MCQOPTIONS
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MCQOPTIONS
This section includes 173 Mcqs, each offering curated multiple-choice questions to sharpen your Mutual Fund Management knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
An equity shares is considered non-traded if it is not traded for over _______ days. |
| A. | 15 |
| B. | 20 |
| C. | 25 |
| D. | 30 |
| Answer» E. | |
| 52. |
Mutual funds cannot pay dividend out of _______. |
| A. | Net profit |
| B. | Net loss |
| C. | Unrealised profit |
| D. | Realised profit |
| Answer» D. Realised profit | |
| 53. |
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 |
| Answer» B. Cash | |
| 54. |
The AMC received no fees on funds are called as _______ |
| A. | Full Load |
| B. | Extra Load |
| C. | No Load |
| D. | Half Load |
| Answer» D. Half Load | |
| 55. |
Investments are accounted for on _______ date. |
| A. | Year end |
| B. | Quarter end |
| C. | Trade |
| D. | Half year end |
| Answer» D. Half year end | |
| 56. |
If a single unit holder holds more than _________ of net assets , the number ofSuch unit holders and their percentage holding in the net assets have to be disclosed. |
| A. | 10 % |
| B. | 15 % |
| C. | 20 % |
| D. | 25% |
| Answer» E. | |
| 57. |
High yield bonds have ______ potentials. |
| A. | Low |
| B. | High |
| C. | Average |
| D. | none |
| Answer» C. Average | |
| 58. |
Graham’s strategy recommends ________% holding in debt funds and 50% holding in equity funds. |
| A. | 50 |
| B. | 75 |
| C. | 40 |
| D. | 60 |
| Answer» B. 75 | |
| 59. |
For an index fund, Ex-Marks will be ________%. |
| A. | 50 |
| B. | 70 |
| C. | 90 |
| D. | 100 |
| Answer» E. | |
| 60. |
Illiquid securities should not exceed _________% of the net assets. |
| A. | 5 |
| B. | 7 |
| C. | 10 |
| D. | 15 |
| Answer» E. | |
| 61. |
An asset is non-performing if interest and/or principal are due for over ________ months. |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» D. Four | |
| 62. |
Portfolio turnover is ______ for liquid funds. |
| A. | Low |
| B. | High |
| C. | Average |
| D. | Nil |
| Answer» C. Average | |
| 63. |
The benchmark for a balanced fund is Equity index and _______ combined in the sameProportion. |
| A. | Market Index |
| B. | Debt Index |
| C. | Gold Index |
| D. | Currency Index |
| Answer» C. Gold Index | |
| 64. |
Abridged version of OD is called ………….. |
| A. | OD |
| B. | NFO |
| C. | KIM |
| D. | CD |
| Answer» D. CD | |
| 65. |
…………………. is a myth about Mutual Fund Investment in India. |
| A. | Small amount is needed to invest in Mutual Funds |
| B. | Higher NAV is better |
| C. | Demat account is compulsory to invest in Mutual funds |
| D. | Big amount is needed to invest in Mutual Funds |
| Answer» D. Big amount is needed to invest in Mutual Funds | |
| 66. |
NAV stands for |
| A. | Net Application Value |
| B. | Notional Assets Value |
| C. | Net Assets Value |
| D. | Net Assets |
| Answer» D. Net Assets | |
| 67. |
Initial issue expenses cannot exceed _______% of amount mobilised. |
| A. | 5 |
| B. | 6 |
| C. | 4 |
| D. | 3 |
| Answer» C. 4 | |
| 68. |
……………….. measures the dispersion in return. |
| A. | Beta |
| B. | R-squared |
| C. | Standard deviation |
| D. | Alpha |
| Answer» D. Alpha | |
| 69. |
CAGR stands for ………………… |
| A. | Calculated Annual Growth Rate |
| B. | Compounded Annual Growth Rate |
| C. | Changed Annual Growth Rate |
| D. | Changed Annual Grown Rate |
| Answer» C. Changed Annual Growth Rate | |
| 70. |
Returns from non-equity funds are treated as long term capital gains if investments are held for morethan ………………. |
| A. | 4 years |
| B. | 2 years |
| C. | 3 years |
| D. | 5 years |
| Answer» D. 5 years | |
| 71. |
…………….. risk refers to the investor losing the money invested in mutual funds. |
| A. | Business |
| B. | Credit |
| C. | Capital |
| D. | Scheme |
| Answer» C. Capital | |
| 72. |
The returns earned from mutual funds are taxed under the head …………….. |
| A. | Income from House Property |
| B. | Salary Income |
| C. | Income from Capital gains |
| D. | Income from other sources |
| Answer» D. Income from other sources | |
| 73. |
………….. ratio is the percentage of total assets that are spent to run a mutual fund. |
| A. | expense |
| B. | income |
| C. | Profit |
| D. | Turnover |
| Answer» B. income | |
| 74. |
In ………………………. Investors buy shares of Companies who have announced bonus issues, andsubsequently sell the original holding at a loss once the stock becomes ex-bonus. |
| A. | Dividend stripping |
| B. | Bonus stripping |
| C. | Capital stripping |
| D. | Asset stripping |
| Answer» C. Capital stripping | |
| 75. |
………………… are simply the annual gains that an investment has earned over a specific period oftime. |
| A. | Annualized Return |
| B. | Absolute Return |
| C. | Holding period return |
| D. | None of the above |
| Answer» B. Absolute Return | |
| 76. |
Open-ended funds have to update offer document at least once in………… years |
| A. | 3 |
| B. | 2 |
| C. | 4 |
| D. | 5 |
| Answer» C. 4 | |
| 77. |
Equity related schemes are ………….. risky when compared to debt debt schemes. |
| A. | less |
| B. | equally |
| C. | more |
| D. | Cannot say |
| Answer» D. Cannot say | |
| 78. |
An open-ended mutual fund may do all of the following except |
| A. | sell shares directly to investors. |
| B. | charge a fee to buy but not sell shares. |
| C. | repurchase shares from investors who want to sell their shares. |
| D. | have its shares traded on a New York Stock Exchange. |
| Answer» E. | |
| 79. |
The offer document of an open ended fund is valid for ______ years. |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 2.5 |
| Answer» C. 3 | |
| 80. |
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» D. Starting of the day | |
| 81. |
Mutual Fund schemes are first offered to investors through. |
| A. | Stock exchange |
| B. | New Fund Offer |
| C. | Initial Public Offer |
| D. | AMFI |
| Answer» C. Initial Public Offer | |
| 82. |
Initial issue expenses of open-ended funds is amortised over a period not exceeding years_______% |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» B. 2 | |
| 83. |
What is an open-ended mutual fund? |
| A. | It is the one that has an option to invest in any kind of security |
| B. | It has units available for sale and repurchase at all times. |
| C. | It has an upper limit on its NAV |
| D. | It has a fixed fund size |
| Answer» C. It has an upper limit on its NAV | |
| 84. |
…………….. risk refers to a risk that affects the entire country or a particular region or a certainindustry. |
| A. | Market |
| B. | Credit |
| C. | Capital |
| D. | Scheme |
| Answer» B. Credit | |
| 85. |
……………………. Ratio determines how the return of the scheme has compensated and investor forthe risk he has taken. |
| A. | Treynor |
| B. | Sharpe |
| C. | Sortino |
| D. | Information |
| Answer» D. Information | |
| 86. |
The accounting year for mutual funds ends on ……… of each year. |
| A. | 31st December |
| B. | 31st March |
| C. | 30th September |
| D. | 1st April |
| Answer» C. 30th September | |
| 87. |
The performance of a scheme is reflected in its …………….. |
| A. | Net asset value |
| B. | Face Value |
| C. | NPV |
| D. | AMC |
| Answer» B. Face Value | |
| 88. |
……………… risk refers to a risk when there is political changes or change in investment policy of thegovernment. |
| A. | Market |
| B. | Credit |
| C. | Political |
| D. | Scheme |
| Answer» D. Scheme | |
| 89. |
……………….. ratio is a measure of the risk-adjusted return of a financial security or asset orportfolio. |
| A. | Treynor |
| B. | Sharpe |
| C. | Sortino |
| D. | Information |
| Answer» E. | |
| 90. |
……………….. of a mutual fund is the price at which units are bought or sold by investor. |
| A. | CP |
| B. | SP |
| C. | NAV |
| D. | NPV |
| Answer» D. NPV | |
| 91. |
NAV is declared everyday by deducting ……………. expenses |
| A. | Recurring |
| B. | Transaction |
| C. | Exit load |
| D. | Entry load |
| Answer» B. Transaction | |
| 92. |
The risk of losing money invested in mutual funds is called ………… |
| A. | Capital risk |
| B. | scheme risk |
| C. | credit risk |
| D. | market risk |
| Answer» B. scheme risk | |
| 93. |
……………. is a measure of the volatility of a particular fund in comparison to the market as a whole |
| A. | Beta |
| B. | R-squared |
| C. | Standard deviation |
| D. | Alpha |
| Answer» B. R-squared | |
| 94. |
________ is a method of investing in mutual funds wherein an investor chooses a mutual fund schemeand invests a the fixed amount of his choice at fixed intervals. |
| A. | Systematic Transfer Plan |
| B. | Systematic Withdrawal Plan |
| C. | Systematic Investment Plan |
| D. | Systematic Innovative Plan |
| Answer» D. Systematic Innovative Plan | |
| 95. |
Index funds incur _______ expenses and are ______ managed compared to other funds. |
| A. | fewer; not actively |
| B. | fewer; actively |
| C. | more; not actively |
| D. | more; actively |
| Answer» B. fewer; actively | |
| 96. |
…………. provides in detail scheme wise information about income and expenditure of mutual fund. |
| A. | Balance Sheet |
| B. | Revenue Statement |
| C. | Cash Flow Statement |
| D. | Fund Flow Statement |
| Answer» C. Cash Flow Statement | |
| 97. |
……………………. is a facility where investor will invest a fixed amount in a mutual fund scheme atregular intervals. |
| A. | SIP |
| B. | SWP |
| C. | STP |
| D. | SRT |
| Answer» B. SWP | |
| 98. |
When a security is not traded on any recognized stock exchange for a period of …. days prior to thevaluation date, the scrip must be treated as a “non-traded “security. |
| A. | 30 days |
| B. | 40 days |
| C. | 45 days |
| D. | 60 days |
| Answer» E. | |
| 99. |
……………….. ratio is the percentage of total assets that are spent to run a mutual fund |
| A. | Treynor |
| B. | Sharpe |
| C. | Expense |
| D. | Information |
| Answer» D. Information | |
| 100. |
Treasury bonds funds with short maturities have ______ default risk. |
| A. | High |
| B. | Low |
| C. | Average |
| D. | Nil |
| Answer» C. Average | |