1. What is the primary legal structure of a mutual fund in India?

- A) Corporation

- B) Partnership

- C) Trust

- D) Cooperative Society

Answer: C) Trust

2. Who are the beneficiaries of a mutual fund trust?

- A) Asset Management Company (AMC)

- B) Sponsors

- C) Investors (Unit-holders)

- D) Trustees

Answer: C) Investors (Unit-holders)

3. Which of the following is NOT one of the responsibilities of the trustees of a mutual fund?

- A) Ensuring the compliance with SEBI regulations

- B) Monitoring the performance of the AMC

- C) Executing investment management agreements with the AMC

- D) Directly managing the fund's investments

Answer: D) Directly managing the fund's investments

4. What is the minimum number of trustees that must be appointed for a mutual fund?

- A) 2

- B) 4

- C) 6

- D) 8

Answer: B) 4

5. Which of the following is a requirement for the sponsor of a mutual fund in India?

- A) The sponsor must have been in the financial services business for at least 2 years.

- B) The sponsor must have a positive net worth in the preceding 3 years.

- C) The sponsor must have been in the financial services business for at least 5 years.

- D) The sponsor must have a net profit for the preceding year.

Answer: C) The sponsor must have been in the financial services business for at least 5 years.
6. What is the primary role of the Asset Management Company (AMC) in a mutual fund?

- A) Ensure regulatory compliance

- B) Manage the day-to-day operations and investments of the fund

- C) Appoint trustees

- D) Hold the assets in custody

Answer: B) Manage the day-to-day operations and investments of the fund

7. Who appoints the Asset Management Company (AMC) in a mutual fund?

- A) SEBI

- B) Trustees

- C) Unit-holders

- D) Sponsor

Answer: B) Trustees

8. What is the minimum net worth requirement for an Asset Management Company (AMC) in
India, effective from January 1, 2024?

- A) Rs. 10 crore

- B) Rs. 25 crore

- C) Rs. 50 crore

- D) Rs. 100 crore

Answer: C) Rs. 50 crore

9. Who holds the assets of a mutual fund in India?

- A) Asset Management Company (AMC)

- B) Custodian

- C) Trustee

- D) Sponsor

Answer: B) Custodian

10. Who is responsible for ensuring that the trust property of a mutual fund is properly protected
and administered?

- A) Asset Management Company (AMC)

- B) Trustee

- C) Sponsor

- D) Custodian

Answer: B) Trustee
11. What is the role of the Registrar and Transfer Agent (RTA) in a mutual fund?

- A) Managing day-to-day operations

- B) Custody of assets

- C) Maintaining the record of investors and unit-holdings

- D) Ensuring regulatory compliance

Answer: C) Maintaining the record of investors and unit-holdings

12. Which document governs the operations of a mutual fund trust?

- A) Trust Deed

- B) Investment Management Agreement

- C) Custodian Agreement

- D) Prospectus

Answer: A) Trust Deed

13. What is the minimum number of independent trustees required on the board of a trustee
company?

- A) 1

- B) 2

- C) 3

- D) At least two-thirds of the trustees

Answer: D) At least two-thirds of the trustees

14. What happens if there is a change in the control of the Asset Management Company (AMC)?

- A) The AMC must seek the approval of the Trustees and SEBI

- B) The Unit-holders must approve the change by a majority vote

- C) The change is automatically approved

- D) SEBI will approve the change without any communication to unit-holders

Answer: A) The AMC must seek the approval of the Trustees and SEBI

15. What is the role of the custodian in a mutual fund?

- A) To invest the funds in various securities

- B) To settle transactions on behalf of the mutual fund schemes

- C) To appoint the Asset Management Company (AMC)

- D) To monitor the AMC’s performance

Answer: B) To settle transactions on behalf of the mutual fund scheme

- A) Oversee fund management operations

- B) Ensure all legal compliances are met

- C) Handle customer service inquiries

- D) Manage sales and marketing campaigns

Answer: B) Ensure all legal compliances are met

2. The Compliance Officer in an AMC reports directly to:

- A) The Chief Financial Officer (CFO)

- B) The Trustees

- C) The Head of the AMC

- D) The Fund Manager

Answer: C) The Head of the AMC

3. Which of the following teams is directly responsible for investing the investors' money in line
with the scheme's objective?

- A) Customer Services Team

- B) Fund Management Team

- C) Sales and Marketing Team

- D) Operations and Back Office Team

Answer: B) Fund Management Team

4. The analysts in the fund management team are primarily responsible for:

- A) Placing orders with securities brokers

- B) Calculating NAV

- C) Identifying investment opportunities

- D) Managing customer relationships

Answer: C) Identifying investment opportunities

5. Who evaluates the opportunities presented by analysts and brokers to manage the scheme's
investments?

- A) Dealers

- B) Fund Managers

- C) Analysts

- D) Compliance Officer

Answer: B) Fund Managers

- A) Evaluate investment opportunities

- B) Place orders with securities brokers based on fund managers' instructions

- C) Maintain records of investments

- D) Calculate the NAV of the schemes

Answer: B) Place orders with securities brokers based on fund managers' instruction

7. Which of the following is part of the customer services team within an AMC?

- A) Fund accounting team

- B) Registrar and Transfer Agency (RTA)

- C) Technology team

- D) HR department

Answer: B) Registrar and Transfer Agency (RTA)

8. What is the primary responsibility of the Registrar and Transfer Agency (RTA)?

- A) Managing the fund's investment portfolio

- B) Maintaining investor records and processing transactions

- C) Ensuring compliance with regulations

- D) Conducting sales and marketing campaigns

Answer: B) Maintaining investor records and processing transactions

9. Which team is responsible for calculating the NAV of the mutual fund on a daily basis?

- A) Operations Team

- B) Fund Management Team

- C) Fund Accounting Team

- D) Cash Management Team

Answer: C) Fund Accounting Team

10. The cash management team in an AMC works primarily as an interface between which two
parties?

- A) Investors and fund managers

- B) Banks and the fund management team

- C) Dealers and brokers

- D) Compliance officer and trustees

Answer: B) Banks and the fund management team

- A) Maintain investor records

- B) Handle customer complaints

- C) Manage branding, advertising, and distribution of mutual fund products

- D) Calculate the NAV

Answer: C) Manage branding, advertising, and distribution of mutual fund products

12. Which of the following teams is involved in managing relationships with mutual fund
distributors?

- A) Fund Management Team

- B) Sales and Marketing Team

- C) Compliance Team

- D) HR Department

Answer: B) Sales and Marketing Team

13. What is the role of the HR department in an AMC?

- A) Attract, nurture, and retain talent

- B) Calculate daily NAVs

- C) Monitor compliance with SEBI regulations

- D) Oversee investment portfolios

Answer: A) Attract, nurture, and retain talent

14. The information technology (IT) department in an AMC is primarily responsible for:

- A) Managing investment portfolios

- B) Maintaining the AMC website and investor interfaces

- C) Managing customer complaints

- D) Overseeing sales and marketing strategies

Answer: B) Maintaining the AMC website and investor interfaces

15. Which of the following functions is considered a support function within an AMC?

- A) Fund management

- B) Compliance

- C) Sales and marketing

- D) Administration

Answer: D) Administration
 1. A mutual fund investor wishes to buy units of a scheme. The investor's funds are transferred
into the bank account of the scheme. Which entity is responsible for maintaining this account?

- A) Registrars and Transfer Agents (RTAs)

- B) Collecting Bankers/Payment Aggregators

- C) Fund Accounting Team

- D) Auditors

Answer: B) Collecting Bankers/Payment Aggregators

2. An investor needs to verify their identity and address before they can transact in mutual funds.
Which entity is responsible for this process?

- A) KYC Registration Agencies

- B) Distributors

- C) Fund Accountants

- D) Depository Participants

Answer: A) KYC Registration Agencies

3. A mutual fund scheme is investing in debt securities that are thinly traded. The AMC needs to
determine the fair valuation of these securities. Which service provider's inputs will the AMC use?

- A) Auditors

- B) Valuation Agencies

- C) Registrars and Transfer Agents (RTAs)

- D) Credit Rating Agencies

Answer: B) Valuation Agencies

4. A mutual fund distributor is required to register with AMFI and clear an examination to sell
mutual fund schemes. Which certification exam must the distributor pass to become eligible?

- A) NISM-Series-V-A: Mutual Fund Distributors (MFD) Certification Examination

- B) NISM-Series-V-B: Mutual Fund Foundation Certification Examination

- C) NISM-Series-V-C: Mutual Fund Expert Certification Examination

- D) SEBI Mutual Fund Examination

Answer: A) NISM-Series-V-A: Mutual Fund Distributors (MFD) Certification Examination

5. A mutual fund is investing in a Fixed Maturity Plan (FMP) and needs to disclose the proposed
rating profile of the scheme before the portfolio is constructed. What role does a credit rating
agency play in this scenario?

- A) They provide the proposed rating profile for the scheme

- B) They perform the KYC verification of investors

- D) They calculate the NAV of the scheme

Answer: A) They provide the proposed rating profile for the scheme

6. A new mutual fund scheme is being launched. The AMC wants to ensure that all the required
regulatory approvals and compliances are met for the scheme’s launch. Who is responsible for this
process?

- A) Fund Accountant

- B) Compliance Officer

- C) Sales and Marketing Team

- D) Registrars and Transfer Agents

Answer: B) Compliance Officer

7. A mutual fund investor needs to redeem their units. The units are held in dematerialized form.
Who is responsible for maintaining and facilitating the transfer of these units in electronic form?

- A) Distributors

- B) Depository Participants

- C) Auditors

- D) Fund Accounting Team

Answer: B) Depository Participants

8. The AMC needs to perform a thorough audit of the mutual fund’s accounts. Which entity is
responsible for conducting this audit?

- A) KYC Registration Agencies

- B) Auditors

- C) Fund Managers

- D) Sales and Marketing Team

Answer: B) Auditors

9. An AMC wants to ensure that its fund managers have access to accurate and timely ratings of
debt securities. Which entity provides these ratings?

- A) Credit Rating Agencies

- B) Fund Accountants

- C) Valuation Agencies

- D) Depositories

Answer: A) Credit Rating Agencies

- A) BSE-Star MF

- B) MF Utilities India

- C) NSE Mutual Fund II Platform

- D) Execution Only Platforms (EOP)

Answer: B) MF Utilities India

12. An AMC appoints a service provider to calculate the Net Asset Value (NAV) of its schemes. Which
role is this service provider fulfilling?

- A) Fund Accountant

- B) Auditor

- C) Depository Participant

- D) Registrars and Transfer Agents (RTA)

Answer: A) Fund Accountant

13. A mutual fund investor’s KYC details need to be verified. Which of the following entities is
responsible for processing the investor’s documents and assigning a unique KYC number?

- A) Depository Participants

- B) KYC Registration Agencies

- C) Credit Rating Agencies

- D) Fund Managers

Answer: B) KYC Registration Agencies

14. A mutual fund scheme's units are listed on the Bombay Stock Exchange (BSE) and available for
trading. Which platform facilitates these transactions for the investors?

- A) NSE Mutual Fund II Platform

- B) Execution Only Platforms (EOP)

- C) BSE-Star MF

- D) AMFI Direct

Answer: C) BSE-Star MF

15. A mutual fund investor is looking for a platform to execute transactions in direct plans of mutual
fund schemes without any intermediaries. Which platform would the investor use?

- A) Execution Only Platforms (EOP)

- B) Depository Participants

- C) KYC Registration Agencies

Answer: A) Execution Only Platforms (EOP)