Previous Year Questions (PYQs)

on
Mutual Funds

Introductory Note

This document contains following 3 sections –

Section A – Under this section, you will find the exact previous year questions which were asked in RBI,
SEBI and PFRDA. This section will enable you to test your knowledge based on different concepts and
for your comfort, we have segregated the questions according to the different examinations. The
questions have been arranged in the following manner

1. RBI Grade B - Here, you will find all the previous year questions, which were asked in the
phase 2 of RBI Grade B exam, starting from 2016 onwards
2. SEBI Grade A - Here, you will find all the previous year questions, which were asked in the
Phase 1 and Phase 2 of SEBI Grade A exam, starting from 2018 onwards
3. PFRDA Grade A – Here, you will find all the previous year questions, which were asked in
phase 1 and Phase 2 of PFRDA Grade A exam, starting from 2021 onwards

If there is no question in this document on any exam for a particular year or years, it means no
question was asked for that exam in that year(s) or exam itself was not conducted in that year.

Section B - In this section, you will find the answer key for all the questions, and it will enable you to
check your marks and understand your performance accordingly.

Section C – This section contains a detailed explanation to every question, and herein you will be able
to understand the concept in the best holistic manner as possible.

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 Section A

Questions asked in Phase 2 of RBI Grade B exam, from 2016 onwards

Question 1 – In India, Who Regulates Mutual Funds? RBI Grade B – Phase 2 - 2016

A. RBI
B. SEBI
C. Govt. of India
D. IRDAI
E. None of the above

Questions asked in Phase 1 and Phase 2 of SEBI Grade A exam, starting from 2018 onwards

Question 1 - Full form of NAV is terms of Mutual Fund is __________ SEBI Grade A – Phase 1 – 2020

A. Net Acquired Value

B. Non-Attractive Valuation
C. Net Appraised Value
D. Net Asset Value
E. None of the above

Question 2 - Identify the open mutual fund scheme where there is a 3-year lock-in period. SEBI Grade A – Phase
1 – 2022

A. ELSS
B. Blue Chip Mutual funds
C. Large Cap Mutual Funds
D. Small Cap Mutual Funds
E. None of the above

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 Questions asked in phase 1 and phase 2 of the PFRDA Grade A exam, starting from 2021 onwards

No question was asked in the PFRDA Grade A exam from this topic

Section B

Answer Key

RBI Grade B questions

Question Number Answer

Question 1 Option B

SEBI Grade A questions

Question Number Answer

Question 1 Option D
Question 2 Option A

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 Section C
Explanation
RBI Grade B questions

Question 1 – In India, Who Regulates Mutual Funds? RBI Grade B – Phase 2 - 2016

A. RBI
B. SEBI
C. Govt. of India
D. IRDAI
E. None of the above

Answer – Option B

Explanation –

Mutual funds in India are regulated and monitored by the Securities and Exchange Board of India (SEBI), which
strives to protect the interests of investors.

Please be informed that, The Association of Mutual Funds in India (AMFI) is dedicated to developing the Indian
Mutual Fund Industry on professional, healthy and ethical lines and to enhance and maintain standards in all
areas with a view to protecting and promoting the interests of mutual funds and their unit holders. AMFI is not
the regulator of mutual funds, instead AMFI is the professional body, which looks after the orderly
development of mutual funds.

Explanation
SEBI Grade A questions

Question 1 - Full form of NAV is terms of Mutual Fund is __________ SEBI Grade A – Phase 1 – 2020

A. Net Acquired Value

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B. Non-Attractive Valuation
C. Net Appraised Value
D. Net Asset Value
E. None of the above

Answer – Option D

Explanation –

This is a very basic question regarding Mutual funds, NAV stands for Net Asset Value, the performance of a
particular scheme of a Mutual Fund is denoted by Net Asset Value (NAV).

In simple words, NAV is the market value of the securities held by the scheme. Mutual Funds invest the money
collected from investors in securities markets. Since market value of securities changes every day, NAV of a
scheme also varies on day to day basis.

The NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme
on any particular date.

Question 2 - Identify the open mutual fund scheme where there is a 3-year lock-in period. SEBI Grade A – Phase
1 – 2022

A. ELSS
B. Blue Chip Mutual funds
C. Large Cap Mutual Funds
D. Small Cap Mutual Funds
E. None of the above

Answer – Option A

Explanation

Equity Linked Savings Scheme (ELSS) is a kind of mutual fund scheme that predominantly invests in equity and
equity related instruments to generate high returns.

What makes ELSS different from other equity mutual fund schemes is that investment upto ₹1.5 lakh in ELSS
is eligible for deduction from taxable income in a financial year. The scheme comes with a statutory lock-in
period of 3 years for each SIP. It is the only mutual fund scheme that qualifies for tax deduction under Section
80(C) of the IT Act.

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