Question 1

A mutual fund may transfer investments from one scheme to another

not at all
at current market rates
at cost price
at a fixed premium over market rate

Answer

Correct Option: B

Question 2

Interest Rate Risk for an Indian debt fund can be reduced by using

futures
options
interest tate swaps
None of the above

Answer

Correct Option: C

Question 3

When interest rates for similar maturities' bonds are 11%, bond with a 9% coupon rate will sell

above par
below par
at par
at a price unrelated to the interest rates for similar securities

Answer

Correct Option: B

Question 4

The Indian debt market is largely

wholesale in nature
retail in nature
dominated by NRIs
All of the above

Answer

Correct Option: A

Question 5

If the duration of a bond is 4 years, and the yield increases by 1%, then the bond price will

not change
increase by nearly 2%
increase by nearly 4%
decrease by nearly 2%

Answer

Correct Option: D

Question 6

If the NAV of an open-end fund increased from Rs.16 to Rs.20 in 6 months, the absolute return is

6.00%
34.60%
25.00%
37.50%

Answer

Correct Option: C

Question 7

The expense ratio used for measuring fund performance is an indicator of

product market condition
growth in the economy
prevalent market practices
the fund's efficiency

Answer

Correct Option: D

Question 8

While computing the Expense Ratio for a fund, the transaction costs for buying and selling securities are not included in the fund expenses because

these are not borne by investors
as per accounting policies, these are capitalized and are not shown as expenses at all
AMC wants to show lower expense ratios
the statement is not correct

Answer

Correct Option: B

Question 9

Inter scheme transfers are allowed by SEBI, provided

such transfers happen on delivery basis at market prices
such transfer do not result in significantly altering the investment objectives of the schemes
such transfer is not of illiquid securities, as defined in the valuation norms
All the above conditions are satisfied

Answer

Correct Option: D

Question 10

The Expense Ratio is of least importance in which of the following:

debt fund
index fund
equity fund
liquid fund

Answer

Correct Option: C

Question 11

The Expense Ratio is not affected by

fund size
average account size
portfolio composition
stock market conditions

Answer

Correct Option: D

Question 12

The Income Ratio as a measure of a fund's performance is defined by the funds

total income and total assets
net investment income and net assets
total income and net assets
None of the above

Answer

Correct Option: B

Question 13

The Income Ratio is more suitable for evaluating the performance of

equity funds
growth funds
regular income funds
index funds

Answer

Correct Option: C

Question 14

Turnover rates would be most relevant to analyze the performance of

equity funds
index funds
debt funds
value funds most relevant to

Answer

Correct Option: A

Question 15

Portfolio turnover rate refers to

ratio of sales to the net assets of the fund
ratio of purchases to the net assets of the fund
ratio of sales or purchases (which ever is lower) to net assets of the fund
ratio of sales or purchases (which ever is higher) to net assets of the fund

Answer

Correct Option: C

Question 16

A high turnover rate for a fund indicates

high transaction costs
greater efficiency
high returns to the investor
a rising market

Answer

Correct Option: A

Question 17

Portfolio turnover rate of a fund measures the

size of the fund's portfolio
amount of buying and selling done by the fund
the average number of units sold by the fund in one day
None of the above

Answer

Correct Option: B

Question 18

Which of the following is not included in transaction costs?

brokerage/commissions
stamp duty on transfers
agent commissions
None of the above

Answer

Correct Option: C

Question 19

Transaction costs include

all expenses related to purchase and sale of securities
all expenses charged to the fund
distribution expenses
None of the above

Answer

Correct Option: A

Question 20

Which of the following transaction costs are not quantified in the offer document?

Brokerage commissions
Dealer spreads
Custodian's fees
Registrar's fees

Answer

Correct Option: B

Question 21

The most suitable measure of performance for all fund types is

NAV Change
Total Return
Total Return with reinvestment method
None of the above of fund dividend

Answer

Correct Option: C

Question 22

Change in NAV as a measure of fund performance is more suitable for

growth funds
income funds
funds with withdrawal plans
None of the above

Answer

Correct Option: A

Question 23

The Expense Ratio as a measure of a fund's performance is defined by a fund's

total expenses and average net assets
total expenses and total assets
average expenses and average net assets
None of the above

Answer

Correct Option: A

Question 24

The difference between change in NAV method and total return as measures of fund performance is

none
total return method takes dividend into account while change in NAV does not
total return method does not take NAVs into account
total return method does not take the time period into account

Answer

Correct Option: B

Question 25

Which of the following is true regarding borrowing powers of a mutual fund?

A mutual fund can not borrow at all
A mutual fund can borrow only up to 20% of net assets
A mutual fund can borrow for a maximum period of one year
A mutual fund can borrow for investment purposes

Answer

Correct Option: B

Description: AMFI MOCK TEST PAPER PREPARATION AND PRACTICE STUDY MATERIAL
Number of Questions: 25
Created by: Amit Pandey
Tags: AMFI MOCK TEST PAPER Test AMFI MOCK TEST PAPER AMFI MOCK TEST AMFI MOCK PAPER MOCK TEST AMFI EXAM AMFI TEST AMFI Verbal Ability Letter JKL Letter N Letter I Letter M

Practice Test (AMFI)

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