CUTE EXAM QUESTIONS (Set 3)

1) Prices of listed close-ended trusts are determined in the following manner:

A. The total value of the assets is divided by the number of units in circulation
B. Prices are determined by the demand and supply in the market such as Bursa Malaysia where the trust
is listed
C. The Unit Trust Management Company computes the daily prices upon close of business day
D. The Investment Committee sets the daily prices

2) In general, which of the following type of unit trust is likely to depreciate most when the overall stock market
falls?
A. Equity trust
B. Fixed-income trust
C. Money market trust
D. Property trust

3) In Year 1995, Encik Jamal put RM50,000 in an investment that earned him 9.0% per annum. Suppose the
investment is able to deliver the above yearly return for the past as well as the coming years, when will his
money double?
A. Year 2000 B. Year 2003 C. Year 2005 D. Year 2007

4) Which Statement regarding the EPF Members Withdrawal Investment Scheme is correct?

A. The maximum age for the qualified member is 60

B. Members can withdraw funds from the EPF once in every two months
C. Investment can be made with any unit trust scheme
D. Balance in Account 2 is not eligible for this scheme

5) Which of the following statement is correct?

A. The income of real estate investment trusts (REITs) is mainly derived from the rental income and capital
appreciation of the property held by the trust
B. The portfolio of a real estate investment trust (REIT) can be switched to equities easily as the assets are
highly liquid
C. Real estate investment trusts (REITs) are not allowed to be listed
D. Unlisted unit trusts are not allowed to invest in real estate investment trusts (REITs)

6) A collective investment scheme is:

A. A type of fund that allows anyone to collect money from others, much like people collect money for
charity
B. An investment fund which invests only in a specific collection of shares
C. A collection of investments which cannot be sold without permission of the owners
D. Another term used to describe a unit trust scheme

7) Generally, prospectus of a unit trust fund must be renewed .

A. Every month
B. Every six months
C. Every year
D. Every two years
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8) Investors who invested in unit trusts with borrowed money:

A. Will only make profit if returns from their investment are higher than the cost of their
borrowing
B. Will not affected by changes in the base lending rate set by their end-financiers
C. Are guaranteed to make profit in longer term
D. Need to keep on investing until the loan is fully settled

9) An investor wants to gain exposure to the commercial property market in Kuala Lumpur but with only a
small amount of money (approximately RM5,000), she was not able to invest at all. Which is a good
investment alternative for her?
A. Invest in equity index fund
B. Invest in fixed income fund
C. Invest in any open-ended funds
D. Invest in real estate property trusts

10) Puan Rose decided to withdraw some of her savings to invest in unit trusts. She would like to invest all of
her money in a fund at one time and let it grow irrespective of the market condition. Whereas for Puan
Sarina, she has very little savings but every month she is willing to cut some of her expenses and invests in
unit trusts. Name the respective ways that can be used by them to invest in unit trusts.
A. Spot and Installment Plans
B. Lump Sum Investment and Regular Savings Plan
C. Lump Sum Investment and Contractual Plans
D. Fixed Investment and Installment Plans

11) Generally, what are the possible forms of return on investment can an investor expect from investing in
unit trusts?
I. Dividend Income
II. Capital appreciation
III. Interest Income

A. I & II B.I & III C. II & III D. All of the optional answers are correct

Kindly use the following information to answer the questions.

Given data:
I. No. of units held before unit split: 18,000 units
II. Total value of the investment before unit split: RM6,000
III. Unit split ratio: 1 for 3

12) How many units will the investor hold after the unit-split exercise?

A. 24,000 units B. 18,000 units C. 15,000 units D. 6,000 units

13) What is her total investment value after the unit-split exercise?

A. RM2,000 B. RM6,000 C. RM8,000 D. None of the optional answer is correct

14) If an investor is able to tolerate high risks and prefers long-term capital gains to short-term income,
which of the following fund is most suitable for her?
A. Growth fund B. Bond fund C. Balanced fund D. Income fund

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15) Rank the following funds according to their level of risks from highest to lowest.

I. Equity Growth Fund

II. Money Market Fund
III. Balanced Fund
IV. Hedge Fund

A. I, III, II, IV B. IV, I, III, II C. II, III, I, IV D. II, I, III, IV

16) In marketing unit trust scheme, providing quality services includes:

A. Being responsive to customers’ requests, queries and complaints

B. Providing clear and precise reporting
C. Providing convenient choices in handling investors’ cash and payments
D. All of the optional answers are correct

Kindly use the following information to answer the questions.

An investor had invested a single amount of money in a unit trust fund at RM0.5000 per unit in the first
year and subsequently purchased another 10,000 units at RM0.5200 per unit in second year. At the end
of third year, he decided to redeem his investment at Buying Price RM0.6000 per unit and the total
proceeds was RM15,000.

17) How many units was he entitled for the investment he made in the first year?

A. 15,000 units B. 25,000 units C.35,000 units D. None of the optional answer is correct

18) What is the total amount of money he had invested in the first and second year?

A. RM7,500 B. RM5,200 C. RM12,700 D. None of the optional answer is correct

19) Upon redemption in the third year, calculate the raw return of the investment that he made in the first
year. (Assume no distribution was paid during the period)
A. 15% B.18% C. 20% D. 100%

20) Which of the following is the most appropriate thing to do if you meet a person who has never invested in
unit trusts and does not feel comfortable to invest in unit trusts?
A. Let the potential investor have a prospectus and walk through with her
B. Comfort her by letting her know that unit trust is an investment with no risk
C. Show her the marketing brochure and take them back as you need to show the brochure to another
investor
D. Show her the excellent performance record of the unit trust fund and tell her that the
performance will repeat in the future

21) One of your friends tells you, “By the time I retire in Year 2020, I believe the Kuala Lumpur Composite
Index (KLCI) will be many times what it is today. I’m happy with that. Give me a fund that can best
deliver the same result. “What would you recommend to him?

A. Buy a Growth Fund because it can give him a return better that the KLCI by Year 2020
B. Buy a Balanced Fund because its investment returns are less volatile than the KLCI
C. Buy an Index Tracking Fund using KLCI as the benchmark
D. For such a long investment horizon, don’t worry: buy any fund
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Kindly use the following data to answer the question.

Net asset value cum-distribution for a unit trust is RM200 million. Unit in circulation is 380 million
units and the fund manager is charging a 5% initial service charge. (Please use 3 decimal places for
calculating purpose)
22) If the distribution declared is 3.5 sen per unit, how much is the selling price ex- distribution? (Round
the answer to the nearest sen)
A. RM0.49 B. RM0.52 C.RM1.86 D. RM1.96

23) Based on the above answer and assume that a client invested RM10,000 ex-distribution, how many units
will she get for her investment?
A. 20,408.16 units B. 19,436.34 units C. 5,120.33 units D. 5,102.04 units

24) If the initial service charges is reduced from 5% to 3% and based on the selling price ex- distribution, how
much savings can the client get, given the same number of units purchased in previous question?
A. RM326.53 B. RM184.93 C.RM327.95 D.RM200.00

25) Unit trusts offer an effective way to pursue lifetime financial goals with advantages that would be difficult
to achieve by lay persons who invest on their own. The advantages include:
I. On-going professional fund management
II. Diversification of assets with reduced risks
III. Can be bought and sold easily
IV. More favorable transaction costs for unit trusts due to large investment amount
V. Flexibility to switch between different type of funds (applicable to certain unit trusts)

A. I, II & III C. I, II, III, & V

B. I, II, III & IV D. All of the optional answers are correct

26) En. Adam has invested RM5,000 in ABC Growth Fund managed by ABC Unit Trust
Management Bhd. En. Adam now owns:

A. RM5,000 worth of units of entitlement in the ABC Growth Fund

B. RM5,000 worth of shares in ABC Unit Trust Management Bhd
C. RM5,000 worth of direct ownership of investment portfolio held by ABC Growth Fund
D. All of the optional answers are correct

Kindly use the following information to answer the questions.

In the annual report of ABC Millennium Fund, the expenses incurred by the fund during the financial
year were:
(RM)
Annual management fee: 3,528,673
Trustee fee: 150,326
Auditors’ remuneration: 16,300
Administrative expenses: 28,418
The average net asset value for the period was RM235,300,528.
27) Calculate the Management Expense Ratio (MER) of the fund for the financial year.

A. 1.50% B.1.58% C. 0.07% D.0.01%

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28) A decrease in the MER calculated from the above indicates:

A. The annual management fee must be revised downward

B. The Unit Trust Management Company (UTMC) must be overpaid for the administrative expenses
C. The UTMC is not managing the total fees and expenses well
D. The UTMC is managing the total fees and expenses well

29) “Market risks” is a type of risks involved in investing in equity unit trusts and it means:

A. Stock values underlying the Net Asset Value (NAV) of the unit trust scheme fluctuates in response to
the activities of individual companies and general market or economic conditions. Such movements
will cause the NAV or prices of units to fall as well as rise.
B. Poor Management of the scheme will jeopardize the investment of unit holders through the lost of
their capital invested in the scheme
C. Unit holders might be forced to provide additional funds to restore their loan margin when the value
of the unit trusts scheme dropped drastically
D. None of the optional answer is correct

30) One of the major benefits of investing in unit trusts is to gain access to the experience of a
professional fund manager. Which term best describes a professional fund manager?

A. Someone who has bought and sold many investment in his lifetime
B. A friend who always recommends the best stocks to buy
C. Someone who always manages in excess of RM500 million
D. Someone who has been professionally trained in the field of fund management

31) Risk/return characteristics can vary significantly between two funds. Which of the following statement
is not a correct comparison of the risk/return trade-off between investing in a Capital Growth Fund
(G) and a Capital Protected Fund (P)?

A. G’s return are potentially higher than P’s because G is less risky
B. G needs to adopt a riskier investment strategy to achieve potentially higher returns
C. P’s losses are potentially less because it takes less risk
D. Expect a lower return from P because the fund takes less risk

32) In all investment-related industries, what is the most important component for investors to have in
the product they are purchasing?
A. Performance B. Confidence C. Risk D. Relationship

33) A listed trust is commonly known as a:

A. Open-ended trust B. Universal Trust C. Closed-ended Trust D. Regional Trust

34) What happens when a unit split of 1:2 is declared?

A. The unit price doubled

B. The units in circulation doubled
C. The unit price decreases proportionately
D. None of the optional answer is correct

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35) Amongst others, the calculation of Net Asset Value (NAV) of a unit trust scheme involves:

I. The value of the equity investments

II. Costs and charges involved in various transactions of the scheme
III. The value of money market instruments (if applicable)
IV. Accrued gross distribution and interest income after deduction of relevant fees and expenses
such as annual management fees and administrative expenses
A. I & II B. I, II & III C. I, III & IV D. All the optional answers are correct

36) In order to enhance professionalism in marketing of unit trusts:

A. It is irrelevant what promises are made to clients with respect to investment returns
B. It is important to provide superior service to clients and attend to their needs
C. It is important to observe as many marketing leads as possible
D. It is important to recommend to potential clients the best performing unit trusts regardless of the
suitability of her risk profile to the fund

37) A unit split in effect does not add value to the unit trust investors’ investment holding, but .

A. Makes sure that the fund managers are able to earn their fees
B. Is used by unit trust management company to lower the NAV per unit, thus enabling new investors to
invest in the fund
C. Is used to enlarge the fund size in Ringgit term
D. Is used to re-classify the fund to “Penny-Stocks” fund

38) Dollar-Cost Averaging is:

A. A strategy that entails buying low and selling high

B. A way to purchase unit trust funds and minimize the service charge
C. A systematic way of regular investment with fixed amount of money
D. A way to sell unit trust funds and to minimize the capital gains

39) How can an investor hedge against inflation?

I. Cut down all the unnecessary expenses and keep the money at home
II. Lower the tax rate of the investment
III. Invest the money in an instrument that can generate a higher return than the inflation rate
IV. Maximize the benefits of effective financial planning

A. I & III B. III & IV C. I, III & IV D. I, II, III & IV

40) Daily Net Asset Values of unit trust schemes are available through:

A. Referring to the unit trust pricing tables published by major newspaper

B. Calling the Unit Trust Management Company
C. Visiting the Unit Trust Management Company’s head office or its branches
D. All of the optional answers are correct

41) Which of the following is not the right of unit holders?

A. To obtain information about the unit trust scheme and its performance
B. To receive profile of board of directors
C. To redeem units
D. To select shares for the unit trust scheme’s portfolio
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42) Pointing to the latest performance table, Mei Ling enthusiastically tells you “Look! The OMG Small-Cap
Fund was up 36% last month, I think this fund may be best for me to invest.” Knowing that choosing a fund
merely based on best record in the previous month is not in her best interests; what other aspects would
you advise her to look into before investing in the fund?
I. Consistency of the fund’s performance in medium and long term
II. Her own financial goal and decide how much risks she can afford to take
III. Suitability of the fund’s investment objectives and riskiness with her own investment goals and risks
profile
IV. Total fees and charges imposed by the fund and the service level provided

A. I & II B. II & III C. I. II & III D. All of the optional answers are correct

43) Which of the following usually increases the overall risk level of your portfolio?

A. Shifting your investment from bonds to stocks

B. Shifting your investment from stocks to bonds
C. Shifting your investment from stocks to money markets
D. Shifting your investment from stocks to fixed deposits

44) Please identify features of an open-ended unit trust.

I. It is a collective investment scheme that provides an opportunity for small investors to participate
in stock market investment
II. Ownership of the fund is divided into units of entitlement
III. If the market condition is not encouraging, the unit holders will not be able to liquidate their
investment as other investors are not keen to purchase

A. I & II B. I & III C. II & III D. All of the optional answers are correct

45) Which of the following best describes “Aggressive Growth Fund”?

A. The fund will invest primarily in stocks which earn significant dividend income
B. The fund will normally generate returns which closely resemble the performance of a stock
market index, both in terms of risk and return
C. Generally the fund will be invested in stocks with higher growth potential and with higher risk
characteristic
D. The fund mainly invests corporate bonds, government securities and liquid assets

46) What is the most important benefit you will get from creating a diversified portfolio that includes
stocks, bonds and money market funds?
A. A guarantee that your portfolio won’t suffer if the stock market falls
B. Higher returns than you will get from a portfolio that isn’t diversified
C. The ability to balance both risks and returns in achieving your financial goals
D. All of the optional answers are correct

47) Generally, a unit trust that has 80% of its assets invested in growth stocks would be the most
appropriate type of investment for the preparation of:
A. A college fund for an 18-year-old
B. An individual retirement fund for a 52-year-old
C. An income-producing savings for an 86-year-old
D. None of the optional answer is correct
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48) The best way for investors to minimize the impact of the initial service charge on unit trust
investments is to:

A. Buy and sell units as they can

B. Invest as regular as possible and avoid lump-sum investments
C. Adhere to a long-term buy and hold strategy; making sure that the units purchases match their long-
term investment objectives
D. Only purchase aggressive growth fund

49) Which of the following should be included in the computation of net asset value of a unit trust fund?

A. The value of the equity investments in the unit trust scheme

B. Trustee fees
C. Auditors’ fees
D. All of the above

50) What is one of the functions of FIMM?

A. Reviews all materials prior to release to the public

B. Generates all the guidelines that unit trust companies comply to and to report to the
Compliance Authority if non-compliance is found
C. Provides a common platform for unit trust companies to discuss issues in the industry
D. A governing body which regulates the investment made by the unit trust management company

Given Data:-
Initial Investment - RM 80,000
Term of Investment - 3 years
Expected Investment Return before Fees & Expenses - 10% per annum
On-going management fee 1.5% per annum
Initial Service Charge 5%

51) Calculate the expected value of investment at the end of third year.

A. RM 97,317 B. RM 101,156 C. RM 102,183 D. RM 106,480

52) How long does it approximately take for the expected value of the initial investment to reach RM
160,000?

A. 7.2 years B. 8.5 years C. 14.4 years D.20.6 years

53) Now assume that the on-going management fee is 1.0% instead of 1.5%, what is the expected
value of the investment at the end of third year.

A. RM 98,669 B. RM 101,156 C. RM 103,602 D. RM 106,480

An investor had invested a single amount of money in a unit trust fund at RM 0.80 per unit in the first year
and subsequent purchase another 20,000 units in second year. At the end of third year, he decided to
redeem all his investment at Buying price RM 0.90 per unit and total proceed was RM 79,200.

54) How many units was he entitled for the investment he made in the first year?

A. 68,000 B. 79,200 C.88,000 D. None of the above

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55) Which of the following could not be used as an investment benchmark when assessing investment
performance?

A. The Kuala Lumpur Inter-Bank Offer Rate (KLIBOR)

B. Kuala Lumpur Composite Index (KLCI)
C. 5-year bond rate
D. Current account situation as a percentage of Gross Domestic Product (GDP)

56) Maximum Initial Service Charge is disclosed in:-

A. Deed B. Prospectus C. Marketing Materials D. All of the above

57) What is your understanding for 'Call Margin'?

A. It is the amount an investor might have to pay his/ her financier if the credit exposure of unit trust
loan falls beneath a certain level.
B. It is a type of processing fee imposed by financier to finance unit trust investment
C. It is a financier's marked up margin imposed on top of base lending rate applicable
D. It is charges imposed on futures contract

58) Unitholder F is a first-time investor and has purchased UTS XYZ from UTC B, on Tuesday, 2 May 2006.
After returning home, he met some friends who have experiences in UTS investment. Prior to his
discussion with his friends, he started to feel that he did not fully understand the purchase and he also
felt that UTC B has misled him by focusing more on past performance of UTS XYZ. What is your advice to
the Unitholder F?

A. Unitholder F cannot do anything at all as the purchase has been made.

B. Unitholder F should wait for the right time to repurchase all his units.
C. Unitholder F can exercise his “cooling-off” right which is an opportunity to reconsider his purchase.
D. Unitholder F should terminate PDUT B’s services immediately.

59) Fixed-income funds are generally said to have lower risks than equity funds. Hence, what can be
expected from the return of these funds?

A. Usually higher than equity funds.

B. Usually lower than equity funds
C. Consistently higher than equity funds
D. None of the optional answers are correct

60) What type of investment would you most expect to find in aggressive growth fund?

A. Investment in capital guaranteed life insurance products

B. Cash
C. Investment in properties with regular income
D. Shares of technology-company recently listed on the stock exchange

61) The best way to help investor to go through the prospectus is to begin with:

A. Members of the Investment Committee

B. Fees & Charges
C. Key Data Section
D. Profile of the Board of Directors and Key Management Staff
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62) An Index UTS :

A. Invest primarily in all of the securities or representative sample of the securities that are included
in a selected market index.
B. Invest primarily in overseas share markets.
C. Invest in real property, usually prominent commercial properties.
D. Invest in a range of companies that closely match companies comprising a particular index.

63) Which of the following is associated with fixed income unit trusts?
A. A major portion of the fund is generally held in securities of listed companies
B. Aggressive growth funds can be classified as fixed income unit trusts
C. The performance of the fund is linked to the performance of equity market
D. Generally the returns are lower than equity unit trusts

64) The maximum margin on unit trust financing is fixed at:

A. 85% B. 67% C. 50% D. 79%

65) Mr. X wants to invest RM 200,000.00. What is the maximum amount can he borrows from a financial
institution for the investment?

A. RM134,000.00 B. RM66,000.00 C. RM120,000.00 D. RM80,000.00

66) Which are the parties involved in the unit trust industry?
I) UTMC II) Trustee III) Investment Manager IV) Unitholder

A. I and II B. I, II and III C. I, II and IV D. All of the above

67) Which of the following provides a common platform for unit trust management companies to discuss
issues relating to unit trust industry?

A. Registrar of companies B. FIMM C. SC D. Minister of Finance

68) Which of the below are parts of the prospectus?

I. Investment Objectives
II. Authorized investment
III. Fees & charges
IV. Trust expenses.

A. I,II, III B. IV only C. I and III D. All of the above

69) What is the term used if Mrs. Z wants to reinvest her distribution in UTS?

A. Distribution Reinvestment
B. Buying Distribution
C. Suspension
D. Distribution Equalization

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70) For every unit trust fund, how many reports must UTMC publish each financial year?
A. At least one B. At least two C. At least three D. At least four

NAV Amount Invested

0.50 RM1500.00
0.60 RM1500.00
0.70 RM1500.00
71) Calculate the average unit cost for the above investment.
A. RM0.59 B. RM0.95 C. RM0.78 D. RM0.64

72) The fund manager of unit trust scheme is allowed to charge a management fee, the fee is …

A. Mainly used to cover the management expenses incurred by the manager in managing the scheme
B. Also known as a fee charge by the trustee
C. Levied by the fund manager on the investment made by investors to cover the
commission paid to agents
D. Used for the purpose of registering the unit holders with the trustee

73) Suppose that put of the asset allocation of fund X and fund Y are as follows
Fund X Fund Y
Equity Market 70% 0%
Money Market 10% 85% Fund
X is most appropriate to be classified as :-
A. Equity Fund B. Fixed Income Fund C. Property Fund D. Money Market Fund

74) Which statement is correct:

I – Interest rate decreased, value fund Y will be more adversely affected
II – Interest rate decreased, value fund Y will be more positively affected
III – Value fund X will be more positively affected when the stock market is increasing.

A. I only B. I & III C. II & III D. All correct

75) Which of the following is (are) true about a bond fund?

I It is best to buy when interest rates are peaking and bond yields are high
II Manager’s fees and charges are generally lower compared to the equity fund
III Fund prices will fall when interest rate rise
IV No matter when you redeem your investment, you will get back at least your principal amount or
capital you have invested

A. II only B. I & III C. I,II & III D. All of the optional answers are correct

76) Which of the following is NOT true

A. Generally, the portfolio of unit trust investment is determined by fund manager

B. A unit trust is an investment mechanism which allows investor who shared similar financial objectives
to the pool their money
C. The portfolio of investments is allowed to include only one asset class
D. Unit holders do not directly purchase the securities and the ownership of the fund is divided
into units
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77) What is unit trust scheme?

A. Form of collective investment that allow investors with similar objectives to pool their saving
B. An investment portfolio which only contains one type of asset
C. Form of collective investments whereby the unit holders are the shareholders of the company
they have invested in
D. An investment portfolio whereby the investors of the particular UTS will purchase the
securities in the portfolio directly

78) For the Financial Year Ended 30 Dec 200X, the financial statement of ABC Fund shows that the
following expenses were incurred:
Management Fees – RM1,340,999
Trustee Fees – RM 730,173
Auditors Fee – RM 172,641
Bank charges & other expenses – RM 361,594
The average Fund Size for ABC fund during the year was RM 250,492,853. Calculate the MER of the fund
for the year ended 30 Dec 200X.
A. 1.07% B. 1.03% C. 1.08% D. 1.04%

79) What does a gradually decreasing MER over a period of several years indicate?

A. UTMC is not managing its operating cost well

B. UTMC is managing its operating cost efficiently for its fund size
C. That all newly launched UTS will have MER
D. UTMC is managing its operating cost efficiently

80) How do investors overcome the impact of inflation?

A. By reducing the tax rate

B. Investors need to preserve the purchasing power of the original investment
C. Hope to earn a return that is less than the inflation rate
D. None of the optional answers are correct

81) An UTC should not say:

A. Investing in UTS has no risk

B. If do not have enough money to invest, investors should apply for a loan
C. Returns are guaranteed when investing in UTS
D. All of the above

82) Dollar Cost Averaging (DCA) can affect the average cost of investment. Which statement clearly
explains the DCA effects ?

A. With fixed amount of money, investor can acquire more units in a rising market over a short term
period
B. With fixed amount of money, investor can acquire lesser units in a fluctuating market over long term
period
C. With fixed amount of money, investor can acquire more units at lower price and fewer units at
higher price which can reduce the average cost over long term period
D. With fixed amount of money, investor can acquire regular amount of units at lower price which can
reduce the average cost over long term period
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83) The followings are the roles of UTC, except;

A. Inform the investors about the structure of UTS and what are their rights as unitholder
B. To be responsible to the customer’s request as with honesty and dignity
C. Force sell to the customers in order to get benefits from their investment
D. Fine tune their product knowledge

84) A complaint can be referred to:

A. UTC B. UTMC C. FIMM & SC D. All of the above

85) There are many potential risks that are related to investing in UTS. Listed below are a few types of
risk. Which of the following has an incorrect description?

A. Market risk – stock value does not fluctuate in response to the activities of individual
companies and general market or economic conditions.
B. Liquidity risk – defined as the ease with which a security can be sold at or near its fair value
depending on the market.
C. Inflation risk – the risk of high inflation will affect the real return from investment
D. Risk of non-compliance-risk that specifically occurs when a Syariah compliant security is reclassified as
a Syariah non-compliant Securities.

86) What does liquidity mean in the context of UTS?

A. Unit can be bought easily.

B. Average cost of investment acquired to below the average price
C. Investors can sell their investments at any time
D. Payment of income to unitholders.

87) NAV calculation includes:

I. equity market III. Transaction cost of UTS

II. money market (if applicable) IV. MER

A. I and II B. I, II and III C. I, II and IV D. All of the optional answers are correct

Given
X Y
70% Equity 20% Equity
30% Money 80% Money
Market Market

88) Which of the following is true?

a. If the market falls, Y will be more negatively affected than X.

b. If the market falls, X will be more negatively affected than Y.
c. If the market rises, both X and Y will be negatively affected
d. None of the above is correct.

89) Distribution can be used

I. Reinvest II. Use on oneself III. Purchase UTMC shares

A. I only B. I and II C. II and III D. All of the optional answers are correct
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90)“Halal” stocks do not invest in companies involved in activities, products or services related to the
following:
I. Conventional banking
II. Telecommunication
III. Gambling
IV. Alcoholic Beverages
A. II only B. III & IV C. I, III & IV D. I, II, III & IV

91) Which of the following offer(s) the choice(s) of what an investor can do with the distribution paid by
unit trust funds?
I. Reinvest in the unit trust fund, which means the distribution buys more units
II. Take the money out and spend it
III. Buy more shares of the Unit Trust Management Company

A. I, II & III B.I & III C. I & II D. None of the optional answer is correct

92) If NAV of a fund is RM1.0000 the initial charge is 1.5% and no exit fee is imposed, how much would an
investor receive if he redeems 10,000 units?
A. RM9,850 B. RM10,000 C.RM10,150 D. None of the optional answer is correct

93) The main purpose of a prospectus is:

A. To provide potential and existing investors with all the necessary information to make an informed
decision.
B. To outline the marketing plan of the unit trust scheme
C. To highlight the projected returns of the unit trust scheme
D. To outline the profile of the target investors

94) In a haste to close sales, you may inadvertently say the wrong things. Which of the following is (are) not
the right position(s) to use?

A. “it is safe to invest now. The market is going up and you will definitely make profits”
B. “No money is not a problem because you can apply for a loan”
C. “You’ll get free insurance or gifts and I can add on some additional units for you”
D. All of the optional answers are not the right propositions.

95) is also the term used for the price at which units are sold to the public. It is similar to the
unit Net Asset Value (NAV) of the unit trust fund.
A. Offer price
B. Redemption price
C. Service charge
D. Buying price

96) The Unit Trust Scheme (UTS) can only invest in securities that;

A. Guarantee the highest return with minimum risks

B. Have been authorized in the Deed of the UTS
C. Have small market capitalization with great potential for capital appreciation in the long run.
D. Are well diversified in the global markets.

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97) Which of the following best describes the disadvantage of financing investments of a unit trust fund
through borrowing?

A. In a rising market, the value of the investment in unit trust fund and the loan borrowed rises.
B. The value of the investment in unit trust fund does not fluctuate with share market prices, but the
loan financing does
C. In a falling share market, the value of investment in unit trust fund may be decreasing whilst the
loan liability remain constant, or increasing. The effect of this may result in the need to increase the
collateral to the financial institution.
D. None of the optional answer is correct.

Kindly use the following information to answer the questions.

Hasnah invested all the money that she collected from her parents and relatives during Hari Raya in fund A
and fund B on 13 January 200X. The unit prices at the close of business on the day and other information
related to her investment are as follows:
Fund A Fund B
I. Total Invested: RM1,000 RM1,000
II. NAV per unit: RM0.2700 RM0.8295
III. Selling price per unit: RM0.2700 RM0.8295
IV. Buying price per unit: RM0.2700 RM0.8295
V. Initial Sales Charge: 5% 0%
VI. Exit Fee: 0% 2%
VII.Pricing policy: Forward Forward

98) Calculate the total number of units received by Hasnah for her investments made in Fund A
(W) and Fund B (X) respectively.

A. W=3,527.33 units; X=1,205.55 units

B. W=3,703.70 units; X=1,265.82 units
C. W=3,407.41 units; X=1,145.27 units
D. None of the optional answer is correct

99) An existing investor Mary decided to sell all her 5,000 units in Fund B on the same day, how much
would she receive from her redemption?

A. RM4,064.55 B. RM4,147.50 C. RM1,350.00 D. RM1,417.50

100) With the above information, Hasnah’s friend told you: “I think I should invest in Fund A mainly because
the units of the fund are much cheaper than those of fund B. Should both of the funds achieve the same
rate of returns, then the value of every Ringgit that I invested in Fund A will be higher than those of
Fund B. Is she right by saying so?

A. Yes, she is perfectly right

B. Not really. Although Fund A is a cheaper than Fund B, the value of her investment in either one of the
fund will still be the same if both of the funds achieved the same rate of return.
C. No. the statement is wrong. Should all other fees and charges imposed by Fund A and B are the
same, then Fund A is more expensive than Fund B. Consequently, the value of investment for every
Ringgit that she invested in Fund A will be lower than those of Fund B if both of the funds achieved
the same rate of returns.
D. None of the comment is acceptable.
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101) The unit trust funds that are available in the market could be designed to meet the following investor
requirement(s):

A. Long-term savings
B. Children’s education
C. Retirement fund
D. All of the optional answers are correct

102) An investor bought unit trust from an agent who provided incorrect information about the fund.
With whom can the investor lodge a complaint?

I. Federation of Malaysian Unit Trust Managers (FMUTM)

II. Securities Commission
III. Unit Trust Management Company concerned
IV. Ministry of Finance

A. II only B. I & II C. II & IV D. I, II & III

Kindly use the following information to answer the questions.

Cik Zarina and Encik Hamzah took part in a millionaire contest and won RM64,000 cash respectively. Both
of them decided to invest their cash prizes at the same time as follows:

Zarina Hamzah
i. Investment A RM64,000 0
ii. Investment B 0 RM64,000
-------------- -------------
RM64,000 RM64,000
======== ========
103) Suppose that investment A provides an average annual return of 8.5% and value of Encik Hamzah
investment doubled approximately 1.27 years earlier than those of Cik Zarina, what is the average
annual return of investment B?

A. Approximately 7.39%
B. Approximately 9.77%
C. Approximately 10.00%
D. None of the optional answer is correct

104) Suppose that the amount of the cash won by them is RM128,000 each and all else being unchanged,
what is the average return of Investment B?

A. Approximately 14.78%
B. Approximately 19.54%
C. Approximately 20.00%
D None of the optional answer is correct

105) What is (are) the basic quality(ies) of a professional Unit Trust Consultant(UTC)?
A. Give timely and accurate information
B. Keep abreast on the latest development in the unit trust industry
C. Provide on-going advisory and services
D. All of the potential answer are correct
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Please use the following information to answer the questions.

A family spent RM25,000 on goods and service last year and RM26,125 this year. Assume that the pattern,
value of consumption and the inflation rate remain unchanged.

106) How much money will the family need next year to maintain the same living standard as this year?

A. RM27,301 B.RM27,250 C.RM26,125 D. None of the optional answer is correct

107) Base on the above inflation rate, if an investor earns a 5% return for his investment, his marginal
tax is 20%, what is his effective return after tax and inflation?

A. 15% B.-15% C.-0.5% D.-0.3%

108) “The unit trust fund is managed in accordance with Syariah Principles aims to maximise capital returns
over medium to long-term by investing mainly in equities listed on the Bursa Malaysia.”

A. Balanced fund B. Islamic fund C. Property fund D. Fixed-Income fund

109) Which of the following forms the minimum standards of conduct expected registered Unit Trust
Consultant (UTC) and are intended to be a guide to ascertain whether a registered UTC is acting in a
manner which continue to satisfy the Minimum Standards for Registration?

A. Code of Ethics and Professionalism.

B. Code of Ethics and Standards of Professional Conduct.
C. Code of Ethics and Standards of Professional Conduct for Multi Level Marketing.
D. None of the optional answer is correct

110) Which of the following is (are) investment alternative(s) to unit trusts?

A. Fixed deposits
B. Direct share investment
C. Property
D. All of the optional answers are correct

111) What is the term used for an investor who opts to receive their income distribution in the form of
additional units instead of cash?

A. Distribution
B. Distribution Reinvestment
C. Cash Distribution
D. Repurchase Price

112) A redemption or withdrawal fee charged by a unit trust scheme is:

A. A fee levied for customers who owns a unit trust scheme with redeeming features
B. A fee charged by bank on customer withdrawals from their saving accounts
C. A fee charged by Trustee
D. A fee charged by some unit trust management companies when unit holders wish to sell their units

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113) Choose the correct statements regarding aggressive growth funds.

I. Generally, these funds invest in common stocks with a high potential for rapid growth and capital
appreciation.
II. These funds seek to provide maximum capital growth with less emphasis on distribution or interest
income.
III. These funds generally incur higher risks in an effort to secure more pronounced growth.
IV. Investors who must conserve their principal or who must maximize current income are most
suitable to invest in these funds.

A. I, II & III B. II, III & IV C. I, III & IV D. all of the optional answer are correct

114) If on Thursday, 4 June 200X, the published NAV per unit is RM0.65 and the closing NAV per unit
calculated at the end of the day is RM0.66. Given the above information, if an investor was allocated
10,000 units for her investment made on the same day, how much money has she paid in total for her
investment? (assume forward pricing policy was adopted and the applicable initial sales charge is 5%)

A. RM6600 B. RM6930 C.RM6500 D.RM6825

115) The major factor that end financiers will assess in determining whether to extend credit to an investor
who wished to finance a unit trust investment is :

A. The name of the unit trust management company in which the investor wished to make an investment
B. The current prevailing interest rate on credit cards owned by the investor.
C. The credit worthiness of the investor
D. The credential of the investment committee members.

116) A unit trust scheme that was among the top ten performers last year is likely to:

A. End up among the top ten performers this year

B. Be among the bottom ten unit trust schemes this year.
C. Rank somewhere in the middle this year.
D. Be extremely difficult to predict how well a unit trust scheme will perform this year based on its
performance last year.
117) In order to maintain honesty, dignity and integrity, a registered UTC at all times must not
misrepresent or recklessly represent:
A. The past performance of the UTS
B. The products and/or its characteristics offered by the management company he/she represents
C. His/her qualifications or that of the management he/she represents
D. Those mentioned by all the optional answers.

118) To meet the challenges posed by the new and sophisticated customers, UTC must strive to do the
following, except:
A. Maintain high ethical standard in their marketing
B. Hard Sell
C. Fine-tune their product knowledge
D. Acquire suitable professional qualification

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119) What must you not say to a potential investor?

I. Unit trust is as safe as fixed deposits

II. The market value of your capital may be lower than initially invested
III. Return in Unit trust is not fixed
IV. You should diversity your portfolio and have some fixed deposits

A. I only B. II, III & IV C, I, II and III D. All of the above answers are correct
120) The Unit Trust Management COMPANY (UTMC) should ensure that all persons involved in the marketing
and distribution of unit trusts are registered with and authorized by
A. Bank Negara Malaysia
B. Securities commission
C. Trustee
D. FIMM

121) “Liquid assets” mean in the context of investments.

A. Assets that can be converted into cash or sold easily in the market place
B. Assets that cannot be sold easily and must be auctioned in order to obtain cash
C. Assets that depends to a large extent on the level of cash and equivalents and to a lesser extent on
prospective cash flows
D. Ensuring that there is always enough funds in the bank account.

122) Assume that no initial sales charge was imposed, an investor has invested lump sum money with the
selling price RM0.70/unit. 5 years later he decided to redeem his investment at RM1.20 and total
proceed was RM15,000. How much had he invested 5 years ago ?

A. RM10,500 B. RM15,000 C. RM12,600 D. RM8,750

123) Unit trust distributions can be made up of the following:-

I. Interest earned
II. Capital gains
III. In-going management fee
IV. Dividends

A. I, II, IV B. I & II C. I, II, III & IV D. I, II, III

124) If the investment return is 10% per annum, marginal tax rate is 20% and inflation rate is 5% per
annum, what is the effective return after tax and inflation?
A. 3% B.4% C. 5% D.2.5%

125) From previous question. It is clear that inflation can erode one’ purchasing power. How can an investor
hedge against inflation?

A. Cut down all the unnecessary expenses and keep the money at home
B. Lower the tax rate of investment.
C. Invest the money in an instrument that can generate higher return than the inflation rate.
D. None of the optional answer is correct.

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126) An important part of increasing returns of a unit trust scheme is for the fund to borrow and invest in
stocks.
A. This statement is true because it is a basic fundamental principal of investment
B. This statement is wrong because unit trust schemes are not allowed to borrow
C. This statement is true because in developing economies this is the only way in which fund managers
can guarantee positive investment returns
D. None of the optional answer is correct

127) Registered UTCs are allowed to :

I. Make recommendation on the suitable UTS that a client may hold
II. Make recommendation on the suitable securities listed on approved stock exchange
that a client may hold
III. Make recommendation on the suitable insurance policies that a client may hold
IV. Make recommendation on the suitable options and future contracts that a client may hold
A. I, III B. I, II, III C. I only D. All of the optional answers are correct

128) All registered Unit Trust Consultants (UTC) must to observe the Standard of Professional
Conduct which includes the following:-
I. Maintain knowledge of and comply with all applicable laws, rules and regulation governing
the unit trust industry
II. Not to market any unit trust without relevant prospectus
III. Ensure as far as possible the Unit Trust Scheme proposed is suitable to the needs and not beyond the
resources of the prospective investor
IV. Not to omit any material fact nor making misleading statement regarding Future Events

A. I & III B. I, II, III & IV C. I, II, III D. I II, IV

129) Below are/is the Responsibilities of UTMC, EXCEPT,

A. Maintain proper accounting record of unit trust

B. lssue unit trust certificate or statement for unit trust holder
C. Process sales and repurchase unit trust
D. Act as custodian for the assets of unit trust

130) For UTMC to manage Islamic Funds. The Securities Commission requires the UTMC to establish
a committee to ensure that Islamic Principles adhere to.
Name the Committee…
A. Syariah Committee
B. Unit Trust Committee
C. Internal Audit Committee
D. Investment Committee

131) Eight years ago, Mr. and Mrs. Ang started preparing the education for their child, Jason. The current
value if the fund is now half of the projected education costs.
What would be the expected annual rate of return that funds should achieve so that Jason’s education
costs will be fully funded at the end of tenth year from now?

A. Approximately 7.2% per annum

B. Approximately 4% per annum
C. Approximately 36% per annum
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 D. Approximately 9% per annum

132) It’s important that all long term investment strategies should be constructed so as to:
I. Keep pace with inflation
II. Keep pace with prices of share market
III. Provide for capital growth to increase the real value of the assets
IV. Provide opportunity to borrow/gear for other investments
A. I & III B. I & II C. II & III D. II & IV

133) A trustee is a company that:

I. Is registered under Trust Companies Act 1949
II. Is independent of UTMC
III. Is independent of the UTS
IV. Have beneficial ownership of all assets of a UTS
A. II, III, IV B. I, II, IV C. I, IV D. I, II, III, IV

134) Encik Ali is a 60-year-old retired teacher and conservative teacher. He approaches you for your advice
on suitable types of investment that could provide him with current income and moderate capital
growth. If the interest rate is decreasing and both of you agree that the rate will continue to decrease,
which of the following type of investment would you recommend to him?
A. Property Fund
B. Equity Growth Fund
C. Bond Fund
D. Money Market Fund

135) Which of the following are investment costs to an investor who invest in UTS with borrowed money ?

I. Initial service charge

II. Annual Management fee
III. Switching fee (applicable to certain UTS)
IV. Interest expense

A. 1, II, III B. I, II, IV C. II, III, IV D. I, II, III, IV

136) Which of the following is true for a Deed?

I. Deed stipulates the rights and obligations of the manager, rights and duties of the trustee
and the right of the unit holders
II. Deed stipulates the maximum fees UTMC can charge to investor
III. The life span of a deed is normally 10 years
IV. Deed must be registered with Securities Commission.

A. 1, II, IV B. I, II, III C. III only D. All of the optional answers are correct

137) What is meant by switching of funds?

A. A switch occurs when a unit holder sells units in one UTS and purchase units in another UTS
operated by a different fund manager
B. A switch occurs when a unit holder sells units in one UTS and purchase units in another UTS
operated by the same fund manager
C. A switch occurs when a unit holder swaps units that he currently has with another unit holder
D. None of the optional answer is correct
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138) If the initial service charge is 5%, unit holder wants to invest RM1,000, how much exactly is the
amount investable to buy fund?
A. RM950 B. RM1,050 C. RM1,000 D. None of the above

139) What is the principal documents that governs the UTS?

A. Certificate of Entitlement
B. Auditor Report
C. Deed
D. Investigating Accounting Report

140) Which is not Responsibilities of UTMC

A maintain proper accounting record of unit trust

B Issue unit trust certificate or statement for unit trust holder C
Process sales and repurchase unit trust
D Act as custodian for the assets of unit trust

141) Cash distribution declared mean:

A.Distribution reinvested
B. Distributions must reinvested at manager selling price
C. Investment value of unit holder fall relative to the distribution
D. Investment value unchanged

142) Responsibilities and obligations of UTMC

I. process application
II. custodian of assets of unit trust scheme
III. maintain holder registrar
IV. regulates the unit trust industry

A. I, II, III, IV B. I, III C. I, III, IV D. I only

143) Under whose name would the assets and investments of an unit trust scheme be registered?

A. Stockbroking house
B. Trustee
C. Investor
D. Unit Trust Management Company (UTMC)

144) Best describes of Fixed Income Fund

A. Cash
B. Money Market
C. Bond
D. Equities

145) Which of the following is not the rights of Unit Holders?

A. To obtain information about the unit trust scheme and its performance
B. To receive profile of board of directors
C. To redeem units
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 D. To select shares for the unit trust scheme's portfolio

146) Which is correct?

I. Aggressive Growth Fund is a type of Equity Unit Trust that generally seek to provide max
growth of capital with secondary emphasis on distribution or interest income
II. Equity Unit Trust can also take part of income fund. I.e. unit trust which invest primarily in bond,
government securities, and liquid securities like bill & cash.
III. In declining market, income fund may show a higher degree of prices stability than aggressive
growth fund. However, the market also drive at a slower rate in a rising market.

A. I & III
B. I Only
C. II, III
D. I, II, III

147) For the Financial Year Ended 30 Dec 200X, the financial statement of ABC Fund shows that the
following expenses were incurred:
Management Fees RM 150,000
Trustee Fees RM 8,000
Audit Fees RM 5,000
Bank charges & other expenses RM 2000
The average Fund Size for ABC fund during the year was RM 10,000,000. Calculate the MER of fund
of the fund for the year ended 30 Dec 200X.
A. 1.72% B. 1.03% C. 1.65% D. 1.40%
148) In Year 2015, Encik Jamal put RM50,000 in an investment that earned him 9.0% per annum. Suppose the
investment is able to deliver the above yearly return for the past as well as the coming years, when will
his money double?
A. Year 2020
B. Year 2023
C. Year 2025
D. Year 2027

149) Which Account in EPF is allowed to invest in Unit Trust:-

A. Account 1
B. Account 2
C. Account 3
D. Account 4

150) Which is best described by this statement’, “

The Unit Trust Fund is managed in accordance with Syariah Principle & Aim to Maximise Capital return
on medium to long term by investing mainly in equities listed Bursa Malaysia
A. Islamic Fund
B. Fixed Income Fund
C. Property Fund
D. Balance Fund

151) Equity Growth Fund Best describe as:-

A. Invest mainly in Equities

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 B. Invest Mainly in Bond, Cash & less equity
C. Invest mainly in Cash & Bond
D. Invest avoid Equity Market

152) John received RM 500 cash as his birthday gift. If he puts the money in his kids' savings account that
offers him 5% average yearly return, how long would it take to double the value of his money in the
investment?
A. 14.4 years
B. 20 years
C. 18 years
D. 25 years

153) An investor holding 5,000 units before 1:2 unit split issue has an investment value of
RM15,000 after the unit split issue, the investor will
A. Hold 7,500 units with investment value at RM 15,000
B. Hold 5,000 units with investment value at RM 15,000
C. Hold 7,500 units with investment value at RM 22,5000
D. Hold 2,500 units with investment value at RM 15,000

154) Cooling Off Period is:

A. The period of time when no selling or buying of unit trust can be conducted
B. The period of time which stock market Cool-Off after a strong rally
C. The period of time when the investor has the right to sell the unit trust back to the UTMC at no
penalty to the investor
D. UTMC has the rights to repurchase all unit trust from unit trust holder at no penalty to UTMC

155) Select the Correct Statement

I. Spread of Risk - A large pool of fund enables the Fund Manager to purchase a wider range of
investment.
II. Liquidity - Unit Holder can redeem the units whenever they prefer
III. Professional Management - Unit Holder can contribute ideas, knowledge and experience to the
Fund Manager and that can help the manager to generate more return
IV. Ease of Purchase - Unit Holder can Purchase and liquidate their investment with the fund
manager

A. I, II, III B. I, II, III, IV C. I, III, IV D. I, II, IV

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CUTE Answers as of 20 Dec 2021
1. B 31. A 61. C 91. C 121. A 151. A
2. A 32. C 62. D 92. B 122. D 152. A
3. B 33. C 63. D 93. A 123. A 153. A
4. D 34. C 64. B 94. D 124. A 154. C
5. A 35 D 65. A 95. A 125. C 155. D
6. D 36. B 66. D 96. B 126. A
7. C 37. B 67. B 97. C 127. C
8. A 38. C 68. D 98. A 128. B
9. D 39. B 69. A 99. A 129. D
10. B 40. D 70. B 100. C 130. A
11. D 41. D 71. A 101. D 131. C
12. A 42. D 72. A 102. D 132. A
13. B 43. A 73. A 103. C 133. B
14. A 44. A 74. B 104. D 134. C
15. B 45. C 75. C 105. D 135. B
16. D 46. C 76. C 106. A 136. A
17. A 47. D 77. A 107. C 137. B
18. C 48. C 78. D 108. B 138. B
19. C 49. D 79. B 109. B 139. C
20. A 50. C 80. B 110. D 140. D
21. C 51. A 81. D 111. B 141. C
22. A 52. B 82. C 112. D 142. B
23. B 53. A 83. C 113. A 143. B
24. B 54. A 84. D 114. B 144. C
25. D 55. D 85. A 115. C 145. D
26. A 56. D 86. C 116. D 146. A
27. B 57. A 87. D 117. D 147. C
28. D 58. C 88. B 118. B 148. B
29. A 59. B 89. B 119. A 149. A
30 D 60. D 90. C 120. D 150. A

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Calculation:

3) Rules of 72 = n/i = 72/9 = 8 years

En. Jamal will double his money in 2003 (=1995 + 8).

12) Units after unit-split exercise = 4 x 18,000 = 24,000

3
17 & 18)
Year Unit Price Unit Hold Investment
st
1 year 0.50 A17) 25,000 – A18) RM7500
10,000 = 15,000 (15,000 x 0.50) +
RM5200 =
RM12,700
2nd year 0.52 10,000 10,000 x 0.52 =
RM5200
3rd year 0.60 RM15,000 / 0.60 RM15,000
= 25,000

19) Raw return = (NAV End – NAV Beg) x 100 = 0.60 – 0.50 x 100 = 20%
NAV Beg 0.50

22) NAV per unit cum-Distribution = RM200million/380million units = RM0.526

NAV per unit ex-Distribution = RM0.526 – RM0.035 = RM0.491

23)
Amount invested
= RM10,000
(1+5%)
= RM10,000 = RM9523.810
(1.05)

Number of units’ ex-distribution

= Amount invested
NAV per unit ex-Distribution
= RM9523.810
0.49
= 19,436.35 units

24) Difference between Working money with 5% service charge and 3% service charge
= RM10,000 – RM10,000
(1.05) (1.03)
= RM9523.810 – RM9708.738 = RM184.93 26
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27) MER = (3,528,673 + 150,326 + 16,300 + 28, 418) x 100 = 1.58%
235,300,528

51)
Initial investment = RM80,000.00

Working money = RM80,000/(1.05) = RM76,190.48

Value end of year 3 = working money x ( 1 + i )n

= RM76,190.48 x ( 1 + [ 10% - 1.5% ] )3
= RM76,190.48 x ( 1 + 0.085 )3
= RM76,190.48 x ( 1.085 )3
= RM76,190.48 x 1.2773
= RM97,318.10

52) Rules of 72 = 72/i = 72/8.5 = 8.471 years

53) Value end of year 3 = working money x ( 1 + i )n

= RM76,190.48 x ( 1 + [ 10% - 1% ] )3
= RM76,190.48 x (1.09)3
= RM76,190.48 x 1.2950
= RM98,666.67

71)
Amount
NAV
Invested Units
0.5 RM1500 1500/0.50 = 3000
0.6 RM1500 1500/0.60 = 2500
0.7 RM1500 1500/0.70 = 2142.86
Total RM4500 7642.86

Average unit cost

= RM4500.00
7642.86
= RM0.5887 = RM0.59

78) MER = (1,340,999 + 730,173 + 172,641 + 361,594) x 100 = 1.04%

250,492,853

92) Unit hold = 10,000 units, unit price = RM1

Value of investment received after redemption = 10,000 x RM1 = RM10,000

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98)

Fund A Fund B
Working RM1000 = RM 952.381
Money 1.05 RM1000

RM952.381 = 3527.3369 RM1000 = 1205.5456

Unit Hold 0.27 0.8295

99) Amount received from redemption = (5000 units x 0.8295) – exit fee
= RM4147.50 – 2% = RM4064.55

103)
Investment A:
N = .________72 = 72 = 8.47 years
Given rate of return 8.5

Investment B = 8.47 – 1.27 = 7.20 years

n = ____72____________
i (Given rate of return)

7.2 = .__72____= 10%

i

106) Present value = RM 25,000.00, n = 1, Future Value = RM26,125.00

i) Calculate the compounding rate p.a.

FV = PV ( 1+ i ) 1
RM26,125 = RM25,000 ( 1 + i ) 1
1.092 = ( 1 + i )1
1.045 = 1 + i
0.045 = i
4.5% = i

OR 26,125 – 25,000 x 100 = 4.5%

25,000
Amount of expenses estimated for next year = RM 26,125 + 4.5% = RM27,300.625

ii) Effective rate of return = return - inflation rate – (return x tax rate)
= 5% - 4.5% - (5% x 20%)
= 0.5% - 1%
= - 0.5%
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114) Unit hold = 10,000 units, NAV end of the day = RM0.66
Total paid in her investment = (10,000 units x RM0.66) + 0.5% = RM6600 + 5% = RM6930

122)
Year Unit Price Unit Hold Investment
1 RM0.70 A122) 12500 units x
RM0.70 = RM8750
5 RM1.20 RM15000/RM1.20 = RM15000
12500 units

124) ERR after tax and inflation = return – inflation – (return x tax rate)
= 10% - 5% - (10% x 20%) = 5% - 2% = 3%

131) Balance year to achieve education goal = 10 – 8 = 2 years

Rules of 72 = n = 72, n = 2,
i
2 = 72
i
i = 72/2 = 36%

138) Initial sales charge = 5%, UT Investment = RM 1000

Amount investable to buy UT fund = RM1000 + 5% = RM1050

147) MER = (150,000 + 8,000 + 5,000 + 2,000) x 100 = 1.65%

10,000,000

152) n = 72 = 72 = 14.40 years

i 5

153) unit split = (1+2) x 5000 = 7500 units,

2
Remain same for the value of investment (RM15,000) after unit split distribution.

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INTERNAL