Quick and Easy Guides

MFD - Level 2 Certification
Legal and Regulatory Environment of Mutual Funds
Q1.
A real estate asset is an identifiable immovable property which is i) legally transferable ii) located in India or in a SEZ iii) a vacant land iv) a land specified for agricultural use
Q2.
Which of the following is not an eligibility criterion for real estate companies to launch real estate mutual funds?
Q3.
Which of the following is not a feature of a real estate mutual fund scheme?
Q4.
The real estate assets held by a real estate mutual fund scheme are to be valued at:
Q5.
Not more than 20% of the total rental income of the real estate mutual fund scheme should be derived from assets leased out to the sponsor or AMC or other associates of the scheme.
Q6.
A mutual fund scheme shall not invest more than _____ of its NAV in debt instruments issued by a single issuer that are rated not below investment grade. This investment limit may be extended to _____ with the prior approval of the board of trustees and the AMC.
Q7.
A mutual fund scheme cannot invest more than ____ of its NAV in unrated debt instruments issued by a single issuer.
Q8.
The total investment in unrated debt instruments should not exceed _____ of the NAV of the scheme.
Q9.
A mutual fund scheme cannot invest more than ______ of its net assets in money market instruments of an issuer.
Q10.
A mutual fund under all its schemes should not own more than 10% of any company’s paid up capital carrying voting rights.
Q11.
A mutual fund scheme can make investment in:
Q12.
A sector mutual fund scheme cannot invest more than 10% of its NAV in the equity shares or equity related instruments of any company.
Q13.
A mutual fund scheme cannot invest more than ______ of its NAV in unlisted shares in case of ___________.
Q14.
Transfer of investments from one scheme to another scheme in the same mutual fund is not permitted if the investment objective of the scheme to which the transfer has been made does not allow so.
Q15.
A scheme may invest in other scheme if aggregate inter scheme investment made by all schemes under the same management or in schemes under management of any other AMC is not more than _____ of the NAV of the mutual fund.
Q16.
Which of the following regarding mutual fund schemes is not true?
Q17.
Mutual funds cannot:
Q18.
Short term investments means the mutual funds can park money in a security for not more than:
Q19.
Mutual funds cannot park more than _____ of its net assets in short term deposits with any one scheduled commercial bank and not more than _____ of net assets of all scheduled commercial banks together.
Q20.
If the maturity of the security invested in liquid schemes and plans falls on a non-business day, the settlement of securities will take place on the preceding day.
Q21.
In liquid schemes and plans, the maturity of the securities when the principal is to be repaid in more than single payout will be
Q22.
Which of the following international investments in mutual funds are not permitted?
Q23.
GDS investment cannot exceed ____ of the net assets of the gold schemes.
Q24.
Which of the following about investment cap limits of net assets in real estate schemes is incorrect?
Q25.
A mutual fund can transfer real estate assets amongst its schemes in conformity with the investment objectives.
Q26.
At least 75% the net assets of real estate schemes should be invested in:
Q27.
Mutual funds can write options or purchase instruments with embedded options.
Q28.
The total exposure related to option premium paid should not exceed ____ of the net assets of the scheme.
Q29.
What is the exposure in derivatives if the futures price is Rs.50, lot size is 100000 and number of contracts are 10?
Q30.
Exposure to a single counterparty in plain vanilla interest rate swap investments in mutual funds cannot exceed ____ of the net assets of the scheme.
Q31.
A change in controlling interest of the AMC can be done with the sole prior approval of the trustees.
Q32.
In case of a change in controlling interest of the AMC, the unit holders are given ____ days to exit at prevailing NAV.
Q33.
The redemption terms of a scheme were changed. Is it a change in the fundamental attribute?
Q34.
Which of the following is not a fundamental attribute of a mutual fund scheme?
Q35.
In case of a change in controlling interest of an AMC or a change in the fundamental attribute of a scheme, the unit holders are given an exit option, however they have to bear the exit load.
Q36.
The merger of mutual fund schemes would not be seen as a change in fundamental attribute if :
Q37.
The addendum for launch of additional plans shall be filed with SEBI ____ days in advance of opening of plan.
Q38.
Which of the following regarding conversion of closed ended scheme to open ended is incorrect?
Q39.
Which of the following is not required for consolidation of mutual fund schemes?
Q40.
The letter to the unit holders for consolidation of mutual fund schemes will not be required to disclose:

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