Question 1

In the offer document, funds are required to make disclosures regarding the financial results of the sponsor for the

last one financial year
first two financial years
last three financial years
last two calendar years

Answer

Correct Option: C

Question 2

The following does not form a part of the investment procedure described in an offer document.

Various plans under the scheme (e.g., dividend reinvestment plan)
Minimum initial (and subsequent) investment
Details of who can invest
Details of other competing mutual funds

Answer

Correct Option: D

Question 3

A scheme's policy on dividends and distribution

is decided by the fund manager as per the market outlook
can be changed to suit the requirements of the AMC
need not be consistent
should be disclosed at the time of initial launch

Answer

Correct Option: D

Question 4

SEBI restricts mutual fund investments in companies forming part of the same group as the AMC. This is:

false
in the interest of investor protection
applied only to some mutual funds, not all
not favorable to investors at all

Answer

Correct Option: B

Question 5

As a part of borrowing policy, the following need not be disclosed in an offer document.

Purpose and circumstances of borrowing
Regulatory limits on borrowing
Potential risk to AMC and unit holders
Names of lenders

Answer

Correct Option: D

Question 6

Valuation norms for non-traded securities should be disclosed

at the end of every financial year
every quarter
in the offer document at the time of launch of the scheme
should not be disclosed, being confidential information

Answer

Correct Option: C

Question 7

Procedure for redemption or repurchase need not

be described in the offer document
include how redemption or repurchase price of units would be determined
include names of centres where redemption can be effected
indicate the redemption or repurchase price as at the end of the current fiscal year

Answer

Correct Option: D

Question 8

Tax treatment of investments does not

form a section in the offer document
describe the tax elements applicable to investors who invest in the fund
form a section in the key information memorandum
offer tax advice to investors

Answer

Correct Option: D

Question 9

Who among the following is not eligible to invest in a MF in India?

Indian companies
Banks
Individuals
Foreign citizens

Answer

Correct Option: D

Question 10

Documents available to investors for inspection does not include

memorandum and articles of association of AMC
trust deed
final accounts of the AMC
reports forming the basis of investments

Answer

Correct Option: D

Question 11

Which of the following is not true?

Companies can invest in mutual fund schemes
Registered societies can invest in mutual fund schemes
NRI's cannot invest in mutual funds
HUF can invest in mutual funds

Answer

Correct Option: C

Question 12

Who among the following are Institutional Investors?

Banks
Resident Individuals
Provident Funds
Non Banking Finance Companies

Answer

Correct Option: B

Question 13

The most important link between a mutual fund and its investors is

Government
SEBI
fund distributors
AMFI

Answer

Correct Option: C

Question 14

Which of the following is true regarding mutual fund agents/intermediaries?

It is compulsory for the mutual funds agent/intermediary
Agents have to be registered with AMFI
Only males are allowed to be agents
Agents can pass back the commissions to investors invest in through

Answer

Correct Option: B

Question 15

Offer related information required to be listed in the offer document and key information memorandum includes

dates of allotment and dispatch of certificates
procedure for transfer/ transmission of units
both of the above
neither of the above

Answer

Correct Option: D

Question 16

Emerging or new channel for marketing of mutual funds in India is

insurance companies
banks
qualified mutual fund agents
direct sales agents of respective mutual funds

Answer

Correct Option: B

Question 17

Agents are compensated by mutual funds

through salaries
through commissions
through an annual fee
not in cash but in kind

Answer

Correct Option: B

Question 18

Trail commission means paying

no commission at all
the entire commission up-front
commission in phases during the holding period of investor
the entire commission after five years

Answer

Correct Option: C

Question 19

In India, the minimum or maximum rate of commissions' payable to distributors is decided by

distributors
AMC
SEBI
trustees of the mutual funds

Answer

Correct Option: A

Question 20

Along with the application form, it is mandatory to attach

investment rebate
offer document
key information memorandum
None of the above

Answer

Correct Option: C

Question 21

The following are not termed practice

Agents commission
Before-and after-sales investors
Advertising of schemes
Stock broking sales service to

Answer

Correct Option: D

Question 22

Mutual Fund agents/distributors are not allowed to

sell financial products other than mutual funds
sell schemes of more than one mutual fund
pass back the commissions earned to the investors
work anywhere else

Answer

Correct Option: C

Question 23

Excess distribution expenses are to be borne by the

AMC
unit holders
SEBI
AMFI

Answer

Correct Option: A

Question 24

Generally, which categories of investors are less aware about mutual funds and hence, need more advice?

Non Banking Finance Companies
Insurance Companies
Foreign Institutional Investors
Individuals

Answer

Correct Option: D

Question 25

Which of the following documents, a mutual fund distributor needs to refer to find out eligible category of investors in a particular mutual fund scheme?

SEBI Regulations Manual
AMFI booklet
Offer document
RBI Guidelines

Answer

Correct Option: C

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 Market and Instruments

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