Welcome to our site
NAV On Email
MF News
New Fund Offer
About us
Contact Us

Test 2


1 A unit of an open-end fund was puechased when its NAV was Rs.27.In the interim period, the fund made a distribution of Rs.5 per unit when its NAV was Rs.26. What was the simple total return of the fund?
  27% 28% 27.5% 28.5%
2. Mutual fund can borrow
  In order to meet redemption units/dividends or interest payouts
  For a maximum duration of 6 months
  Upto a maximum of 20% of the net assets
  All of the above
3. A security is considered to be untrade if
  It is not traded for 30 days It is not traded for 60 days
  Upto a maximum of 20% of the net assets All of the above.
4. Which of the following is true for valuation of traded instruments
  Capitalization of earnings
Mark to market
Last quoted closing price on the stock exchange when it is principally traded
5. Which of the following is true for valuation of traded instruments
  10 years based WNA 5 years cannot be done 6years
6. A prospective investor to seek legal resources can use
  AMC Sponsors
Trustees None of the above
7. An investment of Rs.100,000 January 1,1998 is redeemed to December 1,1999 for a sum of Rs.200000. what will the capital gains tax be without considering indexation, or any other tax benefit?
Margin rate
15,000 (hint: the flat tax rate of 10% came into force after the March 2000 budget)
8. Which of these would you recommended to alow risk investor?
  Bond fund
Balanced fund
Sector fund
Small cap fund
9. Which of the following is not an advantage of investing in mutual funds vis-à-vis directly investing in stocks

Portfolio diversification Professional management Risk management k Reduction in transaction cost Liquidity None of the above

10. Which of these securities will you not find in a MMMF
  Call money Certificate of deposits
3year government securities Commercial paper
11. Mutual funds in India started with the launch of schemes by.
  SBI UTI RBI Canbank
12. Closed end funs sell at discount to their NAV because
  Repurchase price fixed by the fund is lower than the NAV
  Investors expect that current NAV cannot be sustained by future potential
  Closed end funds have a higher expense ratio
  Interest risks of closed end funds
13. Which of the following services is not permitted by mutual funds
  Cheque writing
Loan against units
Transfer of units
14. Which of the following is not an ethical practice by an agent
  Assuring or raising investor expectation on the return that the investment would generate
Explaining the risk/return profile of a scheme
15. Commissions are paid to agents for the following expect
  Enhance the returns of the investor
Pre and post sale service
To meet their selling expense
For introducing the investor to the fund
16 If your brother who is in the US and now a citizen wants to invest in US 64. What will you do?
  Send him the form of US 64 to invest
Recommend another scheme to him
Ask him to send you the money immediately
Read the offer document of the scheme to ascertain to ascertain whether he can invest, and then send him the forms
17 Which of the following can be used to measure the performance of a scheme relative to its benchmark
All of the above
18. When is the offer document of an open end scheme updated
  Once a year Once in 6 months Once every 3 months Once in every 2 years
19. Between the following four debt schemes, which one would you recommended to your clients
  Upfront load 0.4%; recurring expense of 0.7% p.a
Upfront load 0.3%; recurring expense of 0.8% p.a
Upfront load 0.6%; recurring expense of 0.4% p.a
Upfront load nil; recurring expense of 1% p.a
20. What will you not find on the cover of the offer document
  Starting, closing and earliest closing date
Type of scheme
Investment policy of the scheme
SEBI disclaimer
21. Which of these are advantages of investing in Mutual funds over direct investing
  Portfolio diversification
Professional management
Lower transaction cost
Reduction in risk
Convenience & flexibility
All of the above
22. For an assured return scheme, which of the following are not required disclosures in the offer document
  Basic detail of guarantee
Name of the gurantor
Justification of net worth of gurantor with respect to meeting short falls
Explanation of how the guaranteed return will be achieved
23. Which of the following is not false of a fund sponsor
  He cannot invest in the scheme
He can invest in the scheme
The scheme should invest in the sponsor’s companies
24 Which of the following documents can an investor inspect
  Custodial and register agreement
Trust deed
Investment management agreement
All of the above
25. An application can be found along with
  Newspaper advertisement
Offer document
Key information memorandum
26 Which of the following is not true of the offer document?
  Investor gets useful information to evaluate the performance of AMC’s past schemes
Investor gets information on services he can expect from the fund
Investor can assess the risk of the proposal scheme
Investor can evaluate the performance of competitive schemes
27. SWP can be useful to an investor looking for
  Rupee coast averaging
Power of compounding
Regular income
28. Which of the folllwoing is untrue of automatic reinvestment plan/growth plan
  The plan allows for automatic reinvestment of all income and capital gains
Automatic reinvestment allows for the accumulation of additional units of the fund
The major benefit is the compounding of returns
The benefit of automatic reinvestment is often lost, if reinvestment is subject to a heavy load
29. Systematic transfer plan is
  Exchange of units from one scheme to another at regular intervals
Regular withdrawal of units
Automatic reinvestment
30. SIP is not
  Rupee cost averaging
Systematic investment at regular intervals
Transfer of units
31. Untraded instruments are to be valued at
  Capitalization of earnings
While using capitalization of earnings discount has to applied for credit worthiness of the compony.
Both of the above
None of the above
32. A unit holder
  Assigns the management of funds to the fund manager
Manages the fund by himself
Can insist for a tailor made portfolio
33. Report on portfolio of investments is submitted to SEBI by
  AMC directors Sponsors Trustees Fund manager
34. In respect of the diligence certificate, which of the following is not true?
  It is signed by the compliance officer
It is issued at the time of launching a scheme
It is filed along with the annual report
35. Which of the following is true under the AMFI code of ethics
  Protecting the interests of investors
Protecting the interest of trustees
Protecting the sponsor None of the above.
36. Which of the following is true?
  AMFI certified distributors can sell any mutual fund schemes
An agent can sell any other mutual scheme
An AMC allows their agents to sell their own funds
37. Which of the following cannot market mutual fund schemes.
Distribution companies
None of the above
38. Mutual fund is not a
  Trust Investment company
39. Commissions are to agents for not
  Bringing investors to fund For assuring the investor returns
40. which of the following statements are correct
  MFs are allowed to borrows as per SEBI requlations
MFs are allowed to borrow to meet temporary liquidity requirements
In case of borrowing by mf, the duration should be more than 6 months
In case of borrowing by mf, the mf shall not borrow more than 20% of the net asset value of the scheme
All of the above
Only a, b & d are correct

A young couple with dual income is looking for a asset allocation pan, What would you suggest

  10% in equities 90% in debt and money market instruments
25% in debt 25% in balanced 50% in equities
30% in debt 70% in equities and balanced funds
42. A mutual fund is not
  A portfolio of stocks, bonds and securities
A pool of funds used to purchase securities on behalf of investors
A collective investment vehicle
A company that manages an investment portfolio
43. Which is not true about an SRO
  Work as decentralizing organization
Reports to an apex regulatory body
Passes its own laws
44. An investor who has invested Rs.300 after 7 yrs tge value Rs.600. what is his annualized compounded of return.
45 Money market funds invest in
  Company fixed deposit Government securities with less than 1 yr maturity
46. An investor had a property of Rs. 1,25,000in 1995 and sold it in Rs.1,87,000 in 1998. The inflation rates where 281 & 361 in 1995 & 1998. What is the amount on which he will be taxed
90000 26412
47. A mutual fund has an NAV of Rs.12. What is the maximum sale price?
a. b. c.
48. A NRI holds units in Mutual Fund. What should he do with his holding if he takes up foreign citizenship
He continues
He transfer the units to his mother, who resides in India
None of the above.
49. The strategy advisable for an investor to maximize investment return in the long run
  Bur & hold on it to investment for a long time
Liquidate poorly performing investment from time to time
Liquidate good performing investments
Switch from poor performers to good performers
50. Which of the following portfolio would you recommended to a young couple with 2 income & 2 children
  50% in aggressive equity fund, 25% in high yield bond and growth & income funds, 25% in conservative money market fund
50% moderately aggressive equity fund, 20% aggressive equity , 15% municipal bond fund
Either a or b
None of the above


The Information provided on th Bharathmutual.com website is based on the information provided by the members.As such Bharathmutual.com does not take any responsibility for its accuracy, completeness and timeliness.

The site is designed by Volks Electronics Pvt.Ltd.