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Mock Tests for Mutual Fund Distributors
Certification Examination As on 08 - December - 2022
Financial Planning comprises of
A.  Defining clients profile and their goals
B.  Recommending appropriate Asset Allocation
C.  Monitoring financial planning recommendations
D.  All of the above
Scheme can distribute dividend on its
A.  Realized profits
B.  Profits after tax
C.  Realized and unrealized profits
D.  Unrealized profits
If a charitable trust approaches a distributor with application for investment in Mutual Fund, the distributor should:-
A.  Accept application
B.  Decline the application
C.  Refer SID & SAI
D.  Accept application as Direct
Exchange Traded Funds are alternative to
A.  Actively managed Debt fund
B.  Index tracker
C.  Actively managed Equity fund
D.  Actively managed Asset Allocation fund
In the growth option offered by MF, the number of units held by an investor
A.  Growth in NAV i.e. Capital Appreciation
B.  Reinvestment of dividend which is like compounding
C.  Interest received on the fund asset
D.  None of the above
What is untrue of the new scheme launched by Mutual Fund
A.  The offer is for a stipulated period only
B.  The offer is launched in the market to raise capital from the public
C.  Investor can buy units at the prevailing NAV
D.  The stipulated period is the only opportunity to invest in close ended scheme
NAV of a Mutual Fund
A.  Is always constant
B.  Keeps going up at a steady rate
C.  Fluctuates with market movement
D.  Debt fund's NAV cannot go down at all
Security Dealer of a Mutual Fund
A.  Ensures that proper processes are followed by the fund managers
B.  Executes buy / sell orders for the fund
C.  Decides buying / selling of securities based on technical analysis
D.  Does a fundamental analysis of the company that is to be bought / sold
Which of the following is a synopsis of the offer document
A.  Trust deed
B.  Memorandum of Association
C.  Statement of additional information
D.  Trust deed
If a scheme is launched in 2nd month of financial year the 1st update of SID is due within
A.  Within 3 months of the end of financial year
B.  Within 3 months from the beginning of next financial year
C.  Within 3 months from the end of the next financial year
D.  Within 6 months of the end of the financial year
After the NFO re-opens these funds are
A.  Open for purchase by existing as well as new investors
B.  Open for purchases only for existing investors
C.  Open for purchase / sale only through stock exchange mechanism
D.  Open for purchase / sale only for NRIs / Foreign Investors / OCBs
Which of the following fund types are comparable
A.  An aggressive equity fund and an aggressive debt fund
B.  A Bond fund and a Debt fund
C.  A well diversified equity fund and a well diversified debt fund
D.  Money market fund and long term G.Sec fund
A fund manager who believes in growth philosophy looks for companies with
A.  Above average earnings growth
B.  Large reputed companies
C.  Companies which are likely to declare bonus / stock split / Follow-on public issue
D.  All of the above
Interest rate sensitivity in Debt fund depends on
A.  Credit profile
B.  Average maturity
C.  Yield to maturity
D.  Current yield
In a Gold Fund, fund house pools money from various investors and invests in Gold ETF
A.  True
B.  False
C.  
D.  
Which of the following option with regards to the benefit of compounding is untrue
A.  Growth option
B.  Dividend payout
C.  Dividend re-investment option
D.  Bonus
Which of the following measures are not taken by SEBI for protecting Mutual Fund investors
A.  Mandating minimum level of diversification
B.  Ensuring that funds are invested only in securities approved by SEBI
C.  Ensuring that funds are not used to favor some companies / groups
D.  Tracking securities of each schemes of Mutual Fund
Cut-off time for purchases / switches / repurchase of units of Mutual Funds are
A.  Agreed between AMC & Distributors
B.  Agreed between AMC & Registrar and Transfer agents
C.  Prescribed by SEBI
D.  Prescribed by AMFI
Which of the following with regards to Offer Document of mutual fund scheme is untrue
A.  OD of a scheme is prepared by AMC and approved by the board
B.  OD of a scheme is approved by Trustees
C.  Scheme can be launched only after approval from SEBI
D.  SEBI neither approves nor disapproves any scheme
Which of the following risks do not affect a Debt fund
A.  Rupee Depreciation
B.  Share Market fluctuation
C.  Inflation
D.  Interest Volatility
Most investor service centre are offices of
A.   Trustees
B.  Registrars
C.  Custodian
D.  Fund Accountant
What is untrue of new scheme launched by Mutual Fund
A.  New scheme launched is often accompanied by aggressive marketing campaigns
B.  Investors have a change to invest at unit price of Rs. 10/-
C.  New fund offer could be open ended fund / close ended fund / interval fund
D.  Expenses incurred for launching the scheme are recovered from the investor through CDSC
Risk tolerant investors are usually
A.  Aggressive investors
B.  Moderate investors
C.  Conservative investors
D.  None of the alternatives
Which of the following is not technically classified as Equity Fund
A.  Arbitrage Fund
B.  Thematic Fund
C.  International Fund
D.  Dividend Yield Fund
The choice of an appropriate benchmark for evaluating fund performance depends on
A.  Investment objective of the fund
B.  Fund Manager as he ensures performance of the scheme
C.  Head of Sales & CIO as they are the creator of the scheme
D.  Trustees as they approve the scheme
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