CHAPTER 1 TO 4

Q 1. Identify the duty of a SPONSOR of a mutual fund –*

1 point

Guards the interest of the mutual fund unit holders

Contributes to the capital of the Asset Management Company
Look after the day to day administration of the mutual fund
Regularly report to SEBI on the working of the fund

Q 2. Gold Future Contracts _______.*

1 point

Are traded on the Commodity Exchanges

Are not standardised products
Can be bought through Mutual Funds
None of the above

Q 3. It's compulsory for the Mutual Fund to list its Close Ended schemes on the
Stock Exchange.*
1 point

True
False

Q 4. The main advantage of investing in a Mutual Fund is ________.*

1 point

Portfolio Diversification
Portfolio Concentration
Portfolio Balancing
None of the above

Q 5. The purchasing power of currency changes on account of which of the following

?*
1 point

Diversification
Inflation
Compound interest
Asset allocation

Q 6. Risk appetite of investors is assessed through_______.*

1 point

Asset Allocators
Financial Plan
Risk Profilers
Risk Appetisers
Q 7. An investor who has a long term view and is looking for capital appreciation and
also has high risk tolerance should opt for investments in*
1 point

Gold
Equities
Fixed Deposits
High Interest Bearing Junk Bonds

Q 8. Investors tend to extrapolate the current event into the future and expect a
repeat. This is an example of _________ bias.*
1 point

Overconfidence
Recency
Herd Mentality
Familiarity

Q 9. Investors KYC details are stored in the server of _________. *

1 point

AMFI
AMC
KRA
SEBI

Q 10. Which of these is NOT a function of Registrars and Transfer Agents ?*

1 point

Maintaining investors records

Processing redemption and dividend payouts
Analysing mutual fund performance and making it available to investors
Updating unit capital of fund

Q 11. Multi Asset Allocation fund invest in at least asset classes with a minimum
allocation of at least 10 percent in each class.*
1 point

2
3
4
5

Q 12. An investor is interested in high liquidity. Which fund will he NOT choose ?*
1 point

Diversified Equity Fund

ELSS Fund
Debt Fund
Open ended funds
Q 13. In a scenario of falling interest rates, it would be advisable to invest in a debt
fund rather than bank deposit.*
1 point

True
False

Q 14. If an investor wishes to beat the benchmark and is also ready to bear the risks,
then he should opt for Actively managed funds.*
1 point

True
False

Q 15. _________are largely close-ended, but become open ended at pre- specified
intervals.*
1 point

ELSS funds
Sectoral funds
Interval funds
Close Ended funds

Q 16. The prescribed ceiling for ill liquid investments is lower for _______, which
have a greater need for liquidity because investors can offer their units for re-
purchase at any time.*
1 point

ELSS Schemes
Close-Ended Schemes
Open-Ended Schemes
Debt Funds

Q 17. Investment Objective As Explained By Mutual Fund Through Offer Document

Are Associated With*
1 point

SIP/SWP/STP
Mutual Fund Schemes
Trigger
NAV

Q 18. Which Among The Following Is Not A Feature Of Index Fund?*

1 point

It targets a return in line with Bench Mark performance.

Any excess performance will be termed as tracking error.
These are passively managed Fund.
AMC charges higher fee for managing such technical scheme.
Q 19. Mutual Fund Scheme Having Feature Of Both Close Ended And Open-Ended
Scheme Would Most Closely Associated With*
1 point

Interval Fund
Hybrid Funds
Fund of Fund
Exchange traded Fund

Q 20. The systematic approaches offered by mutual funds to promote an investment

discipline for long term wealth creation are ________.*
1 point

SIP, SWP
SIP, STP
SIP, STP, SWP
None of the above

Q 21. Of the following attributes, which one you cannot consider while investing in
Mutual Funds ?*
1 point

Guaranteed Return
Professional Management
Low Transaction Cost
Diversification

Q 22. Which statement is FALSE with reference to risk appetite ?*

1 point

Risk appetite can be assessed by risk profiling

Preferred risk appetite is different from ideal risk appetite
Risk appetite indicates level of risk that investor is comfortable with
People of same age will have same risk appetite

Q 23. The asset allocation that is worked out for an investor based on risk profiling is
called ________.*
1 point

Strategic Asset Allocation

Fixed Asset Allocation
Tactical Asset Allocation
Flexible Asset Allocation

Q 24. Risk Profile of an investor is affected by*

1 point

the nature of job

the regularity of his income
Psyche of the investor
All of the above
Q 25. Which of the below is a physical asset ?*
1 point

Gold ETF
Real Estate Fund
Building
Debentures

Q 26. The most illiquid investment is*

1 point

Fixed Deposit
Shares
Paintings
Real Estate

Q 27. Asset allocation must primarily match _______.*

1 point

Long term value creation

Investment needs
Financial goals
Tax saving needs

Q 28. A person wishes to avail of a loan. For which of the below options he cannot
get a loan ?*
1 point

To start a textile factory

To buy a car of value above Rs 20 lacs
To buy a high priced lottery ticket
To buy a house in a Union Territory

Q 29. When the asset allocation is maintained as a constant ratio by regular

rebalancing of Portfolio, it is known as ______.*
1 point

Dynamic asset allocation

Flexible asset allocation
Fixed asset allocation
Variable asset allocation

Q 30. Which Among The Following Is Explained As Limitation/ Disadvantage While

Investing In Mutual Fund?*
1 point

Lack of Portfolio customisation

Choice Overload
No control over cost
All of the Above

Q 31. Indian Domestic Mutual Fund Scheme Can Invest in Commodity Market?*
1 point

True
False

Q 32. Can An Investor Loose More Money Than What He Has Invested In Mutual
Fund?*
1 point

No
Yes

Q 33. Which Is True About A Close Ended Mutual Fund Scheme?*

1 point

One can buy or sale any time from the scheme.

These are not listed and not traded on Stock Exchange.
Unit capital of the Scheme remains same, as no additional buy or sale is allowed.
Close Ended Scheme can have only Debt Portfolio.

Q 34. High Yield Bond Schemes Invest In Junk Bonds.*

1 point

True
False

Q 35. Sector Funds Invest in A Diverse Range Of Sectors.*

1 point

True
False

Q 36. Junk Bonds Are Part Of Those Portfolios That Invest In High Yielding And
Poorly Rated Bond Papers?*
1 point

True
False

Q 37. Growth investment style entails investing in high growth stocks i.e. stocks of
companies that are likely to grow at the same pace as that of the economy.*
1 point

True
False

Q 38. Future Value is calculated using formula ?*

1 point

P=A*(1+i)^n
P=A^(1+i)*n
P=A*(1+i)*n
A = P * (1 + i ) ^ n

Q 39. ELSS funds are good in terms of*

1 point

Safety
Liquidity
Returns
Tax Deduction

Q 40. Mr and Mrs Gupta want to make their son a pilot. This is an example of*
1 point

Financial Planning
Asset Allocation
Aspiration
Setting Financial Goals

Q 41. A regular dividend paying mutual fund scheme can be used for capital
appreciation.*
1 point

True
False

Q 42. Which among these is a financial goal ?*

1 point

Need Rs. 10 lacs

Need Rs. 10 lacs for kids education
Need Rs. 10 lacs after 10 years for kids education
Need lots and lots of money as soon as possible

Q 43. The distribution of an investors portfolio between different asset classes is

called asset allocation.*
1 point

True
False

Q 44. The highest risk appetite is a characteristic of*

1 point

A well qualified young person with a steady job

A non qualified young person with a steady job
A family man with many dependents
A retired person

Q 45. Which Of The Following Is Not A Characteristic Of Mutual Fund?*

1 point

Pooling of investments
Market risk
Uniform unit holder rights
Safety of principal

Q 46. A Passive Fund Has the Following Feature.*

1 point

A Passive fund tracks the Index.

A passive fund matches the performance of the Index.
A passive fund selects the stock that is present in the Index.
All of the above.

Q 47. Units of ______ Must Be Listed On The Stock Exchange.*

1 point

Sector funds
Arbitrage funds
Close ended funds
Liquid funds

Q 48. Interval funds combine features of both open-ended and close-ended

schemes*
1 point

True
False

Q 49. Which schemes of a Mutual Fund offer the advantages of diversity of asset
classes in a single scheme ?*
1 point

ELSS Schemes
Index Schemes
Balanced Schemes
Debt Schemes

Q 50. The Mutual Fund AMC shall take investment decisions solely in the interest of*
1 point

The AMC employees

The MF unit holders
The Trustees
AMFI
 CHAPTER 5 & 8

Q 1. Indian mutual funds cannot invest in ______.*

1 point

Real Estate
Art
Securitised Debt
Gold

Q 2. Liquid schemes and other debt schemes regularly park funds in short term
deposits of commercial banks but cannot charge management fees on these.*
1 point

True
False

Q 3. Offer document of mutual fund schemes are approved by SEBI*

1 point

True
False

Q 4. The portfolio composition and operational features of a scheme are mentioned

in the_______.*
1 point

SAI
SID
Addendum
None of the above

Q 5. The principle of caveat emptor (let the buyer beware) applies to mutual fund
investments.*
1 point

True
False

Q 6. For how long is the trail commission paid to the mutual fund distributor ?*
1 point

For the first one year only

For the first three years only
For the first ten years only
Till the money is held in the fund
Q 7. Mutual funds can accept cash to the tune of Rs______from small investors who
do not have a PAN.*
1 point

No cash can be accepted by a MF

Rs 50,000
Rs 20,000
Rs 5,000

Q 8. What is the Net Asset Value (NAV) after dividend payment called ?*
1 point

Ex-Dividend NAV
Ex-Load NAV
Cum-Dividend NAV
Net NAV

Q 9. The maximum expenses including the management expenses that can be

charged by Index and ETF schemes is_______.*
1 point

1%
1.5%
2%
2.5%

Q 10. In the event of delays in dispatching dividend warrants or redemption cheques,

the penalties payable to the investors will be charged to the scheme expenses*
1 point

True
False

Q 11. FMP's are usually offered as ______.*

1 point

Close Ended Funds

Interval Funds
Open Ended Funds
None of the above

Q 12. No commission neither upfront nor trail is payable to the distributor for their
own investments*
1 point

True
False

Q 13. Nomination facility is not available to investors holding the Mutual Fund units
jointly*
1 point

True
False

Q 14. In an Open Ended fund the pool of money always remains constant*
1 point

True
False

Q 15. Identify the FALSE statement(s) - A) For Index funds, the NAV is calculated
upto 4 decimal points B) The AMC and a mutual fund scheme of the AMC can
have the same auditor*
1 point

Only A is false
Only B is false
Both A and B are false

Q 16. NAV of income funds is to be calculated upto_____ decimals.*

1 point

1
2
3
4

Q 17. Minors are not legally eligible to contract, so for investing in Mutual Funds they
______*
1 point

have to become 18 years before investing

can invest through their guardians
Ccan invest only in long term capital gain funds
can invest in specific 'Minors Only' Mutual Funds

Q 18. Which Among The Following is True?*

1 point

The Entry Load has been removed by SEBI since Aug-2009

The exit Load is same and is applicable to all Investor scheme wise
Exit load charged beyond 1% is added back to Scheme NAV
All of the Above

Q 19. The average net asset of a Mutual Fund scheme is Rs 500 crores and the
investment transactions amounted to Rs 2000 crores in a year. What is the average
holding period of the investments ?*
1 point

2 months
3 months
4 months
6 months

Q 20. ARN means _______*

1 point

Applicant Registration Number

AMFI Recognition Number
AMFI Registration Number
Agent Registration Number

Q 21. Coupon of a debt security generally means the interest rate payable*
1 point

True
False

Q 22. Fixed Asset Depreciation and Software Development Expenses can be

charged to the scheme.*
1 point

True
False

Q 23. Calculate the NAV for the following information : Value of stock 200 cr, Value
of money market instruments - Rs 25 cr, Dividend accrued but not received - Rs 10
cr, Amount receivable on sale of shares - Rs 5 cr, Amount payable on purchase of
shares: Rs. 10.5 cr, Fees payable - Rs 1 cr. No. of outstanding units:3 cr*
1 point

75.83
80.77
76.16
79.17

Q 24. The OFFER DOCUMENT does not contain*

1 point

the projected returns of the scheme

the statutory information about the mutual fund
the tax implications for investors
the scheme objectives

Q 25. When is the Scheme Information Document (SID) updated ?*

1 point

Every year
Every month
Every two years
Every 6 Month
Q 26. Which of the following statements is ‘TRUE’ with respect to the Scheme
Information Document (SID) and Statement of Additional Information (SAI) ?*
1 point

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

Q 27. Which document will an investor look at if he has to know the fundamental
attributes of a Mutual fund scheme?*
1 point

Key Information Memorandum (KIM)

Addendum
Scheme Information Document (SID)
Statement of Additional Information (SAI)

Q 28. Legally SAI is part of the SID.*

1 point

True
False

Q 29. Condensed financial information for schemes launched in last 3 financial years
is mentioned in the*
1 point

Scheme Information Document (SID)

Statement of Additional Information (SAI)
Fact Sheet
Prospectus

Q 30. In which of these options can an investor expect a cash flow in his bank
account ?*
1 point

Bonus
Dividend Payout
Dividend Reinvestment
Growth

Q 31. In the Mutual Fund industry - every AMC gives an ARN code number which is
renewed every three years.*
1 point

True - this is as per SEBI rules

False - AMFI issues the ARN code number

Q 32. In what form do mutual fund distributors earn revenue ?*

1 point

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

Q 33. Recurring expenses cannot be charged to a Mutual Fund scheme as it drags

down the NAV*
1 point

True
False

Q 34. Mutual Fund distributors receive commission on investments made by their

clients as well as on the investments they make for themselves in their own name*
1 point

True
False

Q 35. Which of the following expenses cannot be charged to the scheme?*

1 point

Fees of various service providers, such as Trustees, AMC, Registrar & Transfer Agents,
Custodian and auditor
Penalties and fines for infraction of laws
Selling expenses including scheme advertising and commission to the distributors
Expenses on investor communication, account statements, dividend / redemption cheques /
warrants

Q 36. Offer Document should contain the data of number of complaints received*
1 point

True
False

Q 37. The risk mitigation strategies adopted by the fund management to control and
manage the risks associated with investing in specific types of securities are
described in the_______.*
1 point

Scheme Information Document (SID)

Statement of Additional Information (SAI)
Fund Factsheet
KYC form

Q 38. Where are the New Fund Offer dates mentioned ?*

1 point

Key Information Memorandum – KIM

Scheme Information Document – SID
Statement of Additional Information – SAI
Both SID and KIM

Q 39. If an investor wants to get updated monthly performance and portfolio data on
mutual funds, which of the following documents should he read ?*
1 point

Scheme Information Document (SID)

Fund Fact Sheet
Key Information Memorandum (KIM)
Statement of Additional Information (SAI)

Q 40. As per AMFI’s code of ethics, an Asset Management Company has to disclose
which of the following scheme related information to the unit holders ? A)
Investment Pattern B) Annual portfolio turnover C) Annual
securities transactions*
1 point

Only B
A and B
B and C
A, B and C

Q 41. Distribution Expenses in excess of what is specified by SEBI has to be borne

by ______.*
1 point

Unit holders
AMFI
AMC
Fund Manager

Q 42. SEBI regulates Mutual Funds as well as Registrars and Transfer Agents*
1 point

True
False

Q 43. As per SEBI regulations, a Mutual Fund can leverage / borrow money under
which of the following condition(s) ?*
1 point

A mutual fund scheme cannot borrow more than 20% of its net assets
The borrowing cannot be for more than 6 months
The borrowing is permitted only to meet the cash flow needs of investor servicing
All of the above
Q 44. Mr. Sonu reads about the risk factors given in the offer document and invests
in an equity mutual fund scheme. After a few days the stock market crashes and
NAV of the equity fund goes down. What can Mr. Sonu do in such a situation?*
1 point

He can appeal to SEBI and get a remedy

He can get a remedy from the AMC
He is not likely to get any remedy from the AMC
He is likely to get a remedy from the trustees of the AMC

Q 45. Debt-oriented, close-ended / interval, schemes /plans need to disclose their

portfolio in their website every month, by the ________working day of the
succeeding month.*
1 point

3rd
10th
12th
15th

Q 46. Mutual funds/AMCs shall disclose portfolio (along with ISIN) as on the last day
of the month for all their equity schemes on their respective website on or before the
third day of the succeeding month in a user- friendly and downloadable format.*
1 point

True
False

Q 47. While selling mutual fund products of the distributors group/affiliate/associates,

the distributor shall make disclosure to the customer regarding the conflict of interest
arising from the distributor selling such products.*
1 point

True
False

Q 48. As per the Principles of fair valuation of mutual funds, the valuation of the
securities shall be______.*
1 point

done aggressively
done conservatively
always rising
reflective of the realisable value of the securities

Q 49. According to guidelines given by SEBI, every mutual fund scheme should have
a minimum of______investors*
1 point
10
20
25
50

Q 50. How often should the Key Information Memorandum (KIM) be updated?*
1 point

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 on

LONG LENGTH TEST-1

Q 1. Mutual funds today are benchmarked to the Total Return variant of an Index
(TRI) and not to Price Return variant of an Index (PRI). What is the advantage of TRI
over PRI? A) It ensures that the performance comparison is fair B) Increases
transparency*
1 point

Only A
Only B
Both A and B

Q 2. Suresh see's that his friends are investing in a finance scheme which is
promising very high returns (a ponzi scheme). He also blindly invests in the same
scheme. Which bias is Suresh exhibiting?*
1 point

Herd mentality
Loss Aversion
Confidence bias
Anchoring

Q 3. In which of these funds is Securities Transaction Tax (STT) not charged?*

1 point

Fixed Maturity Plans (FMPs)

Equity index ETFs
ELSS - Equity Linked Savings Scheme
Blue chip equity funds

Q 4. An International Fund is investing in US stocks. What would be the impact on it

if US Dollar depreciates against the Indian Rupee?*
1 point

The NAV of the scheme in Indian Rupees will depreciate

The NAV of the scheme in Indian Rupees will appreciate
No impact on the fund as its investing in stocks and not currency

Q 5. How can an investor remit money in an Indian mutual fund from abroad?*
1 point

Through Society for Worldwide Interbank Financial Telecommunication (SWIFT)

Through Immediate Payment Service (IMPS)
Through Real time gross settlement (RTGS)
Through National electronic funds transfer (NEFT)

Q 6. Which of these statement(s) is/are TRUE? A) The Asset Management

Company (AMC) is not accountable for the procedures for detecting incorrect
valuation B) It is mandatory for the AMC to disclose the valuation policy*
1 point

Only A is true
Only B is true
Both A and B are true
Both A and B are false

Q 7. When is the Scheme Information Document (SID) updated?*

1 point

Every year
Every month
Every two years
As per AMC decision
Half-Yearly

Q 8. In case of Exchange Traded Funds (ETFs), the minimum investment in

securities of a particular index (which is being replicated/ tracked) shall be______
percent of total assets.*
1 point

100
95
85
75

Q 9. Identify the TRUE statement with respect to benchmark for Gold ETFs.*
1 point

CRISIL Gilt fund index is widely used as a benchmark for Gold ETFs
Gold ETFs are benchmarked against gold prices
There can be no benchmark for Gold ETFs
Internationally it is proven that there is no need of any type of benchmark for Gold ETFs

Q 10. Mr. Sonu reads about the risk factors given in the offer document and invests
in an equity mutual fund scheme. After a few days the stock market crashes and
NAV of the equity fund goes down. What can Mr. Sonu do in such a situation?*
1 point

He can appeal to SEBI and get a remedy

He can get a remedy from the AMC
He is not likely to get any remedy from the AMC
He is likely to get a remedy from the trustees of the AMC

Q 11. As per SEBI's mandate, AMCs has to put in place a due diligence process to
regulate distributors. Which of these mutual fund distributors would not be subjected
to the due diligence process?*
1 point

AUM raised of Rs. 60 crore across industry in the non-institutional category

Commission received of over Rs. 125 lakhs p.a. across industry
Multiple point presence in more than 25 locations
Commission received of over Rs. 75 Lakhs from a single mutual fund

Q 12. The interim changes in an mutual fund scheme are updated to the investors
through______.*
1 point

Key Information Memorandum (KIM)

Statement of Additional Information (SAI)
Addendum
Scheme Information Document (SID)

Q 13. Which of these is NOT included in the Key Information Memorandum (KIM) ?*
1 point

Dates of Issue Opening, Issue Closing and Re-opening

Investment Objective
Risk profile of the scheme
Functions of the sponsor, trustee and AMC

Q 14. Which of these investors is allowed to do a nomination?*

1 point

Only SIP investors

Only Equity Mutual Fund investors
Only Institutional Investors
Only Individual Investors

Q 15. In which of these options will the unit balance increase in the mutual fund
investors folio without any transaction being done by the investor?*
1 point

Redemption
Dividend Re-investment option
Dividend Payout option
Growth option

Q 16. In India, the Mutual funds are constituted as_____.*

1 point

Limited Company
Non-Government Organisation
Self Regulatory Organisations
Trusts

Q 17. _______is the risk of mis-pricing or improper valuation of derivatives.*

1 point

Counterparty Risk
Model Risk
Basis Risk
Credit risk

Q 18. Which of these funds are suitable for investors who have a long term
investment horizon and are looking for growth?*
1 point

Income Funds
Long duration funds
Equity funds
Liquid funds

Q 19. What is the investment objective of a mutual fund which seeks to grow in value
over a period of time?*
1 point

Capital Adequacy
Capital Appreciation
Safety of Capital
Regular Returns

Q 20. The minimum investment in G-Secs (as a percentage of total assets) in case
of a Gilt Fund is______*
1 point

90%
95%
80%
75%

Q 21. Investors can choose to change their distributor or go direct and AMCs will
need to comply after getting a 'No Objection Certificate' from the existing distributor -
True or False ?*
1 point

True
False
Q 22. Dividend warrants have to be sent to investors within 30 days of dividend
declaration - True or False ?*
1 point

True
False

Q 23. The principle of caveat emptor (let the buyer beware) applies to mutual fund
investments – True or False ?*
1 point

True
False

Q 24. Passive funds are safe, as the NAV funds do not go down even when the
respective markets fall. State whether this is True or False.*
1 point

True
False

Q 25. As SEBI has banned_______________, the Sale Price of a MF unit is the

same as NAV.*
1 point

Entry Load
Exit Load
Commission Refund
SIP Transaction Charges

Q 26. The fund that takes contrary positions in different markets/securities such that
the risk is neutralized and return is earned are called______.*
1 point

Thematic funds
Dividend yield scheme
Arbitrage funds
Sector funds

Q 27. While choosing an Option in a Mutual Fund scheme, taxation and liquidity
needs are a major factor in deciding which option ( Growth or Dividend Payout) to go
for - True or False ?*
1 point

True
False

Q 28. In the non-equity oriented funds, the rate of long term capital gains tax
is_____.*
1 point

10 percent with indexation

10 percent without indexation
20 percent with indexation
20 percent without indexation

Q 29. Benchmarking helps in assessing under performance or out-performance -

True or False ?*
1 point

True
False

Q 30. Which of the following type of analysis tracks the price and volume data
related to trading in the security?*
1 point

Situation analysis
Technical analysis
Fundamental analysis
Quantitative analysis

Q 31. The Mutual Fund application form is attached to the______.*

1 point

KIM
SAI
SID
AMC Memorandum

Q 32. AMC directors are appointed with the permission of SEBI - True or False?*
1 point

True
False

Q 33. Who handles the day-to-day management of the mutual fund?*

1 point

Unitholders
Mutual Fund Trustees
Registrar and Transfer Agency
Asset Management Company

Q 34. Stock selection is important in bottom-up approach - True or False ?*

1 point

True
False

Q 35. In mutual funds, the assets are held by_____.*

1 point

Fund Manager of that scheme

Registrar and Transfer Agents
Custodian
Trustees

Q 36. Statement of Account is to be sent to investors within days of NFO closure.*

1 point

3
5
10
30

Q 37. An investor invested in scheme A when the scheme's NAV was Rs. 120 per
unit. The investor redeemed the investments at the NAV of Rs. 135. Calculate the
simple return.*
1 point

10.00 percent
12.50 percent
15.00 percent
11.11 percent

Q 38. Risk appetite of investors is assessed through_____.*

1 point

Asset Allocators
Financial Plan
Risk Profilers
Risk Appetizers

Q 39. Mutual funds are allowed to charge differential exit loads based on the amount
of investment.*
1 point

True
False

Q 40. Generally long term investment decisions taken through fundamental analysis
and for shorter term speculative decisions, including intra-day trading one uses
Technical Analysis - True or False ?*
1 point

True
False

Q 41. Which amongst the following is a measure of risk-adjusted returns of mutual

fund scheme?*
1 point

Standard deviation
Beta
Variance
Sharpe ratio

Q 42. Nomination and Pledge options are not available for mutual fund investors -
True or False ?*
1 point

True
False

Q 43. What is real rate of return?*

1 point

Return that the investor gets after adjusting inflation

Return that the investor gets after adjusting the risks
Return that the investor gets after taxes
Return that the investor gets after payment of all expenses

Q 44. Fundamental analysis is evaluation of the strength of the company's price-

volume charts - True or False ?*
1 point

True
False

Q 45. Trail commissions are linked to valuation of portfolio in the market - True or
False ?*
1 point

True
False

Q 46. What is the Absolute Return for a Mutual Fund investor if he had bought at
NAV 20 and sold at NAV 40 after two years ?*
1 point

100%
50%
25%
Insufficient Data

Q 47. In the Scheme Information Document (SID), the condensed financial

information (for schemes launched in last 3 financial years) is mentioned - True or
False ?*
1 point

True
False

Q 48. Tax Deferral is a key feature of______.*

1 point

Dividend Option
Growth Option
Arbitrage Fund
Liquid Schemes

Q 49. Mr. Mahesh gives his investment application form to the distributor at 10 am.
The distributor then goes to the Mutual Fund office and submits this application at 1
pm. What is the cut off time for this investment ?*
1 point

1 pm
10 am

Q 50. Accumulation is the phase applicable to _______*

1 point

Young Unemployed
Young Unmarried
10th Pass
Retired Manager

Q 51. The distribution of an investor's portfolio between different asset classes is

called asset allocation - True or False ?*
1 point

True
False

Q 52. ______cannot invest in Gold Mining Companies*

1 point

Gold Sector Fund

Gold ETF
Tax Saving ELSS Fund
Balanced Fund

Q 53. For next 30 days after a New Fund Offer closes, an investor can buy units at
face value - True or False ?*
1 point

True
False

Q 54. Is Real Estate Fund a physical asset or a financial asset ?*

1 point
Physical Asset
Financial Asset

Q 55. If an Institutional Investor is making an application for investing in a Mutual

Fund, which additional document is required ?*
1 point

Audited Accounts for the last 3 years

Bank Statements
Board Resolution
Approval letter from SEBI

Q 56. _______strategy is supposed to be a risky strategy of asset allocation.*

1 point

Strategic Asset Allocation

Tactical Asset Allocation
Both 1 and 2
None of the above

Q 57. As regards cut-off timing, the time when it is submitted to the Points of
Acceptance PoA is relevant - not the time when the investor submits the transaction
request to the distributor - True or False ?*
1 point

True
False

Q 58. An elderly couple who have no immediate family members should ideally
invest in_____.*
1 point

ELSS Funds
Debt Funds
Sectoral Funds
Blue Chip Equity Funds

Q 59. To source the data required to track the performance of mutual funds most
______offer free tools on their websites for this purpose.*
1 point

AMC's
Distribution Houses
MF Research companies
All of the above

Q 60. Gold ETF's cannot be bought by retail investors - True or False ?*

1 point

True
False
Q 61. Mutual Fund offer various plans/options in accordance to the risk profile of the
investor - True or False ?*
1 point

True
False

Q 62. The dividend received by a Mutual Fund investor will be taxed at a rate of
12.5% - True or False ?.*
1 point

True
False

Q 63. An Index fund has an beta of 1 - State True or False ?*

1 point

True
False

Q 64. "Please read the scheme related documents carefully" - which documents
does this line refer to?*
1 point

Scheme Information Document and Statement of Additional Information

Statement of Additional Information and fund fact sheet
Trust deed and Key Information Memorandum
Scheme Information Document and audited balance sheet of the Asset Management
Company

Q 65. Long term debt funds would be sensible in declining interest rate scenarios -
True or False ?*
1 point

True
False

Q 66. Which of the below expenses can be charged to a fund ?*

1 point

Expenses to manage a fund

Expenses to launch a new fund
Expenses done by the AMC
Expenses done by the Investors

Q 67. The action Slips are used by______.*

1 point

First time investors of Mutual Funds

NFO Investors
Existing Investors
Relatives of Existing Investors

Q 68. While selling mutual fund products of the distributors'

group/affiliate/associates, the distributor shall make disclosure to the customer
regarding the conflict of interest arising from the distributor selling such products -
True or False ?*
1 point

True
False

Q 69. Mutual funds are constituted as____ and therefore, they are governed by
the_____.*
1 point

Companies, Indian Companies Act

Trusts, Indian Trusts Act
Investment Agencies, SEBI Act
NGOS, NGO Act

Q 70. Relaxation in documentation requirements for micro-SIPs is available

for_____*
1 point

Non Resident Indians

Non Individulas
Hindu Undivided Family
None of the Above

Q 71. Every trust has beneficiaries - True or False?*

1 point

True
False

Q 72. ________arises due to a difference in the price movement of the derivative

vis-à-vis that of the security being hedged.*
1 point

Model Risk
Interest rate risk
Counterparty Risk
Basis Risk

Q 73. What is the restriction on a mutual fund scheme investing in the equity
instruments of a company?*
1 point

2% of the net assets

5% of the net assets
7.5% of the net assets
10% of the net assets

Q 74. A Board Resolution is not required for an institutional investor to invest in

Mutual Funds if the Memorandum and Articles of Association permit it to do so - True
or False ?*
1 point

True
False

Q 75. There is no Tax Deducted at Source (TDS) on dividend payments or re-

purchase payments of Mutual Funds for Indian investors - True or False ?*
1 point

True
False

Q 76. -"To achieve growth by investing in equity and equity related investments,
along with income generation by investing in debt and money market instruments"
would be the investment objective of a________.*
1 point

debt fund
balanced scheme
ELSS Fund
Sectoral Equity fund

Q 77. Which of the following is an important aspect of an OFFER DOCUMENT?*

1 point

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

Q 78. At what rate is the Securities Transaction Tax charged on sale of units of debt
oriented mutual fund in a stock exchange?*
1 point

0.01%
0.1%
0.125%
0%

Q 79. The strategy of maintaining a constant ratio of asset allocation is know as*
1 point

Dynamic Asset Allocation

Fixed Asset Allocation
Flexible Asset Allocation
SIP

Q 80. That mutual fund which has an investment charter that provides for a
reasonable level of investment in both equity and debt is known as_______.*
1 point

Fixed maturity plan

Hybrid fund
ELSS Fund
Liquid Fund

Q 81. Investments in Mutual Funds can be done only through a AMFI authorided MF
distributors - True or False ?*
1 point

True
False

Q 82. Who receives and delivers securities on behalf of the Mutual Fund ?*
1 point

Authorised Stock Brokers

The AMC to which the fund belongs
Custodian
Merchant Bankers

Q 83. Even thought investment in Mutual Funds are subject to market risks, an
investor invests in an equity fund after reading the risk factors etc. Due to a fall in the
stock markets the value of the fund goes down drastically. The investor______.*
1 point

can get some remedy if he appeals to SEBI

can get some remedy if he appeals to AMC
can get some remedy if he appeals to AMFI
cannot get any remedy from the AMC

Q 84. Which of the following is a measure of market risk?*

1 point

Beta Coefficient
Sharpe Ratio
Treynor Ratio
None of the above

Q 85. You are expecting interest rates (yields) to rise in the markets. Where would
you invest your money considering this forecast ?*
1 point

Long Terms Debt Funds

Short Term Debt Funds
Equity Funds
Banking Sector Funds

Q 86. Which of the following scheme categories would be considered the least risky
in terms of credit risk?*
1 point

Dynamic bond
Gilt fund
Corporate bond fund
Credit risk fund

Q 87. The peak of earning capacity of an investor reached during the pre-retirement
phase - True or False ?*
1 point

True
False

Q 88. In Liquid funds, simple annualised return method is used to show the returns
because______.*
1 point

Its a simpler way to calculate and investors understand it easily

The investment made is fixed for 30 - 90 - 180 days
The return is calculated over smaller time horizons
The amount invested is usually small

Q 89. An investor who has a long term view and is looking for capital appreciation
and also has high risk tolerance should opt for investments in______.*
1 point

Gold
Equities
Fixed Deposits
High interest bearing junk bonds

Q 90. The strategy of Tactical Asset Allocation is considered to be a risky strategy -

True or False ?*
1 point

True
False

Q 91. If a person wants to appeal against the ruling of SEBI, he can do so

with_____.*
1 point

RBI
Commerce Ministry
Company Law Board
Securities Appellate Tribunal
Q 92. Once the New Fund Offer (NFO) of a Close Ended Fund has closed, a person
can buy the listed units of such close ended fund_______.*
1 point

At prices usually higher than NAV

At prices usually lower than NAV
At prices which can be higher or lower than NAV
Units of a Close Ended Fund cannot be bought after NFO

Q 93. For a Young Unmarried - which of the following phase is applicable ?*

1 point

Accumulation
Distribution
Transfer
None of the above

Q 94. Investing in______ can be a risky prospect during periods of Economic

Turmoil.*
1 point

Gilt Securities
Debt Funds
Mid Cap Funds
Large Cap Funds

Q 95. ________is a Non-Diversifiable risk*

1 point

Unsystematic Risk
Systematic Risk

Q 96. A investors wishes invest in debt mutu funds but wants high liquidity - should
he invest in Fixed Maturity Plans ?*
1 point

Yes
No

Q 97. To do away with multiple KYC formalities with various intermediaries, SEBI
has mandated a unified KYC for the securities market through the Depository
Participants registered with SEBI - True or False ?*
1 point

True
False

Q 98. Which of the following is true with respect to Growth Option in Mutual Fund
schemes ?*
1 point
The change in NAV captures the scheme performance
Units rise or fall depending on the schemes performance
The NAV falls as and when dividend is declared
Dividend Distribution Tax is applicable

Q 99. A Mutual Fund scheme gave an annualised return of 9.86% and the
annualised Standard Deviation of the fund is 3.47. The current risk free return is 8%.
Calculate the Sharpe Ratio.*
1 point

0.89
0.72
0.49
0.53

Q 100. The floating rate debt securities tend to hold their value, despite changes in
yield in the debt market - True or False ?*
1 point

True
False

LONG LENGTH TEST-2

Q 1. An investor purchases through a distributor 5000 units of a mutual fund scheme

at a NAV of Rs 25. The current NAV of the scheme is Rs 43. What will be the trail
commission for today if the trail commission rate is 1% per annum.*
1 point

Rs. 2150
Rs. 33.1854
Rs. 3.4246
Rs. 5.8904

Q 2. According to guidelines given by SEBI, every mutual fund scheme should have
a minimum of _______investors.*
1 point

10
20
25
50

Q 3. Smita is a young investor and her parents advice her to invest in fixed deposits
of banks so that these funds can be used for her retirement. If Smita follows her
parents advice, what risk does she face?*
1 point

She has to select the correct bank which is financially strong

There is a high risk of default in her portfolio
There is a risk of low returns
There is no risk as fixed deposits are quiet safe

Q 4. .Investors who have not transacted during the previous ______ are known as
dormant investors.*
1 point

15 months
12 months
9 months
6 months

Q 5. Mr. Mohit has filled up a application form for subscribing to a mutual fund
scheme. However the address mentioned in the application form is different from the
address provided at the time of KYC compliance. Which address will be included in
the mutual funds records once the KYC compliance is validated?*
1 point

The address provided for KYC compliance

The address provided in the application form
Mr. Mohit can indicate which address is correct
The ddress provided in the application form will be used for all communications

Q 6. Who uses the information collected under the Foreign Account Tax Compliance
Act (FATCA)?*
1 point

Foreign Government or foreign agencies

Indian Government
Indian Tax authorities
All of the above

Q 7. Which of these entities can invest in Indian mutual funds? A) Foreign portfolio
investor B) Insurance company C ) Salaried individual*
1 point

Only C
A and B
B and C
All A, B and C
Q 8. Identify the TRUE statements with respect to Transmission of mutual fund units
- A) Before the transfer is effected, the mutual fund will insist for an indemnity
against future problems for the mutual fund B) Before the transfer is effected, the
mutual fund will not insist on the death certificate of the deceased unit-holder C)
Before the transfer is effected, the mutual fund will insist on the KYC documentation
from the nominee*
1 point

A and B are true

B and C are true
A and C are true
All A, B and C are true

Q 9. Which of these is NOT a function of Registrars and Transfer Agents ?*

1 point

Maintaining investors records

Processing redemption and dividend payouts
Analysing mutual fund performance and making it available to investors
Updating unit capital of fund

Q 10. The NAV of an equity fund is Rs. 76.45 and the face value is Rs. 10. An
investor invests Rs 30,000. How many units will be allotted to him? (There is no
entry load)*
1 point

1866.43
477
392.41
3000

Q 11. AMFI Code of Ethics states that _______cannot become a distributor of

mutual fund.*
1 point

Banks
HNIs
Employees of AMC
Empanelled distributors

Q 12. Identify the TRUE statement -*

1 point

The mutual fund investor has the complete freedom to change the distributor any time he
wants
Once an investor had invested through a distributor, he cannot change the distributor
Once an investor had invested by online method, he cannot change the distributor
Once an investor had invested through a distributor, he cannot invest directly with the mutual
fund house
Q 13. Indentify the true statement(s) -A) A systematic transaction cannot be
cancelled B) Assuming a mutual fund scheme is profitable then the investors can
keep encashing some profits through a Systematic Withdrawal Plan*
1 point

Only A is true
Only B is true
Both A and B are true

Q 14. The expenses of _________cannot be charged to a mutual fund scheme.*

1 point

custodian fees
software development
registrar services for transfer of units sold
GST- Goods and Service tax

Q 15. Identify the false statement(s).A) When an investor wants to redeem from a
scheme, the distributor must suggest redemption from the scheme with the
maximum exit load B) The mutual fund distributors can ignore the impact of exit load
at the time of repurchase*
1 point

Only statement A is false

Only statement B is false
Both statements A and B are false

Q 16. Indicate which of these funds have the lowest to highest risk sequence? A)
Liquid Fund B) Credit Risk Fund C) Corporate Bond Fund*
1 point

B-C-A
C-A-B
A-B-C
A-C-B

Q 17. Identify the FALSE statement(s) – A) For Index funds, the NAV is calculated
upto 4 decimal points B) The AMC and a mutual fund scheme of the AMC can have
the same auditor*
1 point

Only A is false
Only B is false
Both A and B are false

Q 18. Long term capital loss from an investment can be set off against________.*
1 point

short term capital gains only

short term capital gain or long term capital gain
long term capital gains only
long term capital loss cannot be set off

Q 19. Which of these statements are TRUE with respect to time stamping on mutual
fund documents? A) Time stamping is relevant for non financial mutual fund
transactions B) The daily time stamping of application does not start with serial 1C)
Breakdown of time stamping process or breaking of seal is mandated to be duly
recorded and reported to the Trustees*
1 point

A and B are true

B and C are true
A and C are true
A, B and C are true

Q 20. ______ensures that the information contained in the scheme related

documents (SID and SAI) are fully complied with.*
1 point

The Trustees
The Sponsor
The Fund Manager
The AMC

Q 21. Cut-off timing guidelines are not applicable for _______.*

1 point

International Fund
New Fund Offer (NFO)
Both of the above
None of the above

Q 22. Registrar and Transfer Agency function must be independent of the Asset
Management Company, and it cannot be retained in-house. State whether this
statement is True or False.*
1 point

True
False

Q 23. Today's costs can be translated into future requirement of funds using the
formula:*
1 point

A = P/ (1 + i)^n
A = PX (1 + i)^n
P = A^n X (1 + i)
P = A^n X (1 + i)^n

Q 24. Investments in mutual fund are allowed using _____.*

1 point

ASBA
Cheque / DD
Remittance
Any of the above

Q 25. The Income Tax Act allows setting-off of the short term capital loss against
long term capital gains. State whether True or False.*
1 point

True
False

Q 26. The purchasing power of currency changes on account of which of the

following?*
1 point

Diversification
Inflation
Compound interest
Asset allocation

Q 27. ________is a basis to select the better scheme in Index Funds.*

1 point

Tracking Error
Beta
5 year performance
Fund Managers past record

Q 28. Investors' KYC details are stored in the server of ______.*

1 point

AMFI
AMC
KRA
SEBI

Q 29. Tactical Asset Allocation is the decision that comes out of calls on the likely
behavior of the market - True or False ?*
1 point

True
False

Q 30. Investors have the right to specify upto _______ nominees for their mutual
fund investment folios.*
1 point

1
2
3
4

Q 31. Lower the expenses of a Mutual Fund, lower would be the NAV - True or False
?*
1 point

True
False

Q 32. _______have to make additional disclosures related to credit evaluation policy,

sectors and types of investments in the offer document.*
1 point

ELSS Funds
Debt Funds
Sectoral Funds
Equity Funds

Q 33. PAN No. and KYC documentation is compulsory for mutual fund investments
with the only exception of _____.*
1 point

ELSS Funds
Micro SIPS
Gilt Funds
Government Mutual Funds

Q 34. How many (maximum) bank accounts can a resident individual investor
register with a mutual fund folio?*
1 point

1
2
3
5

Q 35. NAV of Equity funds is to be calculated upto decimals.*

1 point

1
2
3
4

Q 36. Beta as a risk measure is relevant for _______.*

1 point

Only Equity Schemes

Only Debt Schemes
Both Equity and Debt schemes
FMP's

Q 37. Which of the following is a truly international asset class?*

1 point

Gold
Equity Share
Real Estate
Debt

Q 38. Liquid schemes are a variant of debt schemes that invest only in debt
securities of upto 60-days maturity - True or False ?*
1 point

True
False

Q 39. STP is a combination of SIP and SWP True or False ?*

1 point

True
False

Q 40. Which among the following investment avenues does not offer income on a
regular basis?*
1 point

Stocks
Real estate
Debentures
Physical Gold

Q 41. What minimum percentage of the mutual fund scheme corpus must be
invested in equity and related instruments in case of Equity Linked Savings Schemes
(ELSS)?*
1 point

65 percent
70 percent
80 percent
95 percent

Q 42. The difference between NAV and re purchase price is ______.*

1 point

Exit Load
Entry Load
Commission of the MF Agent
Dividend Stripping
Q 43. The asset allocation that is worked out for an investor based on risk profiling is
called ________.*
1 point

Strategic Asset Allocation

Fixed Asset Allocation
Tactical Asset Allocation
Flexible Asset Allocation

Q 44. For calculating Capital Gains, investment in mutual funds for less then 1 year
is considered as_______.*
1 point

Long Term
Medium Term
Short Term
Ultra Short Term

Q 45. Interval funds combine features of both open-ended and close-ended schemes
- True or False?*
1 point

True
False

Q 46. A Mutual Fund wants to launch a new scheme with a Face Value of Rs 50. Will
it get the required permissions?*
1 point

Yes
No

Q 47. The ARN number is assigned by _______.*

1 point

The AMC
SEBI
AMFI
Stock Exchange

Q 48. Arbitrage Funds have BASIS risks - True or False ?*

1 point

True
False

Q 49. Recurring expenses cannot be charged to a Mutual Fund scheme as it drags

down the NAV - True or False ?*
1 point

True
False

Q 50. Which amongst the following asset categories can also be purchased for
consumption purposes apart from investment?*
1 point

Bonds
Real estate
Debentures
Stocks

Q 51. Mutual Funds cannot accept cash from investors for investing in their schemes
- True or False ?*
1 point

True
False

Q 52. All the records of the investors of a Mutual Fund are maintained by the Fund
Manager - True or False ?*
1 point

True
False

Q 53. An important objective of SEBI is to represent to the Government, Reserve

Bank of India and other bodies on all matters relating to the Mutual Fund Industry -
True or False ?*
1 point

True
False

Q 54. SEBI approval is required for an AMC to appoint a distributor - True or False
?*
1 point

True
False

Q 55. The Price Earning (PE) Ratio of a company is 7 and its Earning Per Share is
Rs 10. What is the Market Price of this company?*
1 point

Rs 49
Rs 70
Rs 700
Rs 10

Q 56. In the ________stage, a persons earning capacity reaches his peak.*

1 point

Young Married
Pre Retirement
Young Unmarried
Retirement

Q 57. For an investor to get a quick sense of the level of risk involved in a mutual
fund scheme, SEBI suggested a simplified framework known as*
1 point

Risk factors
Investor's risk profile
Risk-o-meter
Fact sheet

Q 58. An investor gives a cheque of Rs 1 lacs for investing in a Debt scheme at 3.30
pm at a Mutual Fund office. The NAV of which day will be applicable to him?*
1 point

NAV of the same day

NAV of the next business day
NAV of the day on which funds will be available
None of the above

Q 59. As per the Income Tax Act - which of the below option is True ?*
1 point

Capital loss, short term or long term, can be set off against any other head of income
Long term capital loss can be set off against long term and short term capital gain
Short Term Capital gains is a tax free income
Short term capital loss is to be set off against short term capital gain or long term capital gain

Q 60. Of the following documents, which is required to be appended to the

application form of a MF scheme?*
1 point

Statement of Additional Information -SAI

Addendum
Scheme Information Document - SID
Key Information Memorandum - KIM

Q 61. Pension Funds Regulatory and Development Authority (PFRDA) is the

regulator for the National Savings System.*
1 point

True
False

Q 62. Every trust has beneficiaries and the beneficiaries, in the case of a mutual
fund trust, are________.*
1 point

the Trustees of the AMC

the investors who invest in various schemes of the mutual fund.
the Employees of the Mutual Fund Company
the Chairperson and Managing Director of the AMC

Q 63. All advertisements and Sales Literature containing an AMC(s)/Mutual Fund

ranking must prominently disclose__________.*
1 point

The publisher of the ranking data.

Criteria on which the ranking is based.
The name of the Ranking Entity.
All of the above

Q 64. The Entry / Exit Loads and Taxes do not have an impact on the returns to the
investors - True or False ?*
1 point

True
False

Q 65. Relaxation in documentation requirements for micro-SIPs is not available

for________.*
1 point

Non Resident Indians

Hindu Undivided Family
Individuals
All of the above

Q 66. Expenses incurred to launch a new fund can be charged to the fund - True or
False ?*
1 point

True
False

Q 67. Usually Diversified Equity funds are safer than Diversified Debt funds - True or
False ?*
1 point

True
False

Q 68. An investor purchases through a distributor 20000 units of a mutual fund

scheme at a NAV of Rs 65. The current NAV of the scheme is Rs 62. What will be
the trail commission for today if the trail commission rate is 1% per annum.*
1 point
Rs. 35.6164
Rs. 33.9726
Rs. 19.5543
Rs. 28.1217

Q 69. In case a fund manager is managing more than six funds, then performance
data of top____ and bottom___ schemes has to be disclosed in all performance
related advertisements.*
1 point

2,2
3,3
4,4
6,6

Q 70. Gold Future Contracts_______.*

1 point

are traded on the Commodity Exchanges

are not standardised products
can be bought through Mutual Funds
None of the above

Q 71. Identify the TRUE statement(s) with respect to risk levels in mutual funds? A)
Corporate bond funds are relatively more. riskier than Credit risk fund B) The NAV of
Gilt funds generally fluctuate more than NAV of Liquid funds due to changes in yield*
1 point

Only A is true
Only B is true
A and B are true
A and B are false

Q 72. A Mutual Fund scheme is known to distribute dividends from time to time.
Such MF can be used as a source of________.*
1 point

Good Capital Appreciation

Regular Income
Safety of Capital
Tax Planning

Q 73. 'Once it is finalized, a mutual fund scheme's benchmark cannot be changed at

a later date.' State whether the statement is True or False.*
1 point

True
False

Q 74. As per the provisions of the Income Tax Act - Short term capital loss is to be
set off against short term capital gain or long term capital gain - True or False ?*
1 point

True
False

Q 75. Which of the following is a measure of fluctuation in periodic returns in an

equity mutual fund scheme?*
1 point

Variance
Modified duration
Jensen's Alpha
Sharpe ratio

Q 76. A Mutual Fund investor can file a case against the______ for breach of trust.*
1 point

Mutual Fund
Trustees
Stock Exchange
No, a MF investor cannot file a suit.

Q 77. Prediction of equity markets in the short run is easier than in the long run -
True or False ?*
1 point

True
False

Q 78. Which of the following regulates mutual funds in India?*

1 point

Asset Management Companies

Securities and Exchange Board of India
Board of Trustees of mutual funds
Association of Mutual Funds in India

Q 79. The investment objective of a_______ might read as follows: "To generate
capital appreciation from a portfolio of predominantly equity related securities"*
1 point

Money Market Fund

Balanced Fund
Arbitrage Fund
Diversified Equity Fund

Q 80. Of the below options, what is FALSE with respect to Arbitrage Funds ?*
1 point

Arbitrage Funds have Basis Risks

Arbitrage Funds invest in Equity Markets
Arbitrage Funds invest in both Spot and Futures Market
Arbitrage Funds are more riskier than Sectoral Funds

Q 81. The amount which is paid to the distributor at the time the money is invested in
a scheme is called______.*
1 point

Trail Commission
Upfront Commission
Rebate
Fund Incentive

Q 82. The cost of fund management are the highest in_____.*

1 point

Passive Funds
Active Funds
Index Funds
None of the Above

Q 83. Many AMCs, distribution houses and mutual fund research houses offer free
tools in their website which can be used for evaluating a funds performance - True or
False ?*
1 point

True
False

Q 84. Which of the following options form the basis of appointment of a Mutual Fund
distributor ?*
1 point

An agreement between the AMC and the Distributor

Approval from SEBI
Power of Attorney from the AMC
An agreement with AMFI

Q 85. The Stock Exchanges which provide facilities for Mutual Fund trading also do
the functions of Mutual Fund RTAs. - True or False ?*
1 point

True
False

Q 86. Open-ended schemes, except ELSS, have to re-open for ongoing sale/re-
purchase within _______business days of allotment.*
1 point

3
5
10
30
Q 87. The trail commission paid by Mutual Funds to a distributor_______.*
1 point

Is paid only for high valued transactions

Is linked to the NAV
Grows at a steady rate
Is paid to the Corporate and Bank Distributors only

Q 88. Mutual funds can accept cash to the tune of Rs_______ from small investors
who do not have a PAN.*
1 point

No cash can be accepted by a MF

Rs 50,000
Rs 20,000
Rs 5,000

Q 89. Asset allocation means_______.*

1 point

Distribution of Funds between Fund Managers in a Mutual Fund

Distribution of funds between various asset classes in a portfolio
Distribution of funds between various persons after the death of a person
Distribution of funds between beneficiaries of an AMC

Q 90. Which of the given statements below aptly fit the description of actively
managed funds ?*
1 point

Increased role of fund manager and high running cost

Decreased role of fund manager and high running cost
Decreased role of fund manager and low running cost
Increased role of fund manager and low running cost

Q 91. Identify the difference between Sharpe Ratio and Treynor Ratio.*
1 point

Both are same

Sharpe Ratio uses Standard Deviation for its calculations whereas Treynor Ratio uses Beta
Sharpe Ratio is used for underperforming schemes whereas Treynor Ratio is used for
outperforming schemes

Q 92. Gold ETF's are meant only for FI's and FII's - True or False ?*
1 point

True
False

Q 93. As per SEBI regulations, every application form is to be accompanied

by_______.*
1 point
Key Information Memorandum (KIM)
Scheme Information Document (SID)
Addendum
Statement of Additional Information

Q 94. What are the benefits of Dematerialisation? A) No inconvenience of

safekeeping paper certificates B) Reduction in paper work C) Auto credit of bonus
units etc.*
1 point

A and C
B and C
A and B
All A, B and C

Q 95. Dividend Distribution Tax (DDT) on Equity oriented mutual fund schemes for
Corporate Investors is______.*
1 point

10%
25%
30%
NIL TAX

Q 96. The Market Value of a scheme is Rs 579 crores. Dividend accrued but not
received is Rs 18 crore. The Expenses payable are Rs 3 crore. The total number of
outstanding units is 300 lakhs. What is the NAV of the scheme?*
1 point

188
198
208
218

Q 97. Minors are not legally eligible to contract, so for investing in Mutual Funds
they_______.*
1 point

have to become 18 years before investing

can invest through their guardians
can invest only in long term capital gain funds
can invest in specific 'Minors Only' Mutual Funds

Q 98. A person wishes to avail of a loan. For which of the below options he cannot
get a loan ?*
1 point

To start a textile factory

To buy a car of value above Rs 20 lacs
To buy a high priced lottery ticket
To buy a house in a Union Territory
Q 99. The ________is the phase when the earning years usually starts.*
1 point

Young Unmarried
Young Married
Married with one children
During graduation

Q 100. "To generate income by investing predominantly in a wide range of debt and
money market securities" - this could be the investment objective of a_______.*
1 point

Diversified debt scheme

Diversified equity scheme
ELSS Scheme
Arbitrage Fund

LONG LENGTH TEST-3

Q 1. The stock exchanges which provide mutual fund trading facilities also have to
provide for settlement guarantee - State True or False ?*
1 point

True
False

Q 2. _______is not a fair selling practice by a mutual fund distributor.*

1 point

Informing the investor of the various investment options

Carefully understanding the clients financial needs
Encouraging the churning of investments
Giving personalised after sales service

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

1 point

RBI
SEBI
Sponsor
AMC

Q 4. _______is/are included in the Key Information Memorandum (KIM).*

1 point

Name of the fund manager, trustees

Performance of schemes
Asset allocation plan
All of the above
Q 5. Who cannot invest in Mutual Funds in India ?*
1 point

Minors
HUFs
NRIs
All of the above

Q 6. State True or False - The Thematic funds will always have a wider exposure
than Sector funds.*
1 point

True
False

Q 7. The difference between the yield on Gilt and the yield on a non-Government
Debt security is called its _______.*
1 point

YTM
Credit Spread
Yield to Call
Risk Spread

Q 8. Gold futures contract _______.*

1 point

are traded in commodity exchanges

are not standardized contracts
are available through mutual funds
None of the above

Q 9. From the listed below, ______ has the highest credit risk.*
1 point

High yield funds

ELSS Funds
Gilt funds
Index funds

Q 10. What is the role of the custodian?*

1 point

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

Q 11. Usually active funds give higher returns as investors bear a higher fund
management expense - State True or False ?*
1 point
True
False

Q 12. By investing in mutual funds an investor uses the services of ______.*

1 point

a professional actuary
a professional insurance agent
a professional investment manager
a professional tax planner

Q 13. In which type of fund is the risk of investor not selecting the correct sector
maximum ?*
1 point

Thematic Funds
Sector Funds
Arbitrage Funds
Index Funds

Q 14. ________investment style involves buying stocks which are valued lower as
per fundamental analysis.*
1 point

Tactical
Growth
Cyclical
Value

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

True
False

Q 16. Tactical Asset Allocation is suitable only for seasoned investors operating with
large investible surpluses - State True or False ?*
1 point

True
False

Q 17. The Offer Document will NOT give any information on ______.*
1 point

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

Q 18. The dividend declared on units under lien is paid to ______.*

1 point

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

Q 19. An ongoing bond fund will lose value when the interest rates in the
market_______.*
1 point

Rise
Fall
remains same
will be equal to yields

Q 20. The mechanism used to ensure that the cutoff timing is strictly followed is
called _______.*
1 point

Stamp time
Time verification
Time stamping
Auditing

Q 21. The lock in for Equity Linked Savings Scheme (ELSS Funds) is _______.*
1 point

1 year
2 years
3 years
5 years

Q 22. ______gives the investor exposure to international assets.*

1 point

Index funds
ELSS Fund
International Funds
Arbitrage Funds

Q 23. Which of the following is an important aspect of an OFFER DOCUMENT?*

1 point

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

Q 24. Mr. A has a small business and will generally need more allocation to liquid
funds than Mr. B, who is senior manager with a multinational company. - State True
or False?*
1 point

True
False

Q 25. When should an investor adopt a strategy of limiting equity exposure to index
funds ?*
1 point

In the Accumulation phase

In the Retirement phase
In the Sudden wealth phase
None of the above

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

True
False

Q 27. As the Unit Certificates are non transferable, they do not offer any real
transactional convenience for the Unit holder - State True or False ?*
1 point

True
False

Q 28. One of the below options is a function of AMFI - which one ?*

1 point

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

Q 29. With respect to KIM - Key Information Memorandum, which of the following
statement is NOT true ?*
1 point

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

Q 30. When a scheme makes profits or losses, these profits and losses belong To
______.*
1 point

The AMC
The Trustees
The Fund Manager
The Investor

Q 31. The NAV of a mutual fund unit changes every day due to changes in ______.*
1 point

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

Q 32. A board resolution for investing in a mutual fund scheme is compulsorily

required by ______.*
1 point

Non Resident Indians - NRIs

Hindu Undivided Family - HUF
Institutional Investors
Minors

Q 33. Identify the TRUE statements -A) Unsystematic risk is measured by its Beta B)
The diversified stock index has a Beta of 1C) An investment with a beta of 0.7 will
move 7 percent when markets move by 10 percent*
1 point

A and B are true

B and C are true
A and C are true
All A, B and C are true

Q 34. The Asset Management Company primarily compensates the mutual fund
distributors through _______.*
1 point

Commissions
Salaries
Salary + Commission
Share in AMC's profit

Q 35. Identify the true statement as per AMFI's Code of Conduct for Intermediaries
of Mutual Funds.*
1 point

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

36. What is the maximum permissible limit of investment a single investor can have
in a scheme?*
1 point

5% of the corpus
10% of the corpus
20% of the corpus
25% of the corpus

Q 37. Which of these statement is TRUE with respect to Cut-off timings?*

1 point

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

Q 38. In case of ______ the Net Asset Value has to be declared for upto 4 decimal
points.*
1 point

Mid Cap and Small Cap Funds

Liquid Funds
Aggressive Hybrid Funds
ELSS Funds

Q 39. The Key Information Memorandum (KIM) is an abridged version of which of

these documents?*
1 point

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

Q 40. Distributors can 'opt-out' of charging transaction charges ______.*

1 point

at AMC level
at investor level
at scheme level
at distributor level

41. What is the Net Asset Value (NAV) after dividend payment called?*
1 point

ex-Dividend NAV
ex-Load NAV
cum-Dividend NAV
Net - NAV

Q 42. ________invest in those securities which have maturity matching the maturity
of the scheme.*
1 point

Fixed Maturity Plans

Exchange Traded Funds
ELSS Funds
High Yield Funds

Q 43. additional expense of 0.30% of daily net assets of the scheme?*

1 point

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

Q 44. ______can be used in lieu of dividend payouts.*

1 point

Systematic Withdrawal Plan (SWP)

Systematic Transfer Plan (STP)
Systematic Investment Plan (SIP)
Total Redemption

Q 45. Which of these statements is true with respect to a Switch transaction?*

1 point

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

Q 46. Some of the costs incurred by the Asset Management Companies to manage
the mutual fund schemes can be charged to ______ in proportion to their holding of
units in the scheme.*
1 point

Distributors
Stock Brokers
Unit holders
Independent Financial Advisors

Q 47. What are the guidelines issued by AMFI for intermediaries known as?*
1 point
SEBI Brokers and Intermediaries guidelines
Know Your Distributor guidelines
AMFI Guidelines & Norms for Intermediaries (AGNI)

48. Identify the TRUE statement(s) for an Equity Linked Saving 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*
1 point

Only 1
Only 2
Only 3
Only 2 and 3

Q 49. Where should the change in status of an individual from a Resident to a Non
Resident Indian updated for mutual fund investments?*
1 point

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

Q 50. The choice of benchmark for a Debt Scheme could be chosen on the basis
of:1. Scheme Size2. Scheme Type3. Investment Universe*
1 point

Both 1 and 2
Both 2 and 3
Both 1 and 3
All 1,2 and 3

Q 51. On basis the payment made to an investor who claims his erstwhile unclaimed
redemption amount within three years?*
1 point

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

Q 52. The indices based on Government securities will be an appropriate benchmark

for which type of funds?*
1 point

Credit Risk Funds

Gilt Funds
Money Market Funds
Liquid Funds

Q 53. Identify the true statement with respect to investments in mutual funds through
Stock Exchanges?*
1 point

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

Q 54. In which of these cases will the 'lock-in' in a retirement fund be lower than the
prescribed 5 years ?*
1 point

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

Q 55. Mr. X has invested Rs. 2,00,000 in a 370 day FMP and on maturity he
received Rs. 2,15,832. What is the capital gain in this transaction?*
1 point

Rs. 7916
Rs. 13750
Rs. 15832
Insufficient Data

Q 56. Identify the FALSE statement.1. Arbitrage funds can invest in both
Futures/Options(F&O) and cash markets2. The only objective of an Arbitrage fund is
to provide capital appreciation3. Arbitrage funds have lower risk compared to Equity
Funds*
1 point

Only 1
Only 2
Both 2 and 3
Both 1 and 3

Q 57. Which of these statement(s) is/are TRUE? 1. There cannot be 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*
1 point

Only 1
Only 2
Both 1 and 2

Q 58. Identify from the following what is not considered as a scheme fundamental
attribute?*
1 point

Type of scheme
Investment objective
Investment pattern
Name of fund manager

Q 59. Mr. A is an existing investor in a mutual fund scheme and he 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?*
1 point

Rs. 4950
Rs. 4900
Rs. 4875
Rs. 5000

Q 60. Investments have to be made only through authorized signatories for

investments by______.*
1 point

Institutional investors
Hindu Undivided Family (HUF)
Non Resident Indians (NRI)
High net worth individuals (HNI)

Q 61. As per SEBI Code of Conduct, mutual fund schemes portfolios should be
managed in the interest of______.*
1 point

Trustees
Sponsors
Brokers
All classes of unit holders

Q 62. The form for registering a change in the default bank account has to be
signed______.*
1 point

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

Q 63. For which mutual fund distributors is a due diligence process mandated by
SEBI?*
1 point

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

Q 64. Mrs. Neeta needs Rs. 5,00,000 in 3 years from now. The interest rate is 6%.
By which formula can we calculate the amount which is required to be invested today
to achieve the goal?*
1 point

500000*(1+0.06)*3
500000 / (1+0.06)^3
500000 / (1+0.06)*3
500000 (1-0.06)^3 *

Q 65. What is the investment in equity and equity related instruments in a Balanced
Hybrid Fund?*
1 point

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

Q 66. A person wants to create a synthetic index. Guide him as to in which of these
categories the weightage of equity index would be the lowest?*
1 point

Super aggressive hybrid fund

Aggressive hybrid fund
Balanced hybrid fund
Conservative hybrid fund

Q 67. The minimum investment limit in equity/equity related instruments of large cap
companies for a Large Cap mutual fund scheme is______ of total assets.*
1 point

70%
80%
85%
90%
Q 68. Identify which of these is a function of Association of Mutual Funds in India's
(AMFI)?*
1 point

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

Q 69. Identify the true statement with respect to measuring returns for Mutual Funds
schemes.1. Simple Return can be calculated using the formula : Sale Price - Cost
Price / Sale Price2. Compounded Annual Growth Rate 'CAGR' technique has been
prescribed by SEBI when dividend is paid and compounding is to be considered3.
CAGR is the recognized standard for calculating returns for investment horizon of
greater than or equal to 1 year*
1 point

1 and 2
2 and 3
3 and 1
1,2 and 3

Q 70. If an investor claims his unclaimed redemption amount after 3 years than the
payment will be based on the_______.*
1 point

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

Q 71. Identify the TRUE statement.1. Retail investors can buy units of Gold ETF2.
Banks as well as Mutual Funds, both offer Gold deposit schemes3. Gold ETF is a
closed ended fund and so the holdings are not for perpetuity*
1 point

Only statement 1 is true

Only statement 2 is true
Only statement 3 is true
All 1,2 and 3 are true

Q 72. Identify the FALSE statement(s) -A - Authorised signatories have to sign the
request for transactions of institutional investors in mutual fundsB - 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*
1 point
Statement A is false
Statement B is false
Both statements A and b are false

Q 73. Rising Sun Mutual Fund holds shares of AAA Ltd. in its portfolio. When the
NAV of the scheme is calculated on 10th April, then each share of AAA Ltd. will be
valued at______.*
1 point

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

Q 74. Identify the TRUE statement(s):a. A diversified index will 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*
1 point

a and b
a and c
b and c
Only b

Q 75. _____risk arises because of difference in price movement of the derivative vis-
a-vis that of the security being hedged.*
1 point

Model Risk
Basis Risk
Market Liquidity Risk
Credit Risk

Q 76. An investor is interested in buying some units of a Close ended fund after the
NFO is over. How can he buy the same?*
1 point

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

Q 77. BSE's platform for Mutual Fund trading is known is BSE Solar Mutual Funds
Platform - True or False ?*
1 point

True
False
Q 78. Legally SAI is part of the SID - True or False ?*
1 point

True
False

Q 79. NAV of income funds is to be calculated upto ______decimals.*

1 point

1
2
3
4

Q 80. Mutual funds can buy and sell securities only on delivery basis. State whether
this statement is True or False.*
1 point

True
False

Q 81. In case of mutual fund schemes, dividends can be paid only out of_____.*
1 point

Unit capital
Distributable surplus generated by the scheme
Premium reserve account
Mark-to-market profits

Q 82. The investor cannot pledge the units of a Mutual Fund as a security to a
financer - True or False ?*
1 point

True
False

Q 83. NFO's for ELSS schemes can remain open for _______ days.*
1 point

10
15
20
30

Q 84. As per the SEBI guidelines, how often should the mutual fund scheme's
portfolio be published?*
1 point

Monthly
Half-yearly
Annually
Quarterly

Q 85. Whose job is it to track the various corporate actions like bonus, dividend, or
rights issues in companies where the mutual fund scheme has invested?*
1 point

Custodian
Registrar and Transfer Agency
Unitholders
Auditors of the Asset Management Company

Q 86. Open-ended schemes generally offer exit option to investors through a stock
exchange.*
1 point

True
False

Q 87. _____takes into account all dividends generated from the basket of
constituents that make up the index in addition to the capital gains.*
1 point

Price return index

Dividend return index
Total return index

Q 88. _____of the Unit-holders can pass a resolution to wind-up a scheme.*

1 point

25%
50%
60%
75%

Q 89. The main objective of asset allocation is risk management - True or False ?*
1 point

True
False

Q 90. ______assumes that all dividend payouts are re-invested in the scheme at the
ex-dividend NAV.*
1 point

Compounded Returns
Compounded Annual Growth Rate
Annualised Returns
Simple Returns

Q 91. Offer documents of mutual fund schemes are approved by SEBI - True or
False ?*
1 point

True
False

Q 92. Which amongst the following categories of mutual funds have a fixed maturity
date?*
1 point

Exchange Traded Funds

Open-ended funds
Close-ended funds
Interval funds

Q 93. The most appropriate measure of returns for a scheme in existence for several
years is_____.*
1 point

CAGR
Annualised Return
Dividend Return
Simple Return

Q 94. Redemption from which of the following mutual fund schemes would attract
Securities Transaction Tax (STT) for an investor?*
1 point

Liquid Fund
Overnight Fund
Multi-cap mutual fund
Government Securities Fund

Q 95. How often should the Key Information Memorandum (KIM) be updated?*
1 point

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

Q 96. In case of capital gains from mutual fund investments, Tax Deduction at
Source (TDS) is applicable for: _____*
1 point

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)

Q 97. Its due to loads and taxes that there is a difference between scheme returns
and investor returns - True or False ?*
1 point

True
False

Q 98. SEBI regulates Mutual Funds as well as Registrars and Transfer Agents - True
or False ?*
1 point

True
False

Q 99. Which of the following statements is 'TRUE' with respect to the Scheme
Information Document (SID) and Statement of Additional Information (SAI)?*
1 point

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

Q 100. In what form do mutual fund distributors earn revenue?*

1 point

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