Amfi

 The Price Earning (PE) Ratio of a company is 5 and its Earning Per Share is Rs 10.

What is the Market Price of this company?

70

100

50✅✅

49

Which of these statement(s) is/are TRUE? A) If the mutual fund units are held in demat form, they cannot be converted in to physical form B) When a mutual fund is redeemed or when there is a dividend pay-out, the amount will be credited to the bank account linked to the demat account for those mutual fund investors who opt

Both A and B are correct

Only A is correct

Both A and B are incorrect

Only B is correct ✅✅

Identify the FALSE statement(s) - A- Authorised signatories have to sign the request for transactions of institutional investors in mutual funds B - Even if the Memorandum of Association and Articles of Association does not permit invest in mutual funds, the company can invest in mutual fund on the basis of a Board

Both statements A and B are false

Statement B is false✅✅

Statement A is false

Mrs. Meena purchases MF units at NAV Rs 13. After 500 days, she redeems it at NAV Rs 15.70. What is the compounded rate of return?

• 14.70%✅✅

8.70%

13.69%

12%

Which of the following funds is considered to be passive in nature?

Exchange Traded Funds✅✅

Equity funds

Debt funds

The term target scheme in a switch transaction refers to

• Scheme into which money is moved in✅✅

Scheme which holds the redeemed units

Scheme from which money is moved out

None of these

In which of the following transactions a 'Transaction charge' can be deducted?

Purchase made on stock exchanges

Systematic transfer plan (STP) transaction

Online purchases

• Purchases of Rs 10000 or more✅✅

A redemption request can be denominated in

Units only

Amount only

Units or amount✅✅

Which is a Non-Diversifiable risk?

Systematic Risk✅✅

Unsystematic Risk

What percentage of an open-ended debt fund's total assets must be maintained in liquid assets?

25%

15%

12%

10%✅✅

State True or False? - Advertisements for Mutual Fund schemes may not contain assertions that may mislead the investor, either directly or indirectly or by implication or omission.

False

True✅✅

Identify the true statement(s) - A) Individuals can register upto five bank accounts with a mutual fund B) A Non-Individual can register upto ten bank accounts with a mutual fund

Only B is correct

Both A and B are incorrect

Both A and B are correct✅✅

Only A is correct

An equity fund that predominantly invests in equity and equity related securities of technology and technology dependent companies is likely to be

a thematic fund

a sector fund✅✅

a diversified fund

None of these

Is it possible to modify the scheme's fundamental characteristics?

Yes - with the permission of SEBI and AMFI

Yes-but this should be communicated to unit holders who should be provided an option to exit the scheme✅✅

Yes- but with the consent of 100% of the unit holders

No - the fundamental attributes cannot be changed as it is based on these attributes that investors have invested their money

State True or False? - For those investors who find it difficult to pay for insurance cover, Money back policy is recommended

True

False✅✅

An investor looking to replicate the return of an asset class is likely to choose

an asset allocation fund

None of these

a passive fund✅✅

an active fund

Mr. A has a small business and will generally need more allocation to liquid funds than Mr. B, who is senior manager with a multinational company. State True or False?

True✅✅

False

When selling mutual fund products from the distributor's group/affiliate/associates, the distributor must disclose to the consumer any conflicts of interest that may arise as a result of the distributor's selling such goods.- True or False?

True✅✅

False

For an investor to get a quick sense of the level of risk involved in a mutual fund scheme, SEBI suggested a simplified framework known as.

Fact sheet

Risk-o-meter✅✅

Investor's risk profile

Risk factors

The difference between the yield on Gilt and a non-government debt security is referred to as the?

YTM

Yield to Call

Risk Spread

Credit Spread✅✅

AMCs must implement a due diligence approach to control distributors, as mandated by SEBI. Which of the following mutual fund distributors would be exempt from the due diligence process?

Commission received of over Rs. 75 Lakhs from a single mutual fund

Commission received of over Rs. 125 lakhs p.a. across industry

Multiple point presence in more than 25 locations

AUM raised of Rs. 60 crore across industry in the non-institutional category✅✅

A Mutual Fund scheme gave an annualised return of 9.86% and the annualised Standard Deviation of the fund is 3.47. The current risk free return is 8%. Calculate the Sharpe Ratio.

49%

89%

53%✅✅

12%

What should a mutual fund distributor do first when putting together a mutual fund portfolio for his clients?

He should set the financial goals of the investor✅✅

He should invest the amount in a liquid fund and set a Systematic Transfer Plan in good equity funds

He should list good equity funds with the lowest expense ratio for the investor to select

He should list the best performing funds for the investor to select

What should an elderly couple with no immediate family members invest in?

Sectoral Funds

ELSS Funds

Debt Funds✅✅

Blue Chip Equity Funds

An investor purchases through a distributor 20000 units of a mutual fund scheme at a NAV of Rs 65. The current NAV of the scheme is Rs 62. What will be the trail commission for today if the trail commission rate is 1% per annum.

Rs. 19.5543

Rs. 28.1217

Rs. 33.9726✅✅

Rs. 35.6164

The major reason why SEBI has created guidelines for mutual fund schemes investments is to generate better returns from mutual fund schemes

improve the credit ratings of the mutual fund schemes

protect the interests of the mutual fund industry

protect the interests of the mutual fund investors✅✅

You expect a rise in interest rates (yields) in the markets. In basis of this forecast, where would you put your money?

Equity Funds

Banking Sector Funds

Long Terms Debt Funds

⚫ Short Term Debt Funds✅✅

Which of these funds are likely to primarily invest in low priced stocks of companies with potential to perform well in the future?

None of these

Growth funds

Index funds

• Value funds✅✅

Every new business day, the time stamping machine is set to serial number 1 in the morning, and all applications received on that day are attached with a time stamp and a serial number beginning with 1 - State True or False?

True

False✅✅

Which of these statement(s) is/are TRUE? 1. There cannot be a price impact on mutual fund units due to portfolio rebalancing and/or liquidity demands on account of redemptions. 2. Market liquidity of mutual fund units can get impacted on account of company/sector related events

Both 1 and 2

Only 2✅✅

Only 1

When opposed to goal-based financial planning, comprehensive financial planning needs a greater time commitment - State True or False?

True✅✅

False

Relaxation in documentation requirements for micro-SIPs is not available for

Hindu Undivided Family✅✅

Non Resident Indians

Individuals

All of these

Mutual Fund schemes' unaudited accounts must be released once every six months in

Both - on the AMC website and in a minimum of 2 newspapers✅✅

in a minimum of 2 newspapers

on the AMFI website

on the AMC website

What specifically is the concept of smart beta funds?

Improve returns, increase diversification and reduce risk.✅✅

Improve returns, increase diversification and increase risk.

Improve returns, decrease diversification and increase risk.

The NAV of a mutual fund unit changes every day due to changes in

the size of the portfolio

number of investors in the mutual fund

the units remaining in the portfolio

market value of the mutual fund portfolio✅✅

Identify which of these statements is / are FALSE ? A) Banks and mutual funds both

offer the Gold Deposit Scheme B) Gold ETFs are closed ended funds

Only A is false

Only B is false

Both A and B are false✅✅