1. The First player of the Mutual fund industry was______________.
Correct : B. UTI MF
2. . UTI mutual fund was set up in the Year _______________.
Correct : A. 1963
3. _______________ Mutual fund company was set up as a joint venture between RBI and Government of
India
Correct : A. UTI MF
4. Who establishes the Mutual Fund in India?
Correct : C. Sponsor
5. In India, AMC must be registered with____________.
Correct : C. Securities Exchange Board of India
6. ___________ is a type of investment vehicle consisting of a portfolio of stocks, bonds, or
other securities.
Correct : B. Mutual Funds
7. The value of one unit of investment in Mutual fund is called the _______________.
Correct : A. Net Asset Value
8. ________________ regulates the Mutual fund industry in India.
Correct : C. Securities Exchange Board of India
9. What is the full form of NAV?
Correct : C. Net Asset Value
10. _______________ schemes not exposed to sudden and large movements of funds.
Correct : C. Close-Ended Funds
11. The feature of a mutual fund, where it spreads the investment in varied stocks and sectors by pooling the
funds of various investors, is called as ______________.
Correct : C. Diversification
12. Dividend income received from mutual in the hands of unit holders
Correct : B. Fully Exempt
13. Which of the following is not a limitation of mutual funds?
Correct : D. Professional Management
14. The Mutual fund industry follows which of the following regulation?
Correct : A. SEBI (Mutual fund) regulations 1996
15. Presently there are __________ AMC in India
Correct : C. 44
16. A _________________ is a trust that pools the savings of a number of investors who share common
financial goals.
Correct : B. Mutual Funds
17. What are the reasons for economies of scale to the benefit of Mutual funds?
Correct : B. Portfolio diversification
18. _____________ are also known as the protectors of the fund and are employed by the fund sponsor.
Correct : B. Trustees
19. A minimum start-up capital of about ______________is required for open-ended schemes
Correct : D. 200 million
20. A minimum start-up capital of about ______________is required for close-ended schemes
Correct : A. 150 million
21. The funds in which units can be purchased only during the initial offer period are called
Correct : B. Close-Ended Funds
22. ______________ are considered high-risk funds but also tend to provide high returns.
Correct : A. Equity Fund
23. ____________ are funds that invest in company debentures, government bonds and other fixed-income
assets.
Correct : D. Debt Funds
24. HDFC Sensex ETF is an example of ____________.
Correct : B. Index Funds
25. Nippon India Pharma fund is an example of ______________.
Correct : C. Equity funds
26. AMFI was incorporated on ________________.
Correct : A. 22nd August 1995
27. Which type of fund is more volatile?
Correct : A. Large-cap fund
28. An investor pays a tax on the dividend that he receives from a mutual fund scheme at
Correct : A. 10%
29. Investors can enter and exit under _______ at any time
Correct : B. Open-Ended Funds
30. The NAV of each scheme should be updated on AMFI's website
Correct : A. Every Day
31. Mutual Fund schemes are first offered to investors through.
Correct : B. New Fund Offer
32. Which of the following banks launched the first mutual fund in India?
Correct : A. SBI
33. Which of the following organizations is the Mutual Fund Market regulator in India?
Correct : C. AMFI
34. A Mutual fund is owned by _____________.
Correct : D. All its investors
35. SIP is a _______________.
Correct : A. Method of regular investment
36. SIP stands for ______________.
Correct : A. Systematic investment plan
37. Day to day operations of a mutual fund is handled by
Correct : A. Asset Management Company
38. Mutual funds are constituted in India as ____________.
Correct : A. Trust
39. The susceptibility of a mutual fund’s performance to general stock market conditions is known as
Correct : B. Market risk
40. The _________ is the market value of the securities that mutual funds have purchased minus any
liabilities per unit.
Correct : A. Net asset value
41. Which payment mode is not applicable while purchasing mutual fund scheme?
Correct : C. Cash
42. ____________ are an important link between fund managers and investors.
Correct : D. Registrar And Transfer Agents
43. What is an open-ended mutual fund?
Correct : B. It has units available for sale and repurchase at all times.
44. In ____________ funds, the money is invested primarily in short-term or very short-term
instruments e.g. T-Bills, CPs etc.
Correct : C. Liquid funds
45. ________ is a method of investing in mutual funds wherein an investor chooses a mutual fund scheme
and invests a the fixed amount of his choice at fixed intervals.
Correct : C. Systematic Investment Plan
46. Mutual funds in India are permitted to invest in___________
Correct : D. Securities, gold, real estate
47. ……… is the first time subscription offer for a new scheme launched by the Asset Management Company.
Correct : D. NFO
48. A mutual fund is a ……………intermediary (like a trust) regulated in India by the SEBI.
Correct : A. financial
49. Transaction cost is ………… with investment in Mutual Funds.
Correct : B. low
50. ………………… helps to improve the risk return relationship.
Correct : A. Diversification
51. Open ended funds can be purchased and sold ………………….
Correct : C. Only at the end of the day
52. ……………………. is a facility where investor will invest a fixed amount in a mutual fund scheme at
regular intervals.
Correct : A. SIP
53. …………….. allows an investor to withdraw a fixed amount of money periodically.
Correct : B. SWP
54. In …………….. STP investor transfers the profit from one fund and invests in the other.
Correct : B. Capital Appreciation
55. ……………. is a facility provided by banks to investors in new fund offers (NFOs) of mutual funds.
Correct : A. ASBA
56. A ……………… ended scheme shall be wound upon the expiry of duration fixed in the scheme on the
redemption of units.
Correct : B. close
57. A mutual fund has a beginning balance of 100 million earns interest of 10 million, receives dividends of
15 million, and has expenses of 5 million. If 10 million shares are outstanding, what is the NAV?
Correct : C. 12.00
58. You invested 1,000 in a mutual fund with a 4% load when NAV was 20 per share. If you sell your shares
at a NAV of 20 per share, what is the return of your investment?
Correct : B. 15.2%
59. If a mutual fund NAV Is 50 and its expense ratio is 2% what are the total expenses per share?
Correct : C. 1
60. How much money would you need to purchase 400 shares of a mutual fund with a NAV of
$55 per share and a 3% load?
Correct : D. $22,660
61. Investors in high tax brackets will normally achieve higher performance by selecting a mutual
fund that generates
Correct : B. long-term capital gains
62. What would be the tax consequence of owning a mutual fund that made distributions of 600
resulting from short-term capital gains and $800 resulting from long-term capital gain rate?
Correct : D. 260
63. If a scheme has 45Cr units issued and has an FV of Rs. 10 and NAV is at 11.33, unit
capital(Rs.Cr) would be equal to
Correct : B. 50.85
64. A scheme has average weekly net assets of Rs. 324 Cr and has annual expenses of Rs 3.24Cr, it's
expenses ratio is
Correct : A. 1%
65. For a scheme to be defined as an equal fund, it must have a minimum
Correct : B. 65% in equities
66. Which of the following characteristics is not true of close-ended funds?
Correct : A. They can be load or no-load funds.
67. Regarding load and no-load mutual funds,
Correct : B. no-load funds perform at least as well as load funds even fees are ignored.
68. On average, actively managed mutual funds have an expenses ratio of about
Correct : A. 1.5%
69. The component of the expense ratio that includes a fee charged by some mutual funds to pay brokers is
Correct : B. A 12b-1 fee
70. which of the following is a stock mutual fund?
Correct : B. Growth fund
71. Which of the following stock mutual fund focus on medium-sized companies that are more established
than small-cap firms, but may have less growth potential?
Correct : C. Mid-size capitalisation funds
72. Which of the following is not a reason why Index funds typically incur lower expenses than other
mutual funds?
Correct : D. The security and Exchange Commission set a limit on index fund expenses
73. ______ funds are mutual funds that attempt to mirror the movements of the existing board market
indicators.
Correct : C. Index
74. Index funds incur _______ expenses and are ______ managed compared to other funds.
Correct : A. fewer; not actively
75. Index funds offer tax advantages because they ______ In much trading and, therefore, _______ capital
gains.
Correct : D. do not engage; do not generate
76. The difference between an international and a global fund is
Correct : A. global funds invest in both U.S. firms and those of other countries wherever International funds focus on firms outside the United States.
77. Which of the following is not true of global and international bond funds?
Correct : D. They are especially attractive to investors in a high tax bracket.
78. High yield (junk-bond funds focus on relatively risky bonds issued by firms that are subject to
Correct : A. default risk
79. International bond funds
Correct : D. All of the above correct.
80. _______ mutual funds invest in both foreign bonds and U.S. bonds.
Correct : D. Global bond
81. Technology funds focus on technology-based firms. Which of the following statements regarding those
firms is not true?
Correct : B. They have a low degree of risk.
82. Existing shares of closed-ended mutual fund companies are purchased
Correct : C. from other investors in the stock market.
83. In calculation the net assets value (NAV) which of the following is true?
Correct : C. dividends are added and expenses are subtracted
84. To calculate the NAV, the market value of the portfolio liabilities is the dividend by the ______ to arrive
at a per-share basis.
Correct : B. share currently issued by the fund
85. An open-ended mutual fund may do all of the following except
Correct : D. have its shares traded on a New York Stock Exchange.
86. The amount by which a close-ended fund's share price in the secondary market is above the fund's NAV
is called the
Correct : B. premium
87. ______ is a tax that is imposed by the government on companies based on dividend paid to a company's
investors.
Correct : A. dividend distribution tax
88. All dividends in Equity & Equity Oriented Funds will be taxed at _____ from 2018.
Correct : B. 10%
89. Sponsor must hold at least _______% of the AMCs networth.
Correct : B. 40 %
90. AMCs net worth has to be at least __________
Correct : C. 10 Crore
91. At least _____ % of the AMC directors Should be independent .
Correct : C. 50
92. The AMC and the Trustees enter into an _____ Agreement.
Correct : A. Investment Management
93. If ______ of unit holders approve , The service of the AMC can be terminated.
Correct : B. 75%
94. Scheme take over do not result in merger of ______.
Correct : B. AMC
95. Any grievance against the AMC can be addressed to _______
Correct : B. DCA
96. The UTI is governed by _________.
Correct : A. UTI Act
97. Listed mutual funds have to abide by __________ of the stock exchanges.
Correct : A. Listing Regulations
98. The offer document of an open ended fund is valid for ______ years.
Correct : B. 2
99. If equity markets move up, P/E tatio will move ________.
Correct : A. Up
100. If equity markets move down, dividend yield will move ________.