Deck 6: Mutual Fund Terminology and Concepts

Question 1

UTI Act was enacted in the year ______.

A)1975
B)1955
C)1963
D)1995

Answer 1

1963

Question 2

Expense ratio for a funds should be as ______ as possible.

A)High
B)Low
C)Average
D)NIl

Answer 2

Low

Question 3

Jensen's Alpha focuses on _____________

A)Systematic Risk
B)Unsystematic Risk
C)Political Risk
D)Legal Risk

Answer 3

Unsystematic Risk

Question 4

A benchmark once chosen cannot be altered without _________ approval.

A)Custodian
B)AMFI
C)Trustees
D)RBI

Question 5

Tracking Error of _______ fund has to be minimized.

A)Index Fund
B)Debt Fund
C)Guilt Fund
D)Equity Fund

Question 6

The ________ can issue offer documents on behalf of the trustees.

A)AMC
B)Custodian
C)Agents
D)AMD

Question 7

Expenses incurred that are above the regulatory limit are borne by sponsor & _____

A)AMC
B)Custodian
C)Agents
D)AMD

Question 8

A fund with _____ Sharpe ratio than the market is outperforming the market.

A)Lower
B)Higher
C)Average
D)Nil

Question 9

________ funds tends to have lower expense than other type of mutual funds.

A)Equity funds
B)Debt Funds
C)Balance Funds
D)Index funds

Question 10

Rupee cost averaging means investing fixed amount _________.

A)Periodically
B)Lump sum
C)Yearly
D)Half Yearly

Question 11

ETF stands for ____________.

A)Exchange Traded Funds
B)Even Traded Funds
C)Exchange Transactions Funds
D)Extra Traded Funds

Question 12

NFO stands for_____________

A)New Funds Offer
B)Net Frauds in Office
C)New Funds in Office
D)Net Frauds Offer

Question 13

If Holding Period return are 25% & period is 2 years then Annualized returns ____.

A)25%
B)12.5%
C)50%
D)37.5%

Question 14

If Holding Period return are 20% & period is 2 years then Annualized returns ____.

A)20%
B)10%
C)40%
D)15%

Question 15

Financial year for all mutual fund schemes ends on ……………

A)31st December
B)31st March
C)30th September
D)30th June

Question 16

Risk is less in ………………….

A)Equity fund
B)growth fund
C)index fund
D)debt fund

Question 17

Equity funds are exempt from long term capital gain tax when investments are held for at least ………… months from the date of acquisition.

A)6
B)3
C)9
D)12

Question 18

……………… funds invest in companies of different sectors across the market.

A)Sectoral
B)Diversified
C)Thematic
D)Index based

Question 19

………… funds are an extension of sector funds.

A)Value
B)Diversified
C)Thematic
D)Index based

Question 20

………… funds use algorithmic, in which computer software takes buy/ sell decisions on the basis of formula

A)Value
B)Quant
C)Thematic
D)Arbitrage

Question 21

Open-ended funds have to update offer document at least once in………… years

A)3
B)2
C)4
D)5

Question 22

CAS stands for …………………..

A)Combined Account Statement
B)Consolidated Account Statement
C)Combined Account System
D)Consolidated Account System

Question 23

Consolidated Account Statements is sent …………….. to investors in whose folios no transaction has taken place.

A)every 2 months
B)every 3 months
C)every 4 months
D)every 6 months

Question 24

R-squared value range from 0 to ……………

A)0.5
B)0.75
C)1
D)0.25

Question 25

A …………… risk refers to the possibility of a stock issuer to go bankrupt or facing heavy losses.

A)Business
B)Credit
C)Capital
D)Scheme