5a Part 2

A visually engaging illustration representing mutual funds, investment strategies, and financial planning, featuring graphs, charts, and diverse investors discussing with professionals.

Investment Wisdom Quiz

Test your knowledge on mutual funds and investment strategies with our engaging quiz. Designed for both budding investors and seasoned professionals, this quiz will challenge your understanding of mutual fund distribution and valuation.

Key Features:

30 thought-provoking questions
Multiple choice format for easy answering
Learn while you play and enhance your investment skills

30 Questions8 MinutesCreated by InvestingEagle57

Two professionals have been shown between the investor and her investment portfolio - a mutual fund distributor, and a fund manager

True

False

Distributor’s job is to assess the needs, limitations, resources and financial goals of the investor.

True

False

The mutual fund distributor earns revenue in the form of Fees

True

False

Upfronting of trail commission is allowed only in case of inflows through Systematic Investment Plans (SIPs) of up to Rs. 3,000 per month for an investor investing in mutual fund schemes for the first time

True

False

Trail commission is calculated as a percentage of the net assets attributable to the Units sold by the distributor

True

False

The trail commission is normally paid by the AMC on a quarterly basis or monthly basis

True

False

Trail commission rate is mentioned as percent per annum, the same needs to be divided by 365 to arrive at the daily trail commission amount.

True

False

Distributors have the option of opting out of charging transaction charges at the folio level

True

False

The Goods and Services Tax (GST) became applicable with effect from July 2017.

True

False

Mutual fund distributors earn no commission when the investor chooses to invest in “direct” plans

True

False

Mutual Fund Distributors Certification Examination offered by is required for becoming a mutual fund distributor

National Institute of Securities Markets

Securities and Exchange Board of India

Association of Mutual Funds in India

National Skills Development Corporation

The valuation shall be done in good faith and in true and fair manner through appropriate valuation policies and procedures.

True

False

The responsibility of true and fairness of valuation and correct NAV shall be of the asset management company

True

False

The NAV is meant to reflect the true worth of each unit of the scheme

True

False

Investment and Advisory Fees are charged to the scheme by the Sebi

True

False

AMCs need to prominently disclose on a daily basis

True

False

SEBI guidelines stipulate those dividends can be paid out of distributable reserves

True

False

The AMC shall decide the quantum of dividend and the record date

True

False

Valuation gains are ignored. But valuation losses need to be adjusted against the profits.

True

False

The auditor for the AMC has to be different from that of the schemes.

True

False

AMC shall not charge investment and advisory fees on the segregated portfolio. However, TER can be charged

True

False

The capital gains are taxed differently in comparison to the dividend income

True

False

Stamp duty @0.005% of the investment amount shall be applicable at the time of issue of units for both physical and demat units.

True

False

As per SEBI's mandate, AMCs has to put in place a due diligence process to regulate distributors. Which of these mutual fund distributors would not be subjected to the due diligence process?

AUM raised of Rs. 60 crore across industry in the non-institutional category

FalseCommission received of over Rs. 125 lakhs p.a. Across industry

Multiple point presence in more than 25 locations

Commission received of over Rs. 75 Lakhs from a single mutual fund

The interim changes in an mutual fund scheme are updated to the investors through

KIM

SAI

Addendum

SID

Which of these is NOT included in the Key Information Memorandum (KIM) ?

Dates of Issue Opening, Issue Closing and Re-opening

Investment Objective

Risk profile of the scheme

Functions of the sponsor, trustee and AMC

Which of these investors is allowed to do a nomination?

Only SIP investors

Only Equity Mutual Fund investors

Only Institutional Investors

Only Individual Investors

In India, the Mutual funds are constituted as

Limited Company

Non-Government Organisation

Trusts

Self Regulatory Organisations

Which of these funds are suitable for investors who have a long term investment horizon and are looking for growth?

Income Funds

Long duration funds

Equity funds

Liquid funds

�Please read the scheme related documents carefully’ - which documents does this line refer to?

Scheme Information Document and Statement of Additional Information

Statement of Additional Information and fund fact sheet

Trust deed and Key Information Memorandum

Scheme Information Document and audited balance sheet of the Asset Management Company

5a Part 2

Investment Wisdom Quiz

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