Quick and Easy Guides

MFD - Level 2 Certification
Mutual Fund Structures
Q1.
SEBI has imposed a 5% limit on inter scheme investments for Fund of Funds
Q2.
Fund of funds can invest in other mutual fund schemes floated only by the same mutual fund.
Q3.
Which of the following statements about FoF is correct?
Q4.
The closed-ended schemes do not face liquidity issues as they are listed in the exchange
Q5.
Which of the following is incorrect about open ended schemes?
Q6.
During the new fund offer, exchange traded fund accepts:
Q7.
The price at which the market maker is prepared to sell units to an investor is known as:
Q8.
Which of the following is correct about exchange traded funds?
Q9.
A market maker has quoted a rate of “20.20, 20.40”. The rate at which market maker will buy a unit from the investor?
Q10.
A market maker has quoted a rate of “20.20, 20.40”. The rate at which market maker will sell a unit to the investor?
Q11.
A market maker has quoted a rate of “20.20, 20.40”. The profit that the market maker will earn per unit is:
Q12.
Which of the following statement/s is/are true? (i) ETFs are based on a customised portfolio structure (ii) The maximum permissible cost for an ETF is 1.5% of its weekly average net assets (iii) If a large number of retail investors have sold units to the market maker, the market maker will offer units for redemption to the ETF
Q13.
Real estate as an asset class:
Q14.
Which of the following is not a limitation of direct investment in real estate?
Q15.
A real estate mutual fund has the following advantage /s over direct investment in the real estate:
Q16.
Which of the following about real estate mutual funds is true?
Q17.
Which of the following statements is incorrect about real estate valuation as per SEBI regulations?
Q18.
Which of the following funds are regulated by SEBI (AIF) Regulations, 2012?
Q19.
VCF invest in shares of unlisted companies
Q20.
The category of funds which can employ complex trading strategies and can undertake leverage are:
Q21.
______ includes venture capital funds
Q22.
Which of the following is incorrect about VCF?
Q23.
The two-thirds of investible funds of VCF should be invested in:
Q24.
The VCF can invest not more than one-third of its investible funds in which of the following? (i) Subscription to IPO of a VCU whose shares are proposed to be listed (ii) SPV created by VCF for promoting investments (iii) Debt of a VCU where VCF has already invested in equity (iv) Preferential allotment
Q25.
Which of the following is not a risk faced by the VCF investors?
Q26.
Which of the following is not a characteristic of PE funds or VCF which makes them distinctive than the traditional mutual funds?
Q27.
International funds are fraught with currency risk
Q28.
Which of the following statements is incorrect regarding international funds?
Q29.
An Indian fund invested USD 10mn in a US fund when the exchange rate was 47=1 USD. After a certain time period, the portfolio becomes USD 13mn and the exchange rate is 45=1 USD What is the return in USD terms?
Q30.
An Indian fund invested USD 10mn in a US fund when the exchange rate was 47=1 USD. After a certain time period, the portfolio becomes USD 13mn and the exchange rate is 45=1 USD What is the return in rupee terms?
Q31.
Under LRS, the resident Indian can remit upto maximum

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