Mutual Fund Management Set 6

Bachelor of Financial Markets (B.F.M)

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This set of Mutual Fund Management Multiple Choice Questions & Answers (MCQs) focuses on Mutual Fund Management Set 6

Q1 | UTI Act was enacted in the year ______.
  • 1975
  • 1955
  • 1963
  • 1995
Answer: 1963
Q2 | Expense ratio for a funds should be as ______ as possible.
  • High
  • Low
  • Average
  • NIl
Answer: Low
Q3 | Jensen’s Alpha focuses on _____________
  • Systematic Risk
  • Unsystematic Risk
  • Political Risk
  • Legal Risk
Answer: Unsystematic Risk
Q4 | A benchmark once chosen cannot be altered without _________ approval.
  • Custodian
  • AMFI
  • Trustees
  • RBI
Answer: Trustees
Q5 | Tracking Error of _______ fund has to be minimized.
  • Index Fund
  • Debt Fund
  • Guilt Fund
  • Equity Fund
Answer: Index Fund
Q6 | The ________ can issue offer documents on behalf of the trustees.
  • AMC
  • Custodian
  • Agents
  • AMD
Answer: AMC
Q7 | Expenses incurred that are above the regulatory limit are borne by sponsor & _____
  • AMC
  • Custodian
  • Agents
  • AMD
Answer: AMC
Q8 | A fund with _____ Sharpe ratio than the market is outperforming the market.
  • Lower
  • Higher
  • Average
  • Nil
Answer: Higher
Q9 | ________ funds tends to have lower expense than other type of mutual funds.
  • Equity funds
  • Debt Funds
  • Balance Funds
  • Index funds
Answer: Index funds
Q10 | Rupee cost averaging means investing fixed amount _________.
  • Periodically
  • Lump sum
  • Yearly
  • Half Yearly
Answer: Periodically
Q11 | ETF stands for ____________.
  • Exchange Traded Funds
  • Even Traded Funds
  • Exchange Transactions Funds
  • Extra Traded Funds
Answer: Exchange Traded Funds
Q12 | NFO stands for_____________
  • New Funds Offer
  • Net Frauds in Office
  • New Funds in Office
  • Net Frauds Offer
Answer: New Funds Offer
Q13 | If Holding Period return are 25% & period is 2 years then Annualized returns ____.
  • 25%
  • 12.50%
  • 50%
  • 37.50%
Answer: 12.50%
Q14 | If Holding Period return are 20% & period is 2 years then Annualized returns ____.
  • 20%
  • 10%
  • 40%
  • 15%
Answer: 10%
Q15 | Financial year for all mutual fund schemes ends on ……………
  • 31st December
  • 31st March
  • 30th September
  • 30th June
Answer: 31st March
Q16 | Risk is less in ………………….
  • Equity fund
  • growth fund
  • index fund
  • debt fund
Answer: debt fund
Q17 | Equity funds are exempt from long term capital gain tax when investments are held for at least………… months from the date of acquisition.
  • 6
  • 3
  • 9
  • 12
Answer: 12
Q18 | ……………… funds invest in companies of different sectors across the market.
  • Sectoral
  • Diversified
  • Thematic
  • Index based
Answer: Diversified
Q19 | ………… funds are an extension of sector funds.
  • Value
  • Diversified
  • Thematic
  • Index based
Answer: Thematic
Q20 | ………… funds use algorithmic, in which computer software takes buy/ sell decisions on the basis offormula
  • Value
  • Quant
  • Thematic
  • Arbitrage
Answer: Quant
Q21 | Open-ended funds have to update offer document at least once in………… years
  • 3
  • 2
  • 4
  • 5
Answer: 2
Q22 | CAS stands for …………………..
  • Combined Account Statement
  • Consolidated Account Statement
  • Combined Account System
  • Consolidated Account System
Answer: Consolidated Account Statement
Q23 | Consolidated Account Statements is sent …………….. to investors in whose folios no transaction hastaken place.
  • every 2 months
  • every 3 months
  • every 4 months
  • every 6 months
Answer: every 6 months
Q24 | R-squared value range from 0 to ……………
  • 0.5
  • 0.75
  • 1
  • 0.25
Answer: 1
Q25 | A …………… risk refers to the possibility of a stock issuer to go bankrupt or facing heavy losses.
  • Business
  • Credit
  • Capital
  • Scheme
Answer: Business
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