Deck 3: Mutual Fund Terminology and Performance Metrics

Question 1

Open ended funds can be purchased and sold ………………….

A)Anytime during the day
B)Only at the beginning of the day
C)Only at the end of the day
D)Starting of the day

Answer 1

Only at the end of the day

Question 2

……………………. is a facility where investor will invest a fixed amount in a mutual fund scheme at regular intervals.

A)SIP
B)SWP
C)STP
D)SRT

Answer 2

SIP

Question 3

…………….. allows an investor to withdraw a fixed amount of money periodically.

A)SIP
B)SWP
C)STP
D)SRT

Answer 3

SWP

Question 4

In …………….. STP investor transfers the profit from one fund and invests in the other.

A)Flexi
B)Capital Appreciation
C)Fixed
D)Net

Question 5

……………. is a facility provided by banks to investors in new fund offers (NFOs) of mutual funds.

A)ASBA
B)CASBA
C)MASBA
D)NASA

Question 6

A ……………… ended scheme shall be wound upon the expiry of duration fixed in the scheme on the redemption of units.

A)Open
B)close
C)Old
D)New

Question 7

You invested 1,000 in a mutual fund with a 4% load when NAV was 20 per share. If you sell your shares at a NAV of 20 per share, what is the return of your investment?

A)14.8%
B)15.2%
C)12.5%
D)10.8%

Question 8

What would be the tax consequence of owning a mutual fund that made distributions of 600 resulting from short-term capital gains and $800 resulting from long-term capital gain rate?

A)420
B)140
C)300
D)260

Question 9

If a scheme has 45Cr units issued and has an FV of Rs. 10 and NAV is at 11.33, unit capital(Rs.Cr) would be equal to

A)500.85
B)50.85
C)950.85
D)450

Question 10

A scheme has average weekly net assets of Rs. 324 Cr and has annual expenses of Rs 3.24Cr, it's expenses ratio is

A)1%
B)10%
C)Can't say
D)Insufficient information

Question 11

For a scheme to be defined as an equal fund, it must have a minimum

A)65% in Indian equities
B)65% in equities
C)51% Indian equities
D)35% in Indian equities