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Mock Tests for Mutual Fund Distributors
Certification Examination As on 22 - January - 2025
Net Asset Value is defined as ________________________.
A.  Book value of assets divided by shares outstanding
B.  Book value of assets minus liabilities divided by shares outstanding
C.  Market value of assets divided by shares outstanding
D.  Market value of assets minus liabilities divided by outstanding units
Following are characteristics with regard to Money Market Instruments, but they are not
A.  Short term
B.  Money
C.  Low risk
D.  Highly liquid
A disclosure should be made in the offer document if AMC has invested more than the following percentage of its Net Assets in group companies
A.  True
B.  False
C.  
D.  
Which of the following is an indicator of risk adjusted return
A.  Beta
B.  Standard Deviation
C.  Sharpe ratio
D.  Variance
Which fund has the highest risk
A.  Liquid fund
B.  Money market fund
C.  Short term Debt fund
D.  Long term Gilt fund
Of the following , which would be suitable for a retiree with a modest risk appetite
A.  Value fund
B.  Balanced fund
C.  Diversified fund
D.  Growth fund
Unit holders enjoy rights to the asset of the fund
A.  According to the plan chosen by them
B.  As decided by the trustees
C.  Equally for all unit holders
D.  In proportion of the units held by the unit holders
Which fund has the least risk
A.  Liquid funds
B.  Short term bond funds
C.  Gilt funds
D.  Long term bonds
Find the odd man out
A.  International Fund
B.  Open Ended Fund
C.  Close Ended Fund
D.  Interval Fund
An investor in the close ended fund cannot do the following
A.  For emergency requirement, sell through the Fund House
B.  Sell the fund any time through the stock exchange
C.  Buy the fund during the Initial Period of offer
D.  Monitor the performance of the scheme
If a steep fall in the valuation of the portfolio does not affect the investor then investor has
A.  High risk tolerance
B.  Low risk tolerance
C.  No emotions
D.  Not sentimental
Which of the following is not the last step in Financial Planning
A.  Understand financial goals
B.  Selecting Funds of International market
C.  Studying objectives of the scheme
D.  Gather client data
Which of the following with regards to Board of Trustees of a Mutual Fund is true
A.  They act as trustees to protect the interest of investors
B.  They manage portfolio of investor to ensure that they do not suffer any loss
C.  They empanel distributors for marketing Mutual Funds
D.  They float new schemes for investors
NAV of income fund is to be calculated up to ---- decimals
A.  True
B.  False
C.  
D.  
One of your friend who has invested in a Mutual Fund is about to get American citizenship. What would you advise him?
A.  He should redeem his investment and apply in joint name with Indian citizen
B.  He should seek RBI approval for continuing
C.  He should seek SEBI approval for continuing
D.  He should redeem his investment
When market rate of return exceeds coupon rate, bond will sell at
A.  Par
B.  Premium
C.  Discount
D.  Face value
A frequently used approximation for the yield to maturity on a long-term bond is the
A.  Coupon rate
B.  Current yield
C.  Cash flow interest rate
D.  Real interest rate
An open ended mutual fund is one
A.  That invest in Stock Exchanges
B.  That invest in Financial Assets
C.  Where investor can purchase / sell at all times
D.  Units can be purchased only through brokers of Stock Exchanges
In a Mutual Fund, over all decision of allocating money to a particular industry / sector is taken by
A.  Equity Analyst
B.  Fund Manager
C.  Security Dealer
D.  Research Dept
The most important reason for an investor to prefer Bank deposit over Mutual Fund is
A.  Credit worthiness of the Bank
B.  Bank offers assured returns coupled with easy liquidity
C.  Bank does not invest in securities market that are volatile
D.  All of the above
Which of the following is not an SRO
A.  AMFI
B.  Mumbai Stock Exchange
C.  FPSB India
D.  IRDA
Information regarding which category of investors can invest in Mutual Fund is given in
A.  Offer Document
B.  SAI
C.  DIN
D.  MIN
The tax impact on monthly income plan of a debt Mutual Fund is
A.  Direct
B.  Indirect
C.  Zero
D.  As per the investors tax bracket
When any new scheme is launched by Mutual Fund, after the scheme name following abbreviation is used
A.  NFO
B.  IPO
C.  FPO
D.  NPS
Which of the following is considered as growth asset
A.  Savings account
B.  Current account
C.  Real Estate
D.  Gilt security
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