1.
First Mutual Fund – UTI
2. Second Mutual Fund – Public sector Banks
3. A synopsis of the scheme related information documents is found in the…. → KIM
4. Investment in balanced Hybrid fund → Equity and Equity related instruments 40% and
60% of the total assets. Investment in Debt instruments shall be 40% and 60% of the
total assets.
5. A mutual fund scheme can invest ___ in the equity instrument of the company → 10% of
the net assets.
6. Document contains statutory information about mutual fund or AMC → SAI
7. Document contains regarding investors service centres, minimum investment amount
and to make the purchase of MF → KIM
8. Document contains general risk factor in mutual fund → SID
9. Corporate Bond Fund → An open-ended debt scheme predominantly investing in AA+
and above related corporate bonds. The minimum investment in corporate bonds shall
be 80% of the total assets.
10. What is Asset allocation? Asset allocation is to allocate an investors’ money across
asset categories (Equity, Debt, Gold, etc.) in order to achieve the target.
11. AMFI Code ethics → The standards of good practices to be followed by the AMC’s in
their operations and in their dealings with investors, intermediaries and the public.
12. What is Indexation? Adjusting the cost of acquisition upwards to reflect the impact of
inflation.
13. Maximum % of holding can a single investor have in a mutual fund scheme → minimum
20% and no single investor shall account for more than 25% of the corpus of the
scheme.
14. Incase of Index funds, the minimum investments in securities of particular index shall
be → 95% of the total assets
15. Who is responsible for overseeing legal compliance in a mutual fund? The Trustees
16. Who handles the appeals which are made against the rulings of SEBI? → Securities
Appellate Tribunal
17. Who applies to SEBI for the registration of Mutual Fund? The Sponsors
18. Conservative Investors: Conservative Investors is someone who wants to his money to
grow but not want any risk his principal investment.
19. Mark to Market (MTM): The process of valuing each security in the investment portfolio
of the scheme at the current market value is called mark to market. It is done on daily
basis to calculate of daily NAV of MF scheme.
20. The securities Transaction Tax levied on re-purchase of units of debt mutual funds →
STT is not applicable.
21. In which funds STT is not charged? Fixed Maturity Plans
22. Sale of units of equity oriented mutual funds attracts STT → 0.001%
23. Time duration in which SEBI has to approve the scheme related documents → SEBI
does not approve SID.
24. AMC Function → It’s the responsible for ensuring the valuation of the securities in MF
scheme’s portfolio are true and fair.
25. Information must need when MF application is filled by NRI → Details of investment
made in last year.
26. Which intermediate is responsible for implementation of uniform KYC? → KYC
Registration Agency.
27. Which is used to measure fund’s risk relative to market Index? Beta (It is commonly
used risk measure and calculates the relative volatility of a stock or MF’s returns as
against its benchmark).
28. In India, mutual funds are constituted as ___ → Trusts
29. What is Model Risk? It is the risk of mis-pricing or improper valuation of derivatives.
30. What is Concentration Risk? Risk to a single sector, sector funds on high basis.
31. What is Addendum? The addendum is considered to be a part of the scheme related
documents and must accompany the KIM. It shows interim changes in MF scheme.
32. Which investors allowed to do a nomination? Only individual investors
33. The minimum investment in G-secs (% of total assets) in case of Gilt fund is → 80%
34. What is Fund fact Sheet?
Ans: Its one of the most important documents, monthly Fund fact sheet. Its extensively
used by investors, fund distributors, fund rating agencies, research analysts, media and
other to access information about the various schemes of MF. It shows Risk profile,
objectives, performance, evaluating the investment, asset allocations and other key
features.
35. AGNI → AMFI guidelines and Norms for Intermediaries
36. A Floating Interest rate → Base rate + Spread
37. Thematic Fund: Thematic fund invests in line with an investment theme. Ex: an
infrastructure thematic fund might invest in shares of companies like cement, steel,
telecom, power, etc.
38. Benchmark for a short-term debt scheme will be → 1 year T-Bill Index
39. Mutual funds must publish their unaudited accounts → once in every six months on
the AMC website.
40. Which funds are suitable for investors who have a long-term investment horizon and are
looking for growth? → Equity Funds
41. The trustee of a mutual fund is appointed by → Sponsors.
42. Who issues a due diligence certificate stating compliance with all legal formalities at the
time of making a new offer of mutual fund units? AMC
43. Once mutual funds are pledged, the unit holder/s → Cannot sell the units
44. An addendum has to issue for changes in → SID
45. ARN is allotted to mutual fund distributors by → AMFI
46. Which investment objective is to see capital appreciation? → Growth Fund
47. To manage the contribution investors to take investment decision in mutual fund
company → AMC
48. Jensen Alpha: It is a measure of outperformance after adjusting risk taken.
49. If an investor wants to change his/her default account, he/she has to do it with → The
Mutual Fund AMC directly.
50. Which is not accepted as photo identity document for micro-SIP → Credit cards
51. Can Indian mutual funds invest in Real Estate? → Yes
52. Who issues a certificate of Deposit? → Banks
53. What is the investment range in debt instruments by a conservative hybrid fund? →
Between 75% and 90% of the total assets
54. Which is the most important factor for comparing the performance of liquid funds? →
The expense Ratio
55. SEBI’s web based centralized grievance redress system is known as → SCORES
56. What is the maximum no. of joint holders allowed per mutual fund application? → Three
57. When is the Trail commission paid? →As long as investors stays invested in MF
58. AMC primarily compensates in MF distributors through → Commissions.
59. What is the NAV called after dividend payment → ex-Dividend NAV
60. Mr. Anand has Rs. 5 lacs to invest but he may need money in the short term. Suggest the
fund → Index Fund