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This set of Mutual Fund Management Multiple Choice Questions & Answers (MCQs) focuses on Mutual Fund Management Set 2
Q1 | AMFI was incorporated on ________________.
- 22nd August 1995
- 12th April 1992
- 1st April 1935
- 15th August 1947
Q2 | Which type of fund is more volatile?
- Large-cap fund
- Mid-cap funds
- Small-cap funds
- Hybrid Funds
Q3 | An investor pays a tax on the dividend that he receives from a mutual fund scheme at
- 10%
- 20%
- 30%
- Tax is not applicable
Q4 | Investors can enter and exit under _______ at any time
- Fixed maturity plan
- Open-Ended Funds
- Close-Ended Funds
- Interval fund
Q5 | The NAV of each scheme should be updated on AMFI's website
- Every Day
- Every month
- Every hour
- Every quarter
Q6 | Mutual Fund schemes are first offered to investors through.
- Stock exchange
- New Fund Offer
- Initial Public Offer
- AMFI
Q7 | Which of the following banks launched the first mutual fund in India?
- SBI
- Canara Bank
- Bank of India
- Indian Bank
Q8 | Which of the following organizations is the Mutual Fund Market regulator in India?
- SEBI
- RBI
- AMFI
- CIBIL
Q9 | A Mutual fund is owned by _____________.
- SEBI
- The Government of India
- AMFI
- All its investors
Q10 | SIP is a _______________.
- Method of regular investment
- Name of a mutual fund
- Brand of a tea stock
- Method of one time investment
Q11 | SIP stands for ______________.
- Systematic investment plan
- Simple investment plan
- Simplified investment programme
- Single investment plan
Q12 | Day to day operations of a mutual fund is handled by
- Asset Management Company
- Sponsor
- Trustee
- Shareholders
Q13 | Mutual funds are constituted in India as ____________.
- Trust
- Limited liability partnership
- Companies
- Non-Government organisations
Q14 | The susceptibility of a mutual fund’s performance to general stock market conditions is known as
- Interest rate risk
- Market risk
- Exchange risk
- Corporate risk
Q15 | The _________ is the market value of the securities that mutual funds have purchased minus anyliabilities per unit.
- Net asset value
- Book value
- Gross asset value
- Net worth value
Q16 | Which payment mode is not applicable while purchasing mutual fund scheme?
- Cheque
- Demand Draft
- Cash
- Pay Order
Q17 | ____________ are an important link between fund managers and investors.
- Trustee
- Asset Management Company
- Custodian
- Registrar And Transfer Agents
Q18 | What is an open-ended mutual fund?
- It is the one that has an option to invest in any kind of security
- It has units available for sale and repurchase at all times.
- It has an upper limit on its NAV
- It has a fixed fund size
Q19 | In ____________ funds, the money is invested primarily in short-term or very short-terminstruments e.g. T-Bills, CPs etc.
- Growth fund
- Income funds
- Liquid funds
- Tax-Saving Funds (ELSS)
Q20 | ________ 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.
- Systematic Transfer Plan
- Systematic Withdrawal Plan
- Systematic Investment Plan
- Systematic Innovative Plan
Q21 | Mutual funds in India are permitted to invest in___________
- Securitie
- Securities and gold
- Securities other than real estate
- Securities, gold, real estate
Q22 | ……… is the first time subscription offer for a new scheme launched by the Asset Management Company.
- FFO
- CFO
- IPO
- NFO
Q23 | A mutual fund is a ……………intermediary (like a trust) regulated in India by the SEBI.
- financial
- professional
- physical
- Mental
Q24 | Transaction cost is ………… with investment in Mutual Funds.
- high
- low
- very high
- Nil
Q25 | ………………… helps to improve the risk return relationship.
- Diversification
- Liquidity
- Professional Management
- tax