FinanceInsights has created mock tests for individuals who want to learn about mutual fund investing. These are multiple choice questions that will test your knowledge on mutual funds. If you need any clarifications/explanations on mutual fund investing, please feel free to send your query on sharmila@financeinsights.com
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1.
SEBI permits only one scheme per category in all cases.
2.
Large-cap stocks have been defined as ____ company in terms of full market capitalization.
3.
Investments by minors cannot have a nomination.
4.
The Income tax Act has ___ categories of mutual fund schemes.
5.
At least __ percent of the ELSS funds should be invested in equity and equity-linked securities.
6.
An employee of the AMC cannot be a trustee of the fund.
7.
The minimum investment and redemption limits specified by the mutual fund for the schemes will also apply to an STP.
8.
A single SAI is relevant for all the schemes offered by a mutual fund.
9.
NRI investors investing through an NRO account, should register _______ with the mutual fund.
10.
Dividend warrants should be dispatched to investors within __days of declaration of the dividend.
11.
Capital protection funds take exposure to equity —
12.
When the mutual fund scheme has been in existence for more than three years, performance advertisement of mutual fund schemes shall be provided in terms of CAGR for the past —
13.
BSE's online platform for transacting in mutual funds is called —
14.
_______ the Treynor Ratio, better the scheme is considered to be.
15.
Most times, market price of a close-ended scheme's units is —
16.
In case of an equity savings fund, the minimum investment in equity and equity related instruments and the minimum investment in a debt shall be —
17.
As per SEBI regulations, investments of an aggressive hybrid fund shall be —
18.
____ ratio indicates how much equity investors are prepared to pay in relation to the company’s earnings.
20.
Once an investor has completed the KYC process, he can use it for all his investments (he doesn't need to go through the KYC process repeatedly).
21.
The relationship between interest rates and bond prices is —
22.
A mutual fund is an asset class that competes with equities, bonds, debentures, etc.
23.
Open-ended debt funds have to maintain a minimum of __ per cent of their corpus in liquid assets. (subject to conditions and stipulations)
24.
Mutual fund investments would be subject to levy of stamp duty @ _____ of the amount invested.
25.
Smart beta funds are similar to —
26.
Multiple schemes are permitted in case of fund of funds.
27.
Mutual Fund Schemes (other than IPO of ELSS) to remain open for subscription for maximum of __ days.
28.
A Mutual Fund under all its schemes shall not own more than __ percent of a company’s paid-up capital bearing voting rights.
29.
Whenever there is political or economic turmoil, gold prices ____.
30.
Growth stocks typically feature _____high P/E, ____PEG and ____ dividend yield ratios.
31.
In a 1:3 bonus issue, the investor is allotted _____________.
32.
Triggers in mutual fund investments are available only for stop loss, not for switches in appreciation or fall in NAV.
33.
Which of the following statements is ‘True’ with respect to celebrity endorsement for mutual funds? (from NISM)
34.
In which segment of the NSE can investors transact in mutual funds?
35.
Which agency issues the acknowledgement for having completed the KYC process for an investor?
36.
Allocating investible funds across different equity securities is termed as asset allocation.
37.
An infrastructure debt fund formed as a trust is regulated by —
38.
Investments by a scheme are done as per —
39.
For KYC, PAN card and photo work as —
40.
In case of STP, transfer of funds from the source scheme is equivalent to redemption. Exit loads and taxes will apply like any other redemption transactions.
41.
As per the fair valuation principles laid out by SEBI, it is mandatory to disclose the valuation policy in __________. (from NISM)
42.
No mutual fund scheme shall own more than ____ of perpetual bonds by a single issuer.
43.
Which key document is mandatorily circulated along with the application form?
44.
At how many points did the BSE Sensex start?
45.
Gating or restriction on redemption in mutual funds can be imposed only during ________.
46.
As per the SEBI guidelines, how often should the mutual fund scheme’s portfolio be published? (from NISM)
47.
Company specific risks are known as _____ risks.
48.
AUM changes with change in market price of securities in the scheme's portfolio.
49.
As per SEBI regulations, the minimum investment in equity and equity related instruments by flexicap funds shall be —
50.
When the rupee weakens, the rupee value of gold _____.
51.
The nominee holds the units in trust for the legal heirs of the investor.
52.
In case of capital gains from mutual fund investments, Tax Deduction at Source (TDS) is applicable for: ________
53.
Minimum investment required in AA and below corporate bonds for credit risk funds is —
54.
AMFI is a Self-Regulatory Organisation (SRO).
55.
The total expense ratio of close-ended equity-oriented scheme(s) shall not exceed ____ per cent of the daily net assets of the scheme.
56.
When a minor turns major, which form needs to be submitted to the mutual fund to change status?
57.
The Net Asset Value (NAV) of a scheme's segregated portfolio is required to be declared on a ____ basis.
58.
What is the maximum Total Expense Ratio chargeable in case of index funds? (from NISM)
59.
Which among the following schemes would have lower risk of concentration? (from NISM)
60.
Rajesh invested Rs. 1,00,000 in an equity- oriented mutual fund scheme in 2017 and the value of the investments as on January 31, 2018 was Rs. 2,00,000. He sold the investments completely and realised a value of Rs. 1,80,000 on February 9, 2018. How much capital gains tax would he pay?
61.
Which are the two important documents for understanding about a mutual fund scheme?
62.
The monetary limit under the Instant Access Facility (IAF) per day per scheme per investor is _________.
63.
Typically, towards the maturity of a close-ended scheme, the market price _____ the NAV.
64.
Index funds are traded on exchanges.
65.
Rise in interest rates ____ real estate prices.
66.
All existing investors shall be allotted equal number of units in the segregated portfolio as held in the main portfolio as on the day of the credit event.
67.
What is MF Utilities?
68.
GST on all fees, brokerage and transaction costs, should be within the limit of TER.
69.
No exit load will be charged on bonus units and units allotted on reinvestment of dividend.
70.
Rolling returns are ______ calculated for multiple consecutive holding periods.
71.
The difference between a scheme’s actual return and its optimal return is its _______.
72.
SEBI has permitted celebrity endorsements at the industry level for the purpose of increasing awareness of Mutual Funds as a financial product category. (subject to conditions)
73.
When investing in a minor's name, the guardian has to provide proof of age of the minor.
74.
In case of joint holding, the income, be it capital gains or dividend, would be considered to have been earned by the ____.
75.
Mutual funds structure customized portfolios for individual investors.
77.
FMPs are the only schemes that offer guaranteed returns.
78.
Both regular plan and direct plan have the same total expense ratio (TER).
79.
_______ the Sharpe Ratio, better the scheme is considered to be.
80.
Index funds are _____funds.
81.
_________ the modified duration of a debt security, greater is its price volatility in response to changes in interest rates.
82.
Who maintains investor records, issues account statements, allots or redeems units, processes purchase/redemption/switch requests, dividends, etc?
83.
AMC shall not charge investment and advisory fees on the segregated portfolio.
84.
Changes not forming part of the key documents are published via —
85.
Index funds are designed to perform better than the index tracked.
86.
What is SEBI's web-based centralized grievance redress system called?
87.
Fall in interest rates will result in–
88.
Investors subscribing to a scheme with a seggregated portfolio, will be allotted units only in the main portfolio based on its NAV.
89.
Units of seggregated portfolios are required to be listed on the stock exchange.
90.
For schemes other than index funds, the choice of benchmark is subjective.
91.
Small investors, who may not be taxpayers and may not have PAN/bank accounts, such as farmers, small traders/businessmen/workers are allowed cash transactions for the purchase of units in mutual funds to the extent of Rs. ___________ per investor, per mutual fund, per financial year.
92.
A mutual fund's trustees can be —
93.
Capital protection funds are —
94.
The mutual fund's annual report or abridged summary must be mailed to investors no later than ____months from the date of closure of the relevant financial year i.e., March 31 each year.
95.
A security with ____ maturity will fluctuate more as compared to a security with ____ maturity.
96.
There are four broad asset classes —
97.
The 'core' portfolio of an investor will be invested according to the _____ needs and goals of the investor.
98.
If an investor initiates change of distributor code because the existing distributor has voluntarily stopped business, the new distributor will not get the trail commission.
99.
Investors can buy units of a close-ended scheme from the fund —
100.
_______ are close-ended debt funds. (from NISM)
