1. Tax Savings Funds have a lock-in period of....

A. 1 Year

B. 2 Years

C. 3 Years

D. No Lock-in

2. If the rate of return on fixed deposit is 8% and the inflation rate is 5% the real rate of return is _______.

-8%

-3%

3. A Fixed Term Plan (FTP) or a Fixed Maturity Plan (FMP) is........

An open-end fund

A closed-end fund

A fixed term bank deposit

A fixed term corporate bond

4. The NAV of Scheme is 50. What can be the maximum entry load charged to the investor?

Rs.2.25

Rs. 3.30

Rs. 3.50

Rs. 0

5. Which of the following is true about Systematic Investment Plan?

SIP does not give the benefit of rupee cost averaging

STP in one scheme can be effectively used to get the benefit of SIP in another scheme

SIP tells an investor when to invest and when to exit from a scheme

All are false

6. In a mutual fund, the overall decisions on allocating money towards funds are taken by..........

Equity analysts

Fund managers

Security dealers

Trustees

7. NAV of a fund increased from Rs.12 to Rs.15 in six months. What is the annualised rate of return as per Change in NAV method?

A. 25%

B. 100%

C. 50%

D. 75%

8. A sectoral fund is a ...

A. Low risk fund

B. Moderate risk fund

C. High risk fund

D. Low-to-moderate risk fund

9. To satisfy a young investor's need for growth, a greater proportion of investment should be advised in.....

A. Gilt funds

B. Income Funds

C. Equity funds

D. Liquid funds

10. Once a financial advisor works out ideal Asset Allocation, it can be used for all his investors?

A. True

B. False

11. Which of the following investment products do not give guaranteed returns?

A. Bank deposits

B. Pubic provident fund (PPF)

C. National Savings Certificates (NSC)

D. Mutual fund

12. Money Market Mutual Fund is most likely to invest in ...

A. Corporate Bonds

B. Equity Shares

C. Government Securities with maturity less than 1 year

D. All of the above

13. Diversification reduces....

A. Company specific risk

B. Market risk

C. Both of the above

D. None of the above

14. YTM of a bond is the yield that investors will earn on holding a bond to maturity

A. True

B. False

15. Short term capital gains from equity funds are taxed at:

A. 20%

B. 30%

C. 15%

D. As per slab

16. Which of the following is not a characteristic of balanced fund

A. It is less risky than equity fund

B. It is more risky than debt funds

C. It must invest in both equity and debt in equal amount

D. It provides growth with moderate risk

17. A Rs.5 dividend declared on ABC fund whose NAV is Rs.120 and face value is Rs.10, translates into a dividend yield of:

A. 5.00%

B. 4.16%

C. 6.66%

D. 8.00%

18. Long term capital gains from all mutual funds are exempt from tax?

A. True

B. False

19. Long term capital gains from equity mutual funds are exempt from tax?

A. True

B. False

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