amfi questions ans (1)

7/22/2019 AMFI Questions Ans (1)

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(1-mark questions)

1. An investor pays money to purchase units in amutual fund. After deducting the entry load,remaining money is

a. Invested in a well-diversified portfolio ofsecurities as per the investment o!ective. "aintained in a ank as fi#ed depositc. Invested in land, uilding, plant and machinery

required for the mutual fundd. $sed to pay the management fee and otherrecurring e#penses of the fund

%. &et Asset 'alue per unit meansa. (ook value of assets liailities)*$nitsoutstanding,. $nit capital * $nits outstandingc. &et assets dividend y Initial numer of unitsd. ("arket value of assets +iailities)*$nitsoutstanding

. hen you place deposit with a ank, u ecomea. a orrower from the ank. a lender to the ankc. a shareholder of the ankd. a unit holder in the ank

. /uring new fund offer (&0) $nits of an open ended fund are purchased form

a. A roker . 2he mutual 0und itself c. Adepository d. a 3tock 4#change

5. wnership of the mutual fund y the unit

holders isa. eneficial. . "utual and eneficial.c. Individual d. "utual

6. /irectly investing in equity shares is etter theninvesting in equity shares through a mutual fundecause ofa. 2ailor made portfolio . Asence of/istriution e#pensec. 7ontrol over costs d. All of the aove.

8. "utual fund schemes in India follow accounting

policies laid down ya. 34I . Institute of 7hartered Accounts ofIndia c. Indian 2rust Act 19:%. d.

Association of "utual 0unds in India

:. 2he value of funds net assets is ;s. 1


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%%. 2he union udget 1999 is consideredimportant for the Indian mutual fund industryecause.a. It made $2I at par with other mutual funds.. It aolished the distinction etween short term capital gain and long term capital gain formutual fund unit holders.c. It e#empted all mutual fund dividends fromincome ta# in the hands of unit holders

d. It removed ta# on capital gains anddividends in the hands of units holders

%. 2he second mutual fund in the India wasestalished ya. 3I . 7anara ank c. "organ3tanley d. +I7

%. hich is 7orrect?a. $2I"0 was estalished y an Act of=arliament. $2I"0 has voluntarily adopted 34I

;egulationsc. $2I"0 launched $3 6d. $2I"0 was not the first mutual fund inIndia

%5. A person who analyses shares ased onfinances and operations of the company is knownasa. 7hartist . =ortfolio analyst c.2echnical Analyst 7. 0undamental Analyst

%6. hat is an C4quity arrant C?

a. It is nothing ut an 4quity share of acompany. It is a deit instrument that offers fi#edinterest ratec. It is an instrument that gives the holder theright to purchase equity shares in a company atfi#ed price in futured. &one of the aove

%8. hich of the following 34I restrictionsapplies to a schemeDs investment in unlistedshares?

a. A 7loseended scheme may invest ama#imum of 1


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a. Average return . risk c. riskad!usted return d. eta of the portfolio

a. 5


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58. 0und A invests in shares of companies inIndia. 0und invests in shares of companies inIndia and $3A. e can say thata. /efinitely A is more diversified than . /efinitely A and are well-diversifiedc. e need more information to identifywhich of them is etter diversifiedd. /efinitely is more diversified than A

5:. 'alue averaging means>a. Investing the same amount of funds regularly. Investing in one lump sum amountc. @eeping the target value of investmentconstant y investing the amount y which theinvestment value has gone downd. &one of the aove

59. A fund has to eta of greater than 1. thismeans.a. 2he fund is more volatile than the market. the fund is as volatile as the market.

c. 2he fund is less volatile than the marketd. none of the aove.

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amortiGed over 5 years period, what would e theopening &A' per unit if management fees andother recurring e#penses are Mero? Assume thatthere is no reflection in value of underlying assets.

a. 9.999: . 1

amfi questions ans (1)

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