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—— a vehicle (in the form of a “trust”) to mobilize money from investors, to invest in different markets and securities, in line with stated investment objectives.
Mr. Sharma needs rs 2500000 in current terms for his daughter marriage after 10 years, the cost of escalation is 10% p.a. And rate of return on investment made in equity oriented mutual fund is expected to be 11% p.a. Compounded monthly, will he be able to meet the goal if he invest rs 15000 p.m. For same. Any deficit or surplus if?
Which among the following investment avenues does not offer income on a regular basis?
Which of the following are included in SAI?
To enable investors to take informed decision regarding their investments, a pictorial representation of the risk to the principal invested in a mutual fund product is depicted using a—
What is Real Rate of Return?
The sum of all investments made by investors’ in the mutual fund scheme is the entire mutual fund scheme’s size, which is also known as the scheme’s—-
Mr Z can have maximum how many nominees to his mutual fund portfolio?
Diversification reduces the overall risk of portfolio.
—- is strategy is view based.
—- are short term securities (up to 1 year) issued by companies?
—- contains the key points of these documents that are essential for the investor to know to make a decision on the suitability of the investment for their needs
—– is appointed to manage the activities related to launching a scheme, marketing it, collecting funds, investing the funds according to the scheme’s investment objectives and enabling investor transactions.
Which is the most appropriate measure of evaluating how closely an Index Fund is tracking its benchmark?
Which among the following is less risky?
Default Risk is highest in—
Long Term Bond are less volatile.
Mr. R is a speculator and make speculation on stock by analyzing the charts, price and volume trend, patterns related to stock, what approach he uses?
__ is the industry body that oversees the functioning of the industry and recommends best practices to be followed by the industry members.
NAV is valued on mark to market basis.
—- contains the basic information of each scheme such as the inception date, corpus size (AUM), current NAV, benchmark and a pictorial depiction of the fund’s style of managing the fund. Not regulatory required.
Which among the following debt funds on the basis of interest rate risk is most risky?
Mr Z has incurred a STCL of rs 15000 on sale of units of debt mutual fund but made a ITCG of rs 25000 on sale of equity mutual fund. Calculate the taxable gain, for current year
Which of the following can be a Mutual Fund distributor?
—- is a web based centralized grievance redress system of SEBI.
The asset class in which a fund will invest will be defined by
Focused Funds are more risky than sector funds. True or false?
— is a transaction aggregating platform that connects investors, RTAS, distributors, banks, AMCs and others.
For a scheme to be defined as equity fund it must have minimum ——- % investment in Indian equities.
Mr M is an equity analyst and give advice to his clients to invest in stock of particular company by analysing economy, industry and company factors which approach he follows?
The Returns on Investment without factoring inflation is known as—
Mr Smith has purchased 1000 shares of x ltd @ rs 125 each on 15 Jan 2019 and the company announced dividend @ rs 2 per share on 28 Feb 2019, Mr Smith decided to sell the shares on 5 April 2019 @ rs 120 per share calculate the tax implication of such transaction.
An Exchange Traded Funds offers liquidity through its listing on a Stock Exchange.
To introduce a common KYC for investors investing in securities markets SEBI issued registration at:
Pre-requisites to become distributor of a Mutual Fund
In case of an index fund scheme or Exchange Traded Fund, the Total Expense Ratio of the scheme including the investment and advisory fees shall not exceed —- per cent of the daily net assets.
The Mutual Fund can advance any loans.
Foreign Investors cannot invest in equity schemes of MFS registered with SEBI even after completing KYC process.
Derivatives are highly leveraged instruments.
The impact of recent events on decision making can be very strong. This applies equally to positive and negative experiences. Which behavioural biasness it represent?
Calculate the Expected Return :Risk Free Return 6% , Market Return 11% , Beta 1.2
Which type of Mutual Fund scheme follow the strategy of identifying stocks whose real worth has not been realised?
The Mutual Fund scheme fund manager finds that a company f ltd., can give high rate of return on capital in coming year, but according to regulation the mutual fund scheme shall not own more than —- percent of a company’s paid up capital bearing voting rights
Calculate the Capital Gain or loss in following situation, Mr M purchased 500 shares @rs 250 each of g ltd. On 1 April 2017 company further made bonus issue in ratio of 2:1 on 1 may 2018. Calculate the Capital Gain or loss if he sell all the shares on 1 march 2019 @ rs 375 each.
Once a Mutual Fund Folio is created as a jointly held account there can be no change in the joint holders except in case of death.
Mr Mahesh purchased debentures of h ltd., the return from his investment will face which risk?
For persons who have attained the age of 45 years or who have at least 10 years of experience in the securities markets in the sale and/ or distribution of mutual fund products as on can obtain the certification either by passing the NIM certification examination or qualifying for Continuing Professional Education (CPE) by obtaining such classroom credits as may be specified by NIM from time to time.
ELSS provide tax benefit under which section–?
______-for each calendar month is sent by post/email on or before 10th of the succeeding month provided there has been a financial transaction in the folio in the previous month.
_______ is a redemption from one scheme and a purchase into another combined into one transaction
Calculate the net asset value: Stocks : 150 cr , Debenture : .98 cr , Treasury bills : .85 cr , Commercial Papers : .15 cr , Interest received : .1 cr , No. Of outstanding units 1.2 cr
—-which is a big part of this unit, maintains investor records as well as allots or redeems units, processes purchase/redemption/switch requests, dividends, etc. It also generates the account statement that an investor receives
STT is not applicable on
—- is the close ended scheme that invest the funds in debt securities with maturities that match the term of scheme.
Small investors, who may not be tax payers and may not have pan/bank accounts, such as farmers, small traders/businessmen/workers are allowed cash transactions for purchase of units in mutual funds to the extent of rs—— per investor, per mutual fund, per financial year.
SIP allows investors to benefit from the volatility in the market.
Mr M has rs 150000 bonds in his portfolio with interest rate @ 10% p.a., but now the government has reduced interest rate to 9.75% p.a. What will be the impact on price of existing bonds?
— take equal and opposite exposure in different markets, earn a return due to difference in price in the two markets
The —shows the net investment made as the gross subscription less transaction charge and provides the number of units allotted against the net subscription
The policies and procedures approved by the —–shall identify the methodologies that will be used for valuing each type of securities/assets held by the mutual fund schemes.
If one is investing in ELSS scheme through sip, the lock-in for the entire amount would get over on completion of 3 years from the date of the first SIP instalment
Impact of dividend declared on NAV in case of dividend reinvestment option:
Factors to be considered while selecting benchmark for equity scheme
Calculate The Risk Premium:Return on Portfolio 10% , Risk Free Rate 6% , Market Return 8% , Beta .86
Mr M purchased wants to purchase 2000 of equity oriented mutual fund each on 1 April 2019 and application for same was made by 2:30 p.m. Which day NAV would be applicable?
The application to SEBI for registration of mutual fund is made by —–
How to terminate appointment of an AMC?
Calculate the Beta of Stock if Variance of stock and benchmark is .07 and Standard Deviation of the Stock Market is 20%. What is the Beta of Stock ?
In case of capital gains from mutual fund investments, tax deduction at source (TDS) is applicable for: _________
A nominee/legal heir need to be an ARRN holder to claim and receive the commission.
— is a process whereby an investor’s holding of investments in physical form (paper), is converted into a digital record
Whose function is to undertake nationwide investor awareness programme to promote proper understanding of the concept and working of mutual funds?
The Systematic Risk is measured using:
Which of the following represent unique benefit of Trail Commission?
Close-ended schemes have an NFO open date and NFO close date. But, they also have scheme re-opening date.
—- facilitate this centralised KYC process.
Objective of Fair Valuation principle is addressing the mis-pricing risk. True or false?
Allotment of units or refund of moneys, as the case may be, should be done within —business days of closure of the scheme
Investments by minors cannot have a nomination.
Mr P wants to invest rs 200000 in liquid funds but he failed to apply for same by 1:30 P.M., which day NAV will be applicable?
In the case of investments by a power of attorney (POA) holder on behalf of an investor, KYC requirements have to be complied with, by investor only.
Since Floating Rate Debt Securities tend to hold their investment, even if interest rates fluctuate, the NAV of floaters tend to be steady.
The —-has to mention the benchmark
AMC can offer separate plans based on Expense Ratio apart from the direct plan and through distributor.
— enables recurring redemptions from a scheme over a period of time at the applicable NAV on the date of each redemption.
For the KYC process which of the following documents are required:
KIM is updated at least twice a year. True or false?
Calculate the Alpha : Return on Portfolio 15% , Risk Free Rate 5.5% , Market Return 12% , Beta .85 , Standard Deviation 10%
—- arises due to a difference in the price movement of the derivative vis-à-vis that of the security being hedged.
As per the SEBI guidelines, how often should the mutual fund scheme’s portfolio be published?
—– prepares the scheme information document for the NFO. This needs to be approved by the —– and the ——-
Risk associated with repo transactions in Corporate Bond are mitigated through:
Which of the following are eligible to invest in Mutual Fund?
___________-is a facility where the investment application in a new fund offer (NFO) is accompanied by an authorization to the bank to block the amount of the application money in the investor’s bank account.
Debt Funds in case of purchase 150000 has a cut off time of?
Short term loss can be set off against any long term and short-term capital gains in mutual funds.This is:
A Mutual Fund investment for a minor cannot have joint holders.
The sponsor will have to appoint at least — trustees.
Custodian is appointed by:
As per the SEBI guidelines, how often should the mutual fund scheme’s portfolio be published?