Mutual Fund Distributors Paper 08

Q (1): 

Which of the following is not an equity instrument

  preference shares

  equity warrants

  ordinary debentures

  convertible debentures

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Q (2): 

Which of the following mutual fund do not have scheme Re - opening date?

  Close- ended

  Open - ended

  NFO

  All of the above

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Q (3): 

Which of the following statements are Incorrect regarding to the NAV?

  Higher the appreciation in the investment portfolio, higher would be the NAV

  Higher the interest, dividend and capital gains earned by the scheme, higher would be the NAV

  Higher the expenses, higher would be the NAV

  Lower the expenses, higher would be the NAV

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Q (4): 

Which of these is not the clients responsibilities ?

  Set measurable financial goals

  Re-evaluate the financial situation periodically

  Have realistic expectations

  Gather and analyze data

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Q (5): 

Which One of the following statement is not correct related to the Celebrity advertisements?

  Celebrity advertisements is allowed at an industry level, after obtaining the prior approval of SEBI

  Celebrity advertisements is not permitted for endorsing a particular scheme of a fund house

  Celebrity advertisements is permitted for endorsing as a branding exercise of a mutual fund house

  None of the above

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Q (6): 

Which type of strategy is adopted by the debt fund to focus on earning in interest income?

  to generate returns

  an accrual strategy

  focus on earning total returns from both coupon income and appreciation in the value of the securities

  depending upon expectation of interest rate movements

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Q (7): 

Who enters into contract in an mutual fund structure

  Sponsor

  Trustees

  AMC

  Depends upon the fund type

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Q (8): 

Why should one buy an insurance policy

  It gives high current returns

  It gives capital appreciation over its term

  It should be bought due to the need for insurance and not as an investment

  All of the above

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Q (9): 

"Load" cannot be recovered

  at the time of the investor's entry into the fund

  as a fixed amount each year

  at the time the investor exits the fund

  from the fund's distribution agent

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Q (10): 

 ____________ schemes have to re-open for sale/ repurchase within 5 business days of the allotment.&/p>

   Open-ended

   Close-ended

   All the schemes

   None of the above

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