1. Mutual funds are constituted as ‘Trusts’ in India.

Who are the beneficiaries of the

trust?

a. The employees of the Asset Management Company

b. The mutual fund distributors

c. Unitholders

d. Trustees of the mutual fund

2. Who handles the day-to-day management of the mutual fund?

a. Asset Management Company

b. Registrar and Transfer Agency

c. Mutual Fund Trustees

d. Unitholders

3. Whose job is to track the various corporate actions like a bonus, dividend, or rights

issues in companies where the mutual fund scheme has invested?

a. Registrar and Transfer Agency

b. Custodian

c. Auditors of the Asset Management Company

d. Unitholders

4. Registrar and Transfer Agency function must be independent of the Asset

Management Company, and it cannot be retained in-house. State whether this

statement is True or False.

a. True

b. False

5. With which agency are the mutual fund distributors registered?

a. Securities and Exchange Board of India

b. Fund Accounting Team

c. Depositories

d. Association of Mutual Funds in India

Whom should the investor approach if his complaint is not

resolved by the Asset Management Company (AMC) ?

Securities and Exchange Board of India (SEBI)

Custodian

Company Law Board

Ombudsman

The expenses which can be charged by an Asset Management

Company to a Mutual Fund scheme are limited by _____ .

Fund Managers

Sponsors

Investors

SEBI

Securities and Exchange Board of India (SEBI) functions does

not include which of the following?

Regulation of Stock Exchanges

Enforcing compliance of its regulations

Making regulations for the Mutual Fund industry

Approving the fund managers which have been appointed

by the AMC

Dividends which are paid by mutual funds can be paid out of

________ .

Profits of the Asset Management Company

Mark to Market profits

All realised and unrealised gains

Distributable surplus only

Business model, experience and proficiency in the business is

a compulsory criteria for empanelment and review of which of

the following category of mutual fund distributors?

Institutional distributors who have points of presence in

more than 10 locations

Individual distributors who have points of presence in more

than 10 locations

Distributors who have received commission of over Rs. 1

Crore p.a. across industry

All of the above

An mutual fund application form with multiple holders has to

be signed by ______ .

Any of the holders

All the holders

Only the first holder

Only the first two holders

Which certification examination is mandated by SEBI for

becoming a mutual fund distributor in the India?

NCFM Series VA Mutual Fund Distributors

NISM Series VA Mutual Fund Distributors

AMFI VA Mutual Fund Distributors

SEBI VA Mutual Fund Distributors

Which of these is an important criteria for choosing either

Growth option or Dividend option in the same mutual fund

scheme?

Returns on the scheme

Fund Manager

Tax status of the investor

Assets Managed by the scheme

What is the role of the custodian of a mutual fund?

To issue statement of funds holding to the investors

To execute the buy and sell orders in the stock market

To keep the safe custody of the securities of the mutual

fund scheme

To issue account statements to the Mutual Fund unit

Holders

Identify the duty of a SPONSOR of a mutual fund -

Guards the interest of the mutual fund unit holders

Contributes to the capital of the Asset Management

Company

Looks after the day to day administration of the mutual fund

Regularly report to SEBI on the working of the fund

Which amongst the following bias can lead to concentrated

portfolio?

Familiarity Bias

Herd Mentality

Overconfidence Bias

Recency Bias

Which of these documents is NOT required to be submitted by

institutional investors while investing in mutual funds?

Profit and Loss Statement

PAN card copy

List of authorised signatories

Memorandum of Association and Articles of Association

With respect to the procedure for getting empanelled as a

mutual fund distributor with AMC, the applicant needs to sign

a declaration for _______ .

Guarantee of adding a minimum of 5 investors every month

declaring the rebates given back to the investors

ensuring that all employees who are selling mutual funds

will have more than on ARN code

Commitment to abide by statutory codes, guidelines and

Circulars

Which of the below investors will require the approval of board

before investing in mutual funds ?

Non Resident investors

Institutional investors

High Networth investors

Retail investors

Which of these expenses can be charged to a fund ?

Office salaries of fund management team

Rent of the AMC registered office

AMC general administration expenses

Custodian and Fund Administrator fees

The auditor appointed to audit the scheme accounts is the

same as the auditor of the AMC accounts - State True or False

False

The party in whose favour the Units are pledged is called a

_______ .

Pledger

Pledgee
Pledge

Pledion

The dividends is declared on units which are under a lien will

be paid to _______ .

the unit holder only

the lien holder only

the unit holder or lien holder as per the agreement

the unit holder or lien holder as per the terms of issue of

mutual fund units

Which of these is an advantage of Mutual Funds?

Portfolio Customization

Choice Overload

Control Over Costs

Economies of scale

What is the maximum number of joint holders allowed per

mutual fund application?

Dormant investors are those investors who have not

transacted during the previous ____ months.

12

24
_______ is responsible for settlement of Mutual Fund

transactions which are executed on the Stock Exchanges.

AMC

Stock Exchange

Clearing House

AMFI

Only individuals are allowed to distribute mutual funds in

India. State whether True or False.

True

False

Mutual Funds gives more investment options as compared to

National Pension Scheme - State True or False ?

True

The mutual fund schemes’ sale and purchase of investments

are executed by the _______ in the stock market.

Operator

AMC

Dealer

Sponsor

_____________ is the process of determining the ability of an

investor to bear losses from various investments.

Delta Hedging

Asset Allocation

Portfolio Churning

Risk Profiling

Higher the Capital Base, ____________ the Risk Appetite.

Higher

Lower

Capital base has no effect on risk appetite

No change

A Mutual Fund Trust must have beneficiaries - State True or

False ?

True

Monthly Income Plan (MIPs) have no exposure to Equity - State

True or False ?

True

False

Commodities as an asset class does not include __________ .

Food Crops

Industrial Metals

Gold

Real Estate

Risk appetite increases as the number of earning members

_________.

decreases

increases

becomes zero

None of the above

Risk Appetite is influenced by which financial factor(s) ?

Capital Base

Regularity of Income

Both 1 and 2
None of the above

The trustees / AMC cannot make any change in the

fundamental attributes of a scheme, unless approval is

received from ______

Unitholders

SEBI

Sponsor

Fund Manager of that scheme

When the Capital Base of an investor rises, his or her risk

appetite will tend to ____ .

decrease

increase

remain same

change randomly

After the New Fund Offer, units of the Close Ended fund can be

bought and sold through _______ .

_____ indicates how much money can be generated per unit of

mutual fund in case the scheme is liquidated.

Market price

Exit load

Asset Under Management

Net Asset Value

Can Indian mutual funds invest in Real Estate ?

Yes

No
Can an investor transact directly through the websites of

some mutual fund companies?

Yes, they can buy / sell units on the MFs website

No, this is not allowed in India

The sponsor needs to contribute a minimum __50 lakh___ of the net

worth of the AMC.

As per the common disclosure - Investments in mutual funds

are subject to market risks and therefore ______ .

will provide insurance

will not provide guarantee of returns or capital protection

will provide guarantee of returns

will guarantee capital protection in the long run

The distributors are mainly compensated through ______ by

the mutual funds.

commissions

salaries

portfolio profits

annual fees

With which agency are the mutual fund distributors

registered?

Securities and Exchange Board of India

Fund Accounting Team

Depositories

Association of Mutual Funds in India