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This set of Mutual Fund Management Multiple Choice Questions & Answers (MCQs) focuses on Mutual Fund Management Set 5

Q1 | Investments are accounted for on _______ date.
  • Year end
  • Quarter end
  • Trade
  • Half year end
Q2 | Initial issue expenses cannot exceed _______% of amount mobilised.
  • 5
  • 6
  • 4
  • 3
Q3 | Initial issue expenses of open-ended funds is amortised over a period not exceeding years_______%
  • 1
  • 2
  • 3
  • 4
Q4 | Mutual funds cannot pay dividend out of _______.
  • Net profit
  • Net loss
  • Unrealised profit
  • Realised profit
Q5 | An asset is non-performing if interest and/or principal are due for over ________ months.
  • One
  • Two
  • Three
  • Four
Q6 | An equity shares is considered non-traded if it is not traded for over _______ days.
  • 15
  • 20
  • 25
  • 30
Q7 | Valuation of debt instrument with less than 182 days to maturity is done on _______ basis.
  • Accrual
  • Cash
  • Real
  • None of the above
Q8 | Illiquid securities should not exceed _________% of the net assets.
  • 5
  • 7
  • 10
  • 15
Q9 | For an index fund, Ex-Marks will be ________%.
  • 50
  • 70
  • 90
  • 100
Q10 | If fund is assuming higher risk than the market index, its beta will be ________.
  • Greater than 1
  • Less than 1
  • Equal to 1
  • Equal to 2
Q11 | Graham’s strategy recommends ________% holding in debt funds and 50% holding in equity funds.
  • 50
  • 75
  • 40
  • 60
Q12 | Expenses ratio is very important for _____.
  • Debt fund
  • Index fund
  • Equity fund
  • Currency fund
Q13 | According to Bogle an investor’s exposure to debt investment should be equal to his ___.
  • Sex
  • Age
  • Income
  • Cast
Q14 | Higher expenses ratios lead to _______.
  • Yield sacrifices
  • Profit
  • Income
  • Wealth
Q15 | Closed ended funds were usually trading at _________ to NAV
  • Par
  • Premium
  • Discount
  • Free
Q16 | 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.
  • 10%
  • 15%
  • 20%
  • 25%
Q17 | If opening units 10,000 Units subscribe 3000, Units redeem 1000 then Closing units?
  • 10,000 units
  • 13,000 units
  • 12,000 units
  • 14,000 units
Q18 | If opening units 25,000 ,Units subscribe 7000, Units redeem 2000 then Closing units?
  • 30,000 units
  • 25,000 units
  • 32,000 units
  • 44,000 units
Q19 | If opening units 1,25,000 Units subscribe 2,00,000, Units redeem 50,000 then Closing units?
  • 3,25,000 units
  • 2,75,000 units
  • 3,75,000 units
  • 2,50,000 units
Q20 | NAV stands for
  • Net Application Value
  • Notional Assets Value
  • Net Assets Value
  • Net Assets
Q21 | High yield bonds have ______ potentials.
  • Low
  • High
  • Average
  • none
Q22 | Treasury bonds funds with short maturities have ______ default risk.
  • High
  • Low
  • Average
  • Nil
Q23 | Portfolio turnover is ______ for liquid funds.
  • Low
  • High
  • Average
  • Nil
Q24 | The benchmark for a balanced fund is Equity index and _______ combined in the sameProportion.
  • Market Index
  • Debt Index
  • Gold Index
  • Currency Index
Q25 | The AMC received no fees on funds are called as _______
  • Full Load
  • Extra Load
  • No Load
  • Half Load