Question 2 Day to day management of the MF schemes is handled by the Trustees - True or False? (a) (b)

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2 Question 1 Minors are not legally eligible to contract, so for investing in Mutual Funds they. have to become 18 years before investing can invest thro' their guardians can invest only in long term capital gain funds can invest in specific 'Minors Only' Mutual Funds Question 2 Day to day management of the MF schemes is handled by the Trustees - True or False? FALSE TRUE Correct 1 can invest thro' their guardians Minors i.e. persons below the age of 18 are not legally eligible to contract, they need to invest through their Parents/Lawful guardians. Correct 2 FALSE Day to day management of the schemes is handled by an AMC. The AMC is appointed by the sponsor or the Trustees.

3 Question 3 Who receives and delivers securities on behalf of the Mutual Fund? Authorised Stock Brokers The AMC to which the fund belongs Custodian Merchant Bankers Question 2 An investor gives a cheque of Rs 2 lacs for investing in a ELSS scheme at 2.30 pm at a Mutual Fund office. The NAV of which day will be applicable to him? NAV of the same day NAV of the next business day NAV of the day on which funds will be available None of the above Correct 3 Custodian The custodian has custody of the assets of the fund. The custodian accepts and gives delivery of securities for the purchase and sale transactions of the various schemes of the fund. Thus, the custodian settles all the transactions on behalf of the mutual fund schemes. Correct 4 NAV of the day on which funds will be available For all Equity and Debt funds (except Liquid funds) - For investment of below Rs 2 lacs - NAV of the same day if received before 3 pm ( cut-off time) For investments of amount of Rs 2 lacs and above, irrespective of the time of receipt of application, NAV of the business day on which the funds are available for utilisation before the cut-off time of that day is applicable.

4 Question 5 Investors in the should allot a higher proportion to Income Funds. Accumulation Phase Distribution Phase Inter generational transfer phase Sudden Wealth category Question 6 Long term debt funds would be sensible in declining interest rate scenarios - True or False? TRUE FALSE Correct 5 Distribution Phase Reaping / Distribution the stage when the investor needs regular money. Hence, investors in this stage need to have higher allocation to income generating assets. It is the parallel of retirement phase in the Life Cycle. Correct 6 TRUE As yields in the market goes down, debt securities gain in value. Therefore, long term debt funds would be sensible in declining interest rate scenarios.

5 Question 7 In case a Mutual Fund scheme is winded up and some of the illiquid securities are sold after a period of two years, the funds so received are to be. kept by the Mutual Fund under the head 'Other Profits' transferred to the Investor Education Fund paid to the old investors transferred to AMFI and to be used for Mutual Fund promotional activities Question 8 An investor holds 5000 units of a scheme and this scheme announces a 1 : 5 bonus. How many more units will be allotted to the investor? Correct 7 transferred to the Investor Education Fund If the amounts received on sale of illiquid securities are substantial, and recovered within 2 years, then the amount is to be paid to the old investors In other cases, the amount is to be transferred to the Investor Education Fund maintained by each mutual fund. Correct Bonus Ratio 1 : 5 Which means for every 5 units, 1 bonus unit will be alloted. So for 5000 units : 1000 more units will be allotted

6 Question 9 An investor who has a long term view and is looking for capital appreciation and also has high risk tolerance should opt for investments in. Gold Equities Fixed Deposits High interest bearing junk bonds Question 10 Debt-oriented, close-ended / interval, schemes /plans need to disclose their portfolio in their website every month, by the working day of the succeeding month. 3rd 10th 12th 15th Correct 9 Equities Correct 81 3rd TO GET THE FULL VERSION OF PASS4SURE QUESTION BANK WHICH WILL CONTAIN THE V.V. IMP 400 TO 500 QUESTIONS, ANSWERS AND THEIR EXPLAINATIONS, PLEASE BUY THE SAME FOR RS THANK YOU AND ALL THE BEST.

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