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Question * Option 1 Option 2 Option 3 Option 4 *
The asset allocation of an investor should mainly depend upon: Resources available & Recommendations
market conditions Ability to take risk & Investors need and from Mutual Fund
investment horizon resources available distributor 2
Investors are best advised to avoid risks, when the financial goal is: Medium Term In all cases -
irrespective of
Long Term Short term duration 3
Investors are advised to have core portfolio according to: Medium Term needs In all cases -
irrespective of
Short term needs Long Term needs duration 3
When inflation is high, investors can increase exposure in: Debt Securities Gold Equities Hybrid funds 2
The return from International Equity Funds depends upon: Only on return in the Return in the Equity
Equity (where the (where the amount is
amount is invested) invested) and Only on Exchange Only when INR
Exchange Rates Rate movements appreciates 2
Even when interest rates moves up and down, NAV of Floating TRUE
Debt Funds remain more or less stable. Mention True or False FALSE 1
The below funds have been arranged in order of decreasing risk. Price risk
Which risk are we referring to? Diversified funds ---- Focused funds
----- Thematic funds ------ Sector funds Liquidity risk Concentration risk Market risk 3
The division between Core and satellite portfolio mainly depends Investor's income None of these -
upon: investors are
advised not to
have satellite
Investor's risk profile Investor's need portfolio 2
From the following, which scheme will have lowest risk? Hybrid Debt Liquid Equity 3
Investors prefer FMP when their time horizon is in sync with TRUE
maturity of FMP. Mention true or false. FALSE 1
Among the Debt Funds, interest rate will be highest in _______. Medium Duration Fund Risk is common in
all debt schemes -
irrespective of
Shor Duration Fund Long Duration Fund duration 3
Ideally, the returns of Equity Funds are to be seen for ….. year/s 2
period before investing. Fill in the blanks. 4 3 5 4
Passive Funds are suitable to investors looking for asset class TRUE
without the risks associated with FM & strategies. Mention true of
false FALSE 1
A person of lower age can take more risk and can have more TRUE
investments in Equities, when compared to an aged person.
Mention true or false FALSE 1
Which one of the following is NOT a feature of Index Funds? Traded in Stock Portfolio mimics the
Exchanges index in proportion
Has lesser expense to the weightage Fund Manager's
ratio assigned role is very limited 1
Exchange Traded Funds are: Active Funds Passive Funds Equity Funds Debt Funds 2
Open ended funds normally keep less cash when compared to FALSE
close ended scheme. Mention true or false TRUE 1
An investor can invest for higher returns in close ended schemes Investments are mainly Maturity of the
provided: in Equities or Equity Investor does not scheme should The investor does
oriented products want to have any match with the not want to take
liquidity from the investor's any risk from the
investments requirements investments 3
When economy revives, in long term, some of the mid/small cap TRUE
companies can become large cap companies, whose shares can
get re-rated and provide healthy returns. Mention true or false FALSE 1
A Fund Manager adopting growth strategy will look for investment Prices are relatively Prices are expected
in securities whose: lower when compared to grow faster than Share prices are Share prices are
to the value of the stock average economic high as reflected in Low reflected in
growth rate. high PE ratio low PE ratio 2
Normally, Value Funds yield better return over growth funds in long TRUE
run. Mention true or false. FALSE 1
Investments in Fixed Maturity Plans can have liquidity through the FALSE
transactions in Stock Exchanges. Mention True or false. TRUE 2
Returns from Liquid Funds can be well compared with: Bank FD rates Call Money rates S.B rates PPF rates 3
The distinctive feature of Floater Funds is that: NAV always goes up. NAV tends to be
NAV goes up when NAV comes down study even when
interest rates come when interest rates interest rates
down come down. fluctuates 4
For the purpose of taxation, Balanced scheme can be: Equity or non-equity as Equity or
per proportion of non-equity as per
holding in equities Always Equity Always Non-Equity classification by
Schemes Scheme AMC 1
Gold Sector Funds are required to invest in: Pure Gold 50 per cent in
Gold and
remaining in Gold
Gold mining or mining or
processing processing
Gold ETFs companies companies 3
Before investing in Long term Debt Funds, an investor has to Half
evaluate Fund Performance for the last ……. Year/s. Fill in the
blank 2 1 3 4
Investor should prefer investments in schemes having large fund TRUE
size, if the investment objective to invest in large caps. Mention true
or false. FALSE 1
If yearly purchases comes to Rs.100 crores and sales 150 crore 2 times
and average holdings comes to 125, Portfolio Turnover will be: 200 times 20 percent 1.5 times 1
Mutual Fund ranking agencies rank different schemes mainly based Risk & Return None of these - as
on: Return & Risk Risk, Return & Risk there is no such
adjusted Return adjusted Return ranking done. 3
Tactical Allocation implies (as against Strategic Allocation): Investing for a shorter
period to take Investing for a very Deciding to invest
advantage expecting a Long period Deciding to invest in in Liquid Schemes
buoyancy in equity expecting a buoyancy Govt securities to to minimize the
market in Interest rates minimize the risks risks 1
There is not much scope for investment strategy in Passive Funds. TRUE
Mention true or false. FALSE 1
The main purpose of prudent asset allocation is: Only to minimize the To enhance the Not to enhance the
risk return, even with Only to enhance the return, but to
higher risk return reduce the risk 4
As the earnings members in a family increases, generally risk Decrease change depends
appetite : upon the market
Increase Remain unchanged conditions 2
Under Strategic Allocation, asset allocation will change if there is a TRUE
change in risk and return preference of the investor. Mention true or
false FALSE 1
In Risk-o meter Low indicates Interest is at low risk Total investment at Total investment at
Principal at low risk low risk high risk 2
Fixed Maturity plans are close ended debt funds. True or False? TRUE FALSE 1