2. Initial issue expenses cannot exceed _______% of amount mobilised.
Correct : B. 6
3. Initial issue expenses of open-ended funds is amortised over a period not exceeding years_______%
Correct : A. 1
4. Mutual funds cannot pay dividend out of _______.
Correct : C. Unrealised profit
5. An asset is non-performing if interest and/or principal are due for over ________ months.
Correct : C. Three
6. An equity shares is considered non-traded if it is not traded for over _______ days.
Correct : D. 30
7. Valuation of debt instrument with less than 182 days to maturity is done on _______ basis.
Correct : A. Accrual
8. Illiquid securities should not exceed _________% of the net assets.
Correct : D. 15
9. For an index fund, Ex-Marks will be ________%.
Correct : D. 100
10. If fund is assuming higher risk than the market index, its beta will be ________.
Correct : A. Greater than 1
11. Graham’s strategy recommends ________% holding in debt funds and 50% holding in equity funds.
Correct : A. 50
12. Expenses ratio is very important for _____.
Correct : A. Debt fund
13. According to Bogle an investor’s exposure to debt investment should be equal to his ___.
Correct : B. Age
14. Higher expenses ratios lead to _______.
Correct : A. Yield sacrifices
15. Closed ended funds were usually trading at _________ to NAV
Correct : C. Discount
16. If a single unit holder holds more than _________ of net assets , the number of
Such unit holders and their percentage holding in the net assets have to be disclosed.
Correct : D. 25%
17. If opening units 10,000 Units subscribe 3000, Units redeem 1000 then Closing units?
Correct : C. 12,000 units
18. If opening units 25,000 ,Units subscribe 7000, Units redeem 2000 then Closing units?
Correct : A. 30,000 units
19. If opening units 1,25,000 Units subscribe 2,00,000, Units redeem 50,000 then Closing units?
Correct : B. 2,75,000 units
20. NAV stands for
Correct : C. Net Assets Value
21. High yield bonds have ______ potentials.
Correct : B. High
22. Treasury bonds funds with short maturities have ______ default risk.
Correct : B. Low
23. Portfolio turnover is ______ for liquid funds.
Correct : B. High
24. The benchmark for a balanced fund is Equity index and _______ combined in the same
Proportion.
Correct : B. Debt Index
25. The AMC received no fees on funds are called as _______
Correct : C. No Load
26. UTI Act was enacted in the year ______.
Correct : C. 1963
27. Expense ratio for a funds should be as ______ as possible.
Correct : B. Low
28. Jensen’s Alpha focuses on _____________
Correct : B. Unsystematic Risk
29. A benchmark once chosen cannot be altered without _________ approval.
Correct : C. Trustees
30. Tracking Error of _______ fund has to be minimized.
Correct : A. Index Fund
31. The ________ can issue offer documents on behalf of the trustees.
Correct : A. AMC
32. Expenses incurred that are above the regulatory limit are borne by sponsor & _____
Correct : A. AMC
33. A fund with _____ Sharpe ratio than the market is outperforming the market.
Correct : B. Higher
34. ________ funds tends to have lower expense than other type of mutual funds.
Correct : D. Index funds
35. Rupee cost averaging means investing fixed amount _________.
Correct : A. Periodically
36. ETF stands for ____________.
Correct : A. Exchange Traded Funds
37. NFO stands for_____________
Correct : A. New Funds Offer
38. If Holding Period return are 25% & period is 2 years then Annualized returns ____.
Correct : B. 12.5%
39. If Holding Period return are 20% & period is 2 years then Annualized returns ____.
Correct : B. 10%
40. Financial year for all mutual fund schemes ends on ……………
Correct : B. 31st March
41. Risk is less in ………………….
Correct : D. debt fund
42. Equity funds are exempt from long term capital gain tax when investments are held for at least
………… months from the date of acquisition.
Correct : D. 12
43. ……………… funds invest in companies of different sectors across the market.
Correct : B. Diversified
44. ………… funds are an extension of sector funds.
Correct : C. Thematic
45. ………… funds use algorithmic, in which computer software takes buy/ sell decisions on the basis of
formula
Correct : B. Quant
46. Open-ended funds have to update offer document at least once in………… years
Correct : B. 2
47. CAS stands for …………………..
Correct : B. Consolidated Account Statement
48. Consolidated Account Statements is sent …………….. to investors in whose folios no transaction has
taken place.
Correct : D. every 6 months
49. R-squared value range from 0 to ……………
Correct : C. 1
50. A …………… risk refers to the possibility of a stock issuer to go bankrupt or facing heavy losses.
Correct : A. Business
51. A …………… risk in a mutual fund refers to a situation when the issuer of a stock is unable to make
timely payment of interest and principal to the investors.
Correct : B. Credit
52. …………….. risk refers to the investor losing the money invested in mutual funds.
Correct : B. Credit
53. …………….. risk refers to a risk that affects the entire country or a particular region or a certain
industry.
Correct : A. Market
54. ……………… risk refers to a risk when there is political changes or change in investment policy of the
government.
Correct : C. Political
55. ……………………. Ratio determines how the return of the scheme has compensated and investor for
the risk he has taken.
Correct : C. Sortino
56. The risk of losing money invested in mutual funds is called …………
Correct : A. Capital risk
57. ……………….. ratio is a measure of the risk-adjusted return of a financial security or asset or
portfolio.
Correct : D. Information
58. Returns from non-equity funds are treated as long term capital gains if investments are held for more
than ……………….
Correct : C. 3 years
59. NAV is declared everyday by deducting ……………. expenses
Correct : A. Recurring
60. ……………….. ratio is the percentage of total assets that are spent to run a mutual fund
Correct : C. Expense
61. …………. provides in detail scheme wise information about income and expenditure of mutual fund.
Correct : B. Revenue Statement
62. The returns earned from mutual funds are taxed under the head ……………..
Correct : C. Income from Capital gains
63. When a security is not traded on any recognized stock exchange for a period of …. days prior to the
valuation date, the scrip must be treated as a “non-traded “security.
Correct : D. 60 days
64. ………….. ratio is the percentage of total assets that are spent to run a mutual fund.
Correct : A. expense
65. Equity related schemes are ………….. risky when compared to debt debt schemes.
Correct : C. more
66. The accounting year for mutual funds ends on ……… of each year.
Correct : B. 31st March
67. ……………….. of a mutual fund is the price at which units are bought or sold by investor.
Correct : C. NAV
68. In ………………………. Investors buy shares of Companies who have announced bonus issues, and
subsequently sell the original holding at a loss once the stock becomes ex-bonus.
Correct : B. Bonus stripping
69. ……………. is a measure of the volatility of a particular fund in comparison to the market as a whole
Correct : A. Beta
70. ……………….. measures the dispersion in return.
Correct : C. Standard deviation
71. CAGR stands for …………………
Correct : B. Compounded Annual Growth Rate
72. ………………… are simply the annual gains that an investment has earned over a specific period of
time.
Correct : A. Annualized Return
73. The performance of a scheme is reflected in its ……………..
Correct : A. Net asset value
74. …………………. is a myth about Mutual Fund Investment in India.
Correct : C. Demat account is compulsory to invest in Mutual funds
75. Abridged version of OD is called …………..
Correct : C. KIM
76. --------------------- is a supplementary document that contains additional information of the fund.
Correct : B. SAI
77. ……………. approve the contents of the Offer document