• Practice Test (Finance)
Back
0

Practice Test (Finance)

Description: AMFI MOCK TEST PAPER PREPARATION AND PRACTICE STUDY MATERIAL
Number of Questions: 25
Created by:
Tags: AMFI MOCK TEST PAPER Test AMFI MOCK TEST PAPER AMFI MOCK TEST AMFI MOCK PAPER MOCK TEST AMFI EXAM AMFI TEST Investment Theory
Start the Quiz
Attempted 0/25 Correct 0 Score 0
‹
›

As per Boggle, asset allocation for younger investors in distribution phase should be

  1. 80% equity; 20% debt

  2. 60% equity; 40% debt

  3. 50% equity; 50% debt

  4. 100% equity; 0% debt

Show answer
Correct Option: B

Which of the following is not a part of life cycle stage of an investor?

  1. Childhood stage

  2. College stage

  3. Pre-retirement stage

  4. Post-retirement stage

Show answer
Correct Option: B

If yield is expected to fall, a debt fund manager will do all of the following except

  1. sell short maturity securities and buy long maturity securities

  2. see that the fund's average duration becomes longer than the market's average duration

  3. sell long duration securities and buy short duration securities

  4. sell high coupon securities and buy low coupon securities

Show answer
Correct Option: C

In which of the following stages, the investor may need income from their investment and cannot save further?

  1. Transition stage

  2. Accumulation stage

  3. Reaping stage

  4. None of the above

Show answer
Correct Option: C

Which of the following is not a step to develop a model portfolio for an investor?

  1. Develop goals

  2. Discuss with clients relatives

  3. Determine asset allocation

  4. Determine sector distribution

Show answer
Correct Option: B

Which of the following will result in higher percentage of equity than in debt during bullish phase of the equity markets?

  1. Fixed Asset Allocation

  2. Flexible Asset Allocation

  3. Both a & b

  4. Neither a nor b

Show answer
Correct Option: B

One of your friends who have invested in a mutual fund is about to get Australian citizenship. What would you advise?

  1. He should transfer the investment to his relative

  2. He should get RBI approval for continuing

  3. He can continue to hold as PIO(s) are allowed to invest in mutual funds in India

  4. He should immediately redeem his investment since foreign citizens are not eligible investors

Show answer
Correct Option: C

Which of the following would you suggest, if your client suddenly wins Rs.1 Cr in a game show?

  1. Invest whole amount in equity directly

  2. Invest half in equity mutual funds and the other half in debt mutual funds

  3. Invest in money market mutual fund till the time he decides on the use of the money

  4. Spend, gift and invest as per his wish

Show answer
Correct Option: C

As per Boggle, asset allocation for older investors in distribution phase should be

  1. 20% equity; 80% debt

  2. 40% equity; 60% debt

  3. 50% equity; 50% debt

  4. 0% equity; 100% debt

Show answer
Correct Option: C

A wealth creating affluent investor is likely to invest in

  1. equity instruments and equity mutual funds

  2. gold

  3. fixed deposits

  4. debt funds or fixed income securities

Show answer
Correct Option: A

A wealth preserving affluent investor is likely to invest in

  1. direct equity

  2. real estate

  3. growth funds

  4. debt funds or fixed income securities

Show answer
Correct Option: D

Which of the following is not a case of sudden wealth surge stage?

  1. Your client wins Rs.1 Cr in lottery

  2. Your client receives property and other assets worth 5 Cr as inheritance from his uncle

  3. Your client gets a yearly bonus of Rs.5 lac

  4. All of the above

Show answer
Correct Option: C

Which of the following is not a relevant criterion to select an equity fund?

  1. Percentage of cash in portfolio

  2. Concentration of portfolio

  3. Market capitalization of the fund

  4. The interest rate environment

Show answer
Correct Option: D

Which of the following is false about fixed asset allocation?

  1. It means maintaining the same ratio between various components of the portfolio

  2. It involves rebalancing the portfolio in a disciplined manner

  3. It means that the portfolio would never be rebalanced

  4. It involves periodic review and returning to the original allocation

Show answer
Correct Option: C

Which of the following is not a relevant criteria to select a debt fund?

  1. Expense Ratio

  2. Total return

  3. Credit quality

  4. Beta

Show answer
Correct Option: D
Explanation:

Beta measures systematic risk (or market risk). It is used to calculate cost of EQUITY capital, not debt fund.

Which of the following is not true about the buy and hold strategy?

  1. It is preferred by many investors

  2. It does not involve rebalancing

  3. It is very beneficial as investors may exit from poor performers and invest in better ones

  4. All of the above

Show answer
Correct Option: C

Which of the following is true about an equity fund selection?

  1. Fund with higher percentage in cash should be selected

  2. Fund with low market capitalization has more liquidity

  3. Track record of fund managers is not important

  4. Funds with higher x-marks are more diversified and have lower risk

Show answer
Correct Option: D

Which of the following is an important criterion to select a money market fund?

  1. Portfolio turnover

  2. Duration of the fund

  3. The expense ratio

  4. All of the above

Show answer
Correct Option: D

To reduce interest rate risk a debt mutual fund investor should invest in

  1. funds having higher yields

  2. funds having lower average maturity

  3. funds having higher average maturity

  4. funds with lower expense ratio

Show answer
Correct Option: B

Which of the following is true about Jacob's Model Portfolio for investors in distribution phase?

  1. Investment in diversified equity should be around 15% -30%

  2. Investment in income and gilt funds should be around 15% -30%

  3. Investment in liquid funds should be around 15% -30 %

  4. None of the above

Show answer
Correct Option: A

Which of the following would you recommend to Mr. Sharma, who wants to invest Rs. 3 lac for three months?

  1. Bank fixed deposit

  2. A debt fund having duration of 3 years

  3. A liquid fund

  4. A balanced fund

Show answer
Correct Option: C

Which of the following is true about Jacob’s Model Portfolio for investors in accumulation phase?

  1. Investment in diversified equity should be around 15% -30%

  2. Investment in income and gilt funds should be around 65% - 80%

  3. Investment in liquid funds should be around 5%

  4. None of the above

Show answer
Correct Option: D

A person who purchases debentures issued by a company is a lender to the company. An income fund invests in debentures issued by a company. A unit holder of this income fund

  1. is a lender to the company

  2. is a share holder in that company

  3. has no relationship to that company

  4. is a creditor to that company?

Show answer
Correct Option: C

Net Asset Value per unit means

  1. (Book value of assets liabilities)/Units outstanding

  2. Unit capital / Units outstanding

  3. Net assets divided by Initial number of units

  4. (Market value of assets Liabilities)/Units outstanding

Show answer
Correct Option: D

In which type of schemes should an unmarried professional working in HLL invest?

  1. Scheme investing 80% in debt securities

  2. 50% in equity funds and 50% in income funds

  3. At least 75% in equity funds having a higher PE Ratio than the market

  4. All the money in a balanced fund

Show answer
Correct Option: C
- Hide questions
ADVERTISEMENT

Find more quizzes from top tags

general knowledge
3615 Quizzes
119858 Questions
 technology
307 Quizzes
36705 Questions
 sports
963 Quizzes
19148 Questions
 history
1187 Quizzes
13475 Questions
 physics
598 Quizzes
13441 Questions
 biology
1160 Quizzes
12174 Questions
 science & technology
551 Quizzes
11015 Questions
 chemistry
490 Quizzes
9892 Questions
 maths
518 Quizzes
9324 Questions
 softskills
0 Quizzes
7131 Questions