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Practice Questions for AMFI Test
1. A close-ended mutual fund has a
fixed :
a. NAV
b. fund size
c. rate of return
d. number of distributors
2. The maximum load that a fund can
charge is determined by the :
a. AMC
b. SEBI
c. AMFI
d. distribution agents based on
demand for the fund
3. The amount required to buy 100
units of a scheme having an entry load
of 1.5% and NAV of Rs.20 is :
a. Rs.2000
b. Rs.2015
c. Rs.1985
d. Rs.2030
4. A gilt fund is a special type of fund
that invests :
a. in very high quality equity only
b. in instruments issued by
companies with a sound track
record
c. in short-term securities
d. in government securities only
5. Of the following fund types, the
highest risk is associated with
a. Balanced Funds
b. Gilt Funds
c. Equity Growth Funds
d. Debt Funds
6. The NAV of a mutual fund :
a. is always constant
b. keeps going up at a steady rate
c. fluctuates with market price
movements
d. cannot go down at all
7. An open-ended mutual fund is one
that has :
a. an option to invest in any kind
of security
b. units available for sale and
repurchase at all times
c. an upper limit on its NAV
d. a fixed fund size
8. An investor in a close-ended
mutual fund can get his/her money
back by selling his/her units:
a. back to the fund
b. to a special trust at NAV
c. on a stock exchange where the
fund is listed
d. to the agent through which
he/she subscribed to the units
of the fund
9. The "load" charged to an investor
in a mutual fund is
a. entry fee
b. cost of the paper on which the
unit certificates are printed
c. the fee the agent charges to the
investor

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d. the expenses incurred by fund
managers for marketing a
mutual fund scheme
10. A mutual fund is owned by
a. the Govt. of India
b. SEBI
c. all its investors
d. AMFI
11. Units from an open-ended mutual
fund are bought
a. on a stock exchange
b. from the fund itself
c. from AMFI
d. from a stock broker
12. A mutual fund is not
a. owned jointly by all investors
b. a company that manages
investment portfolios of high
networth individuals
c. a pool of funds used to
purchase securities on behalf of
investors
d. a collective investment vehicle
13. "Load" cannot be recovered
a. at the time of the investor's
entry into the fund
b. as a fixed amount each year
c. at the time the investor exits the
fund
d. from the fund's distribution
agent
14. The most important advantage of
a money market mutual fund is
a. quick capital appreciation
b. high regular income
c. safety of principal
d. no loads
15. Some close-ended funds are
quoted at a discount to their NAV
because
a. of high expense ratios
b. investors do not expect the
current NAV to be sustained in
future
c. the repurchase price fixed by
the fund in lower than the NAV
d. of the inherent risk involved in
investing in such type of funds
16. The NAV of each scheme should
be updated on AMFI's website
a. every quarter
b. every month
c. every hour
d. every day
17. Debt funds target
a. low risk and stable income
b. protection of principal
c. high growth with risk
d. long term capital appreciation
18. In which of the following do debt
funds not invest
a. government debt instruments
b. corporate paper
c. financial institutions' bonds
d. equity of private companies
19. Which of the following risks do
not affect a debt fund
a. default by issuer on payment of
interest or principal

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Practice Questions for AMFI Test 1. A close-ended mutual fund has a fixed : a. NAV b. fund size c. rate of return d. number of distributors 2. The maximum load that a fund can charge is determined by the : a. AMC b. SEBI c. AMFI d. distribution agents based on demand for the fund 3. The amount required to buy 100 units of a scheme having an entry load of 1.5% and NAV of Rs.20 is : a. Rs.2000 b. Rs.2015 c. Rs.1985 d. Rs.2030 4. A gilt fund is a special type of fund that invests : a. in very high quality equity only b. in instruments issued by companies with a sound track record c. in short-term securities d. in government securities only 5. Of the following fund types, the highest risk is associated with a. Balanced Funds b. Gilt Funds c. Equity Growth Funds d. Debt Funds 6. The NAV of a mutual fund : a. is always constant b. keeps going up at a steady rate c. fluctuates with market price movements d. cannot go down at all 7. An open-ended mutual fund is one that has : a. an option to invest in any kind of security b. units available for sale and repurchase at all times c. an upper limit on its NAV d. a fixed fund size 8. An investor in a close-ended mutual fund can get his/her money back by selling his/her units: a. back to the fund b. to a special trust at NAV c. on a stock exchange where the fund is listed d. to the agent through which he/she subscribed to the units of the fund 9. The "load" charged to an investor in a mutu ...
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