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Mfi Questions

AMFI Model Test Paper

The Concept and Role of Mutual Funds

1. Which of the following is not a Mutual Fund characteristic?
a) Diversified portfolio
b) Careful research and monitoring of the market
c) Substantial capital
d) Expertise in stock market

2. Choose the advantage of Mutual Funds
a) Small amount of investment
b) Professional management
c) Risk diversification
d) All of the above

3. UTI was the only capital market intermediary for the period:
a) 1964 to 1987
b) 1963 to 1988
c) 1964 to 1992
d) None of the above

4. Mutual Funds can be defined as
a) A link between the saving public and the capital markets
b) An active participant in promoting good corporate governance, investor protection
c) A participant that has brought in liquidity into the financial system
d) All of the above

5. The ownership of a Mutual Fund belongs to
a) Board of Trustees
b) Sponsor
c) AMC
d) Unit-holders

6. A Mutual Funds’ investment are guided by
a) AMC
b) Board of Trustees
c) Investment objectives
d) Unit-holders

7. In USA, a mutual fund is constituted as
a) Trust
b) Investment company
c) Company
d) None of the above

8. In India, a mutual is constituted as
a) Trust
b) Investment company
c) Company
d) None of the above

9. An investor should not invest in Mutual Fund, if
a) His capital base is large and is able to monitor the stock market
b) He is able to carry out detailed investment research
c) Both of the above
d) None of the above

10. The advantage to a Mutual fund investor is
a) The risk involved is diversified
b) The investor can hold the diversified portfolio even with small investment
c) Expertise in stock market is not required
d) All of the above

11. The term professional management indicates
a) Investment management skills
b) Research of a available investment options
c)...