MTEMCQ
MTEMCQ
MTEMCQ
Unit 1
Mutual Funds are a vehicle for retail and institutional investors to benefit from the capital
markets.
They offer different kinds of schemes to cater to various types of investors, companies and
institutions
Mutual fund schemes are offered to investors for the first time through a New Fund Offering
(NFO).
Growth Funds
Money Market Funds
Income Funds
Interval Funds
Which one of the following is the investment objectives based mutual fund?
Growth Funds
Interval Funds
Income Funds
Both A and C
Which term describes the price at which an investor can purchase the units of a mutual fund?
Net purchase price
Unit sale price
Investor expense ratio
None of the above
B
Vets
Approves
Disapproves
Registers
A
S&P 500
Russell 3000
CNX Nifty
S&P BSE Sensex
D
MTM
AMC fees
Scheme running expenses
Load
D
Stock Exchange
IPO
NFO
AMFI
C
_________ is lowest in risk
Fixed maturity plans
Gilt funds
Diversified equity funds
Liquid funds
D
Interval funds
Balance funds
Specialty funds
All of the above
Which of the following organizations is the Mutual Fund market regulator in India?
RBI
IDBI
CIBIL
SEBI
D
What do you mean by NAV?
National assets value
Net asset value
Net assigned value
Net assessment value
B
A
Q. 18 The systematic approaches offered by mutual funds to promote an investment discipline for long
term wealth creation are
A. SIP, STP
B. SIP, STP, SWP
C. SIP, SWP
D. None of the above
B
Investments in mutual fund can be made using
Cheque / DD
Remittance
ASBA
Any of the above
D
Capital gain
Interest income
Dividend income
Inflation
B
Equity Funds
Index Funds
Money Market Funds
Sector Funds
C
AMC
Trustees
RTA
SEBI
A
The custodian has the custody of the investments in a scheme and a custodian is largely independent of
A. Sponsors
B. AMCs
C. Trustees
D. Both (A) and (B)
D
Which of the following document must be read carefully in order to get details on risk factors before
investing in Mutual Fund Units?
KIM
SAI
SID
None of the above
Professional management
Transaction costs
Switching services
Diversification
B
Issuing additional fresh units and redeeming the existing units of a mutual fund scheme is the role of:
The custodian
The transfer agent
The trustees
The bankers
B
Q. 29 Under the Indian Trusts Act, the interests of the unit-holders is safeguarded by
A board of trustees
A trustee company
Either
Neither
C
Financial Press
Offer document
AMFI Website
Advice from the distributor
B
Buyer beware
Buyer is always right
Seller is always right
Seller is guilty unless proved right
A
SEBI
Unit holders
Sponsors
Trustee
D
Q. 34 In case of a dispute, against whom can the Unitholders initiate legal proceedings?
Trust
Trustee
AMC
None of the above
B
Company
Trust
Partnership
Association of Person
B
Q. 36 Which of the following should not be viewed primarily as an investment option?
Mutual Funds
Equity shares
Life Insurance
PPF
C
Q. 37 The appointment of AMC for the Mutual Fund can be terminated by
Majority of Directors of the Trustee
50% of the Unitholders
45% of the Unitholders
60% of the Unitholders
A
A type of mutual fund that maintains relatively stable proportions of its funds invested in equities
and in fixed-income securities is called a _______________.
Specialized sector fund
Index fund
Asset allocation fund
Balanced fund
D
Q. 39 Which of the following is an advantage to investors of exchange traded funds (ETFs) that
is not available to investors in open-end mutual funds?
a. ETFs allow investors to invest in broad U.S. market indexes as well as
international indexes.
b. Investors can avoid incurring an expense in the form of a bid-ask spread
by purchasing an ETF rather than investing in an open-end mutual fund.
c. ETFs offer a potential tax advantage to investors who incur capital gains
taxes only when they sell ETF shares.
d. ETF prices can not deviate from net asset value.
C
Q. 40 Cost incurred by a mutual fund in managing the fund, including administrative expenses
and advisory fees, are referred to as the fund's ______________.
a. charges
b. Front-end load
c. Management fee
d. Operating expenses
D
Q. 41 Investors in a common stock mutual fund incur an income tax liability when
_______________.
a. They sell their mutual fund shares at a gain
b. The mutual fund sells stock in its portfolio at a gain
c. The mutual fund receives dividends on the stock owned by the mutual fund
d. All of the above
D
Which of the following is incorrect w.r.t. different agencies involved in setting up of Mutual
Fund?
A mutual fund is set up in the form of a trust which is established by a sponsor who is like a
promoter of a company
The trustees of the mutual fund hold its property for the benefit of the unit-holders
The AMC, approved by SEBI, manages the funds by making investments in various types of
securities
Registrar & Transfer Agent holds the securities of various schemes of the fund in its custody
D
Which of the following is not a feature of open-ended mutual fund schemes?
They allow investors to enter and exit as per their convenience
The units are bought and sold at the net asset value (NAV) declared by the fund
The number of outstanding units remains constant in open ended mutual fund schemes
All are correct features
C
Q. 44 A group of mutual funds with a common management are known as:
A. funds syndicates
B. fund conglomerates
C. fund families
D. fund complexes
C
Q. 45 Which of the following is a reason for selecting a mutual fund?
A. Its historic return
B. High tax efficiency
C. Charging 12b-1 fees instead of load fees
D. Often realizing portfolio gains
UNIT-3
Which of the following is an advantage of Investing in Gold ETFs instead of Physical Gold?
Risk of impurity
Why does Gold need to be a part of one’s portfolio when investing for long-term?
Q. 6 If your investment goal is simply to match the market, should buy a(n)
A. They have a tax disadvantage in that all gains are taxable, even if shares are not sold.
B. They are easily bought and sold.
C. They have very low expense ratios.
D. None of the above
Automatic reinvestment
Internet transactions
Security loss insurance
None of the above
C
A type of mutual fund that maintains relatively stable proportions of its funds invested in equities
and in fixed-income securities is called a _______________.
D. Balanced fund
No surety of quality
Lesser realisation on remoulding of ornaments
Changes in fashion and trends
No fear of theft
The Gold which the authorized participant deposits for buying the bundled ETF units with the
Custodian is called?
Allocated Account
Portfolio Deposit
Cash Component
Either A or C
An account in which custodian has to keep record of all the Gold that has been
deposited/withdrawn under the Gold ETF is known as
Allocated Account
Portfolio Deposit
Cash Component
None of the above
The money which the authorized participant deposits for buying the bundled ETF units is known
as
Allocated Account
Portfolio Deposit
Cash Component
None of these
Mutual funds that invest on the basis of a specified index, whose performance it seeks to track
are called
Passive funds
Actively managed funds
Index Fund
None of the above
In which fund, restriction of maximum 10% investment in a single company share is not
applicable ?
Contra Fund
Mid Cap Fund
Fund of Fund
Sectoral Fund
D
Which fund do not directly invest in stocks and shares but invest in units of other mutual funds
Fund of Funds
Multi Cap Fund
Quant Fund
Contra Fund
Index ETF
Gold ETF
Liquid fund ETF
Mutual fund ETF
D
Passively managed
High liquidity
Tax advantage
Fear of theft
Locker cost
No surety of quality
Price appreciation
Trustees
Banker