Q1.
Unitised managed funds are those where the assets of the pooled fund are invested and an earnings rate is applied to the amount contributed to the pool by each investor.
Q2.
Who provide the overall direction and strategy for the management of the investments backing each managed fund?
Q3.
Who advise on the important issues associated with allocation of assets to particular asset classes – cash, bonds, shares and property?
Q4.
Who put the trades through in the market?
Q5.
The commission rate varies from around _________ to __________ depending on the type of managed fund and its underlying portfolio.
Q6.
The minimum networth requirement for portfolio managers is ____________.
Q7.
The minimum corpus requirement specified in the regulations for portfolio managers is _________.
Q8.
(I) Reserve Bank of India regulates mutual funds in India.
(II) AMFI is an industry body constituted to protect the interests of the asset management companies.
Q9.
The AMC needs to have a minimum net worth of _____________.
Q10.
The sponsor is required to hold a minimum ________ stake in the AMC.
Q11.
In order to expenditure to the scheme, the maximum permitted costs are ___________ of the daily or average weekly net assets.
Q12.
In case of index fund scheme, the total expenses of the scheme including the investment and advisory fees shall not exceed 1.5% of the weekly average net assets.
Q13.
(I) The offer document is issued only once the case of closed-end schemes.
(II) At least once in five years a revised offer document needs to be printed for open-end schemes.
Q14.
The memorandum for application forms for schemes of mutual funds has to be printed at least in ______ point font size with proper spacing.
Q15.
Recurring expense ratio (RER) is a:
Q16.
Insurance products are tax-paid investments.
Q17.
The benefits of insurance bonds are:
Q18.
(I) The strategic asset allocation, is a long-term asset allocation.
(II) The majority of investment managers in India are passive asset allocators.
Q19.
Market timing asset allocation is similar to Tactical asset allocation in that it also involves short-term, active changes to the portfolio asset allocation.
Q20.
The fees for passive management are considerably higher than for active management.
Q21.
Current trends in Indian managed equity funds include:
Q22.
Diversification of style reduces volatility in returns in the client’s investments
Q23.
(I) An exchange traded –fund (ETF) is a diversified fund traded on the stock exchange.
(II) The main disadvantage of master trusts is the comparatively high cost of the structure.
Q24.
(I) Crisil issues RRRs of mutual fund schemes on a quarterly basis.
(II) Crisil calculates the CPR every quarter on the basis of superior returns score.
Q25.
A non-discretionary fund allows the investor to select investments from a menu of underlying funds.
Q26.
The MER is calculated by summing fees and recovered expenses and then dividing by the average size of the fund for the same period.
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