating with large investible surpluses - State
True or False ?
True
False

UnAttempted

CORRECT ANSWER:
 True

Explanation:

Tactical Asset Allocation is the decision that comes out of

calls on the likely behaviour of the market.

It is suitable only for seasoned investors operating with large

investible surpluses.

Q The Offer Document will NOT give any information on

17. ________ .
The risk factors of the scheme
The name of stocks in which the scheme is likely to invest
Investment objectives of the scheme
The features of the portfolio of the scheme

UnAttempted

CORRECT ANSWER:

The name of stocks in which the scheme is likely to invest

Explanation:

Decision on the stocks to invest is a closed door procedure

and is decided by the fund managers in association with the
 research and analysis team.

Q The dividend declared on units under lien is paid to _______ .

18. always to the lien holder
always to the unit holder
the lien holder or the unit holder as per the agreement
Units under lien do not receive any dividends

UnAttempted

CORRECT ANSWER:

the lien holder or the unit holder as per the agreement

Explanation:

The dividend pay-outs declared on units under lien may be

paid to the unitholder or the lender depending upon the
agreement.

Q An ongoing bond fund will lose value when the interest rates
19. in the market ______ .
Rise
Fall
remains same
will be equal to yields

UnAttempted
 CORRECT ANSWER:

Rise

Explanation:

Suppose an investor has invested in a debt security that

yields a return of 7 percent. Subsequently, yields in the
market for similar securities rise to 8 percent. It stands to
reason that the security, which was bought at 7 percent
yield, is no longer such an attractive investment. It will
therefore lose value.

Q The mechanism used to ensure that the cutoff timing is

20. strictly followed is called _________.
Stamp time
Time verification
Time stamping
Auditing

UnAttempted

CORRECT ANSWER:

Time stamping

Explanation:
 The NAV that is applicable to a transaction depends, among
other things, on the day and time at which the transaction
request was received at the official point of acceptance. It
is therefore very critical to record the time at which a
transaction was received and use this information to
determine the applicable NAV for a transaction.

Time stamping is the process by which a stamp is put with

details like date and exact time of receipt etc. on the
transaction form.

Q The lock in for Equity Linked Savings Scheme (ELSS Funds)

21. is ______ .
1 year
2 years
3 years
5 years

UnAttempted

CORRECT ANSWER:

3 years

Explanation:

Equity Linked Savings Schemes (ELSS) are diversified equity

funds that offer tax benefits to investors under section 80 C
of the Income Tax Act.

The investment is subject to lock-in for a period of 3 years

 during which it cannot be redeemed, transferred or pledged.

Q _______ gives the investor exposure to international assets.

22. Index funds
ELSS Fund
International Funds
Arbitrage Funds

UnAttempted

CORRECT ANSWER:

International Funds

Explanation:

International funds invest in markets outside India, by

holding certain foreign securities in their portfolio.

Q Which of the following is an important aspect of an OFFER

23. DOCUMENT?
To inform the investors about the AMC's views on Stock
Markets
To inform the investors on the performance of the scheme
To provide a comparison of the schemes
To inform the investors on the detailed information about
the scheme
 UnAttempted

CORRECT ANSWER:

To inform the investors on the detailed information about the

scheme

Q Mr. A has a small business and will generally need more

24. allocation to liquid funds than Mr. B, who is senior manager
with a multinational company. - State True or False ?
True
False

UnAttempted

CORRECT ANSWER:

True

Explanation:

Mr. A may need funds for his business anytime so will

allocate more amount to liquid funds.

Mr. B has a good high paying job, so he has a regular flow of

money in form of salary. He will generally have no liquidity
problems so will invest less in liquid funds and more in
growth funds.
Q When should an investor adopt a strategy of limiting equity
25. exposure to index funds ?
In the Accumulation phase
In the Retirement phase
In the Sudden wealth phase
None of the above

UnAttempted

CORRECT ANSWER:

In the Retirement phase

Explanation:

Retirement Phase - This is the stage when the investor needs

the funds that have been accumulated over time. Hence,
investors in this stage would move the funds to asset classes
that meet their need for easy access to funds or regular
periodic income as the case may be.

So the investor will invest more in debt / liquid funds and very
less in equity funds.

Q State True or False - Gilt schemes have more risks than liquid
26. schemes as their NAV fluctuates more due to changes in the
yield market.
True
False
 UnAttempted

CORRECT ANSWER:

True

Explanation:

Gilt schemes, which invest in only long term government

securities, have a higher price risk because their NAV can
fluctuate a lot more, on account of changes in yield in the
market. Greater the proportion of longer maturity
securities in the portfolio, higher would be the fluctuation in
NAV.

Q As the Unit Certificates are non-transferable, they do not

27. offer any real transactional convenience for the Unit-holder -
State True or False ?
True
False

UnAttempted

CORRECT ANSWER:

True

Explanation:
 Since Unit Certificates are non-transferable, they do not offer
any real transactional convenience for the Unit-holder.
However, if a Unit-holder asks for it, the AMC is bound to
issue the Unit Certificate within 5 working days of receipt of
request

Q One of the below options is a function of AMFI - which one ?

28. To manage the investor protection fund
To compute the NAV
To make available the data on AUM, NAV and other data of
the mutual fund industry
To regulate insider trading

UnAttempted

CORRECT ANSWER:

To make available the data on AUM, NAV and other data of

the mutual fund industry

Explanation:

AMFI publishes the AUM, NAVs etc on its website.

(Investor Protection fund is managed as per SEBI guidelines,

NAVs are calculated by the AMCs and SEBI regulates insider
trading)
Q With respect to KIM - Key Information Memorandum, which of
29. the following statement is NOT true ?
KIM is basically an abridged version of the offer document
KIM basically contains only the names of Sponsor, Trust
and AMC and not their functions
The KIM is attached to each and every mutual fund
application form
KIM has to be provided only if the investors ask for it

UnAttempted

CORRECT ANSWER:

KIM has to be provided only if the investors ask for it

Explanation:

KIM is essentially a summary of the SID and SAI. It contains

the key points of the offer document that are essential for the
investor to know to make a decision on the suitability of the
investment for their needs. It is more easily and widely
distributed in the market. As per SEBI regulations, every
application form is to be accompanied by the KIM.

Q When a Mutual fund scheme makes profits or losses, these

30. profits and losses belong to _______ .
The AMC
The Trustees
The Fund Manager
The Investor
 UnAttempted

CORRECT ANSWER:

The Investor

Explanation:

The investor enjoys the profits as well as bears the losses of

his investments in Mutual Funds.

Q The NAV of a mutual fund unit changes every day due to

31. changes in _______ .
number of investors in the mutual fund
market value of the mutual fund portfolio
the size of the portfolio
the units remaining in the portfolio

UnAttempted

CORRECT ANSWER:

market value of the mutual fund portfolio

Explanation:

The formula for calculating Net Asset Value -

 NAV = (Current value of investments held + Income accrued +
Current assets – Current liabilities – Accrued expenses / No.
of outstanding units

So when the current value of investment held (ie. market

value of portfolio) changes, the NAV will also change.

Q A board resolution for investing in a mutual fund scheme is

32. compulsorily required by _______ .
Non Resident Indians - NRIs
Hindu Undivided Family - HUF
Institutional Investors
Minors

UnAttempted

CORRECT ANSWER:

Institutional Investors

Explanation:

Institutional investors require a authorisation for the

investing in any security / asset etc. This is typically in the
form of a Board Resolution.

Q Identify the TRUE statements - A) Unsystematic risk is

33. measured by its Beta B) The diversified stock index has a
Beta of 1 C) An investment with a beta of 0.7 will move 7
percent when markets move by 10 percent
 A and B are true
B and C are true
A and C are true
All A, B and C are true

UnAttempted

CORRECT ANSWER:

B and C are true

Explanation:
1) Systematic risk is measured by its Beta

2) The diversified stock index, by definition, has a Beta of 1.

Schemes, whose beta is more than 1, are seen as more risky
than the market. Beta less than 1 is indicative of a scheme
that is less risky than the market.

3) An investment with a beta of 0.7 will move 7 percent when

markets move by 10 percent. This applies to increase as well
as fall in values. An investment with a beta of 1.2 will move by
12 percent both on the upside and downside when markets
move (up/down) by 10 percent.

Q The Asset Management Company primarily compensates the

34. mutual fund distributors through ________ .
Commissions
Salaries
Salary + Commission
Share in AMC's profit
 UnAttempted

CORRECT ANSWER:

Commissions

Explanation:

The mutual fund distributor earns revenue in the form of

commission income for distribution of the mutual fund
products/schemes. The commission may be linked to either
the transaction (Upfront commission) or to the assets under
management (Trail Commission).

Q Identify the true statement as per AMFI’s Code of Conduct for

35. Intermediaries of Mutual Funds.
Intermediaries should rebate some of the commission
received by them to the investors
Intermediaries should abstain from making negative
statements about any Asset Management Company or
scheme
Intermediaries should split applications so that they can
earn higher transaction charges

UnAttempted

CORRECT ANSWER:

Intermediaries should abstain from making negative

statements about any Asset Management Company or
 scheme

Explanation:
One of the clause under AMFI’s Code of Conduct for
Intermediaries of Mutual Funds is - Abstain from making
negative statements about any AMC or scheme and ensure
that comparisons, if any, are made with similar and
comparable products along with complete facts.

Q What is the maximum permissible limit of investment a single

36. investor can have in a scheme?
5% of the corpus
10% of the corpus
20% of the corpus
25% of the corpus

UnAttempted

CORRECT ANSWER:

25% of the corpus

Explanation:

As per SEBI rules, a Scheme/Plan shall have a minimum of 20

investors and no single investor shall account for more
than 25 percent of the corpus of the Scheme/Plan(s).

Q Which of these statement is TRUE with respect to Cut-off

37. timings?
Cut-off timings are prescribed by SEBI from time to time
Cut-off timings are agreed upon between the AMC and the
Collection centers
Cut-off timings are different from AMC to AMC
Cut-off timings are different for different RTAs

UnAttempted

CORRECT ANSWER:

Cut-off timings are prescribed by SEBI from time to time

Explanation:

SEBI has prescribed cut-off timing to determine the

applicable NAV and these timings are uniformly applicable
for all mutual funds.

Q In case of _______ , the Net Asset Value has to be declared for

38. upto 4 decimal points.
Mid Cap and Small Cap Funds
Liquid Funds
Aggressive Hybrid Funds
ELSS Funds

UnAttempted

CORRECT ANSWER:
 Liquid Funds

Explanation:

NAV is to be calculated upto 4 decimal places in the case of

index funds, liquid funds and other debt funds.

(NAV for equity and balanced funds is to be calculated upto

at least 2 decimal places)

Q The Key Information Memorandum (KIM) is an abridged

39. version of which of these documents?
The yearly statement of the portfolio of the fund
The half yearly statement of the financial statement of the
fund
The annual accounts of the fund
Scheme related documents

UnAttempted

CORRECT ANSWER:

Scheme related documents

Explanation:

KIM is essentially a summary of the Scheme Information

Document -SID and Statement of Additional Information -SAI.
 Scheme related documents consist of SID and SAI.

It contains the key points of these documents that are

essential for the investor to know to make a decision on the
suitability of the investment for their needs.

Q Distributors can 'opt-out' of charging transaction charges

40. _____ .
at AMC level
at investor level
at scheme level
at distributor level

UnAttempted

CORRECT ANSWER:

at distributor level

Explanation:
Distributors have the option of opting out of charging
transaction charges. But such opting out shall be applicable
only at distributor level. This means that the distributor
cannot choose to charge transaction charge from one
investor and not from another.

Q What is the Net Asset Value (NAV) after dividend payment

41. called?
ex-Dividend NAV
ex-Load NAV
cum-Dividend NAV
Net - NAV
 UnAttempted

CORRECT ANSWER:

ex-Dividend NAV

Explanation:
After a dividend pay-out, the reduced NAV is called ex-
Dividend NAV.

(After a dividend is announced, and until it is paid out, it is

referred to as cum-Dividend NAV)

Q __________ invest in those securities which have maturity

42. matching the maturity of the scheme.
Fixed Maturity Plans
Exchange Traded Funds
ELSS Funds
High Yield Funds

UnAttempted

CORRECT ANSWER:

Fixed Maturity Plans

Explanation:
 Fixed Maturity Plans are a kind of close-ended debt fund
where the duration of the investment portfolio is closely
aligned to the maturity of the scheme.

Fixed Maturity Plan is ideal when the investor’s investment

horizon is in sync with the maturity of the scheme, and the
investor is looking for a more predictable return than any
conventional debt scheme, and a return that is generally
superior to what is available in a fixed deposit.

Q When can mutual funds charge an additional expense of

43. 0.30% of daily net assets of the scheme?
If the new inflows from beyond top 30 cities are at least (a)
30 percent of gross new inflows in the scheme or (b) 15
percent of the average assets under management (year to
date) of the scheme, whichever is higher
If the new inflows from beyond top 30 cities are at least (a)
20 percent of gross new inflows in the scheme or (b) 5
percent of the average assets under management (year to
date) of the scheme, whichever is higher
If the new inflows from beyond top 15 cities are at least (a)
25 percent of gross new inflows in the scheme or (b) 15
percent of the average assets under management (year to
date) of the scheme, whichever is higher
If the new inflows from beyond top 15 cities are at least (a)
10 percent of gross new inflows in the scheme or (b) 5
percent of the average assets under management (year to
date) of the scheme, whichever is higher

UnAttempted

CORRECT ANSWER:

If the new inflows from beyond top 30 cities are at least (a) 30
 percent of gross new inflows in the scheme or (b) 15 percent
of the average assets under management (year to date) of
the scheme, whichever is higher

Explanation:

In addition to the normal expenses limit, the following

expenses may be charged to the scheme :

If the new inflows from beyond top 30 cities are at least :

(a) 30 percent of gross new inflows in the scheme or

(b) 15 percent of the average assets under management

(year to date) of the scheme

whichever is higher, funds can charge additional expense of

up to 0.30 percent of daily net assets of the scheme.

Q _________ can be used in lieu of dividend payouts.

44. Systematic Withdrawal Plan (SWP)
Systematic Transfer Plan (STP)
Systematic Investment Plan (SIP)
Total Redemption

UnAttempted

CORRECT ANSWER:

Systematic Withdrawal Plan (SWP)

 Explanation:

Mutual funds make it convenient for investors to manage

their SWPs by registering the amount, periodicity (generally,
monthly) and period for their SWP.

Some schemes even offer the facility of transferring only the

appreciation or the dividend. In this option, the withdrawal is
not fixed but will vary depending upon the availability of
appreciation in the specific investment chosen by the
investor.

Q Which of these statements is true with respect to a Switch

45. transaction?
Switch transaction is allowed only after one year from date
of purchase
Switch transaction is similar to a purchase transaction
Switch transaction is similar to a sale transaction
Switch transaction is a redemption from one mutual fund
scheme and simultaneous purchase in to another scheme

UnAttempted

CORRECT ANSWER:

Switch transaction is a redemption from one mutual fund

scheme and simultaneous purchase in to another scheme

Explanation:
 A switch is a redemption from one scheme and a purchase
into another combined into one transaction.

For example, investors who believe that equity markets have

peaked and want to book profits can switch out from an
equity scheme and switch into a short-term debt fund.

Q Some of the costs incurred by the Asset Management

46. Companies to manage the mutual fund schemes can be
charged to _________ in proportion to their holding of units in
the scheme.
Distributors
Stock Brokers
Unit holders
Independent Financial Advisors

UnAttempted

CORRECT ANSWER:

Unit holders

Explanation:

All the investor's money is pooled together in a scheme.

Costs incurred for managing the scheme are shared by all
the Unit-holders in proportion to their holding of units in the
scheme.
Q What are the guidelines issued by AMFI for intermediaries
47. known as?
SEBI Brokers and Intermediaries guidelines
Know Your Distributor guidelines
AMFI Guidelines & Norms for Intermediaries (AGNI)

UnAttempted

CORRECT ANSWER:

AMFI Guidelines & Norms for Intermediaries (AGNI)

Explanation:

AMFI has framed a set of guidelines and code of conduct for

intermediaries (known as AMFI Guidelines & Norms for
Intermediaries (AGNI)), consisting of individual agents,
brokers, distribution houses and banks engaged in selling of
mutual fund products.

Q Identify the TRUE statement(s) for an Equity Linked Saving

48. Scheme (ELSS). 1. In Dividend Reinvestment option of an
ELSS fund, the units acquired on account of dividend would
be free from any lock-in 2. In Dividend Reinvestment option of
an ELSS fund, the units acquired on account of dividend
would be subject to a three year lock in from the date of
allotment 3. ELSS cannot pay any dividend as its under lock-
in
 Only 1
Only 2
Only 3
Only 2 and 3

UnAttempted

CORRECT ANSWER:

Only 2

Explanation:

If one opts for dividend reinvestment plan, each time a

dividend is reinvested, the same would also attract a 3-year
lock-in.

(Note - Currently the dividend reinvestment plan in ELSS has

been abolished)

Q Where should the change in status of an individual from a

49. Resident to a Non-Resident Indian updated for mutual fund
investments?
It should be updated with the Registrar and Transfer Agent
It should be updated with the KYC Registration Agency
It should be updated with the directly with the Mutual Fund
It can be updated with any of the three options provided

UnAttempted

CORRECT ANSWER:
 It should be updated with the KYC Registration Agency

Explanation:

The KYC Registration Agency (KRA) prescribes a 'Change

Form' to be used to register change, if any, in the information
provided at the time of the Know Your Customer (KYC)
process. These include: • Change in Name • Change in
Status/ Nationality • Change in PAN • Change in permanent
address or address for correspondence etc.

Q The choice of benchmark for a Debt Scheme could be chosen

50. on the basis of : 1. Scheme Size 2. Scheme Type 3.
Investment Universe
Both 1 and 2
Both 2 and 3
Both 1 and 3
All 1,2 and 3

UnAttempted

CORRECT ANSWER:

Both 2 and 3

Explanation:
 Scheme type and choice of investment universe drive the
choice of benchmark in debt schemes. The size of the
scheme is immaterial.

Q On what basis will the payment be made to an investor who

51. claims his erstwhile unclaimed redemption amount within
three years?
The amount paid will based on the prevailing NAV after
adding the income earned on the unclaimed profits
The amount paid will based on the NAV at the time of
original redemption plus income earned on the unclaimed
amount
The amount paid will based on the NAV at the time of
original redemption plus income earned on the unclaimed
amount and deducting any penalty on the same
The amount paid will based on the average of the NAV at
the time original redemption and todays NAV after
accounting for income earned and penalty if any

UnAttempted

CORRECT ANSWER:

The amount paid will based on the prevailing NAV after

adding the income earned on the unclaimed profits

Explanation:
Recovery of unclaimed amounts by the investors is as
follows:

• If the investor claims the money within 3 years, then

payment is based on prevailing NAV i.e. after adding the
 income earned on the unclaimed money.

• If the investor claims the money after 3 years, then payment

is based on the NAV at the end of 3 years.

Q The indices based on Government securities will be an

52. appropriate benchmark for which type of funds?
Credit Risk Funds
Gilt Funds
Money Market Funds
Liquid Funds

UnAttempted

CORRECT ANSWER:

Gilt Funds

Explanation:
Gilt funds invest only in Government securities. Therefore,
indices based on Government Securities are the appropriate
benchmark.

Q Identify the true statement with respect to investments in

53. mutual funds through Stock Exchanges?
Stock exchanges have now become another important
channel for mutual fund companies to sell their units to
investors
One can buy mutual fund units on stock exchange but
cannot sell them on stock exchange
The mutual fund units purchased through a stock
exchange have a mandatory lock-in period of 30 days
 None of the above are true

UnAttempted

CORRECT ANSWER:

Stock exchanges have now become another important

channel for mutual fund companies to sell their units to
investors

Explanation:

SEBI has facilitated buying and selling of the units of mutual

funds through the stock exchanges. Exchanges have
developed mutual fund transaction engines for the purpose.
The low cost and deeper reach of the stock exchange
network enables increased level of participation of retail
investors in mutual funds.

Q In which of these cases will the 'lock-in' in a retirement fund

54. be lower than the prescribed 5 years ?
When the retirement age is earlier than 5 years from the
date of investment
When the age of the investor at the time of making initial
investment is not less than 50 years
When the targeted corpus is achieved before 5 years
All of the above
 UnAttempted

CORRECT ANSWER:

When the retirement age is earlier than 5 years from the date
of investment

Explanation:
Retirement Fund is an open-ended retirement solution-
oriented scheme having a lock-in of 5 years or till retirement
age (whichever is earlier). Scheme having a lock-in for at
least 5 years or till retirement age whichever is earlier.

Q Mr. X has invested Rs. 2,00,000 in a 370 day FMP and on

55. maturity he received Rs. 2,15,832. What is the capital gain in
this transaction?
Rs. 7916
Rs. 13750
Rs. 15832
Insufficient Data

UnAttempted

CORRECT ANSWER:

Rs. 15832

Explanation:
 Capital Gains is calculated as the difference between the
sum invested and the sum realized when the units are sold /
matured.

So in the above question, capital gain is Rs 215832 - 200000 =

Rs. 15832

Q Identify the FALSE statement. 1. Arbitrage funds can invest

56. in both Futures/Options(F&O) and cash markets 2. The only
objective of an Arbitrage fund is to provide capital
appreciation 3. Arbitrage funds have lower risk compared to
Equity Funds
Only 1
Only 2
Both 2 and 3
Both 1 and 3

UnAttempted

CORRECT ANSWER:

Only 2

Explanation:

Arbitrage funds work on the mispricing of equity shares in

the spot and futures market. The fund manager
simultaneously buys shares in the cash market and sells it in
futures or derivatives markets. The difference in the cost
price and the selling price is the return you earn.
 Their risk level is comparable with that of a pure debt fund.
The returns from an Arbitrage fund is comparable to a debt
fund. There is no capital appreciation.

Q Which of these statement(s) is/are TRUE? 1. There cannot be

57. a price impact on mutual fund units due to portfolio
rebalancing and/or liquidity demands on account of
redemptions. 2. Market liquidity of mutual fund units can get
impacted on account of company/sector related events
Only 1
Only 2
Both 1 and 2

UnAttempted

CORRECT ANSWER:

Only 2

Explanation:

Liquidity Risk is one of the general risk factor involved in

Mutual Fund investments.

The liquidity of investments made in the Scheme may be

restricted by trading volumes, settlement periods and
transfer procedures. Although the investment universe
constitutes securities which will have high market liquidity,
there is a possibility that market liquidity could get impacted
on account of company/sector/general market related events
 and there could be a price impact on account of portfolio
rebalancing and/or liquidity demands on account of
redemptions.

Q Identify from the following what is not considered as a

58. scheme fundamental attribute?
Type of scheme
Investment objective
Investment pattern
Name of fund manager

UnAttempted

CORRECT ANSWER:

Name of fund manager

Explanation:

The fund manager and his/her name is not a fundamental

attribute of a scheme.

Q Mr. A is an existing investor in a mutual fund scheme and he

59. is now investing Rs. 5000 in the direct plan of the scheme.
What will be his net investment in the scheme after
considering the transaction charges?
Rs. 4950
Rs. 4900
 Rs. 4875
Rs. 5000

UnAttempted

CORRECT ANSWER:

Rs. 5000

Explanation:

Each mutual fund has to offer two plans to the investors, viz.,
regular plan and direct plan. In a regular plan the investment
is through a mutual fund distributor and in a Direct plan, the
investor purchases units directly from the fund.

There are no transaction charges on direct investments.

Q Investments have to be made only through authorized

60. signatories for investments by _______ .
Institutional investors
Hindu Undivided Family (HUF)
Non Resident Indians (NRI)
High net worth individuals (HNI)

UnAttempted

CORRECT ANSWER:
 Institutional investors

Explanation:

Since institutional investors are not natural persons,

authorised individuals invest on behalf of the institution.

Authorisation for the investing institution to invest is typically

in the form of a Board Resolution.

Q As per SEBI Code of Conduct, mutual fund schemes

61. portfolios should be managed in the interest of _______ .
Trustees
Sponsors
Brokers
All classes of unit holders

UnAttempted

CORRECT ANSWER:

All classes of unit holders

Explanation:

As per SEBI Code of Conduct - Trustees and asset

 management companies shall carry out the business and
invest in accordance with the investment objectives stated in
the scheme related documents and take investment decision
solely in the interest of unitholders.

Q The form for registering a change in the default bank account

62. has to be signed _____ .
by the first holder only
by all the holders of the folio
according to the mode of holding of the folio
by all the holders of the bank account

UnAttempted

CORRECT ANSWER:

according to the mode of holding of the folio

Explanation:
The form for registering the change in default bank account
has to be signed according to the mode of holding of the
folio.

Q For which mutual fund distributors is a due diligence process

63. mandated by SEBI?
A mutual fund distributor who services more than 25
investors
A mutual fund distributor who receives commission of over
Rs. 50 Lakhs from a single mutual fund
A mutual fund distributor who brings in investments from
investors of over Rs. 1 crore for a single mutual fund
 All of the above

UnAttempted

CORRECT ANSWER:

A mutual fund distributor who receives commission of over

Rs. 50 Lakhs from a single mutual fund

Explanation:

SEBI has mandated AMCs to put in place a due diligence

process to regulate distributors who qualify any one of the
following criteria:

a. Multiple point presence (More than 20 locations)

b. AUM raised over Rs. 100 crore across industry in the non-
institutional category but including high networth individuals
(HNIs)

c. Commission received of over Rs. 1 Crore p.a. across

industry

d. Commission received of over Rs. 50 Lakhs from a single

mutual fund.

Q Mrs. Neeta needs Rs. 5,00,000 in 3 years from now. The

64. interest rate is 6%. By which formula can we calculate the
amount which is required to be invested today to achieve the
goal?
 500000 * (1+0.06)*3
500000 / (1+0.06)^3
500000 / (1+0.06)*3
500000 * (1- 0.06)^3

UnAttempted

CORRECT ANSWER:

500000 / (1+0.06)^3

Explanation:

Present value formula = F / (1 + r) ^ n

Where F is the future value (500000) ; r is the rate of interest

(6% p.a.); and n is the number of years (3)

= 500000 / (1+0.06)^3

Q What is the investment in equity and equity related

65. instruments in a Balanced Hybrid Fund?
Between 20% to 30% of total assets
Between 10% to 20% of total assets
Between 40% to 60% of total assets
Between 60% to 80% of total assets

UnAttempted

CORRECT ANSWER:
 Between 40% to 60% of total assets

Explanation:

Balanced Hybrid Fund is an open-ended balanced scheme

investing in equity and debt instruments. The investment in
equity and equity related instruments shall be between 40
percent and 60 percent of total assets.

Q A person wants to create a synthetic index. Guide him as to

66. in which of these categories the weightage of equity index
would be the lowest?
Super aggressive hybrid fund
Aggressive hybrid fund
Balanced hybrid fund
Conservative hybrid fund

UnAttempted

CORRECT ANSWER:

Conservative hybrid fund

Explanation:

In a CRISIL Conservative Hybrid Fund, the equity component

 will be only 25% and Debt will be 75%.

In Aggressive Hybrid Fund, the ratio of Equity and Debt is

75% and 25% and in a Balanced Hybrid Fund, the ratio is 50%
and 50%.

Q The minimum investment limit in equity/equity related

67. instruments of large cap companies for a Large Cap mutual
fund scheme is ______ of total assets.
70%
80%
85%
90%

UnAttempted

CORRECT ANSWER:

80%

Explanation:

A Large Cap Fund is an open-ended equity scheme

predominantly investing in large cap stocks. As per SEBI
rules on asset allocation, the minimum investment in equity
and equity related instruments of large cap companies shall
be 80 percent of total assets

Q Identify which of these is a function of Association of Mutual

68. Funds in India’s (AMFI)?
 To calculate the correct NAVs
To make available the AUM, NAV and other important data
of the mutual fund industry
To regulate and control insider trading
To manage the Investor Protection Fund

UnAttempted

CORRECT ANSWER:

To make available the AUM, NAV and other important data of

the mutual fund industry

Explanation:

AMFI makes available the AUM, NAV and other important

data of the mutual fund industry on its website.

(Calculation of NAV is the duty of the mutual fund / SEBI

regulates insider trading / Stock exchanges manage the
Investor protection fund)

Q Identify the true statement with respect to measuring returns

69. for Mutual Funds schemes. 1. Simple Return can be
calculated using the formula : Sale Price - Cost Price / Sale
Price 2. Compounded Annual Growth Rate 'CAGR' technique
has been prescribed by SEBI when dividend is paid and
compounding is to be considered 3. CAGR is the recognized
standard for calculating returns for investment horizon of
greater than or equal to 1 year
1 and 2
2 and 3
 3 and 1
1,2 and 3

UnAttempted

CORRECT ANSWER:

2 and 3

Explanation:

1. Simple Return can be calculated with the following formula

: Sale Price - Cost Price / Cost Price

2. Whenever a dividend is paid – and compounding is to be

considered - the CAGR technique (or the reinvestment
method, as some call it) prescribed by SEBI is used

3. The return is calculated using CAGR if the holding period

is over one year. If returns are less than one year, than
Simple Return is calculated

Q If an investor claims his unclaimed redemption amount after

70. 3 years than the payment will be based on the ________ .
average of the NAVs ie. current NAV and NAV at the time
of original redemption
current NAV
 NAV at the end of three years
NAV at the time of original redemption

UnAttempted

CORRECT ANSWER:

NAV at the end of three years

Explanation:

Recovery of unclaimed amounts by the investors is as

follows:

• If the investor claims the money within 3 years, then

payment is based on prevailing NAV i.e. after adding the
income earned on the unclaimed money.

• If the investor claims the money after 3 years, then payment

is based on the NAV at the end of 3 years.

Q Identify the TRUE statement. 1. Retail investors can buy units

71. of Gold ETF 2. Banks as well as Mutual Funds, both offer Gold
deposit schemes 3. Gold ETF is a closed ended fund and so
the holdings are not for perpetuity
Only statement 1 is true
Only statement 2 is true
Only statement 3 is true
All 1,2 and 3 are true
 UnAttempted

CORRECT ANSWER:

Only statement 1 is true

Explanation:

Gold ETF's can be easily bought by retail investors as the

minimum traded quantity is 1 unit ie. 1 gram.

The Gold deposit scheme is offered only by banks to mobilise

the idle gold in the country and put it in productive use and to
provide the customer an opportunity to earn interest on the
idle gold holdings.

All Exchange Traded Fund are open-ended schemes.

Q Identify the FALSE statement(s) - A - Authorised signatories

72. have to sign the request for transactions of institutional
investors in mutual funds B - Even if the Memorandum of
Association and Articles of Association does not permit
invest in mutual funds, the company can invest in mutual fund
on the basis of a Board Resolution
Statement A is false
Statement B is false
Both statements A and b are false

UnAttempted

CORRECT ANSWER:
 Statement B is false

Explanation:
1. A company cannot invest in mutual funds if its
incorporation documents ( (Memorandum of Association and
Articles of Association) do not provide for investments of this
type.

2. The mutual fund can allow transactions only if the

transaction form/slip carries the signature of any (one or
more, as required) of the authorised signatories.

Q Rising Sun Mutual Fund holds shares of AAA Ltd. in its

73. portfolio. When the NAV of the scheme is calculated on 10th
April, then each share of AAA Ltd. will be valued at ______ .
Average traded price of AAA Ltd. on 10th April across all
stock exchanges
Opening price of AAA Ltd. on 10th April at BSE / NSE
Closing price of AAA Ltd. on 10th April at BSE / NSE
Average traded price of AAA Ltd. on 10th April at BSE /
NSE

UnAttempted

CORRECT ANSWER:

Closing price of AAA Ltd. on 10th April at BSE / NSE

Explanation:
 As per the SEBI rules of valuation for equity shares : The
securities shall be valued at the last quoted closing price on
the stock exchange.

(When the securities are traded on more than one

recognised stock exchange, the securities shall be valued at
the last quoted closing price on the stock exchange where
the security is principally traded. It would be left to the asset
management company to select the appropriate stock
exchange)

Q Identify the TRUE statement(s) : a. A diversified index will

74. have a Beta of 1 b. Unsystematic risk can be measured by
Beta c. A portfolio which has Beta of less than 1 is less risky
than the market
a and b
a and c
b and c
Only b

UnAttempted

CORRECT ANSWER:

a and c

Explanation:
 The diversified stock index, by definition, has a Beta of 1.
Companies or schemes, whose beta is more than 1, are seen
as more risky than the market. Beta less than 1 is indicative
of a company or scheme that is less risky than the market.

The risks that impact the entire economy are known as

systematic risks. The company specific risks are also known
as unsystematic risks. Systematic risk is measured by its
Beta.

Q _______ risk arises because of difference in price movement

75. of the derivative vis-a-vis that of the security being hedged.
Model Risk
Basis Risk
Market Liquidity Risk
Credit Risk

UnAttempted

CORRECT ANSWER:

Basis Risk

Explanation:

Basis Risk arises due to a difference in the price movement

of the derivative vis-à-vis that of the security being hedged.

Q An investor is interested in buying some units of a Close

ended fund after the NFO is over. How can he buy the same?
76. He can buy the units on the stock exchange from market
makers appointed by the mutual fund
He can buy the units on the stock exchange from other
investors who were allotted the units and are interested in
selling
He can buy the units from the mutual fund itself when they
open the sale at periodic intervals as announced by the fund
He cannot buy units of a close ended fund

UnAttempted

CORRECT ANSWER:

He can buy the units on the stock exchange from other

investors who were allotted the units and are interested in
selling

Explanation:

A close-ended scheme offers liquidity through its listing on a

stock exchange. Unit holders who are interested in selling
can offer their quotes and new investors can buy them.

Q BSE’s platform for Mutual Fund trading is known is BSE Solar

77. Mutual Funds Platform - True or False ?
True
False

UnAttempted

CORRECT ANSWER:
 False

Explanation:

BSE’s platform is BSE StAR Mutual Funds Platform.

BSE StAR MF stands for BSE Ltd.’s online Stock exchange

platform for Allotment and Redemption of Mutual Fund units.

Q Legally SAI is part of the SID - True or False ?

78. True
False

UnAttempted

CORRECT ANSWER:

True

Explanation:

In practice, Scheme Information Document (SID) and

Statement of Additional Information (SAI) are two separate
documents, though the legal technicality is that SAI is part of
the SID.
Q NAV of income funds is to be calculated upto ___ decimals.
79. 1
2
3
4

UnAttempted

CORRECT ANSWER:

Explanation:

NAV is to be calculated upto 4 decimal places in the case of

income funds, liquid funds and other debt funds.

NAV for equity and balanced funds is to be calculated upto at

least 2 decimal places.

Q Mutual funds can buy and sell securities only on delivery

80. basis. State whether this statement is True or False.
True
False

UnAttempted

CORRECT ANSWER:
 True

Explanation:
The Mutual Fund will buy and sell securities on delivery basis.
Securities purchased will be transferred in the name of the
Mutual Fund because of the respective scheme.

This means mutual funds cannot square-up the same day.

They have to compulsorily take delivery.

Q In case of mutual fund schemes, dividends can be paid only

81. out of ______.
Unit capital
Distributable surplus generated by the scheme
Premium reserve account
Mark-to-market profits

UnAttempted

CORRECT ANSWER:

Distributable surplus generated by the scheme

Explanation:
SEBI guidelines stipulate that dividends can be paid out of
distributable reserves. In the calculation of distributable
reserves:
• All the profits earned (based on accrual of income and
expenses as detailed above) are treated as available for
distribution.
• Valuation gains are ignored. But valuation losses need to be
 adjusted against the profits.
• That portion of sale price on new units, which is attributable
to valuation gains, is not available as a distributable reserve.

Q The investor cannot pledge the units of a Mutual Fund as a

82. security to a financer - True or False ?
True
False

UnAttempted

CORRECT ANSWER:

False

Explanation:

The investor can pledge the units as a security to a financier.

Q NFO's for ELSS schemes can remain open for ____ days
83. 10
15
20
30

UnAttempted

CORRECT ANSWER:
 30

Explanation:

In the case of ELSS / RGESS schemes, the offering period

shall be not be more than 30 days.

Schemes other than ELSS and RGESS (Rajiv Gandhi Equity

Saving Scheme) can remain open for subscription for a
maximum of 15 days.

Q As per the SEBI guidelines, how often should the mutual fund
84. scheme’s portfolio be published?
Monthly
Half-yearly
Annually
Quarterly

UnAttempted

CORRECT ANSWER:

Half-yearly

Explanation:
 Schemes portfolio is a list of securities where the corpus of
the scheme is currently invested.

The AMCs shall send to its unitholders, a half yearly

portfolio via email within 10 days from the end of each half
year. The half yearly portfolio of the schemes is available on
the AMFI’s website and website of AMC on or before the 10th
day of succeeding month. The advertisement for the same is
required to be published by the fund in all India edition of at
least two daily newspapers, one each in English and Hindi.

Q Whose job is it to track the various corporate actions like

85. bonus, dividend, or rights issues in companies where the
mutual fund scheme has invested?
Custodian
Registrar and Transfer Agency
Unitholders
Auditors of the Asset Management Company

UnAttempted

CORRECT ANSWER:

Custodian

Explanation:
The custodian has custody of the assets of the fund. As part
of this role, the custodian needs to accept and give delivery
of securities for the purchase and sale transactions of the
various schemes of the fund.

The custodian also tracks corporate actions such as

dividends, bonus and rights in companies where the fund has
 invested.

Q Open-ended schemes generally offer exit option to investors

86. through a stock exchange.
True
False

UnAttempted

CORRECT ANSWER:

False

Explanation:

Close-ended schemes generally offer exit option to investors

through a stock exchange. The open-ended schemes can be
easily sold at their current NAV back to the mutual fund thro'
an agent or directly.

Q _______ takes into account all dividends generated from the

87. basket of constituents that make up the index in addition to
the capital gains.
Price return index
Dividend return index
Total return index
 UnAttempted

CORRECT ANSWER:

Total return index

Explanation:
Earlier, the Mutual Fund schemes were benchmarked to the
Price Return variant of an Index (PRI). PRI only captures
capital gains of the index constituents. With effect from
February 1, 2018, the mutual fund schemes are
benchmarked to the Total Return variant of an Index (TRI).

The Total Return variant of an index takes into account all

dividends/interest payments that are generated from the
basket of constituents that make up the index in addition to
the capital gains.

Q ________ of the Unit-holders can pass a resolution to wind-up

88. a scheme.
25%
50%
60%
75%

UnAttempted

CORRECT ANSWER:

75%
 Explanation:
75 percent of unit holders can terminate the appointment of
an AMC. Also, 75 percent of the unitholders (unitholding) can
pass a resolution to wind up a scheme.

Q The main objective of asset allocation is risk management -

89. True or False ?
True
False

UnAttempted

CORRECT ANSWER:

True

Explanation:

The distribution of an investor’s portfolio between different

asset classes like Equity, Debt, Gold etc is called asset
allocation.

Asset Allocation is basically using the old proverb - ‘Don’t put

all your eggs in one basket’ to guide investments and
managing the risks.

Q _____________ assumes that all dividend payouts are re-

90. invested in the scheme at the ex-dividend NAV.
Compounded Returns
Compounded Annual Growth Rate
 Annualised Returns
Simple Returns

UnAttempted

CORRECT ANSWER:

Compounded Annual Growth Rate

Explanation:

Whenever a dividend is paid – and compounding is to be

considered - the CAGR - Compounded Annual Growth Rate -
technique prescribed by SEBI is used.

This calculation is based on an assumption that the dividend

would be re-invested in the same scheme at the ex-dividend
NAV.

Q Offer documents of mutual fund schemes are approved by

91. SEBI - True or False ?
True
False

UnAttempted

CORRECT ANSWER:

False
 Explanation:

Offer Documents in the market are “vetted” by SEBI, though

SEBI does not formally “approve” them.

Q Which amongst the following categories of mutual funds have

92. a fixed maturity date?
Exchange Traded Funds
Open-ended funds
Close-ended funds
Interval funds

UnAttempted

CORRECT ANSWER:

Close-ended funds

Explanation:
Close-ended funds have a fixed maturity. Investors can buy
units of a close-ended scheme, from the fund, only during its
NFO.

Q The most appropriate measure of returns for a scheme in

93. existence for several years is ______.
CAGR
Annualised Return
Dividend Return
Simple Return
 UnAttempted

CORRECT ANSWER:

CAGR

Explanation:

CAGR - Compounded Annual Growth Rate.

Q Redemption from which of the following mutual fund

94. schemes would attract Securities Transaction Tax (STT) for
an investor?
Liquid Fund
Overnight Fund
Multi-cap mutual fund
Government Securities Fund

UnAttempted

CORRECT ANSWER:

Multi-cap mutual fund

Explanation:
 In the given options, only Multi cap fund is an equity fund and
rest all are debt funds.

STT is applicable only on redemption/switch of units of Equity

oriented mutual funds whether sold on stock exchange or
otherwise.

STT is not applicable on purchase of units of an equity

scheme. It is also not applicable to transactions in debt
securities or debt mutual fund schemes.

Q How often should the Key Information Memorandum (KIM) be

95. updated?
At least once a month
At least once every six months
At least once a year
It need not be updated after it is issued once

UnAttempted

CORRECT ANSWER:

At least once a year

Explanation:
KIM is to be updated at least once a year or early in case of
change in fundamental attributes.

Q In case of capital gains from mutual fund investments, Tax

Deduction at Source (TDS) is applicable for: _________
96. All investors, who have invested more than Rs. 5 lacs
Minor through guardian
TDS is not applicable in case of mutual funds
Non-Resident Indians (NRIs)

UnAttempted

CORRECT ANSWER:

Non-Resident Indians (NRIs)

Explanation:
There is no TDS on re-purchase proceeds to resident
investors. However, for certain cases of non-resident
investments, the same is applicable.

(In case of dividends from mutual fund schemes, even for

resident Indians, TDS is applicable.)

Q Its due to loads and taxes that there is a difference between

97. scheme returns and investor returns - True or False ?
False
True

UnAttempted

CORRECT ANSWER:

True
 Explanation:

Loads like Exit Load and Taxes like STT reduce the scheme
returns.

Q SEBI regulates Mutual Funds as well as Registrars and

98. Transfer Agents - True or False ?
True
False

UnAttempted

CORRECT ANSWER:

True

Explanation:

SEBI regulates Mutual Funds , Registrars and Transfer

Agents, Depositories, Stock Brokers etc.

Q Which of the following statements is ‘TRUE’ with respect to

99. the Scheme Information Document (SID) and Statement of
Additional Information (SAI)?
These two documents are prepared in the format
prescribed by Association of Mutual Funds in India as part of
AMFI’s Code of Conduct
These two documents are prepared in the format
prescribed by Association of Mutual Funds in India as part of
 AMFI’s Best Practices Circular
These two documents are prepared in the format
prescribed by Securities and Exchange Board of India
Each Asset Management Company is free to prepare these
documents in the format they desire

UnAttempted

CORRECT ANSWER:

These two documents are prepared in the format prescribed

by Securities and Exchange Board of India

Explanation:
SAI and SAI documents are prepared in the format
prescribed by SEBI and submitted to SEBI. The contents
need to flow in the same sequence as in the prescribed
format. The mutual fund is permitted to add any other
disclosure, which it feels, is ‘material’ for the investor.

Q In what form do mutual fund distributors earn revenue?

100. Investment advisory fee from mutual funds
Commission received from Association of Mutual Funds in
India
Fees collected from the investors
Commission from mutual funds for distribution of the
schemes

UnAttempted

CORRECT ANSWER:
Commission from mutual funds for distribution of the
schemes

Explanation:
The mutual fund distributor earns revenue in the form of
commission income for distribution of the mutual fund
products/schemes. The commission may be linked to either
the transaction or to the assets under management.

Out of 100 questions 100 are un attempted.