Mutual Fund Distributors Free Demo Test 4

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1 / 10

1. True or False: Closing a bank fixed deposit prematurely incurs a penalty charge.

a) True

b) False

2 / 10

2. What is the tax levied on the income earned by the mutual fund schemes for the Asset Management Company (AMC)?

a) 10 percent plus surcharge and cess

b) It is a function of the type of income since dividends, short term capital gains and long term capital gains attract different tax rates

c) Income earned by a mutual fund is exempt from taxes

d) It is a function of the marginal rate of tax applicable to the respective investor in the mutual fund scheme

3 / 10

3. Investments owned by the scheme might be quoted in the market at a higher value than the cost paid. What term is used to describe the gains in values on securities held in this context?

a) Notional gains

b) Valuation gains

c) Notional losses

d) Valuation losses

4 / 10

4. For which of the options below can a person not obtain a loan if they wish to avail of one?

a) To buy a car of value above Rs 20 lacs

b) To buy a high priced lottery ticket

c) To buy a house in a Union Territory

d) To start a Pharma factory

5 / 10

5. After the New Fund Offer, units of the Close-Ended fund can be bought and sold through _______.

a) The offices / branches of the respective AMC's

b) Stock Exchanges

c) Close Ended fund cannot be bought and sold till the closure of term

d) The bank in which the unit holder has an account

6 / 10

6. What type of information is contained in the ‘Statement of Additional Information’ (SAI)?

a) Applicable only for Open Ended Schemes

b) Meant only for Close Ended Schemes

c) Applicable for all schemes

d) Meant only for one particular scheme

7 / 10

7. What types of expenses can the Asset Management Company (AMC) charge to a mutual fund scheme?

a) Custodian and Fund Administrator fees

b) AMC general administration expenses

c) Rent of the AMC registered office

d) Office salaries of fund management team

8 / 10

8. The sponsor must contribute a minimum ______ of the net worth of the Asset Management Company (AMC).

a) 66%

b) 40%

c) 25%

d) 50%

9 / 10

9. An investor with a long-term perspective, seeking capital appreciation, and possessing a high risk tolerance should consider investing in _________.

a) Fixed Deposits

b) Gold

c) High interest bearing junk bonds

d) Equities

10 / 10

10. Which of the following documents is accessible for inspection by the unit holder?

a) Investment Management Agreement

b) Custodial Services Agreement

c) Trust Deed

d) All of the above

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Mutual Fund Distributors Free Demo Test 4

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