Jaiib recollected questions free notes

 Jaiib recollected questions

1. The requirement of an independent director in an Asset Management company  is- 

a. One-half of all directors 

b. One-fourth of all directors 

c. Three-fourth of all directors 

d. Two-third of all directors 

 

2. Most of the Arbitrage funds take contrary position of futures and options 

a. True 

b. False 

 

3. The offshore fund is also known as feeder fund 

a. True 

b. False 

 

4. If an Indian MF sector sees potential in making investments in china, it will tie-up with 

Chinese fund. In india, this will be known as Feeder, while in china it will be called 

a. China made portfolio 

b. Arbitrage Fund 

c. Host fund 

d. Offshore fund 

 

5. All are the commodities except 

a. Gold 

b. Crops 

c. Industrial Metal 

d. Real Estate 

 

6. MIP  is a debt fund 

a. True 

b. False 

 

7. FMP is mostly a close-ended fund 

a. True 

b. False 

 

8. Units are re-purchased in close-ended funds at a. Higher than NAV 

b. Lower than NAV 

c. Whatever the price higher than NAV or lower than NAV 

d. At NAV price only 

 

9. Which of these instruments is not issued by the corporate 

a. Debentures 

b. Commercial Papers 

c. Fixed Deposits 

d. Bonds 

 

10. Interval Funds are 

a. Largely open-ended but convert into close-ended at pre-specified intervals 

b. Largely close-ended but convert into open-ended at pre-specified intervals 

c. Always open-ended 

d. None of the above 

 

11. In India the first mutual fund was established in 

a. 1963 

b. 1964 

c. 1987 

d. 1993 

 

12. Mutual funds shall be recommended as 

a. A get rich quick investment option 

b. Investments to achieve long-term goals 

c. Guaranteed returns 

d. Direct investment  in capital market 

 

13. Investments in an Equity Linked Saving Scheme(ELSS) 

a. Entitles the investor to claim tax rebate 

b. Requires the investment to be locked for a period of 3 yrs 

c. Automatically leads to investment in equity shares 

d. All of these 

 

14. The most Investor services centre are offices of 

a. Trustee b. RTA 

c. Custodian 

d. Fund Accountant 

 

15. Mutual fund is constituted as  

a. Trust 

b. Company 

c. NBFC 

d. Financial Intermediary 

 

16. A trustee company functions through 

a. Board of Trustees 

b. Board of Directors 

c. Trust 

d. Board of Directors of the company 

 

17. The function of  RTA is 

a. Updated NAV 

b. Maintain the records of the investor 

c. Issuing and re-purchasing transactions of units 

d. None of the above 

 

18. Trust deed are contract between Trustee and ___________ 

a. Sponsor 

b. AMC 

c. SEBI 

d. Investors 

 

19. KYC application forms are accepted at __________ 

a. Point of Service 

b. Point of Acceptance 

c. RTA 

d. NSDL 

 

20. Appointment of distributor by fund is the contract between the distributor and the 

a. AMC 

b. Investor c. SEBI 

d. AMFI 

 

21. To convert the physical into demat, the investor must approach to 

a. Depository 

b. NSDL 

c. Depository Participant 

d. CDSL 

 

22. The objective of AMFI is 

a. Providing training to all the distributors 

b. Implement the certification programme 

c. To develop the cadre of agent 

d. All of these 

 

23. PAN and KYC are mandatory for Mutual Fund Investments 

a. True 

b. False 

 

24. NEAT MFSS is open from 

a. 9am to 3pm 

b. 24hrs 

c. 10am to 4pm 

d. None of these 

 

25. If there are any changes in the fundamental attributes of a scheme, the AMC must issue 

a. Addendum 

b. Addendum in any 2 newspaper 

c. Addendum in one English newspaper and one local newspaper of AMCs head office 

d. Not issue any notice 

 

26. The useful downloads of all circulars up to last year, which are updated on the website of 

SEBI are known as: 

a. Circular 

b. Master Circular 

c. Addendum 

d. All of these 27. If the explanation is not sent to AMFI in case of any breach of conduct by then distributor, 

then AMFI 

a. Cancels the ARN of the distributor 

b. Can empanel the distributor 

c. Can cancel the ARN of that distributor and inform to all the AMCs 

d. Suspend the distributor 

 

28. Though AGNI is mandate, there is no penalties in case of breach of code 

a. True 

b. False 

 

29. KYC is not required in case of Minors 

a. This statement is true 

b. KYC of minor is mandatory 

c. KYC of guardian is required in case if investments is in minor’s name 

d. KYC is not mandatory in case of Mutual Fund 

 

30. Who enables the collection and payment of investments 

a. Registrar 

b. SEBI 

c. AMFI 

d. RBI 

 

31. Distributor while getting empanelled also fills self declaration stating that 

a. They should receive commission on time 

b. All employees who are engaged in the sale and distribution shall obtain ARN 

c. Shall abide with SEBI code of ethics 

d. None of the above 

 

32. The SAI is relevant for all the schemes offered by the same Mutual Fund 

a. True 

b. False 

 

33. Differed load is charged only in close-ended funds 

a. True 

b. False  

34. The investor cannot set off the Capital loss if 

a. He is redeeming the investments within 9 months 

b. He is redeeming within 9 months after record date of dividend 

c. He is investing within 3 months prior to the record date of dividend 

d. Both B & C 

 

35. Offer document of MF is approved by SEBI 

a. True 

b. False 

 

36. Trail commission is calculated as 

a. A percentage of the Net Asset Value of unit holder 

b. At Investment amount 

c. Will not get any commission 

d. Fixed percentage according to SEBI regulation 

 

37. Remittance in Mutual Fund can be done through 

a. RTGS & NEFT 

b. IFCR 

c. MICR 

d. NRE & NRO A/c 

 

38. An Institutional distributor builds reach through 

a. Employees 

b. Agents 

c. Sub-brokers 

d. All of these 

 

39. In audio and video advertisements, the disclaimer clause must 

a. Display on screen for 5 seconds 

b. Need to cover 50% of screen 

c. Both a and b 

d. Need not to be disclosed 

 

40. For online transactions, MF allot a. IPIN and User Name to existing investors only 

b. IPIN to existing investors only 

c. IPIN and user name to all new investors 

d. No need any facility for doing the transaction 

 

41. Who cannot invest in Mutual Fund 

a. Foreign Companies 

b. Foreign Individual 

c. The trust where more than 60% if the beneficial interest is held by NRI 

d. Both 2 and 3 

 

42. An investor invested in Gilt fund for Rs.18000 for a period of 18 months and at the time of 

redemption, the value of the fund was at Rs. 50000. Find the Capital Gains Tax (ignoring the 

indexation). 

a. Rs.3200 

b. Rs.6000 

c. NIL 

d. None of these 

 

43. Investors need to pay wealth tax if he is investing in gold ETF. 

a. True 

b. False 

 

44. Unit Capital is 

a. No. Of units * Face Value 

b. No. Of units outstanding * Face Value 

c. No. Of units issued * Current market price 

d. NAV* Face Value 

 

45. SEBI has stopped charging 

a. Initial Issue Expenses 

b. Exit Load 

c. Deferred Load 

d. Management fees in Liquid Fund 

 

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46. SEBI has banned entry load in Mutual fund from 1 August, 2009. 

a. True b. False 

 

47. NAV of funds are rounded off 

a. In equity fund up to 2 decimals 

b. Except than equity other funds are rounded off up to 3 decimals 

c. In liquid fund up to 4 decimals and other than liquid up to 3 decimals 

d. In debt fund up to 1 decimals 

 

48. STT is levied on re-purchase of unit from mutual fund 

a. 0.00125 

b. 0.00015 

c. 0.0025 

d. 0.00017 

 

49. Mutual fund is liable to fare for 

a. Dividend 

b. Income 

c. Capital Gain 

d. Dividend Distribution 

 

50. Standard deviation measures 

a. Fluctuations of a fund result around a mean level 

b. Sensitivity of a fund returns to changes in market index 

c. Weighted average P/E ratios of all stocks held in portfolio 

d. Risk Premium of the fund 

 

51. NAV after dividend payment is called 

a. Re-investment 

b. Cum dividend 

c. Ex-dividend 

d. None of the above 

 

52. Dividend distribution tax paid on money market instruments is 

a. 0.25 

b. NIL 

c. 25%+surcharge+cess 

d. 20%+surcharge+cess  

53. The new platform for trading in NSE and BSE is called 

a. NEAT MFSS 

b. BSE Star Mutual Fund 

c. Both 1 and 2 

d. NEAT MMF 

 

 

54. Individual Investor cannot pledge the units 

a. True 

b. False 

 

55. Redemption is 

a. NAV minus Exit Load 

b. NAV plus Exit Load 

c. NAV plus Entry Load 

d. NAV minus Entry Load 

 

56. Investors do not have the right to inspect 

a. Compliance Report 

b. Custodial Agreement 

c. Trust Deed 

d. Investment report of the fund manager 

 

57. Which of the following has the least risk in the mutual funds 

a. Money Market Mutual Fund 

b. Equity Fund 

c. Growth Fund 

d. Gilt Fund 

 

58. Rating and Ranking is one and the same thing 

a. True 

b. False 

 

59. A bond rating indicates its 

a. Reinvestment risk 

b. Default risk 

c. Inflation risk d. Interest-rate risk 

 

60. Fundamental analyst is also known as chartist 

a. True 

b. False 

 

61. The highest rating given by crisil 

a. AAA 

b. ABB 

c. AAA* 

d. A++ 

 

62. Which of the following investment products do not give guarantee for return or capital 

a. Bank Deposits 

b. Public Provident Fund (PPF) 

c. National Savings Certificate (NSC) 

d. Units of a mutual fund 

 

63. All fund have significant similarities except one 

a. MIP 

b. Balanced Fund 

c. Capital Protected Fund 

d. Sector Fund 

 

64. Benchmark for Money Market Mutual Fund 

a. CRISIL CompBEX 

b. CRISIL LiquiFEX 

c. NSE’s MIBOR 

d. Both B and C 

 

65. Benchmark for Money Market Mutual Fund is 

a. CRISIL CompBex- Composite Bond Index 

b. CRISIL MIPEX 

c. CRISIL Banking Index 

d. CRISIL Debt Hybrid Index 

 66. Benchmark for MIP 

a. CRISIL  CompBEX- Composite Bond Index 

b. CRISIL MIPEX 

c. CRISIL STBEX- Short term Bond Index 

d. CRISIL Debt Hybrid Index 

 

67. Quality of Bond can be made out of 

a. YTM 

b. Credit Rating 

c. Yield Matrix 

d. Yield Quality 

 

68. Debt Funds are exposed to 

a. Market specific risk 

b. Sector specific risk 

c. Company specific risk 

d. Credit risk 

 

69. Which of this is not a part of high-risk funds 

a. Aggressive Growth Funds 

b. Sector Funds 

c. Income funds 

d. Specialized Funds 

 

70. Which of these strategies is best to reduce company specific risk 

a. Holding largely diversified portfolio 

b. Holding more number of sectors in a portfolio 

c. By hedging with futures as an option 

d. None of the above 

 

71. For which of the following funds would you consider average maturity as an important 

factor in selecting the right one for the investor 

a. A debt fund 

b. A balanced fund 

c. Money Market Fund 

d. Both 1 and 2 above 

 72. Which of this statement about balanced fund is true 

a. Balanced fund is exactly 50% equity and exactly 50% debt 

b. Balanced fund is exactly 40% equity and exactly 60% debt 

c. Balanced fund is rarely exactly 50% equity and exactly 50% debt 

d. Balanced fund is exactly 60% equity and exactly 40% debt 

 

73. Black Swan is referred to as 

a. A kind of offer document 

b. When the market can behave in a manner  not seem in the past 

c. Black marketing 

d. Opposite of White Swan 

 

74. Which of the following statement is true 

a. Growth and risk are associated with equity funds 

b. Stability is associated with debt funds 

c. Both 1 and 2 

d. None of the above 

 

75. Who amongst the following will help to find the perfect company to invest 

a. Fundamental Analysis 

b. Tactical Fund Manager 

c. Technical  Analysis 

d. Passive Fund Manager 

 

76. Stock Picking is 

a. Top-down approach 

b. Bottom-up approach 

c. Technical approach 

d. Fundamental approach 

 77. An investor asks you in what order he should list the following schemes, going from the 

scheme with the least risk to the one with the highest risk- 1. Balanced fund 2. A stock index 

3. A Liquid Fund 4. Pharmaceutical sector fund. 

a. 1,2,3,4 

b. 1,3,4,2 

c. 3,1,2,4 

d. 2,3,1,4 

78.  Which of this is not a criteria for consideration while selecting an equity fund 

       a. Classify the scheme 

       b. Evaluate past returns 

       c. Cost 

       d. Reviewing funds structural characteristics 

 

79. Which of this statement is true? 

       a. Selecting a money market fund is easier than selecting a bond or equity fund 

      b. Selecting a bond fund is easier than selecting a money market 

      c. Selecting a Equity Fund is easier than selecting a money market 

      d. None of the above 

 

80. Risk tolerance is 

       a. is the abnormal loss, which the investor is ready to incur 

       b. is the extent of loss that the client can tolerate psychologically and financially 

       c. is the normal loss of an investment category 

       d. None of the above 

 81. G-Sec papers are normally issued on a  

      a. Short term basis 

      b. Medium term basis 

       c. Long term basis 

       d. Very short term basis 

82.  Who is responsible for OD 

      a. SEBI 

      b. AMC 

      c. AMFI 

       d. Trustee 

83. For young investors doing retirement planning 

      a. Monthly Income schemes are appropriate 

      b. Long term bond funds are appropriate 

     c. Money Market funds are appropriate 

     d. None of the above 

 

84. Why should a fund distributor become a financial planner 

      a. Because of strong potential for such services 

      b. Because of limited supply of financial planner 

      c. Because of the kind of money this business offers 

      d. Only 1 and 2 

 

85. Which of the following are true?       a. Its the duty of the clients to set measurable financial goals 

     b. It’s the financial planner’s duty to set measurable financial goals for his clients 

     c. Both the clients and the financial planners should together set measurable financial goals 

     d. None of the above 

86.  The rupee-cost averaging talks about 

       a. Investments for the same amount at regular intervals 

       b. When to buy, sell or switch from one scheme to another 

       c. Dis-regarding the non-performers and keeping the good performers 

       d. All the above 

87. Direct investments in stock markets can be a  better option over investing through mutual funds if 

      a. The investor wants better returns than those offered by mutual funds 

      b. The investor has large capital, knowledge and resources for research 

      c. The investor has identified a bullish phase in the stock market 

      d. The investor wants to invest for the long term  

 

88. Which of this is not a step in the financial planning process 

      a. Determine the shape and risk tolerance level of the client 

      b. Define the client goals 

      c. Portfolio rebalancing 

      d. Managing the clients balances 

 

89. Which of these is not the clients responsibilities? 

     a. Set measurable client goals      b. Re-evaluate the financial situation periodically 

     c. Have realistic expectations 

     d. Gather and analyze data 

 

90. The strategy advisable for an investor to maximize investment returns in the long run 

      a. Buy and hold on to investments for a long time 

     b. Liquidate poorly performing investments from time to time 

     c. Liquidate good performing investments from time to time 

     d. Switch from poor performers to good performers 

 

91. Portfolio rebalancing is 

     a. A one-time process 

     b. has to be done once in fortnight 

     c. is an indefinite continuous process 

     d. has to be done once a year 

 

92. If you maintain a flexible ratio of asset allocation, would you 

      a. Rebalance the debt/Equity  allocation periodically 

      b. Rebalance the debt/Equity  allocation very periodically 

      c. Generally avoid portfolio rebalancing 

      d. Keep fixed percentages of Equity and Debt investments at all times 

 

93. Which of the asset allocation principles talks about adjusting the percentages for each group of 

investors after taking account of their age?          a. Fixed v/s Flexible asset allocation 

         b. Strategic Asset Allocation 

         c. Tactical asset allocation 

         d. Benjamin Graham’s 50-50 balance 

 

94. Client gives a 2 cr cheque for investing in liquid fund @ 1 pm and there are no funds in the bank 

acc. The NAV that client will get on allotment wil the NAV as on 

a. Same day the cheque was presented 

b. 1  day after cheque was presented 

c. 2 days after cheque was presented 

d. The NAV on the date that the funds are available in the bank a/c 

 

95. Profits or losses incurred when managing a scheme belong to 

a. Fund mgr 

b. Scheme’s investors 

c. AMC 

d. AMFI 

 

96. High transaction cost would hurt which one the most? 

a. Fund with large corpus 

b. Fund with small corpus 

c. Corpus size doesn’t matter 

d. Fund with both Large and small corpus 

 

97. Which of the following statements is not true about Mutual Funds? 

       a. Investing in MF diversify portfolio        b. Investing in MF offer liquidity 

       c. Investing in MF increases transaction cost 

       d. MF offers professional Management 

 

98. Investors do not always look for returns while investing in 

     a. Mutual Funds 

     b. Real Estate 

     c. Gold 

     d. Bank Deposits 

 

99. If a financial advisor gives alternate plans for investment, investor might get confused 

    a. True 

   b. False 

100. Winning lottery is an example of 

       a. Sudden Wealth 

       b. Transition stage 

      c. Wealth Cycle 

      d. Life Cycle