Deck 5: Investment and Fund Management

Question 1

Investments are accounted for on _______ date.

A)Year end
B)Quarter end
C)Trade
D)Half year end

Answer 1

Trade

Question 2

Initial issue expenses cannot exceed _______% of amount mobilised.

A)5
B)6
C)4
D)3

Answer 2

6

Question 3

Initial issue expenses of open-ended funds is amortised over a period not exceeding years_______%

A)1
B)2
C)3
D)4

Answer 3

1

Question 4

Mutual funds cannot pay dividend out of _______.

A)Net profit
B)Net loss
C)Unrealised profit
D)Realised profit

Question 5

An asset is non-performing if interest and/or principal are due for over ________ months.

A)One
B)Two
C)Three
D)Four

Question 6

An equity shares is considered non-traded if it is not traded for over _______ days.

A)15
B)20
C)25
D)30

Question 7

Valuation of debt instrument with less than 182 days to maturity is done on _______ basis.

A)Accrual
B)Cash
C)Real
D)None of the above

Question 8

Illiquid securities should not exceed _________% of the net assets.

A)5
B)7
C)10
D)15

Question 9

For an index fund, Ex-Marks will be ________%.

A)50
B)70
C)90
D)100

Question 10

If fund is assuming higher risk than the market index, its beta will be ________.

A)Greater than 1
B)Less than 1
C)Equal to 1
D)Equal to 2

Question 11

Graham's strategy recommends ________% holding in debt funds and 50% holding in equity funds.

A)50
B)75
C)40
D)60

Question 12

Expenses ratio is very important for _____.

A)Debt fund
B)Index fund
C)Equity fund
D)Currency fund

Question 13

According to Bogle an investor's exposure to debt investment should be equal to his ___.

A)Sex
B)Age
C)Income
D)Cast

Question 14

Higher expenses ratios lead to _______.

A)Yield sacrifices
B)Profit
C)Income
D)Wealth

Question 15

Closed ended funds were usually trading at _________ to NAV

A)Par
B)Premium
C)Discount
D)Free

Question 16

If a single unit holder holds more than _________ of net assets , the number of Such unit holders and their percentage holding in the net assets have to be disclosed.

A)10 %
B)15 %
C)20 %
D)25%

Question 17

If opening units 10,000 Units subscribe 3000, Units redeem 1000 then Closing units?

A)10,000 units
B)13,000 units
C)12,000 units
D)14,000 units

Question 18

If opening units 25,000 ,Units subscribe 7000, Units redeem 2000 then Closing units?

A)30,000 units
B)25,000 units
C)32,000 units
D)44,000 units

Question 19

If opening units 1,25,000 Units subscribe 2,00,000, Units redeem 50,000 then Closing units?

A)3,25,000 units
B)2,75,000 units
C)3,75,000 units
D)2,50,000 units

Question 20

NAV stands for

A)Net Application Value
B)Notional Assets Value
C)Net Assets Value
D)Net Assets

Question 21

High yield bonds have ______ potentials.

A)Low
B)High
C)Average
D)none

Question 22

Treasury bonds funds with short maturities have ______ default risk.

A)High
B)Low
C)Average
D)Nil

Question 23

Portfolio turnover is ______ for liquid funds.

A)Low
B)High
C)Average
D)Nil

Question 24

The benchmark for a balanced fund is Equity index and _______ combined in the same Proportion.

A)Market Index
B)Debt Index
C)Gold Index
D)Currency Index

Question 25

The AMC received no fees on funds are called as _______

A)Full Load
B)Extra Load
C)No Load
D)Half Load