On This Page

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