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Advanced Wealth Management Course (IIBF) - Paper 5
Ch 4: Mutual Fund as an Investment
Q1.
Which funds is mainly in equity stocks whose current valuation does not reflect some underlying value proposition?
Q2.
(I) The primary objective of Growth funds is to seek long-term capital appreciation. (II) Mid-Cap funds are equity funds with the objective to provide a major portion of total return through income and primarily invest in stocks.
Q3.
The advantage/s of investing in an Index Fund is/are:
Q4.
A portfolio, which comprises of all the stocks, which comprise the index in the same proportion, is known as ______________.
Q5.
Which funds have been specifically designed to represent the characteristics and attributes of a chosen target index?
Q6.
A Mid-cap fund makes investments only in blue chip companies.
Q7.
(I) The NAV of a debt fund is directly influenced by changes in interest rates. (II) ELSS funds make investments in equity and equity related instruments with an objective to produce long-term capital appreciation.
Q8.
(I) The only risk associated with G-Sec is credit risk. (II) Liquid funds, which provide a hedge to the investors against volatile interest rates.
Q9.
Liquid funds invest in ultra short term instruments with maturity below _________ days.
Q10.
(I) Open-ended mutual fund schemes are not obligated to redeem units except at the maturity of the period of the scheme. (II) Close-ended mutual fund scheme offers units continuously for sale and repurchase.
Q11.
Under which facility an investor can invest a fixed amount every month or any frequency for a pre-decided period of time.
Q12.
(I) Value averaging is suitable for those investors who can tolerate greater price volatility. (II) SWP is a mirror image of SIP.
Q13.
SAI is predominantly scheme related, focusing more on scheme specific details and less on fundhouse related details.
Q14.
Mutual funds have to pay income distribution tax at the rate of ___________ except for the open-ended equity oriented scheme.
Q15.
Under section 112 of the Act, the capital gains arising from the transfer of a long-term capital asset will be taxable at the rate of _________ without indexation.
Q16.
As per Finance Act, 2005 income received by investors under the schemes of mutual funds is totally free from tax under section 10(35) of the Act.
Q17.
Generally the net asset value of balanced funds moves in a narrower range and is not as volatile as that of equity funds.
Q18.
Units held for not more than _________ months preceding the date of their transfer are short term capital assets.

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