Mutual Fund Distributor Mock Test.

Q1. Hybrid Fund objective
☑ Long term capital appreciation and income
☐ Short term speculation
☐ Invest only in gold
☐ No income
Explanation:
✅ Correct: Hybrid funds combine equity and debt for long-term appreciation and income.
❌ Short term speculation is not the correct answer.
❌ Invest only in gold is not the correct answer.
❌ No income is not the correct answer.

Q2. SIP advantage
☑ Rupee Cost Averaging
☐ Higher upfront fees
☐ No diversification
☐ Immediate liquidity
Explanation:
✅ Correct: SIP gives rupee cost averaging benefit.
❌ Higher upfront fees is not the correct answer.
❌ No diversification is not the correct answer.
❌ Immediate liquidity is not the correct answer.

Q3. Real estate considered expense when
☐ Equity shares
☑ Real estate for self-occupation
☐ Bonds
☐ Commodities
Explanation:
✅ Correct: Real estate for self-occupation is expense.
❌ Equity shares is not the correct answer.
❌ Bonds is not the correct answer.
❌ Commodities is not the correct answer.

Q4. Main objective of savings
☐ To earn a return
☑ To save money
☐ To invest in gold
☐ To beat inflation
Explanation:
✅ Correct: Savings is to save money; investment to earn returns.
❌ To earn a return is not the correct answer.
❌ To invest in gold is not the correct answer.
❌ To beat inflation is not the correct answer.

Q5. SIP advantage
☑ Rupee Cost Averaging
☐ Higher upfront fees
☐ No diversification
☐ Immediate liquidity
Explanation:
✅ Correct: SIP gives rupee cost averaging benefit.
❌ Higher upfront fees is not the correct answer.
❌ No diversification is not the correct answer.
❌ Immediate liquidity is not the correct answer.

Q6. Sensex represents
☑ 30 large BSE-listed companies
☐ 100 midcap stocks
☐ A government bond index
☐ A commodity price index
Explanation:
✅ Correct: Sensex is BSE index of 30 large companies.
❌ 100 midcap stocks is not the correct answer.
❌ A government bond index is not the correct answer.
❌ A commodity price index is not the correct answer.

Q7. ELSS lock-in period
☐ 1 year
☐ 2 years
☑ 3 years
☐ 5 years
Explanation:
✅ Correct: ELSS has 3 year lock-in period.
❌ 1 year is not the correct answer.
❌ 2 years is not the correct answer.
❌ 5 years is not the correct answer.

Q8. Which Fund invests at least 65% in mid cap companies
☑ Mid Cap Fund
☐ Large Cap Fund
☐ Debt Fund
☐ Liquid Fund
Explanation:
✅ Correct: Mid Cap Fund invests at least 65% in mid cap companies.
❌ Large Cap Fund is not the correct answer.
❌ Debt Fund is not the correct answer.
❌ Liquid Fund is not the correct answer.

Q9. Mark to Market means
☑ Valuing securities at current market price
☐ Valuing at purchase price
☐ Valuing at average cost
☐ Valuing at NAV
Explanation:
✅ Correct: Mark to Market values securities at current price.
❌ Valuing at purchase price is not the correct answer.
❌ Valuing at average cost is not the correct answer.
❌ Valuing at NAV is not the correct answer.

Q10. Sensex represents
☑ 30 large BSE-listed companies
☐ 100 midcap stocks
☐ A government bond index
☐ A commodity price index
Explanation:
✅ Correct: Sensex is BSE index of 30 large companies.
❌ 100 midcap stocks is not the correct answer.
❌ A government bond index is not the correct answer.
❌ A commodity price index is not the correct answer.

Q11. Meaning of Liquidity
☐ Earning high returns
☐ Safety of capital
☑ Ease of converting to cash
☐ Tax deduction
Explanation:
✅ Correct: Liquidity means ease of converting to cash.
❌ Earning high returns is not the correct answer.
❌ Safety of capital is not the correct answer.
❌ Tax deduction is not the correct answer.

Q12. Risk Profiling definition
☑ Identifying the willingness and ability to take risks
☐ Allocating money across asset classes
☐ Tracking NAV daily
☐ Measuring inflation
Explanation:
✅ Correct: Risk Profiling identifies need, ability and willingness to take risks.
❌ Allocating money across asset classes is not the correct answer.
❌ Tracking NAV daily is not the correct answer.
❌ Measuring inflation is not the correct answer.

Q13. Which bonds have more price fluctuation
☐ Short-term bonds
☑ Long-term bonds
☐ No bonds
☐ All bonds equally
Explanation:
✅ Correct: Long-term bonds have more price fluctuations.
❌ Short-term bonds is not the correct answer.
❌ No bonds is not the correct answer.
❌ All bonds equally is not the correct answer.

Q14. Mutual Fund Constitution in India
☐ Company
☑ Trust
☐ Partnership
☐ Sole Proprietorship
Explanation:
✅ Correct: Mutual Funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Partnership is not the correct answer.
❌ Sole Proprietorship is not the correct answer.

Q15. ELSS lock-in period
☐ 1 year
☐ 2 years
☑ 3 years
☐ 5 years
Explanation:
✅ Correct: ELSS has 3 year lock-in period.
❌ 1 year is not the correct answer.
❌ 2 years is not the correct answer.
❌ 5 years is not the correct answer.

Q16. Sensex represents
☑ 30 large BSE-listed companies
☐ 100 midcap stocks
☐ A government bond index
☐ A commodity price index
Explanation:
✅ Correct: Sensex is BSE index of 30 large companies.
❌ 100 midcap stocks is not the correct answer.
❌ A government bond index is not the correct answer.
❌ A commodity price index is not the correct answer.

Q17. Inflation affects which goals more?
☐ Short-term goals
☑ Long-term goals
☐ No effect
☐ Both equally
Explanation:
✅ Correct: Inflation impacts long-term goals more.
❌ Short-term goals is not the correct answer.
❌ No effect is not the correct answer.
❌ Both equally is not the correct answer.

Q18. ELSS lock-in period
☐ 1 year
☐ 2 years
☑ 3 years
☐ 5 years
Explanation:
✅ Correct: ELSS has 3 year lock-in period.
❌ 1 year is not the correct answer.
❌ 2 years is not the correct answer.
❌ 5 years is not the correct answer.

Q19. Risk Profiling definition
☑ Identifying the willingness and ability to take risks
☐ Allocating money across asset classes
☐ Tracking NAV daily
☐ Measuring inflation
Explanation:
✅ Correct: Risk Profiling identifies need, ability and willingness to take risks.
❌ Allocating money across asset classes is not the correct answer.
❌ Tracking NAV daily is not the correct answer.
❌ Measuring inflation is not the correct answer.

Q20. Mutual Fund Constitution in India
☐ Company
☑ Trust
☐ Partnership
☐ Sole Proprietorship
Explanation:
✅ Correct: Mutual Funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Partnership is not the correct answer.
❌ Sole Proprietorship is not the correct answer.

Q21. SIP advantage
☑ Rupee Cost Averaging
☐ Higher upfront fees
☐ No diversification
☐ Immediate liquidity
Explanation:
✅ Correct: SIP gives rupee cost averaging benefit.
❌ Higher upfront fees is not the correct answer.
❌ No diversification is not the correct answer.
❌ Immediate liquidity is not the correct answer.

Q22. ELSS lock-in period
☐ 1 year
☐ 2 years
☑ 3 years
☐ 5 years
Explanation:
✅ Correct: ELSS has 3 year lock-in period.
❌ 1 year is not the correct answer.
❌ 2 years is not the correct answer.
❌ 5 years is not the correct answer.

Q23. Meaning of Liquidity
☐ Earning high returns
☐ Safety of capital
☑ Ease of converting to cash
☐ Tax deduction
Explanation:
✅ Correct: Liquidity means ease of converting to cash.
❌ Earning high returns is not the correct answer.
❌ Safety of capital is not the correct answer.
❌ Tax deduction is not the correct answer.

Q24. Mutual Fund Constitution in India
☐ Company
☑ Trust
☐ Partnership
☐ Sole Proprietorship
Explanation:
✅ Correct: Mutual Funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Partnership is not the correct answer.
❌ Sole Proprietorship is not the correct answer.

Q25. ELSS lock-in period
☐ 1 year
☐ 2 years
☑ 3 years
☐ 5 years
Explanation:
✅ Correct: ELSS has 3 year lock-in period.
❌ 1 year is not the correct answer.
❌ 2 years is not the correct answer.
❌ 5 years is not the correct answer.

Q26. NAV stands for
☑ Net Asset Value
☐ National Asset Value
☐ Nominal Asset Value
☐ Net Annual Value
Explanation:
✅ Correct: NAV = Net Asset Value.
❌ National Asset Value is not the correct answer.
❌ Nominal Asset Value is not the correct answer.
❌ Net Annual Value is not the correct answer.

Q27. Real estate considered expense when
☐ Equity shares
☑ Real estate for self-occupation
☐ Bonds
☐ Commodities
Explanation:
✅ Correct: Real estate for self-occupation is expense.
❌ Equity shares is not the correct answer.
❌ Bonds is not the correct answer.
❌ Commodities is not the correct answer.

Q28. Why avoid commodity derivatives
☐ Low returns
☑ They are highly leveraged and risky
☐ They are long-term contracts
☐ They are tax-exempt
Explanation:
✅ Correct: Investors avoid commodity derivatives due to leverage and short-term nature.
❌ Low returns is not the correct answer.
❌ They are long-term contracts is not the correct answer.
❌ They are tax-exempt is not the correct answer.

Q29. Which scheme invests in large cap stocks minimum 80%
☐ Multi Cap Fund
☑ Large Cap Fund
☐ Mid Cap Fund
☐ Small Cap Fund
Explanation:
✅ Correct: Large Cap Fund invests at least 80% in large cap stocks.
❌ Multi Cap Fund is not the correct answer.
❌ Mid Cap Fund is not the correct answer.
❌ Small Cap Fund is not the correct answer.

Q30. Inflation affects which goals more?
☐ Short-term goals
☑ Long-term goals
☐ No effect
☐ Both equally
Explanation:
✅ Correct: Inflation impacts long-term goals more.
❌ Short-term goals is not the correct answer.
❌ No effect is not the correct answer.
❌ Both equally is not the correct answer.

Q31. SIP advantage
☑ Rupee Cost Averaging
☐ Higher upfront fees
☐ No diversification
☐ Immediate liquidity
Explanation:
✅ Correct: SIP gives rupee cost averaging benefit.
❌ Higher upfront fees is not the correct answer.
❌ No diversification is not the correct answer.
❌ Immediate liquidity is not the correct answer.

Q32. Which Fund invests at least 65% in mid cap companies
☑ Mid Cap Fund
☐ Large Cap Fund
☐ Debt Fund
☐ Liquid Fund
Explanation:
✅ Correct: Mid Cap Fund invests at least 65% in mid cap companies.
❌ Large Cap Fund is not the correct answer.
❌ Debt Fund is not the correct answer.
❌ Liquid Fund is not the correct answer.

Q33. AUM stands for
☑ Assets Under Management
☐ Annual Utility Margin
☐ Assets Uniform Management
☐ Average Unit Market
Explanation:
✅ Correct: AUM = Assets Under Management.
❌ Annual Utility Margin is not the correct answer.
❌ Assets Uniform Management is not the correct answer.
❌ Average Unit Market is not the correct answer.

Q34. ETFs trade
☑ Like stocks
☐ Only at NAV end of day
☐ Through bank branches
☐ Via RBI only
Explanation:
✅ Correct: ETFs are traded like stocks on exchange.
❌ Only at NAV end of day is not the correct answer.
❌ Through bank branches is not the correct answer.
❌ Via RBI only is not the correct answer.

Q35. ELSS lock-in period
☐ 1 year
☐ 2 years
☑ 3 years
☐ 5 years
Explanation:
✅ Correct: ELSS has 3 year lock-in period.
❌ 1 year is not the correct answer.
❌ 2 years is not the correct answer.
❌ 5 years is not the correct answer.

Q36. Primary factor for evaluating investments? Not included
☐ Safety
☐ Liquidity
☑ Fashion trends
☐ Returns
Explanation:
✅ Correct: Fashion trends not mentioned; Safety, Liquidity, Returns are core.
❌ Safety is not the correct answer.
❌ Liquidity is not the correct answer.
❌ Returns is not the correct answer.

Q37. Real estate considered expense when
☐ Equity shares
☑ Real estate for self-occupation
☐ Bonds
☐ Commodities
Explanation:
✅ Correct: Real estate for self-occupation is expense.
❌ Equity shares is not the correct answer.
❌ Bonds is not the correct answer.
❌ Commodities is not the correct answer.

Q38. Hybrid Fund objective
☑ Long term capital appreciation and income
☐ Short term speculation
☐ Invest only in gold
☐ No income
Explanation:
✅ Correct: Hybrid funds combine equity and debt for long-term appreciation and income.
❌ Short term speculation is not the correct answer.
❌ Invest only in gold is not the correct answer.
❌ No income is not the correct answer.

Q39. Mark to Market means
☑ Valuing securities at current market price
☐ Valuing at purchase price
☐ Valuing at average cost
☐ Valuing at NAV
Explanation:
✅ Correct: Mark to Market values securities at current price.
❌ Valuing at purchase price is not the correct answer.
❌ Valuing at average cost is not the correct answer.
❌ Valuing at NAV is not the correct answer.

Q40. SIP advantage
☑ Rupee Cost Averaging
☐ Higher upfront fees
☐ No diversification
☐ Immediate liquidity
Explanation:
✅ Correct: SIP gives rupee cost averaging benefit.
❌ Higher upfront fees is not the correct answer.
❌ No diversification is not the correct answer.
❌ Immediate liquidity is not the correct answer.

Q41. Real estate considered expense when
☐ Equity shares
☑ Real estate for self-occupation
☐ Bonds
☐ Commodities
Explanation:
✅ Correct: Real estate for self-occupation is expense.
❌ Equity shares is not the correct answer.
❌ Bonds is not the correct answer.
❌ Commodities is not the correct answer.

Q42. ETFs trade
☑ Like stocks
☐ Only at NAV end of day
☐ Through bank branches
☐ Via RBI only
Explanation:
✅ Correct: ETFs are traded like stocks on exchange.
❌ Only at NAV end of day is not the correct answer.
❌ Through bank branches is not the correct answer.
❌ Via RBI only is not the correct answer.

Q43. Main objective of savings
☐ To earn a return
☑ To save money
☐ To invest in gold
☐ To beat inflation
Explanation:
✅ Correct: Savings is to save money; investment to earn returns.
❌ To earn a return is not the correct answer.
❌ To invest in gold is not the correct answer.
❌ To beat inflation is not the correct answer.

Q44. Which Fund invests at least 65% in mid cap companies
☑ Mid Cap Fund
☐ Large Cap Fund
☐ Debt Fund
☐ Liquid Fund
Explanation:
✅ Correct: Mid Cap Fund invests at least 65% in mid cap companies.
❌ Large Cap Fund is not the correct answer.
❌ Debt Fund is not the correct answer.
❌ Liquid Fund is not the correct answer.

Q45. Bond prices vs interest rates
☐ Direct
☑ Inverse
☐ Unrelated
☐ Cyclical
Explanation:
✅ Correct: Bond prices move inversely to interest rates.
❌ Direct is not the correct answer.
❌ Unrelated is not the correct answer.
❌ Cyclical is not the correct answer.

Q46. Which scheme invests in large cap stocks minimum 80%
☐ Multi Cap Fund
☑ Large Cap Fund
☐ Mid Cap Fund
☐ Small Cap Fund
Explanation:
✅ Correct: Large Cap Fund invests at least 80% in large cap stocks.
❌ Multi Cap Fund is not the correct answer.
❌ Mid Cap Fund is not the correct answer.
❌ Small Cap Fund is not the correct answer.

Q47. ETFs trade
☑ Like stocks
☐ Only at NAV end of day
☐ Through bank branches
☐ Via RBI only
Explanation:
✅ Correct: ETFs are traded like stocks on exchange.
❌ Only at NAV end of day is not the correct answer.
❌ Through bank branches is not the correct answer.
❌ Via RBI only is not the correct answer.

Q48. NAV stands for
☑ Net Asset Value
☐ National Asset Value
☐ Nominal Asset Value
☐ Net Annual Value
Explanation:
✅ Correct: NAV = Net Asset Value.
❌ National Asset Value is not the correct answer.
❌ Nominal Asset Value is not the correct answer.
❌ Net Annual Value is not the correct answer.

Q49. AUM stands for
☑ Assets Under Management
☐ Annual Utility Margin
☐ Assets Uniform Management
☐ Average Unit Market
Explanation:
✅ Correct: AUM = Assets Under Management.
❌ Annual Utility Margin is not the correct answer.
❌ Assets Uniform Management is not the correct answer.
❌ Average Unit Market is not the correct answer.

Q50. ELSS lock-in period
☐ 1 year
☐ 2 years
☑ 3 years
☐ 5 years
Explanation:
✅ Correct: ELSS has 3 year lock-in period.
❌ 1 year is not the correct answer.
❌ 2 years is not the correct answer.
❌ 5 years is not the correct answer.

Q51. Inflation affects which goals more?
☐ Short-term goals
☑ Long-term goals
☐ No effect
☐ Both equally
Explanation:
✅ Correct: Inflation impacts long-term goals more.
❌ Short-term goals is not the correct answer.
❌ No effect is not the correct answer.
❌ Both equally is not the correct answer.

Q52. Bond prices vs interest rates
☐ Direct
☑ Inverse
☐ Unrelated
☐ Cyclical
Explanation:
✅ Correct: Bond prices move inversely to interest rates.
❌ Direct is not the correct answer.
❌ Unrelated is not the correct answer.
❌ Cyclical is not the correct answer.

Q53. Mutual Fund Constitution in India
☐ Company
☑ Trust
☐ Partnership
☐ Sole Proprietorship
Explanation:
✅ Correct: Mutual Funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Partnership is not the correct answer.
❌ Sole Proprietorship is not the correct answer.

Q54. Risk Profiling definition
☑ Identifying the willingness and ability to take risks
☐ Allocating money across asset classes
☐ Tracking NAV daily
☐ Measuring inflation
Explanation:
✅ Correct: Risk Profiling identifies need, ability and willingness to take risks.
❌ Allocating money across asset classes is not the correct answer.
❌ Tracking NAV daily is not the correct answer.
❌ Measuring inflation is not the correct answer.

Q55. Hybrid Fund objective
☑ Long term capital appreciation and income
☐ Short term speculation
☐ Invest only in gold
☐ No income
Explanation:
✅ Correct: Hybrid funds combine equity and debt for long-term appreciation and income.
❌ Short term speculation is not the correct answer.
❌ Invest only in gold is not the correct answer.
❌ No income is not the correct answer.

Q56. Sensex represents
☑ 30 large BSE-listed companies
☐ 100 midcap stocks
☐ A government bond index
☐ A commodity price index
Explanation:
✅ Correct: Sensex is BSE index of 30 large companies.
❌ 100 midcap stocks is not the correct answer.
❌ A government bond index is not the correct answer.
❌ A commodity price index is not the correct answer.

Q57. Hybrid Fund objective
☑ Long term capital appreciation and income
☐ Short term speculation
☐ Invest only in gold
☐ No income
Explanation:
✅ Correct: Hybrid funds combine equity and debt for long-term appreciation and income.
❌ Short term speculation is not the correct answer.
❌ Invest only in gold is not the correct answer.
❌ No income is not the correct answer.

Q58. Why avoid commodity derivatives
☐ Low returns
☑ They are highly leveraged and risky
☐ They are long-term contracts
☐ They are tax-exempt
Explanation:
✅ Correct: Investors avoid commodity derivatives due to leverage and short-term nature.
❌ Low returns is not the correct answer.
❌ They are long-term contracts is not the correct answer.
❌ They are tax-exempt is not the correct answer.

Q59. Real estate considered expense when
☐ Equity shares
☑ Real estate for self-occupation
☐ Bonds
☐ Commodities
Explanation:
✅ Correct: Real estate for self-occupation is expense.
❌ Equity shares is not the correct answer.
❌ Bonds is not the correct answer.
❌ Commodities is not the correct answer.

Q60. ELSS lock-in period
☐ 1 year
☐ 2 years
☑ 3 years
☐ 5 years
Explanation:
✅ Correct: ELSS has 3 year lock-in period.
❌ 1 year is not the correct answer.
❌ 2 years is not the correct answer.
❌ 5 years is not the correct answer.

Q61. ETFs trade
☑ Like stocks
☐ Only at NAV end of day
☐ Through bank branches
☐ Via RBI only
Explanation:
✅ Correct: ETFs are traded like stocks on exchange.
❌ Only at NAV end of day is not the correct answer.
❌ Through bank branches is not the correct answer.
❌ Via RBI only is not the correct answer.

Q62. Inflation affects which goals more?
☐ Short-term goals
☑ Long-term goals
☐ No effect
☐ Both equally
Explanation:
✅ Correct: Inflation impacts long-term goals more.
❌ Short-term goals is not the correct answer.
❌ No effect is not the correct answer.
❌ Both equally is not the correct answer.

Q63. Sensex represents
☑ 30 large BSE-listed companies
☐ 100 midcap stocks
☐ A government bond index
☐ A commodity price index
Explanation:
✅ Correct: Sensex is BSE index of 30 large companies.
❌ 100 midcap stocks is not the correct answer.
❌ A government bond index is not the correct answer.
❌ A commodity price index is not the correct answer.

Q64. AUM stands for
☑ Assets Under Management
☐ Annual Utility Margin
☐ Assets Uniform Management
☐ Average Unit Market
Explanation:
✅ Correct: AUM = Assets Under Management.
❌ Annual Utility Margin is not the correct answer.
❌ Assets Uniform Management is not the correct answer.
❌ Average Unit Market is not the correct answer.

Q65. Inflation affects which goals more?
☐ Short-term goals
☑ Long-term goals
☐ No effect
☐ Both equally
Explanation:
✅ Correct: Inflation impacts long-term goals more.
❌ Short-term goals is not the correct answer.
❌ No effect is not the correct answer.
❌ Both equally is not the correct answer.

Q66. Primary factor for evaluating investments? Not included
☐ Safety
☐ Liquidity
☑ Fashion trends
☐ Returns
Explanation:
✅ Correct: Fashion trends not mentioned; Safety, Liquidity, Returns are core.
❌ Safety is not the correct answer.
❌ Liquidity is not the correct answer.
❌ Returns is not the correct answer.

Q67. NAV stands for
☑ Net Asset Value
☐ National Asset Value
☐ Nominal Asset Value
☐ Net Annual Value
Explanation:
✅ Correct: NAV = Net Asset Value.
❌ National Asset Value is not the correct answer.
❌ Nominal Asset Value is not the correct answer.
❌ Net Annual Value is not the correct answer.

Q68. Sensex represents
☑ 30 large BSE-listed companies
☐ 100 midcap stocks
☐ A government bond index
☐ A commodity price index
Explanation:
✅ Correct: Sensex is BSE index of 30 large companies.
❌ 100 midcap stocks is not the correct answer.
❌ A government bond index is not the correct answer.
❌ A commodity price index is not the correct answer.

Q69. Main objective of savings
☐ To earn a return
☑ To save money
☐ To invest in gold
☐ To beat inflation
Explanation:
✅ Correct: Savings is to save money; investment to earn returns.
❌ To earn a return is not the correct answer.
❌ To invest in gold is not the correct answer.
❌ To beat inflation is not the correct answer.

Q70. Real estate considered expense when
☐ Equity shares
☑ Real estate for self-occupation
☐ Bonds
☐ Commodities
Explanation:
✅ Correct: Real estate for self-occupation is expense.
❌ Equity shares is not the correct answer.
❌ Bonds is not the correct answer.
❌ Commodities is not the correct answer.

Q71. Mutual Fund Constitution in India
☐ Company
☑ Trust
☐ Partnership
☐ Sole Proprietorship
Explanation:
✅ Correct: Mutual Funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Partnership is not the correct answer.
❌ Sole Proprietorship is not the correct answer.

Q72. Inflation affects which goals more?
☐ Short-term goals
☑ Long-term goals
☐ No effect
☐ Both equally
Explanation:
✅ Correct: Inflation impacts long-term goals more.
❌ Short-term goals is not the correct answer.
❌ No effect is not the correct answer.
❌ Both equally is not the correct answer.

Q73. Why avoid commodity derivatives
☐ Low returns
☑ They are highly leveraged and risky
☐ They are long-term contracts
☐ They are tax-exempt
Explanation:
✅ Correct: Investors avoid commodity derivatives due to leverage and short-term nature.
❌ Low returns is not the correct answer.
❌ They are long-term contracts is not the correct answer.
❌ They are tax-exempt is not the correct answer.

Q74. Primary factor for evaluating investments? Not included
☐ Safety
☐ Liquidity
☑ Fashion trends
☐ Returns
Explanation:
✅ Correct: Fashion trends not mentioned; Safety, Liquidity, Returns are core.
❌ Safety is not the correct answer.
❌ Liquidity is not the correct answer.
❌ Returns is not the correct answer.

Q75. Inflation affects which goals more?
☐ Short-term goals
☑ Long-term goals
☐ No effect
☐ Both equally
Explanation:
✅ Correct: Inflation impacts long-term goals more.
❌ Short-term goals is not the correct answer.
❌ No effect is not the correct answer.
❌ Both equally is not the correct answer.

Q76. Which scheme invests in large cap stocks minimum 80%
☐ Multi Cap Fund
☑ Large Cap Fund
☐ Mid Cap Fund
☐ Small Cap Fund
Explanation:
✅ Correct: Large Cap Fund invests at least 80% in large cap stocks.
❌ Multi Cap Fund is not the correct answer.
❌ Mid Cap Fund is not the correct answer.
❌ Small Cap Fund is not the correct answer.

Q77. Real estate considered expense when
☐ Equity shares
☑ Real estate for self-occupation
☐ Bonds
☐ Commodities
Explanation:
✅ Correct: Real estate for self-occupation is expense.
❌ Equity shares is not the correct answer.
❌ Bonds is not the correct answer.
❌ Commodities is not the correct answer.

Q78. Risk Profiling definition
☑ Identifying the willingness and ability to take risks
☐ Allocating money across asset classes
☐ Tracking NAV daily
☐ Measuring inflation
Explanation:
✅ Correct: Risk Profiling identifies need, ability and willingness to take risks.
❌ Allocating money across asset classes is not the correct answer.
❌ Tracking NAV daily is not the correct answer.
❌ Measuring inflation is not the correct answer.

Q79. Which bonds have more price fluctuation
☐ Short-term bonds
☑ Long-term bonds
☐ No bonds
☐ All bonds equally
Explanation:
✅ Correct: Long-term bonds have more price fluctuations.
❌ Short-term bonds is not the correct answer.
❌ No bonds is not the correct answer.
❌ All bonds equally is not the correct answer.

Q80. Main objective of savings
☐ To earn a return
☑ To save money
☐ To invest in gold
☐ To beat inflation
Explanation:
✅ Correct: Savings is to save money; investment to earn returns.
❌ To earn a return is not the correct answer.
❌ To invest in gold is not the correct answer.
❌ To beat inflation is not the correct answer.

Q81. SIP advantage
☑ Rupee Cost Averaging
☐ Higher upfront fees
☐ No diversification
☐ Immediate liquidity
Explanation:
✅ Correct: SIP gives rupee cost averaging benefit.
❌ Higher upfront fees is not the correct answer.
❌ No diversification is not the correct answer.
❌ Immediate liquidity is not the correct answer.

Q82. Main objective of savings
☐ To earn a return
☑ To save money
☐ To invest in gold
☐ To beat inflation
Explanation:
✅ Correct: Savings is to save money; investment to earn returns.
❌ To earn a return is not the correct answer.
❌ To invest in gold is not the correct answer.
❌ To beat inflation is not the correct answer.

Q83. Main objective of savings
☐ To earn a return
☑ To save money
☐ To invest in gold
☐ To beat inflation
Explanation:
✅ Correct: Savings is to save money; investment to earn returns.
❌ To earn a return is not the correct answer.
❌ To invest in gold is not the correct answer.
❌ To beat inflation is not the correct answer.

Q84. ETFs trade
☑ Like stocks
☐ Only at NAV end of day
☐ Through bank branches
☐ Via RBI only
Explanation:
✅ Correct: ETFs are traded like stocks on exchange.
❌ Only at NAV end of day is not the correct answer.
❌ Through bank branches is not the correct answer.
❌ Via RBI only is not the correct answer.

Q85. Sensex represents
☑ 30 large BSE-listed companies
☐ 100 midcap stocks
☐ A government bond index
☐ A commodity price index
Explanation:
✅ Correct: Sensex is BSE index of 30 large companies.
❌ 100 midcap stocks is not the correct answer.
❌ A government bond index is not the correct answer.
❌ A commodity price index is not the correct answer.

Q86. Inflation affects which goals more?
☐ Short-term goals
☑ Long-term goals
☐ No effect
☐ Both equally
Explanation:
✅ Correct: Inflation impacts long-term goals more.
❌ Short-term goals is not the correct answer.
❌ No effect is not the correct answer.
❌ Both equally is not the correct answer.

Q87. Which bonds have more price fluctuation
☐ Short-term bonds
☑ Long-term bonds
☐ No bonds
☐ All bonds equally
Explanation:
✅ Correct: Long-term bonds have more price fluctuations.
❌ Short-term bonds is not the correct answer.
❌ No bonds is not the correct answer.
❌ All bonds equally is not the correct answer.

Q88. Meaning of Liquidity
☐ Earning high returns
☐ Safety of capital
☑ Ease of converting to cash
☐ Tax deduction
Explanation:
✅ Correct: Liquidity means ease of converting to cash.
❌ Earning high returns is not the correct answer.
❌ Safety of capital is not the correct answer.
❌ Tax deduction is not the correct answer.

Q89. SIP advantage
☑ Rupee Cost Averaging
☐ Higher upfront fees
☐ No diversification
☐ Immediate liquidity
Explanation:
✅ Correct: SIP gives rupee cost averaging benefit.
❌ Higher upfront fees is not the correct answer.
❌ No diversification is not the correct answer.
❌ Immediate liquidity is not the correct answer.

Q90. NAV stands for
☑ Net Asset Value
☐ National Asset Value
☐ Nominal Asset Value
☐ Net Annual Value
Explanation:
✅ Correct: NAV = Net Asset Value.
❌ National Asset Value is not the correct answer.
❌ Nominal Asset Value is not the correct answer.
❌ Net Annual Value is not the correct answer.

Q91. Main objective of savings
☐ To earn a return
☑ To save money
☐ To invest in gold
☐ To beat inflation
Explanation:
✅ Correct: Savings is to save money; investment to earn returns.
❌ To earn a return is not the correct answer.
❌ To invest in gold is not the correct answer.
❌ To beat inflation is not the correct answer.

Q92. Mutual Fund Constitution in India
☐ Company
☑ Trust
☐ Partnership
☐ Sole Proprietorship
Explanation:
✅ Correct: Mutual Funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Partnership is not the correct answer.
❌ Sole Proprietorship is not the correct answer.

Q93. Why avoid commodity derivatives
☐ Low returns
☑ They are highly leveraged and risky
☐ They are long-term contracts
☐ They are tax-exempt
Explanation:
✅ Correct: Investors avoid commodity derivatives due to leverage and short-term nature.
❌ Low returns is not the correct answer.
❌ They are long-term contracts is not the correct answer.
❌ They are tax-exempt is not the correct answer.

Q94. Which Fund invests at least 65% in mid cap companies
☑ Mid Cap Fund
☐ Large Cap Fund
☐ Debt Fund
☐ Liquid Fund
Explanation:
✅ Correct: Mid Cap Fund invests at least 65% in mid cap companies.
❌ Large Cap Fund is not the correct answer.
❌ Debt Fund is not the correct answer.
❌ Liquid Fund is not the correct answer.

Q95. Sensex represents
☑ 30 large BSE-listed companies
☐ 100 midcap stocks
☐ A government bond index
☐ A commodity price index
Explanation:
✅ Correct: Sensex is BSE index of 30 large companies.
❌ 100 midcap stocks is not the correct answer.
❌ A government bond index is not the correct answer.
❌ A commodity price index is not the correct answer.

Q96. Main objective of savings
☐ To earn a return
☑ To save money
☐ To invest in gold
☐ To beat inflation
Explanation:
✅ Correct: Savings is to save money; investment to earn returns.
❌ To earn a return is not the correct answer.
❌ To invest in gold is not the correct answer.
❌ To beat inflation is not the correct answer.

Q97. Real estate considered expense when
☐ Equity shares
☑ Real estate for self-occupation
☐ Bonds
☐ Commodities
Explanation:
✅ Correct: Real estate for self-occupation is expense.
❌ Equity shares is not the correct answer.
❌ Bonds is not the correct answer.
❌ Commodities is not the correct answer.

Q98. ELSS lock-in period
☐ 1 year
☐ 2 years
☑ 3 years
☐ 5 years
Explanation:
✅ Correct: ELSS has 3 year lock-in period.
❌ 1 year is not the correct answer.
❌ 2 years is not the correct answer.
❌ 5 years is not the correct answer.

Q99. Mark to Market means
☑ Valuing securities at current market price
☐ Valuing at purchase price
☐ Valuing at average cost
☐ Valuing at NAV
Explanation:
✅ Correct: Mark to Market values securities at current price.
❌ Valuing at purchase price is not the correct answer.
❌ Valuing at average cost is not the correct answer.
❌ Valuing at NAV is not the correct answer.

Q100. Risk Profiling definition
☑ Identifying the willingness and ability to take risks
☐ Allocating money across asset classes
☐ Tracking NAV daily
☐ Measuring inflation
Explanation:
✅ Correct: Risk Profiling identifies need, ability and willingness to take risks.
❌ Allocating money across asset classes is not the correct answer.
❌ Tracking NAV daily is not the correct answer.
❌ Measuring inflation is not the correct answer.

~

Q1. Independence requirement for trustee board?
☐ Half independent
☑ Two-thirds independent
☐ All independent
☐ No requirement
Explanation:
✅ Correct: At least two-thirds of trustees must be independent.
❌ Half independent is not the correct answer.
❌ All independent is not the correct answer.
❌ No requirement is not the correct answer.

Q2. Open ended debt funds must keep liquid assets minimum?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Open ended debt funds must maintain 10% corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q3. Which Act governs Mutual Funds in India?
☑ Indian Trusts Act, 1882
☐ Companies Act, 2013
☐ SEBI Act, 1992
☐ Banking Regulation Act
Explanation:
✅ Correct: Mutual Funds are governed by Indian Trusts Act, 1882.
❌ Companies Act, 2013 is not the correct answer.
❌ SEBI Act, 1992 is not the correct answer.
❌ Banking Regulation Act is not the correct answer.

Q4. RTAs examples?
☐ ICRA, CRISIL
☑ CAMS, KARVY
☐ NSE, BSE
☐ AMFI, SEBI
Explanation:
✅ Correct: CAMS and KARVY are RTAs.
❌ ICRA, CRISIL is not the correct answer.
❌ NSE, BSE is not the correct answer.
❌ AMFI, SEBI is not the correct answer.

Q5. RTAs examples?
☐ ICRA, CRISIL
☑ CAMS, KARVY
☐ NSE, BSE
☐ AMFI, SEBI
Explanation:
✅ Correct: CAMS and KARVY are RTAs.
❌ ICRA, CRISIL is not the correct answer.
❌ NSE, BSE is not the correct answer.
❌ AMFI, SEBI is not the correct answer.

Q6. Custody of assets of scheme is with?
☐ AMC
☑ Custodian
☐ Sponsor
☐ Trustees
Explanation:
✅ Correct: Custodian has custody of scheme assets.
❌ AMC is not the correct answer.
❌ Sponsor is not the correct answer.
❌ Trustees is not the correct answer.

Q7. Custody of assets of scheme is with?
☐ AMC
☑ Custodian
☐ Sponsor
☐ Trustees
Explanation:
✅ Correct: Custodian has custody of scheme assets.
❌ AMC is not the correct answer.
❌ Sponsor is not the correct answer.
❌ Trustees is not the correct answer.

Q8. Standard MF ad warning text?
☐ Investments are guaranteed
☐ Past returns assure future
☑ MF investments are subject to market risks
☐ SEBI approved returns
Explanation:
✅ Correct: Standard warning: ‘Mutual Fund investments are subject to market risks, read all scheme related documents carefully.’
❌ Investments are guaranteed is not the correct answer.
❌ Past returns assure future is not the correct answer.
❌ SEBI approved returns is not the correct answer.

Q9. AMC minimum net worth requirement?
☐ 10 cr
☐ 25 cr
☑ 50 cr
☐ 100 cr
Explanation:
✅ Correct: AMC must have minimum net worth of Rs. 50 crore.
❌ 10 cr is not the correct answer.
❌ 25 cr is not the correct answer.
❌ 100 cr is not the correct answer.

Q10. Minimum number of trustees required?
☐ 2
☐ 3
☑ 4
☐ 5
Explanation:
✅ Correct: At least 4 trustees must be appointed.
❌ 2 is not the correct answer.
❌ 3 is not the correct answer.
❌ 5 is not the correct answer.

Q11. Limit on unlisted equity shares in open ended scheme?
☑ 5%
☐ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Not more than 5% of NAV can be in unlisted equity in open ended scheme.
❌ 10% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q12. Which Act governs Mutual Funds in India?
☑ Indian Trusts Act, 1882
☐ Companies Act, 2013
☐ SEBI Act, 1992
☐ Banking Regulation Act
Explanation:
✅ Correct: Mutual Funds are governed by Indian Trusts Act, 1882.
❌ Companies Act, 2013 is not the correct answer.
❌ SEBI Act, 1992 is not the correct answer.
❌ Banking Regulation Act is not the correct answer.

Q13. Mutual funds in India are constituted as?
☐ Company
☑ Trust
☐ Society
☐ Partnership
Explanation:
✅ Correct: Mutual funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Society is not the correct answer.
❌ Partnership is not the correct answer.

Q14. Who are the beneficiaries in a mutual fund trust?
☐ AMC
☐ Trustees
☑ Investors
☐ Custodian
Explanation:
✅ Correct: Investors are the beneficiaries of a mutual fund trust.
❌ AMC is not the correct answer.
❌ Trustees is not the correct answer.
❌ Custodian is not the correct answer.

Q15. Max % of NAV in debt of a single issuer?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Max 10% of NAV in debt of single issuer; extendable to 12% with trustee approval.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q16. Minimum contribution of sponsor to AMC net worth?
☐ 20%
☐ 30%
☑ 40%
☐ 50%
Explanation:
✅ Correct: Sponsor must contribute minimum 40% of AMC net worth.
❌ 20% is not the correct answer.
❌ 30% is not the correct answer.
❌ 50% is not the correct answer.

Q17. Mutual funds in India are constituted as?
☐ Company
☑ Trust
☐ Society
☐ Partnership
Explanation:
✅ Correct: Mutual funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Society is not the correct answer.
❌ Partnership is not the correct answer.

Q18. RTAs examples?
☐ ICRA, CRISIL
☑ CAMS, KARVY
☐ NSE, BSE
☐ AMFI, SEBI
Explanation:
✅ Correct: CAMS and KARVY are RTAs.
❌ ICRA, CRISIL is not the correct answer.
❌ NSE, BSE is not the correct answer.
❌ AMFI, SEBI is not the correct answer.

Q19. Max % of NAV in debt of a single issuer?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Max 10% of NAV in debt of single issuer; extendable to 12% with trustee approval.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q20. Celebrity endorsements allowed in MF ads?
☐ Yes, for schemes
☑ No
☐ Yes, but only for AMC
☐ Yes, unlimited
Explanation:
✅ Correct: No celebrities allowed in MF scheme ads.
❌ Yes, for schemes is not the correct answer.
❌ Yes, but only for AMC is not the correct answer.
❌ Yes, unlimited is not the correct answer.

Q21. Appeal against SEBI ruling is filed with?
☐ High Court
☐ Supreme Court
☑ SAT
☐ NCLT
Explanation:
✅ Correct: Appeals against SEBI go to Securities Appellate Tribunal (SAT).
❌ High Court is not the correct answer.
❌ Supreme Court is not the correct answer.
❌ NCLT is not the correct answer.

Q22. AMC minimum net worth requirement?
☐ 10 cr
☐ 25 cr
☑ 50 cr
☐ 100 cr
Explanation:
✅ Correct: AMC must have minimum net worth of Rs. 50 crore.
❌ 10 cr is not the correct answer.
❌ 25 cr is not the correct answer.
❌ 100 cr is not the correct answer.

Q23. Open ended debt funds must keep liquid assets minimum?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Open ended debt funds must maintain 10% corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q24. Open ended debt funds must keep liquid assets minimum?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Open ended debt funds must maintain 10% corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q25. Independence requirement for trustee board?
☐ Half independent
☑ Two-thirds independent
☐ All independent
☐ No requirement
Explanation:
✅ Correct: At least two-thirds of trustees must be independent.
❌ Half independent is not the correct answer.
❌ All independent is not the correct answer.
❌ No requirement is not the correct answer.

Q26. MFs prohibited from advancing?
☑ Loans
☐ Debentures
☐ Equities
☐ Bonds
Explanation:
✅ Correct: MFs shall not advance any loans.
❌ Debentures is not the correct answer.
❌ Equities is not the correct answer.
❌ Bonds is not the correct answer.

Q27. AMC minimum net worth requirement?
☐ 10 cr
☐ 25 cr
☑ 50 cr
☐ 100 cr
Explanation:
✅ Correct: AMC must have minimum net worth of Rs. 50 crore.
❌ 10 cr is not the correct answer.
❌ 25 cr is not the correct answer.
❌ 100 cr is not the correct answer.

Q28. Which regulator governs Mutual Funds?
☐ RBI
☑ SEBI
☐ IRDAI
☐ PFRDA
Explanation:
✅ Correct: SEBI regulates mutual funds.
❌ RBI is not the correct answer.
❌ IRDAI is not the correct answer.
❌ PFRDA is not the correct answer.

Q29. MF investment in group companies listed securities limited to?
☐ 10%
☐ 15%
☐ 20%
☑ 25%
Explanation:
✅ Correct: MF investment in listed securities of group cos limited to 25% of net assets.
❌ 10% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q30. Appeal against SEBI ruling is filed with?
☐ High Court
☐ Supreme Court
☑ SAT
☐ NCLT
Explanation:
✅ Correct: Appeals against SEBI go to Securities Appellate Tribunal (SAT).
❌ High Court is not the correct answer.
❌ Supreme Court is not the correct answer.
❌ NCLT is not the correct answer.

Q31. Which regulator governs Mutual Funds?
☐ RBI
☑ SEBI
☐ IRDAI
☐ PFRDA
Explanation:
✅ Correct: SEBI regulates mutual funds.
❌ RBI is not the correct answer.
❌ IRDAI is not the correct answer.
❌ PFRDA is not the correct answer.

Q32. Which Act governs Mutual Funds in India?
☑ Indian Trusts Act, 1882
☐ Companies Act, 2013
☐ SEBI Act, 1992
☐ Banking Regulation Act
Explanation:
✅ Correct: Mutual Funds are governed by Indian Trusts Act, 1882.
❌ Companies Act, 2013 is not the correct answer.
❌ SEBI Act, 1992 is not the correct answer.
❌ Banking Regulation Act is not the correct answer.

Q33. Limit on unlisted equity shares in open ended scheme?
☑ 5%
☐ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Not more than 5% of NAV can be in unlisted equity in open ended scheme.
❌ 10% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q34. Custody of assets of scheme is with?
☐ AMC
☑ Custodian
☐ Sponsor
☐ Trustees
Explanation:
✅ Correct: Custodian has custody of scheme assets.
❌ AMC is not the correct answer.
❌ Sponsor is not the correct answer.
❌ Trustees is not the correct answer.

Q35. Limit on unlisted equity shares in open ended scheme?
☑ 5%
☐ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Not more than 5% of NAV can be in unlisted equity in open ended scheme.
❌ 10% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q36. Minimum contribution of sponsor to AMC net worth?
☐ 20%
☐ 30%
☑ 40%
☐ 50%
Explanation:
✅ Correct: Sponsor must contribute minimum 40% of AMC net worth.
❌ 20% is not the correct answer.
❌ 30% is not the correct answer.
❌ 50% is not the correct answer.

Q37. Custody of assets of scheme is with?
☐ AMC
☑ Custodian
☐ Sponsor
☐ Trustees
Explanation:
✅ Correct: Custodian has custody of scheme assets.
❌ AMC is not the correct answer.
❌ Sponsor is not the correct answer.
❌ Trustees is not the correct answer.

Q38. Standard MF ad warning text?
☐ Investments are guaranteed
☐ Past returns assure future
☑ MF investments are subject to market risks
☐ SEBI approved returns
Explanation:
✅ Correct: Standard warning: ‘Mutual Fund investments are subject to market risks, read all scheme related documents carefully.’
❌ Investments are guaranteed is not the correct answer.
❌ Past returns assure future is not the correct answer.
❌ SEBI approved returns is not the correct answer.

Q39. Who are the beneficiaries in a mutual fund trust?
☐ AMC
☐ Trustees
☑ Investors
☐ Custodian
Explanation:
✅ Correct: Investors are the beneficiaries of a mutual fund trust.
❌ AMC is not the correct answer.
❌ Trustees is not the correct answer.
❌ Custodian is not the correct answer.

Q40. Appeal against SEBI ruling is filed with?
☐ High Court
☐ Supreme Court
☑ SAT
☐ NCLT
Explanation:
✅ Correct: Appeals against SEBI go to Securities Appellate Tribunal (SAT).
❌ High Court is not the correct answer.
❌ Supreme Court is not the correct answer.
❌ NCLT is not the correct answer.

Q41. Which Act governs Mutual Funds in India?
☑ Indian Trusts Act, 1882
☐ Companies Act, 2013
☐ SEBI Act, 1992
☐ Banking Regulation Act
Explanation:
✅ Correct: Mutual Funds are governed by Indian Trusts Act, 1882.
❌ Companies Act, 2013 is not the correct answer.
❌ SEBI Act, 1992 is not the correct answer.
❌ Banking Regulation Act is not the correct answer.

Q42. Who are the beneficiaries in a mutual fund trust?
☐ AMC
☐ Trustees
☑ Investors
☐ Custodian
Explanation:
✅ Correct: Investors are the beneficiaries of a mutual fund trust.
❌ AMC is not the correct answer.
❌ Trustees is not the correct answer.
❌ Custodian is not the correct answer.

Q43. Who are the beneficiaries in a mutual fund trust?
☐ AMC
☐ Trustees
☑ Investors
☐ Custodian
Explanation:
✅ Correct: Investors are the beneficiaries of a mutual fund trust.
❌ AMC is not the correct answer.
❌ Trustees is not the correct answer.
❌ Custodian is not the correct answer.

Q44. Which Act governs Mutual Funds in India?
☑ Indian Trusts Act, 1882
☐ Companies Act, 2013
☐ SEBI Act, 1992
☐ Banking Regulation Act
Explanation:
✅ Correct: Mutual Funds are governed by Indian Trusts Act, 1882.
❌ Companies Act, 2013 is not the correct answer.
❌ SEBI Act, 1992 is not the correct answer.
❌ Banking Regulation Act is not the correct answer.

Q45. Which regulator governs Mutual Funds?
☐ RBI
☑ SEBI
☐ IRDAI
☐ PFRDA
Explanation:
✅ Correct: SEBI regulates mutual funds.
❌ RBI is not the correct answer.
❌ IRDAI is not the correct answer.
❌ PFRDA is not the correct answer.

Q46. Appeal against SEBI ruling is filed with?
☐ High Court
☐ Supreme Court
☑ SAT
☐ NCLT
Explanation:
✅ Correct: Appeals against SEBI go to Securities Appellate Tribunal (SAT).
❌ High Court is not the correct answer.
❌ Supreme Court is not the correct answer.
❌ NCLT is not the correct answer.

Q47. Max % of NAV in debt of a single issuer?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Max 10% of NAV in debt of single issuer; extendable to 12% with trustee approval.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q48. Standard MF ad warning text?
☐ Investments are guaranteed
☐ Past returns assure future
☑ MF investments are subject to market risks
☐ SEBI approved returns
Explanation:
✅ Correct: Standard warning: ‘Mutual Fund investments are subject to market risks, read all scheme related documents carefully.’
❌ Investments are guaranteed is not the correct answer.
❌ Past returns assure future is not the correct answer.
❌ SEBI approved returns is not the correct answer.

Q49. Open ended debt funds must keep liquid assets minimum?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Open ended debt funds must maintain 10% corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q50. Mutual funds in India are constituted as?
☐ Company
☑ Trust
☐ Society
☐ Partnership
Explanation:
✅ Correct: Mutual funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Society is not the correct answer.
❌ Partnership is not the correct answer.

Q51. How many regulators in India currently (as per PDF)?
☐ 2
☐ 3
☑ 4
☐ 5
Explanation:
✅ Correct: There are 4 regulators: RBI, SEBI, IRDAI, PFRDA.
❌ 2 is not the correct answer.
❌ 3 is not the correct answer.
❌ 5 is not the correct answer.

Q52. Mutual funds in India are constituted as?
☐ Company
☑ Trust
☐ Society
☐ Partnership
Explanation:
✅ Correct: Mutual funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Society is not the correct answer.
❌ Partnership is not the correct answer.

Q53. Minimum number of trustees required?
☐ 2
☐ 3
☑ 4
☐ 5
Explanation:
✅ Correct: At least 4 trustees must be appointed.
❌ 2 is not the correct answer.
❌ 3 is not the correct answer.
❌ 5 is not the correct answer.

Q54. Mutual funds in India are constituted as?
☐ Company
☑ Trust
☐ Society
☐ Partnership
Explanation:
✅ Correct: Mutual funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Society is not the correct answer.
❌ Partnership is not the correct answer.

Q55. Appeal against SEBI ruling is filed with?
☐ High Court
☐ Supreme Court
☑ SAT
☐ NCLT
Explanation:
✅ Correct: Appeals against SEBI go to Securities Appellate Tribunal (SAT).
❌ High Court is not the correct answer.
❌ Supreme Court is not the correct answer.
❌ NCLT is not the correct answer.

Q56. Minimum number of trustees required?
☐ 2
☐ 3
☑ 4
☐ 5
Explanation:
✅ Correct: At least 4 trustees must be appointed.
❌ 2 is not the correct answer.
❌ 3 is not the correct answer.
❌ 5 is not the correct answer.

Q57. Celebrity endorsements allowed in MF ads?
☐ Yes, for schemes
☑ No
☐ Yes, but only for AMC
☐ Yes, unlimited
Explanation:
✅ Correct: No celebrities allowed in MF scheme ads.
❌ Yes, for schemes is not the correct answer.
❌ Yes, but only for AMC is not the correct answer.
❌ Yes, unlimited is not the correct answer.

Q58. Open ended debt funds must keep liquid assets minimum?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Open ended debt funds must maintain 10% corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q59. Minimum number of trustees required?
☐ 2
☐ 3
☑ 4
☐ 5
Explanation:
✅ Correct: At least 4 trustees must be appointed.
❌ 2 is not the correct answer.
❌ 3 is not the correct answer.
❌ 5 is not the correct answer.

Q60. Open ended debt funds must keep liquid assets minimum?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Open ended debt funds must maintain 10% corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q61. Independence requirement for trustee board?
☐ Half independent
☑ Two-thirds independent
☐ All independent
☐ No requirement
Explanation:
✅ Correct: At least two-thirds of trustees must be independent.
❌ Half independent is not the correct answer.
❌ All independent is not the correct answer.
❌ No requirement is not the correct answer.

Q62. Custody of assets of scheme is with?
☐ AMC
☑ Custodian
☐ Sponsor
☐ Trustees
Explanation:
✅ Correct: Custodian has custody of scheme assets.
❌ AMC is not the correct answer.
❌ Sponsor is not the correct answer.
❌ Trustees is not the correct answer.

Q63. Standard MF ad warning text?
☐ Investments are guaranteed
☐ Past returns assure future
☑ MF investments are subject to market risks
☐ SEBI approved returns
Explanation:
✅ Correct: Standard warning: ‘Mutual Fund investments are subject to market risks, read all scheme related documents carefully.’
❌ Investments are guaranteed is not the correct answer.
❌ Past returns assure future is not the correct answer.
❌ SEBI approved returns is not the correct answer.

Q64. Limit on unlisted equity shares in open ended scheme?
☑ 5%
☐ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Not more than 5% of NAV can be in unlisted equity in open ended scheme.
❌ 10% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q65. Which Act governs Mutual Funds in India?
☑ Indian Trusts Act, 1882
☐ Companies Act, 2013
☐ SEBI Act, 1992
☐ Banking Regulation Act
Explanation:
✅ Correct: Mutual Funds are governed by Indian Trusts Act, 1882.
❌ Companies Act, 2013 is not the correct answer.
❌ SEBI Act, 1992 is not the correct answer.
❌ Banking Regulation Act is not the correct answer.

Q66. MFs prohibited from advancing?
☑ Loans
☐ Debentures
☐ Equities
☐ Bonds
Explanation:
✅ Correct: MFs shall not advance any loans.
❌ Debentures is not the correct answer.
❌ Equities is not the correct answer.
❌ Bonds is not the correct answer.

Q67. Who are the beneficiaries in a mutual fund trust?
☐ AMC
☐ Trustees
☑ Investors
☐ Custodian
Explanation:
✅ Correct: Investors are the beneficiaries of a mutual fund trust.
❌ AMC is not the correct answer.
❌ Trustees is not the correct answer.
❌ Custodian is not the correct answer.

Q68. Limit on unlisted equity shares in open ended scheme?
☑ 5%
☐ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Not more than 5% of NAV can be in unlisted equity in open ended scheme.
❌ 10% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q69. Open ended debt funds must keep liquid assets minimum?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Open ended debt funds must maintain 10% corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q70. Standard MF ad warning text?
☐ Investments are guaranteed
☐ Past returns assure future
☑ MF investments are subject to market risks
☐ SEBI approved returns
Explanation:
✅ Correct: Standard warning: ‘Mutual Fund investments are subject to market risks, read all scheme related documents carefully.’
❌ Investments are guaranteed is not the correct answer.
❌ Past returns assure future is not the correct answer.
❌ SEBI approved returns is not the correct answer.

Q71. Which regulator governs Mutual Funds?
☐ RBI
☑ SEBI
☐ IRDAI
☐ PFRDA
Explanation:
✅ Correct: SEBI regulates mutual funds.
❌ RBI is not the correct answer.
❌ IRDAI is not the correct answer.
❌ PFRDA is not the correct answer.

Q72. MF investment in group companies listed securities limited to?
☐ 10%
☐ 15%
☐ 20%
☑ 25%
Explanation:
✅ Correct: MF investment in listed securities of group cos limited to 25% of net assets.
❌ 10% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q73. Which Act governs Mutual Funds in India?
☑ Indian Trusts Act, 1882
☐ Companies Act, 2013
☐ SEBI Act, 1992
☐ Banking Regulation Act
Explanation:
✅ Correct: Mutual Funds are governed by Indian Trusts Act, 1882.
❌ Companies Act, 2013 is not the correct answer.
❌ SEBI Act, 1992 is not the correct answer.
❌ Banking Regulation Act is not the correct answer.

Q74. Standard MF ad warning text?
☐ Investments are guaranteed
☐ Past returns assure future
☑ MF investments are subject to market risks
☐ SEBI approved returns
Explanation:
✅ Correct: Standard warning: ‘Mutual Fund investments are subject to market risks, read all scheme related documents carefully.’
❌ Investments are guaranteed is not the correct answer.
❌ Past returns assure future is not the correct answer.
❌ SEBI approved returns is not the correct answer.

Q75. Who are the beneficiaries in a mutual fund trust?
☐ AMC
☐ Trustees
☑ Investors
☐ Custodian
Explanation:
✅ Correct: Investors are the beneficiaries of a mutual fund trust.
❌ AMC is not the correct answer.
❌ Trustees is not the correct answer.
❌ Custodian is not the correct answer.

Q76. RTAs examples?
☐ ICRA, CRISIL
☑ CAMS, KARVY
☐ NSE, BSE
☐ AMFI, SEBI
Explanation:
✅ Correct: CAMS and KARVY are RTAs.
❌ ICRA, CRISIL is not the correct answer.
❌ NSE, BSE is not the correct answer.
❌ AMFI, SEBI is not the correct answer.

Q77. Who are the beneficiaries in a mutual fund trust?
☐ AMC
☐ Trustees
☑ Investors
☐ Custodian
Explanation:
✅ Correct: Investors are the beneficiaries of a mutual fund trust.
❌ AMC is not the correct answer.
❌ Trustees is not the correct answer.
❌ Custodian is not the correct answer.

Q78. Day-to-day management of MF schemes is handled by?
☐ Trustees
☑ AMC
☐ Custodian
☐ SEBI
Explanation:
✅ Correct: AMC handles day-to-day management of mutual fund schemes.
❌ Trustees is not the correct answer.
❌ Custodian is not the correct answer.
❌ SEBI is not the correct answer.

Q79. Appeal against SEBI ruling is filed with?
☐ High Court
☐ Supreme Court
☑ SAT
☐ NCLT
Explanation:
✅ Correct: Appeals against SEBI go to Securities Appellate Tribunal (SAT).
❌ High Court is not the correct answer.
❌ Supreme Court is not the correct answer.
❌ NCLT is not the correct answer.

Q80. Which Act governs Mutual Funds in India?
☑ Indian Trusts Act, 1882
☐ Companies Act, 2013
☐ SEBI Act, 1992
☐ Banking Regulation Act
Explanation:
✅ Correct: Mutual Funds are governed by Indian Trusts Act, 1882.
❌ Companies Act, 2013 is not the correct answer.
❌ SEBI Act, 1992 is not the correct answer.
❌ Banking Regulation Act is not the correct answer.

Q81. Open ended debt funds must keep liquid assets minimum?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Open ended debt funds must maintain 10% corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q82. Standard MF ad warning text?
☐ Investments are guaranteed
☐ Past returns assure future
☑ MF investments are subject to market risks
☐ SEBI approved returns
Explanation:
✅ Correct: Standard warning: ‘Mutual Fund investments are subject to market risks, read all scheme related documents carefully.’
❌ Investments are guaranteed is not the correct answer.
❌ Past returns assure future is not the correct answer.
❌ SEBI approved returns is not the correct answer.

Q83. Independence requirement for trustee board?
☐ Half independent
☑ Two-thirds independent
☐ All independent
☐ No requirement
Explanation:
✅ Correct: At least two-thirds of trustees must be independent.
❌ Half independent is not the correct answer.
❌ All independent is not the correct answer.
❌ No requirement is not the correct answer.

Q84. Max % of NAV in debt of a single issuer?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Max 10% of NAV in debt of single issuer; extendable to 12% with trustee approval.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q85. Limit on unlisted equity shares in open ended scheme?
☑ 5%
☐ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Not more than 5% of NAV can be in unlisted equity in open ended scheme.
❌ 10% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q86. Mutual funds in India are constituted as?
☐ Company
☑ Trust
☐ Society
☐ Partnership
Explanation:
✅ Correct: Mutual funds in India are constituted as Trusts.
❌ Company is not the correct answer.
❌ Society is not the correct answer.
❌ Partnership is not the correct answer.

Q87. Appeal against SEBI ruling is filed with?
☐ High Court
☐ Supreme Court
☑ SAT
☐ NCLT
Explanation:
✅ Correct: Appeals against SEBI go to Securities Appellate Tribunal (SAT).
❌ High Court is not the correct answer.
❌ Supreme Court is not the correct answer.
❌ NCLT is not the correct answer.

Q88. Who are the beneficiaries in a mutual fund trust?
☐ AMC
☐ Trustees
☑ Investors
☐ Custodian
Explanation:
✅ Correct: Investors are the beneficiaries of a mutual fund trust.
❌ AMC is not the correct answer.
❌ Trustees is not the correct answer.
❌ Custodian is not the correct answer.

Q89. Minimum contribution of sponsor to AMC net worth?
☐ 20%
☐ 30%
☑ 40%
☐ 50%
Explanation:
✅ Correct: Sponsor must contribute minimum 40% of AMC net worth.
❌ 20% is not the correct answer.
❌ 30% is not the correct answer.
❌ 50% is not the correct answer.

Q90. RTAs examples?
☐ ICRA, CRISIL
☑ CAMS, KARVY
☐ NSE, BSE
☐ AMFI, SEBI
Explanation:
✅ Correct: CAMS and KARVY are RTAs.
❌ ICRA, CRISIL is not the correct answer.
❌ NSE, BSE is not the correct answer.
❌ AMFI, SEBI is not the correct answer.

Q91. Minimum number of trustees required?
☐ 2
☐ 3
☑ 4
☐ 5
Explanation:
✅ Correct: At least 4 trustees must be appointed.
❌ 2 is not the correct answer.
❌ 3 is not the correct answer.
❌ 5 is not the correct answer.

Q92. Open ended debt funds must keep liquid assets minimum?
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Open ended debt funds must maintain 10% corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q93. Minimum contribution of sponsor to AMC net worth?
☐ 20%
☐ 30%
☑ 40%
☐ 50%
Explanation:
✅ Correct: Sponsor must contribute minimum 40% of AMC net worth.
❌ 20% is not the correct answer.
❌ 30% is not the correct answer.
❌ 50% is not the correct answer.

Q94. Appeal against SEBI ruling is filed with?
☐ High Court
☐ Supreme Court
☑ SAT
☐ NCLT
Explanation:
✅ Correct: Appeals against SEBI go to Securities Appellate Tribunal (SAT).
❌ High Court is not the correct answer.
❌ Supreme Court is not the correct answer.
❌ NCLT is not the correct answer.

Q95. Limit on unlisted equity shares in open ended scheme?
☑ 5%
☐ 10%
☐ 15%
☐ 20%
Explanation:
✅ Correct: Not more than 5% of NAV can be in unlisted equity in open ended scheme.
❌ 10% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q96. Independence requirement for trustee board?
☐ Half independent
☑ Two-thirds independent
☐ All independent
☐ No requirement
Explanation:
✅ Correct: At least two-thirds of trustees must be independent.
❌ Half independent is not the correct answer.
❌ All independent is not the correct answer.
❌ No requirement is not the correct answer.

Q97. How many regulators in India currently (as per PDF)?
☐ 2
☐ 3
☑ 4
☐ 5
Explanation:
✅ Correct: There are 4 regulators: RBI, SEBI, IRDAI, PFRDA.
❌ 2 is not the correct answer.
❌ 3 is not the correct answer.
❌ 5 is not the correct answer.

Q98. Appeal against SEBI ruling is filed with?
☐ High Court
☐ Supreme Court
☑ SAT
☐ NCLT
Explanation:
✅ Correct: Appeals against SEBI go to Securities Appellate Tribunal (SAT).
❌ High Court is not the correct answer.
❌ Supreme Court is not the correct answer.
❌ NCLT is not the correct answer.

Q99. RTAs examples?
☐ ICRA, CRISIL
☑ CAMS, KARVY
☐ NSE, BSE
☐ AMFI, SEBI
Explanation:
✅ Correct: CAMS and KARVY are RTAs.
❌ ICRA, CRISIL is not the correct answer.
❌ NSE, BSE is not the correct answer.
❌ AMFI, SEBI is not the correct answer.

Q100. Minimum contribution of sponsor to AMC net worth?
☐ 20%
☐ 30%
☑ 40%
☐ 50%
Explanation:
✅ Correct: Sponsor must contribute minimum 40% of AMC net worth.
❌ 20% is not the correct answer.
❌ 30% is not the correct answer.
❌ 50% is not the correct answer.

~

Q1. Which document concisely sets forth information about a mutual fund scheme for a prospective investor?
☐ Statement of Additional Information (SAI)
☑ Scheme Information Document (SID)
☐ Key Information Memorandum (KIM)
☐ Factsheet
Explanation:
✅ SID is the primary scheme document covering objectives, risks, loads, expenses and other key details.
❌ Statement of Additional Information (SAI) is not the correct answer.
❌ Key Information Memorandum (KIM) is not the correct answer.
❌ Factsheet is not the correct answer.

Q2. What is the summary of SID and SAI that must accompany every application form?
☐ Prospectus
☐ Addendum
☑ Key Information Memorandum (KIM)
☐ Factsheet
Explanation:
✅ KIM summarizes SID and SAI and must accompany application forms.
❌ Prospectus is not the correct answer.
❌ Addendum is not the correct answer.
❌ Factsheet is not the correct answer.

Q3. Which document provides the mutual fund’s statutory information rather than one scheme’s details?
☐ Scheme Information Document (SID)
☑ Statement of Additional Information (SAI)
☐ Key Information Memorandum (KIM)
☐ Factsheet
Explanation:
✅ SAI contains statutory information about the fund house and applies to all schemes.
❌ Scheme Information Document (SID) is not the correct answer.
❌ Key Information Memorandum (KIM) is not the correct answer.
❌ Factsheet is not the correct answer.

Q4. How frequently must an AMC declare NAV for open-ended schemes?
☐ Only weekly
☑ Every business day
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Open-ended scheme NAVs are declared on every business day.
❌ Only weekly is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q5. Liquid and Overnight funds’ NAV disclosure happens:
☐ Only on business days
☐ Weekly
☑ Even on Sundays/holidays
☐ Only monthly
Explanation:
✅ Liquid and Overnight funds declare NAVs even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Weekly is not the correct answer.
❌ Only monthly is not the correct answer.

Q6. Which utility offers a CAN to consolidate holdings across participating AMCs?
☐ NSE NMF II
☐ BSE Star MF
☑ MF Utilities (MFU)
☐ SEBI SCORES
Explanation:
✅ MF Utilities (MFU) aggregates transactions and assigns a Common Account Number (CAN).
❌ NSE NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.
❌ SEBI SCORES is not the correct answer.

Q7. Allotment of units/refund after NFO closure must be within:
☐ 2 business days
☑ 5 business days
☐ 7 business days
☐ 10 business days
Explanation:
✅ SEBI mandates allotment/refund within 5 business days of NFO closure.
❌ 2 business days is not the correct answer.
❌ 7 business days is not the correct answer.
❌ 10 business days is not the correct answer.

Q8. Minimum period an NFO must remain open:
☐ 1 working day
☑ 3 working days
☐ 7 working days
☐ 15 working days
Explanation:
✅ NFOs must be open for at least 3 working days.
❌ 1 working day is not the correct answer.
❌ 7 working days is not the correct answer.
❌ 15 working days is not the correct answer.

Q9. Ex-dividend NAV is:
☐ Before dividend payout
☑ After dividend payout (reduced NAV)
☐ Including distributable surplus
☐ Guaranteed by AMC
Explanation:
✅ Ex-dividend NAV is the reduced NAV after the dividend payout.
❌ Before dividend payout is not the correct answer.
❌ Including distributable surplus is not the correct answer.
❌ Guaranteed by AMC is not the correct answer.

Q10. In dividend reinvestment option, dividends are:
☐ Paid as cash to investor
☑ Reinvested to allot additional units in the same scheme
☐ Transferred to another scheme automatically
☐ Used to pay TER
Explanation:
✅ Dividends are reinvested to allot additional units in the same scheme.
❌ Paid as cash to investor is not the correct answer.
❌ Transferred to another scheme automatically is not the correct answer.
❌ Used to pay TER is not the correct answer.

Q11. Which platform is SEBI’s centralized grievance redress system?
☐ MF Utilities (MFU)
☐ NSE NMF II
☑ SEBI SCORES
☐ AMFI Portal
Explanation:
✅ SEBI SCORES is the centralized grievance redress system.
❌ MF Utilities (MFU) is not the correct answer.
❌ NSE NMF II is not the correct answer.
❌ AMFI Portal is not the correct answer.

Q12. Minimum age to obtain AMFI Registration Number (ARN):
☐ 16 years
☑ 18 years
☐ 21 years
☐ 25 years
Explanation:
✅ AMFI requires individuals to be at least 18 years old to obtain ARN.
❌ 16 years is not the correct answer.
❌ 21 years is not the correct answer.
❌ 25 years is not the correct answer.

Q13. Which NISM exam is required for mutual fund distributors?
☐ CFA Level I
☑ NISM-Series-V-A Mutual Fund Distributors
☐ SEBI Advisor Test
☐ RBI Intermediary Exam
Explanation:
✅ NISM-Series-V-A Mutual Fund Distributors certification is mandatory.
❌ CFA Level I is not the correct answer.
❌ SEBI Advisor Test is not the correct answer.
❌ RBI Intermediary Exam is not the correct answer.

Q14. In distribution, KYD means:
☐ Know Your Depository
☑ Know Your Distributor
☐ Key Yield Determination
☐ Know Your Debt
Explanation:
✅ KYD stands for Know Your Distributor.
❌ Know Your Depository is not the correct answer.
❌ Key Yield Determination is not the correct answer.
❌ Know Your Debt is not the correct answer.

Q15. Employees of distributors must obtain which identifier from AMFI?
☐ PAN
☐ GSTIN
☑ Employee Unique Identification Number (EUIN)
☐ Aadhaar
Explanation:
✅ Employees require an EUIN in addition to ARN.
❌ PAN is not the correct answer.
❌ GSTIN is not the correct answer.
❌ Aadhaar is not the correct answer.

Q16. SEBI requires which compensation model for distributors (except limited SIP cases)?
☐ Full upfront model
☑ Full trail model
☐ Hybrid model
☐ Zero commission model
Explanation:
✅ A full trail commission model is mandated; upfronting is disallowed except in limited SIP cases.
❌ Full upfront model is not the correct answer.
❌ Hybrid model is not the correct answer.
❌ Zero commission model is not the correct answer.

Q17. Ongoing commission to distributors is linked to:
☐ Flat fee per investor
☑ Net assets attributable to units sold by the distributor (AUM)
☐ AMC’s annual profit
☐ Arbitrage profit
Explanation:
✅ Trail commission is a % of AUM attributable to the units mobilised by the distributor.
❌ Flat fee per investor is not the correct answer.
❌ AMC’s annual profit is not the correct answer.
❌ Arbitrage profit is not the correct answer.

Q18. Investing without distributor results in which plan type (lower TER)?
☐ Regular Plan
☑ Direct Plan
☐ Dividend Plan
☐ Balanced Plan
Explanation:
✅ Direct Plan excludes distributor commission and therefore has a lower TER.
❌ Regular Plan is not the correct answer.
❌ Dividend Plan is not the correct answer.
❌ Balanced Plan is not the correct answer.

Q19. STP typically shifts amounts:
☐ Paid as cash to investor
☑ Reinvested in another scheme of the same fund
☐ Given as loan to AMC
☐ Used to pay TER
Explanation:
✅ STP re-invests withdrawals into another scheme of the same mutual fund.
❌ Paid as cash to investor is not the correct answer.
❌ Given as loan to AMC is not the correct answer.
❌ Used to pay TER is not the correct answer.

Q20. CAS consolidates:
☐ Only one scheme’s position
☑ All MF transactions and demat holdings under PAN
☐ Distributor commissions
☐ AMC’s internal financials
Explanation:
✅ CAS shows consolidated mutual fund transactions and demat holdings under a PAN.
❌ Only one scheme’s position is not the correct answer.
❌ Distributor commissions is not the correct answer.
❌ AMC’s internal financials is not the correct answer.

Q21. Which entity maintains investor records and processes purchase/redemption transactions?
☐ Custodian
☑ Registrar & Transfer Agent (RTA)
☐ AMC Board
☐ SEBI
Explanation:
✅ RTAs (e.g., CAMS, KFinTech) maintain investor records and process transactions.
❌ Custodian is not the correct answer.
❌ AMC Board is not the correct answer.
❌ SEBI is not the correct answer.

Q22. Who safely keeps the fund’s securities on behalf of investors?
☐ AMC
☐ Distributor
☑ Custodian
☐ AMFI
Explanation:
✅ The Custodian holds the scheme’s securities and settles trades.
❌ AMC is not the correct answer.
❌ Distributor is not the correct answer.
❌ AMFI is not the correct answer.

Q23. Exit load is not AMC income; it must be credited to:
☐ AMC’s own account
☑ The scheme itself
☐ SEBI
☐ Distributor
Explanation:
✅ Exit load is credited back to the scheme for the benefit of unitholders.
❌ AMC’s own account is not the correct answer.
❌ SEBI is not the correct answer.
❌ Distributor is not the correct answer.

Q24. Post SEBI ban, entry load applies to:
☑ All mutual fund schemes
☐ Only equity schemes
☐ Only debt schemes
☐ Only ELSS
Explanation:
✅ SEBI has banned entry load on all mutual fund schemes.
❌ Only equity schemes is not the correct answer.
❌ Only debt schemes is not the correct answer.
❌ Only ELSS is not the correct answer.

Q25. Can initial issue expenses be charged to the scheme?
☐ Borne by the scheme
☑ Borne by the AMC (not charged to scheme)
☐ Charged to investors via load
☐ Paid by RTA
Explanation:
✅ Initial issue expenses are borne by the AMC; they cannot be charged to the scheme.
❌ Borne by the scheme is not the correct answer.
❌ Charged to investors via load is not the correct answer.
❌ Paid by RTA is not the correct answer.

Q26. Minimum liquid assets for open-ended debt funds is:
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Open-ended debt funds must maintain at least 10% of corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q27. If a scheme’s fundamental attributes change, investors must get:
☐ Verbal intimation only
☑ 30-day exit window without exit load
☐ No prior notice
☐ Higher exit load option
Explanation:
✅ Investors must get a 30-day exit window at prevailing NAV without exit load.
❌ Verbal intimation only is not the correct answer.
❌ No prior notice is not the correct answer.
❌ Higher exit load option is not the correct answer.

Q28. Investor requests sent via which channel are invalid?
☐ AMC website/official app
☐ RTA counters/physical forms
☑ Personal social media chats
☐ MF Utilities (MFU)
Explanation:
✅ Personal social media chats are not an authorized transaction channel.
❌ AMC website/official app is not the correct answer.
❌ RTA counters/physical forms is not the correct answer.
❌ MF Utilities (MFU) is not the correct answer.

Q29. A close-ended fund can typically be exited by:
☐ Redeeming with AMC anytime
☑ Selling units on the stock exchange
☐ Requesting custodian
☐ Writing to SEBI
Explanation:
✅ Closed-end fund units are listed and sold on the exchange; redemption with AMC is at maturity.
❌ Redeeming with AMC anytime is not the correct answer.
❌ Requesting custodian is not the correct answer.
❌ Writing to SEBI is not the correct answer.

Q30. Index Funds primarily:
☐ Actively pick stocks
☑ Replicate a market index
☐ Invest only in debt
☐ Guarantee returns
Explanation:
✅ Index funds passively replicate a chosen market index.
❌ Actively pick stocks is not the correct answer.
❌ Invest only in debt is not the correct answer.
❌ Guarantee returns is not the correct answer.

Q31. AMC website prominent display includes:
☐ Only annual report
☑ Daily NAV and TER
☐ Distributor commission slabs only
☐ Only AMFI data
Explanation:
✅ AMCs must disclose scheme-wise daily NAV and TER prominently.
❌ Only annual report is not the correct answer.
❌ Distributor commission slabs only is not the correct answer.
❌ Only AMFI data is not the correct answer.

Q32. Cut-off time in mutual funds determines:
☐ AMC office hours
☑ Applicable NAV based on transaction time
☐ Portfolio turnover ratio
☐ TER charged
Explanation:
✅ Cut-off time determines which day’s NAV applies to the transaction.
❌ AMC office hours is not the correct answer.
❌ Portfolio turnover ratio is not the correct answer.
❌ TER charged is not the correct answer.

Q33. SIP is best described as:
☑ Rupee Cost Averaging
☐ Guaranteed capital protection
☐ Zero market risk
☐ Higher upfront commission
Explanation:
✅ SIP provides rupee cost averaging by investing a fixed sum periodically.
❌ Guaranteed capital protection is not the correct answer.
❌ Zero market risk is not the correct answer.
❌ Higher upfront commission is not the correct answer.

Q34. SWP is designed to:
☐ Invest a fixed amount periodically
☑ Withdraw a fixed amount periodically
☐ Transfer between schemes
☐ Pause SIPs
Explanation:
✅ SWP lets investors withdraw fixed amounts periodically.
❌ Invest a fixed amount periodically is not the correct answer.
❌ Transfer between schemes is not the correct answer.
❌ Pause SIPs is not the correct answer.

Q35. Distributors use NSE’s __ platform for MF orders:
☐ BSE Star MF
☑ NMF II
☐ MFU
☐ SCORES
Explanation:
✅ NMF II is NSE’s mutual fund order platform.
❌ BSE Star MF is not the correct answer.
❌ MFU is not the correct answer.
❌ SCORES is not the correct answer.

Q36. BSE’s online platform for mutual funds is:
☐ NMF II
☑ BSE Star MF
☐ MFU
☐ SCORES
Explanation:
✅ BSE Star MF is BSE’s online mutual fund platform.
❌ NMF II is not the correct answer.
❌ MFU is not the correct answer.
❌ SCORES is not the correct answer.

Q37. Portfolio features and returns are summarized monthly in the:
☐ SAI
☑ Factsheet
☐ KIM
☐ Addendum
Explanation:
✅ Factsheets summarize performance, allocation, and key ratios monthly.
❌ SAI is not the correct answer.
❌ KIM is not the correct answer.
❌ Addendum is not the correct answer.

Q38. A switch transaction between plans/schemes is treated as:
☐ A free transfer without implications
☑ Redemption from one and purchase into another
☐ Loan to AMC
☐ Dividend payout
Explanation:
✅ A switch is treated as redemption plus purchase for regulatory/tax purposes.
❌ A free transfer without implications is not the correct answer.
❌ Loan to AMC is not the correct answer.
❌ Dividend payout is not the correct answer.

Q39. SEBI requires this exact warning in MF ads:
☐ Returns are guaranteed by SEBI
☑ Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
☐ Past performance assures future results
☐ Celebrity endorsement guarantees safety
Explanation:
✅ The mandated warning is: ‘Mutual Fund investments are subject to market risks, read all scheme related documents carefully.’
❌ Returns are guaranteed by SEBI is not the correct answer.
❌ Past performance assures future results is not the correct answer.
❌ Celebrity endorsement guarantees safety is not the correct answer.

Q40. Monthly scheme portfolio must be published on AMC website within:
☑ 10 days
☐ 15 days
☐ 30 days
☐ 45 days
Explanation:
✅ AMCs must publish scheme portfolio within 10 days of month-end.
❌ 15 days is not the correct answer.
❌ 30 days is not the correct answer.
❌ 45 days is not the correct answer.

Q41. Which core offer document describes a mutual fund scheme’s objective, risks, loads and expenses?
☐ Statement of Additional Information (SAI)
☑ Scheme Information Document (SID)
☐ Key Information Memorandum (KIM)
☐ Factsheet
Explanation:
✅ SID is the primary scheme document covering objectives, risks, loads, expenses and other key details.
❌ Statement of Additional Information (SAI) is not the correct answer.
❌ Key Information Memorandum (KIM) is not the correct answer.
❌ Factsheet is not the correct answer.

Q42. Which investor-facing summary of scheme documents is mandatory with application forms?
☐ Prospectus
☐ Addendum
☑ Key Information Memorandum (KIM)
☐ Factsheet
Explanation:
✅ KIM summarizes SID and SAI and must accompany application forms.
❌ Prospectus is not the correct answer.
❌ Addendum is not the correct answer.
❌ Factsheet is not the correct answer.

Q43. Where do you find AMC-level statutory details applicable across all schemes?
☐ Scheme Information Document (SID)
☑ Statement of Additional Information (SAI)
☐ Key Information Memorandum (KIM)
☐ Factsheet
Explanation:
✅ SAI contains statutory information about the fund house and applies to all schemes.
❌ Scheme Information Document (SID) is not the correct answer.
❌ Key Information Memorandum (KIM) is not the correct answer.
❌ Factsheet is not the correct answer.

Q44. NAV of open-ended schemes must be declared:
☐ Only weekly
☑ Every business day
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Open-ended scheme NAVs are declared on every business day.
❌ Only weekly is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q45. NAV for Liquid and Overnight Funds is declared:
☐ Only on business days
☐ Weekly
☑ Even on Sundays/holidays
☐ Only monthly
Explanation:
✅ Liquid and Overnight funds declare NAVs even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Weekly is not the correct answer.
❌ Only monthly is not the correct answer.

Q46. Which utility offers a CAN to consolidate holdings across participating AMCs?
☐ NSE NMF II
☐ BSE Star MF
☑ MF Utilities (MFU)
☐ SEBI SCORES
Explanation:
✅ MF Utilities (MFU) aggregates transactions and assigns a Common Account Number (CAN).
❌ NSE NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.
❌ SEBI SCORES is not the correct answer.

Q47. Post NFO, the deadline for allotment/refund is:
☐ 2 business days
☑ 5 business days
☐ 7 business days
☐ 10 business days
Explanation:
✅ SEBI mandates allotment/refund within 5 business days of NFO closure.
❌ 2 business days is not the correct answer.
❌ 7 business days is not the correct answer.
❌ 10 business days is not the correct answer.

Q48. Minimum period an NFO must remain open:
☐ 1 working day
☑ 3 working days
☐ 7 working days
☐ 15 working days
Explanation:
✅ NFOs must be open for at least 3 working days.
❌ 1 working day is not the correct answer.
❌ 7 working days is not the correct answer.
❌ 15 working days is not the correct answer.

Q49. Ex-dividend NAV refers to NAV:
☐ Before dividend payout
☑ After dividend payout (reduced NAV)
☐ Including distributable surplus
☐ Guaranteed by AMC
Explanation:
✅ Ex-dividend NAV is the reduced NAV after the dividend payout.
❌ Before dividend payout is not the correct answer.
❌ Including distributable surplus is not the correct answer.
❌ Guaranteed by AMC is not the correct answer.

Q50. In dividend reinvestment option, dividends are:
☐ Paid as cash to investor
☑ Reinvested to allot additional units in the same scheme
☐ Transferred to another scheme automatically
☐ Used to pay TER
Explanation:
✅ Dividends are reinvested to allot additional units in the same scheme.
❌ Paid as cash to investor is not the correct answer.
❌ Transferred to another scheme automatically is not the correct answer.
❌ Used to pay TER is not the correct answer.

Q51. For MF grievance redress, investors use:
☐ MF Utilities (MFU)
☐ NSE NMF II
☑ SEBI SCORES
☐ AMFI Portal
Explanation:
✅ SEBI SCORES is the centralized grievance redress system.
❌ MF Utilities (MFU) is not the correct answer.
❌ NSE NMF II is not the correct answer.
❌ AMFI Portal is not the correct answer.

Q52. ARN can be obtained by individuals aged at least:
☐ 16 years
☑ 18 years
☐ 21 years
☐ 25 years
Explanation:
✅ AMFI requires individuals to be at least 18 years old to obtain ARN.
❌ 16 years is not the correct answer.
❌ 21 years is not the correct answer.
❌ 25 years is not the correct answer.

Q53. A distributor must pass which certification exam?
☐ CFA Level I
☑ NISM-Series-V-A Mutual Fund Distributors
☐ SEBI Advisor Test
☐ RBI Intermediary Exam
Explanation:
✅ NISM-Series-V-A Mutual Fund Distributors certification is mandatory.
❌ CFA Level I is not the correct answer.
❌ SEBI Advisor Test is not the correct answer.
❌ RBI Intermediary Exam is not the correct answer.

Q54. KYD expansion in AMFI onboarding is:
☐ Know Your Depository
☑ Know Your Distributor
☐ Key Yield Determination
☐ Know Your Debt
Explanation:
✅ KYD stands for Know Your Distributor.
❌ Know Your Depository is not the correct answer.
❌ Key Yield Determination is not the correct answer.
❌ Know Your Debt is not the correct answer.

Q55. Apart from ARN, employees need which unique ID?
☐ PAN
☐ GSTIN
☑ Employee Unique Identification Number (EUIN)
☐ Aadhaar
Explanation:
✅ Employees require an EUIN in addition to ARN.
❌ PAN is not the correct answer.
❌ GSTIN is not the correct answer.
❌ Aadhaar is not the correct answer.

Q56. Which commission structure is mandated by SEBI for MF distribution?
☐ Full upfront model
☑ Full trail model
☐ Hybrid model
☐ Zero commission model
Explanation:
✅ A full trail commission model is mandated; upfronting is disallowed except in limited SIP cases.
❌ Full upfront model is not the correct answer.
❌ Hybrid model is not the correct answer.
❌ Zero commission model is not the correct answer.

Q57. Trail income to distributors is computed on:
☐ Flat fee per investor
☑ Net assets attributable to units sold by the distributor (AUM)
☐ AMC’s annual profit
☐ Arbitrage profit
Explanation:
✅ Trail commission is a % of AUM attributable to the units mobilised by the distributor.
❌ Flat fee per investor is not the correct answer.
❌ AMC’s annual profit is not the correct answer.
❌ Arbitrage profit is not the correct answer.

Q58. Investing without distributor results in which plan type (lower TER)?
☐ Regular Plan
☑ Direct Plan
☐ Dividend Plan
☐ Balanced Plan
Explanation:
✅ Direct Plan excludes distributor commission and therefore has a lower TER.
❌ Regular Plan is not the correct answer.
❌ Dividend Plan is not the correct answer.
❌ Balanced Plan is not the correct answer.

Q59. Under STP, money periodically moves to:
☐ Paid as cash to investor
☑ Reinvested in another scheme of the same fund
☐ Given as loan to AMC
☐ Used to pay TER
Explanation:
✅ STP re-invests withdrawals into another scheme of the same mutual fund.
❌ Paid as cash to investor is not the correct answer.
❌ Given as loan to AMC is not the correct answer.
❌ Used to pay TER is not the correct answer.

Q60. CAS (Consolidated Account Statement) shows:
☐ Only one scheme’s position
☑ All MF transactions and demat holdings under PAN
☐ Distributor commissions
☐ AMC’s internal financials
Explanation:
✅ CAS shows consolidated mutual fund transactions and demat holdings under a PAN.
❌ Only one scheme’s position is not the correct answer.
❌ Distributor commissions is not the correct answer.
❌ AMC’s internal financials is not the correct answer.

Q61. Investor folios and unit records are handled by:
☐ Custodian
☑ Registrar & Transfer Agent (RTA)
☐ AMC Board
☐ SEBI
Explanation:
✅ RTAs (e.g., CAMS, KFinTech) maintain investor records and process transactions.
❌ Custodian is not the correct answer.
❌ AMC Board is not the correct answer.
❌ SEBI is not the correct answer.

Q62. Who safely keeps the fund’s securities on behalf of investors?
☐ AMC
☐ Distributor
☑ Custodian
☐ AMFI
Explanation:
✅ The Custodian holds the scheme’s securities and settles trades.
❌ AMC is not the correct answer.
❌ Distributor is not the correct answer.
❌ AMFI is not the correct answer.

Q63. Where should exit loads go as per SEBI?
☐ AMC’s own account
☑ The scheme itself
☐ SEBI
☐ Distributor
Explanation:
✅ Exit load is credited back to the scheme for the benefit of unitholders.
❌ AMC’s own account is not the correct answer.
❌ SEBI is not the correct answer.
❌ Distributor is not the correct answer.

Q64. Entry load status across MF schemes is:
☑ All mutual fund schemes
☐ Only equity schemes
☐ Only debt schemes
☐ Only ELSS
Explanation:
✅ SEBI has banned entry load on all mutual fund schemes.
❌ Only equity schemes is not the correct answer.
❌ Only debt schemes is not the correct answer.
❌ Only ELSS is not the correct answer.

Q65. Initial issue expenses must be borne by:
☐ Borne by the scheme
☑ Borne by the AMC (not charged to scheme)
☐ Charged to investors via load
☐ Paid by RTA
Explanation:
✅ Initial issue expenses are borne by the AMC; they cannot be charged to the scheme.
❌ Borne by the scheme is not the correct answer.
❌ Charged to investors via load is not the correct answer.
❌ Paid by RTA is not the correct answer.

Q66. SEBI requires open-ended debt funds to keep liquid assets of at least:
☐ 5%
☑ 10%
☐ 15%
☐ 20%
Explanation:
✅ Open-ended debt funds must maintain at least 10% of corpus in liquid assets.
❌ 5% is not the correct answer.
❌ 15% is not the correct answer.
❌ 20% is not the correct answer.

Q67. If a scheme’s fundamental attributes change, investors must get:
☐ Verbal intimation only
☑ 30-day exit window without exit load
☐ No prior notice
☐ Higher exit load option
Explanation:
✅ Investors must get a 30-day exit window at prevailing NAV without exit load.
❌ Verbal intimation only is not the correct answer.
❌ No prior notice is not the correct answer.
❌ Higher exit load option is not the correct answer.

Q68. Investor requests sent via which channel are invalid?
☐ AMC website/official app
☐ RTA counters/physical forms
☑ Personal social media chats
☐ MF Utilities (MFU)
Explanation:
✅ Personal social media chats are not an authorized transaction channel.
❌ AMC website/official app is not the correct answer.
❌ RTA counters/physical forms is not the correct answer.
❌ MF Utilities (MFU) is not the correct answer.

Q69. A close-ended fund can typically be exited by:
☐ Redeeming with AMC anytime
☑ Selling units on the stock exchange
☐ Requesting custodian
☐ Writing to SEBI
Explanation:
✅ Closed-end fund units are listed and sold on the exchange; redemption with AMC is at maturity.
❌ Redeeming with AMC anytime is not the correct answer.
❌ Requesting custodian is not the correct answer.
❌ Writing to SEBI is not the correct answer.

Q70. An Index Fund aims to:
☐ Actively pick stocks
☑ Replicate a market index
☐ Invest only in debt
☐ Guarantee returns
Explanation:
✅ Index funds passively replicate a chosen market index.
❌ Actively pick stocks is not the correct answer.
❌ Invest only in debt is not the correct answer.
❌ Guarantee returns is not the correct answer.

Q71. AMCs must display prominently on their website:
☐ Only annual report
☑ Daily NAV and TER
☐ Distributor commission slabs only
☐ Only AMFI data
Explanation:
✅ AMCs must disclose scheme-wise daily NAV and TER prominently.
❌ Only annual report is not the correct answer.
❌ Distributor commission slabs only is not the correct answer.
❌ Only AMFI data is not the correct answer.

Q72. Cut-off timing is relevant to:
☐ AMC office hours
☑ Applicable NAV based on transaction time
☐ Portfolio turnover ratio
☐ TER charged
Explanation:
✅ Cut-off time determines which day’s NAV applies to the transaction.
❌ AMC office hours is not the correct answer.
❌ Portfolio turnover ratio is not the correct answer.
❌ TER charged is not the correct answer.

Q73. SIP helps investors via:
☑ Rupee Cost Averaging
☐ Guaranteed capital protection
☐ Zero market risk
☐ Higher upfront commission
Explanation:
✅ SIP provides rupee cost averaging by investing a fixed sum periodically.
❌ Guaranteed capital protection is not the correct answer.
❌ Zero market risk is not the correct answer.
❌ Higher upfront commission is not the correct answer.

Q74. SWP is designed to:
☐ Invest a fixed amount periodically
☑ Withdraw a fixed amount periodically
☐ Transfer between schemes
☐ Pause SIPs
Explanation:
✅ SWP lets investors withdraw fixed amounts periodically.
❌ Invest a fixed amount periodically is not the correct answer.
❌ Transfer between schemes is not the correct answer.
❌ Pause SIPs is not the correct answer.

Q75. NSE’s mutual fund order platform is called:
☐ BSE Star MF
☑ NMF II
☐ MFU
☐ SCORES
Explanation:
✅ NMF II is NSE’s mutual fund order platform.
❌ BSE Star MF is not the correct answer.
❌ MFU is not the correct answer.
❌ SCORES is not the correct answer.

Q76. Which BSE-operated platform handles MF transactions?
☐ NMF II
☑ BSE Star MF
☐ MFU
☐ SCORES
Explanation:
✅ BSE Star MF is BSE’s online mutual fund platform.
❌ NMF II is not the correct answer.
❌ MFU is not the correct answer.
❌ SCORES is not the correct answer.

Q77. Investors review scheme snapshots monthly in the:
☐ SAI
☑ Factsheet
☐ KIM
☐ Addendum
Explanation:
✅ Factsheets summarize performance, allocation, and key ratios monthly.
❌ SAI is not the correct answer.
❌ KIM is not the correct answer.
❌ Addendum is not the correct answer.

Q78. When you switch, it is considered:
☐ A free transfer without implications
☑ Redemption from one and purchase into another
☐ Loan to AMC
☐ Dividend payout
Explanation:
✅ A switch is treated as redemption plus purchase for regulatory/tax purposes.
❌ A free transfer without implications is not the correct answer.
❌ Loan to AMC is not the correct answer.
❌ Dividend payout is not the correct answer.

Q79. SEBI requires this exact warning in MF ads:
☐ Returns are guaranteed by SEBI
☑ Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
☐ Past performance assures future results
☐ Celebrity endorsement guarantees safety
Explanation:
✅ The mandated warning is: ‘Mutual Fund investments are subject to market risks, read all scheme related documents carefully.’
❌ Returns are guaranteed by SEBI is not the correct answer.
❌ Past performance assures future results is not the correct answer.
❌ Celebrity endorsement guarantees safety is not the correct answer.

Q80. Deadline from month-end to publish portfolio is:
☑ 10 days
☐ 15 days
☐ 30 days
☐ 45 days
Explanation:
✅ AMCs must publish scheme portfolio within 10 days of month-end.
❌ 15 days is not the correct answer.
❌ 30 days is not the correct answer.
❌ 45 days is not the correct answer.

Q81. Which document remains effective until material change and is updated half-yearly for schemes?
☐ Statement of Additional Information (SAI)
☑ Scheme Information Document (SID)
☐ Key Information Memorandum (KIM)
☐ Factsheet
Explanation:
✅ SID is the primary scheme document covering objectives, risks, loads, expenses and other key details.
❌ Statement of Additional Information (SAI) is not the correct answer.
❌ Key Information Memorandum (KIM) is not the correct answer.
❌ Factsheet is not the correct answer.

Q82. Which brief document distills SID and SAI and is attached to application forms?
☐ Prospectus
☐ Addendum
☑ Key Information Memorandum (KIM)
☐ Factsheet
Explanation:
✅ KIM summarizes SID and SAI and must accompany application forms.
❌ Prospectus is not the correct answer.
❌ Addendum is not the correct answer.
❌ Factsheet is not the correct answer.

Q83. Which document provides the mutual fund’s statutory information rather than one scheme’s details?
☐ Scheme Information Document (SID)
☑ Statement of Additional Information (SAI)
☐ Key Information Memorandum (KIM)
☐ Factsheet
Explanation:
✅ SAI contains statutory information about the fund house and applies to all schemes.
❌ Scheme Information Document (SID) is not the correct answer.
❌ Key Information Memorandum (KIM) is not the correct answer.
❌ Factsheet is not the correct answer.

Q84. How frequently must an AMC declare NAV for open-ended schemes?
☐ Only weekly
☑ Every business day
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Open-ended scheme NAVs are declared on every business day.
❌ Only weekly is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q85. Liquid and Overnight funds’ NAV disclosure happens:
☐ Only on business days
☐ Weekly
☑ Even on Sundays/holidays
☐ Only monthly
Explanation:
✅ Liquid and Overnight funds declare NAVs even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Weekly is not the correct answer.
❌ Only monthly is not the correct answer.

Q86. For a single payment and consolidated account (CAN) across funds, investors use:
☐ NSE NMF II
☐ BSE Star MF
☑ MF Utilities (MFU)
☐ SEBI SCORES
Explanation:
✅ MF Utilities (MFU) aggregates transactions and assigns a Common Account Number (CAN).
❌ NSE NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.
❌ SEBI SCORES is not the correct answer.

Q87. NFOs must complete allotment or refund within:
☐ 2 business days
☑ 5 business days
☐ 7 business days
☐ 10 business days
Explanation:
✅ SEBI mandates allotment/refund within 5 business days of NFO closure.
❌ 2 business days is not the correct answer.
❌ 7 business days is not the correct answer.
❌ 10 business days is not the correct answer.

Q88. NFO minimum open period is:
☐ 1 working day
☑ 3 working days
☐ 7 working days
☐ 15 working days
Explanation:
✅ NFOs must be open for at least 3 working days.
❌ 1 working day is not the correct answer.
❌ 7 working days is not the correct answer.
❌ 15 working days is not the correct answer.

Q89. When a scheme pays dividend, the ex-dividend NAV is the NAV:
☐ Before dividend payout
☑ After dividend payout (reduced NAV)
☐ Including distributable surplus
☐ Guaranteed by AMC
Explanation:
✅ Ex-dividend NAV is the reduced NAV after the dividend payout.
❌ Before dividend payout is not the correct answer.
❌ Including distributable surplus is not the correct answer.
❌ Guaranteed by AMC is not the correct answer.

Q90. Under dividend reinvestment, the dividend amount is:
☐ Paid as cash to investor
☑ Reinvested to allot additional units in the same scheme
☐ Transferred to another scheme automatically
☐ Used to pay TER
Explanation:
✅ Dividends are reinvested to allot additional units in the same scheme.
❌ Paid as cash to investor is not the correct answer.
❌ Transferred to another scheme automatically is not the correct answer.
❌ Used to pay TER is not the correct answer.

Q91. Complaints against mutual funds and intermediaries are lodged on:
☐ MF Utilities (MFU)
☐ NSE NMF II
☑ SEBI SCORES
☐ AMFI Portal
Explanation:
✅ SEBI SCORES is the centralized grievance redress system.
❌ MF Utilities (MFU) is not the correct answer.
❌ NSE NMF II is not the correct answer.
❌ AMFI Portal is not the correct answer.

Q92. To register with AMFI (ARN), minimum age is:
☐ 16 years
☑ 18 years
☐ 21 years
☐ 25 years
Explanation:
✅ AMFI requires individuals to be at least 18 years old to obtain ARN.
❌ 16 years is not the correct answer.
❌ 21 years is not the correct answer.
❌ 25 years is not the correct answer.

Q93. Mandatory certification to distribute mutual funds:
☐ CFA Level I
☑ NISM-Series-V-A Mutual Fund Distributors
☐ SEBI Advisor Test
☐ RBI Intermediary Exam
Explanation:
✅ NISM-Series-V-A Mutual Fund Distributors certification is mandatory.
❌ CFA Level I is not the correct answer.
❌ SEBI Advisor Test is not the correct answer.
❌ RBI Intermediary Exam is not the correct answer.

Q94. KYD in MF distribution stands for:
☐ Know Your Depository
☑ Know Your Distributor
☐ Key Yield Determination
☐ Know Your Debt
Explanation:
✅ KYD stands for Know Your Distributor.
❌ Know Your Depository is not the correct answer.
❌ Key Yield Determination is not the correct answer.
❌ Know Your Debt is not the correct answer.

Q95. Employees of distributors must obtain which identifier from AMFI?
☐ PAN
☐ GSTIN
☑ Employee Unique Identification Number (EUIN)
☐ Aadhaar
Explanation:
✅ Employees require an EUIN in addition to ARN.
❌ PAN is not the correct answer.
❌ GSTIN is not the correct answer.
❌ Aadhaar is not the correct answer.

Q96. SEBI requires which compensation model for distributors (except limited SIP cases)?
☐ Full upfront model
☑ Full trail model
☐ Hybrid model
☐ Zero commission model
Explanation:
✅ A full trail commission model is mandated; upfronting is disallowed except in limited SIP cases.
❌ Full upfront model is not the correct answer.
❌ Hybrid model is not the correct answer.
❌ Zero commission model is not the correct answer.

Q97. Distributor trail commission is a percentage of:
☐ Flat fee per investor
☑ Net assets attributable to units sold by the distributor (AUM)
☐ AMC’s annual profit
☐ Arbitrage profit
Explanation:
✅ Trail commission is a % of AUM attributable to the units mobilised by the distributor.
❌ Flat fee per investor is not the correct answer.
❌ AMC’s annual profit is not the correct answer.
❌ Arbitrage profit is not the correct answer.

Q98. Which plan is suited for direct online purchase from AMC?
☐ Regular Plan
☑ Direct Plan
☐ Dividend Plan
☐ Balanced Plan
Explanation:
✅ Direct Plan excludes distributor commission and therefore has a lower TER.
❌ Regular Plan is not the correct answer.
❌ Dividend Plan is not the correct answer.
❌ Balanced Plan is not the correct answer.

Q99. In an STP (Systematic Transfer Plan), the withdrawn amount is:
☐ Paid as cash to investor
☑ Reinvested in another scheme of the same fund
☐ Given as loan to AMC
☐ Used to pay TER
Explanation:
✅ STP re-invests withdrawals into another scheme of the same mutual fund.
❌ Paid as cash to investor is not the correct answer.
❌ Given as loan to AMC is not the correct answer.
❌ Used to pay TER is not the correct answer.

Q100. Investors receive a CAS containing:
☐ Only one scheme’s position
☑ All MF transactions and demat holdings under PAN
☐ Distributor commissions
☐ AMC’s internal financials
Explanation:
✅ CAS shows consolidated mutual fund transactions and demat holdings under a PAN.
❌ Only one scheme’s position is not the correct answer.
❌ Distributor commissions is not the correct answer.
❌ AMC’s internal financials is not the correct answer.

~

Q1. Net Asset Value (NAV) equals:
☑ (Total Assets – Liabilities) / Number of outstanding units
☐ (Total Assets + Liabilities) / Number of outstanding units
☐ (Total Assets × TER) / Number of outstanding units
☐ Market price of benchmark index
Explanation:
✅ NAV equals (Assets – Liabilities) divided by the number of outstanding units.
❌ (Total Assets + Liabilities) / Number of outstanding units is not the correct answer.
❌ (Total Assets × TER) / Number of outstanding units is not the correct answer.
❌ Market price of benchmark index is not the correct answer.

Q2. ‘Mark to Market’ in mutual funds means:
☑ Valuing each security at its current market price
☐ Valuing at the purchase price
☐ Using average historical cost
☐ Ignoring price movements for 30 days
Explanation:
✅ Mark-to-market values portfolio securities at current market prices.
❌ Valuing at the purchase price is not the correct answer.
❌ Using average historical cost is not the correct answer.
❌ Ignoring price movements for 30 days is not the correct answer.

Q3. How often must open-ended scheme NAV be declared?
☑ Every business day
☐ Weekly only
☐ Monthly only
☐ Only at redemption
Explanation:
✅ Open-ended scheme NAVs are declared every business day.
❌ Weekly only is not the correct answer.
❌ Monthly only is not the correct answer.
❌ Only at redemption is not the correct answer.

Q4. NAV for Liquid/Overnight funds should be available:
☑ Even on Sundays/holidays
☐ Only on business days
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Liquid and Overnight funds declare NAVs even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q5. Exit load is:
☑ A charge deducted when units are redeemed
☐ A fee charged on entry only
☐ Part of custodian fee
☐ Always zero by regulation
Explanation:
✅ Exit load is a charge deducted when units are redeemed (credited to the scheme).
❌ A fee charged on entry only is not the correct answer.
❌ Part of custodian fee is not the correct answer.
❌ Always zero by regulation is not the correct answer.

Q6. Entry load status as per SEBI is:
☑ Banned across all mutual fund schemes
☐ Allowed for equity only
☐ Allowed for debt only
☐ Allowed for ELSS only
Explanation:
✅ SEBI has banned entry load across all mutual fund schemes.
❌ Allowed for equity only is not the correct answer.
❌ Allowed for debt only is not the correct answer.
❌ Allowed for ELSS only is not the correct answer.

Q7. Expense ratio indicates:
☑ Total recurring expenses as % of daily net assets
☐ AMC profit margin per unit
☐ Exit load percentage
☐ Brokerage alone
Explanation:
✅ TER is the total recurring expenses charged to the scheme as a % of daily net assets.
❌ AMC profit margin per unit is not the correct answer.
❌ Exit load percentage is not the correct answer.
❌ Brokerage alone is not the correct answer.

Q8. Which statement about TER limits is correct (open-ended schemes)?
☑ It is capped by SEBI with slab-wise reductions as AUM increases
☐ There is no cap on TER
☐ TER is fixed the same for all schemes
☐ TER can be arbitrarily changed daily without disclosure
Explanation:
✅ SEBI caps TER with slab-wise reductions as AUM increases; changes must be disclosed.
❌ There is no cap on TER is not the correct answer.
❌ TER is fixed the same for all schemes is not the correct answer.
❌ TER can be arbitrarily changed daily without disclosure is not the correct answer.

Q9. SEBI mandates AMC websites show this scheme-wise, daily:
☑ TER (and NAV)
☐ Only annual report
☐ Distributor commission slabs only
☐ Only benchmark index value
Explanation:
✅ AMCs must prominently display scheme-wise daily TER and NAV.
❌ Only annual report is not the correct answer.
❌ Distributor commission slabs only is not the correct answer.
❌ Only benchmark index value is not the correct answer.

Q10. Cut-off timing primarily affects:
☑ Which day’s NAV applies to a purchase/redemption
☐ Portfolio turnover ratio
☐ TER charged
☐ AMC office hours
Explanation:
✅ Cut-off time determines which day’s NAV is applicable for the transaction.
❌ Portfolio turnover ratio is not the correct answer.
❌ TER charged is not the correct answer.
❌ AMC office hours is not the correct answer.

Q11. Which is a SEBI valuation principle for mutual funds?
☑ True and fair, documented, and consistently applied
☐ Kept confidential and ad-hoc
☐ Based on sponsor’s expected returns
☐ Done once at inception only
Explanation:
✅ SEBI requires true and fair valuation, documented policies, and consistent application.
❌ Kept confidential and ad-hoc is not the correct answer.
❌ Based on sponsor’s expected returns is not the correct answer.
❌ Done once at inception only is not the correct answer.

Q12. Liquid assets floor for open-ended debt funds:
☑ 10% of corpus
☐ 5% of corpus
☐ 15% of corpus
☐ No minimum
Explanation:
✅ Open-ended debt funds must maintain at least 10% of corpus in liquid assets.
❌ 5% of corpus is not the correct answer.
❌ 15% of corpus is not the correct answer.
❌ No minimum is not the correct answer.

Q13. Ex-dividend NAV refers to NAV:
☑ After dividend payout (reduced NAV)
☐ Before dividend payout
☐ Including distributable surplus
☐ NAV guaranteed by AMC
Explanation:
✅ Ex-dividend NAV is the reduced NAV after dividend payout.
❌ Before dividend payout is not the correct answer.
❌ Including distributable surplus is not the correct answer.
❌ NAV guaranteed by AMC is not the correct answer.

Q14. Under dividend reinvestment, dividends are:
☑ Reinvested to allot additional units in the same scheme
☐ Paid as cash to investor
☐ Transferred to another scheme automatically
☐ Used to pay TER
Explanation:
✅ Dividends are reinvested to allot additional units in the same scheme.
❌ Paid as cash to investor is not the correct answer.
❌ Transferred to another scheme automatically is not the correct answer.
❌ Used to pay TER is not the correct answer.

Q15. Exit load collected by a scheme is credited to:
☑ The scheme itself
☐ AMC’s own account
☐ SEBI
☐ Distributors
Explanation:
✅ Exit load is credited back to the scheme for the benefit of unitholders.
❌ AMC’s own account is not the correct answer.
❌ SEBI is not the correct answer.
❌ Distributors is not the correct answer.

Q16. SEBI requires TER changes to be:
☑ Update website at least 3 working days in advance
☐ Inform only distributors privately
☐ No disclosure needed
☐ File with RBI
Explanation:
✅ AMCs must update their website at least 3 working days before a base TER change.
❌ Inform only distributors privately is not the correct answer.
❌ No disclosure needed is not the correct answer.
❌ File with RBI is not the correct answer.

Q17. Debt valuation agencies appointed by AMFI include:
☑ CRISIL & ICRA
☐ SEBI & RBI
☐ CAMS & KFinTech
☐ NSE & BSE
Explanation:
✅ AMFI has appointed CRISIL and ICRA as valuation agencies for debt securities.
❌ SEBI & RBI is not the correct answer.
❌ CAMS & KFinTech is not the correct answer.
❌ NSE & BSE is not the correct answer.

Q18. Gold held by a Gold ETF is valued at:
☑ LBMA AM fixing price (USD per troy ounce, 995 fineness)
☐ Domestic jewelry prices
☐ Average of last 30 days
☐ Sponsor-declared price
Explanation:
✅ Gold ETFs use LBMA AM fixing price (USD per troy ounce, 995 fineness).
❌ Domestic jewelry prices is not the correct answer.
❌ Average of last 30 days is not the correct answer.
❌ Sponsor-declared price is not the correct answer.

Q19. For index funds/ETFs, total expense ratio shall not exceed:
☑ 1.00% of daily net assets
☐ 2.25% of daily net assets
☐ 0.50% of daily net assets
☐ No cap
Explanation:
✅ TER for index funds/ETFs shall not exceed 1.00% of daily net assets.
❌ 2.25% of daily net assets is not the correct answer.
❌ 0.50% of daily net assets is not the correct answer.
❌ No cap is not the correct answer.

Q20. Fund-of-Funds investing in liquid/index/ETF can charge up to:
☑ 1.00% of daily net assets
☐ 2.25% of daily net assets
☐ 2.00% of daily net assets
☐ No limit
Explanation:
✅ FoF investing in liquid/index/ETF can charge up to 1.00% of daily net assets.
❌ 2.25% of daily net assets is not the correct answer.
❌ 2.00% of daily net assets is not the correct answer.
❌ No limit is not the correct answer.

Q21. FoF TER cap (investing in liquid scheme) is:
☑ 2.25% of daily net assets
☐ 1.00% of daily net assets
☐ 0.75% of daily net assets
☐ 3.00% of daily net assets
Explanation:
✅ As per the simplified slab, a FoF investing in liquid scheme can charge up to 2.25%.
❌ 1.00% of daily net assets is not the correct answer.
❌ 0.75% of daily net assets is not the correct answer.
❌ 3.00% of daily net assets is not the correct answer.

Q22. Valuation policies should include controls to avoid:
☑ Incorrect valuation
☐ Higher distributor payouts
☐ SIP failures
☐ Custodian reconciliations
Explanation:
✅ SEBI requires AMCs to have policies to detect and prevent incorrect valuation.
❌ Higher distributor payouts is not the correct answer.
❌ SIP failures is not the correct answer.
❌ Custodian reconciliations is not the correct answer.

Q23. Valuation rationale and inter-scheme transfers must be:
☑ Documented and preserved to enable audit trail
☐ Verbally conveyed only
☐ Kept with distributors
☐ Shared only with stock exchanges
Explanation:
✅ AMCs must document and preserve valuation rationales to enable audit trail.
❌ Verbally conveyed only is not the correct answer.
❌ Kept with distributors is not the correct answer.
❌ Shared only with stock exchanges is not the correct answer.

Q24. The formula for NAV is:
☑ (Total Assets – Liabilities) / Number of outstanding units
☐ (Total Assets + Liabilities) / Number of outstanding units
☐ (Total Assets × TER) / Number of outstanding units
☐ Market price of benchmark index
Explanation:
✅ NAV equals (Assets – Liabilities) divided by the number of outstanding units.
❌ (Total Assets + Liabilities) / Number of outstanding units is not the correct answer.
❌ (Total Assets × TER) / Number of outstanding units is not the correct answer.
❌ Market price of benchmark index is not the correct answer.

Q25. ‘Mark to Market’ in mutual funds means:
☑ Valuing each security at its current market price
☐ Valuing at the purchase price
☐ Using average historical cost
☐ Ignoring price movements for 30 days
Explanation:
✅ Mark-to-market values portfolio securities at current market prices.
❌ Valuing at the purchase price is not the correct answer.
❌ Using average historical cost is not the correct answer.
❌ Ignoring price movements for 30 days is not the correct answer.

Q26. NAV of open-ended schemes must be disclosed:
☑ Every business day
☐ Weekly only
☐ Monthly only
☐ Only at redemption
Explanation:
✅ Open-ended scheme NAVs are declared every business day.
❌ Weekly only is not the correct answer.
❌ Monthly only is not the correct answer.
❌ Only at redemption is not the correct answer.

Q27. NAV for Liquid/Overnight funds should be available:
☑ Even on Sundays/holidays
☐ Only on business days
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Liquid and Overnight funds declare NAVs even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q28. A charge levied at redemption is:
☑ A charge deducted when units are redeemed
☐ A fee charged on entry only
☐ Part of custodian fee
☐ Always zero by regulation
Explanation:
✅ Exit load is a charge deducted when units are redeemed (credited to the scheme).
❌ A fee charged on entry only is not the correct answer.
❌ Part of custodian fee is not the correct answer.
❌ Always zero by regulation is not the correct answer.

Q29. Entry load may be charged on:
☑ Banned across all mutual fund schemes
☐ Allowed for equity only
☐ Allowed for debt only
☐ Allowed for ELSS only
Explanation:
✅ SEBI has banned entry load across all mutual fund schemes.
❌ Allowed for equity only is not the correct answer.
❌ Allowed for debt only is not the correct answer.
❌ Allowed for ELSS only is not the correct answer.

Q30. Total Expense Ratio (TER) represents:
☑ Total recurring expenses as % of daily net assets
☐ AMC profit margin per unit
☐ Exit load percentage
☐ Brokerage alone
Explanation:
✅ TER is the total recurring expenses charged to the scheme as a % of daily net assets.
❌ AMC profit margin per unit is not the correct answer.
❌ Exit load percentage is not the correct answer.
❌ Brokerage alone is not the correct answer.

Q31. TER for open-ended equity/debt schemes:
☑ It is capped by SEBI with slab-wise reductions as AUM increases
☐ There is no cap on TER
☐ TER is fixed the same for all schemes
☐ TER can be arbitrarily changed daily without disclosure
Explanation:
✅ SEBI caps TER with slab-wise reductions as AUM increases; changes must be disclosed.
❌ There is no cap on TER is not the correct answer.
❌ TER is fixed the same for all schemes is not the correct answer.
❌ TER can be arbitrarily changed daily without disclosure is not the correct answer.

Q32. Which must be available daily per scheme on AMC sites?
☑ TER (and NAV)
☐ Only annual report
☐ Distributor commission slabs only
☐ Only benchmark index value
Explanation:
✅ AMCs must prominently display scheme-wise daily TER and NAV.
❌ Only annual report is not the correct answer.
❌ Distributor commission slabs only is not the correct answer.
❌ Only benchmark index value is not the correct answer.

Q33. Applicable NAV for a transaction depends on:
☑ Which day’s NAV applies to a purchase/redemption
☐ Portfolio turnover ratio
☐ TER charged
☐ AMC office hours
Explanation:
✅ Cut-off time determines which day’s NAV is applicable for the transaction.
❌ Portfolio turnover ratio is not the correct answer.
❌ TER charged is not the correct answer.
❌ AMC office hours is not the correct answer.

Q34. Which is a SEBI valuation principle for mutual funds?
☑ True and fair, documented, and consistently applied
☐ Kept confidential and ad-hoc
☐ Based on sponsor’s expected returns
☐ Done once at inception only
Explanation:
✅ SEBI requires true and fair valuation, documented policies, and consistent application.
❌ Kept confidential and ad-hoc is not the correct answer.
❌ Based on sponsor’s expected returns is not the correct answer.
❌ Done once at inception only is not the correct answer.

Q35. Open-ended debt funds must maintain minimum liquid assets of:
☑ 10% of corpus
☐ 5% of corpus
☐ 15% of corpus
☐ No minimum
Explanation:
✅ Open-ended debt funds must maintain at least 10% of corpus in liquid assets.
❌ 5% of corpus is not the correct answer.
❌ 15% of corpus is not the correct answer.
❌ No minimum is not the correct answer.

Q36. Ex-dividend NAV refers to NAV:
☑ After dividend payout (reduced NAV)
☐ Before dividend payout
☐ Including distributable surplus
☐ NAV guaranteed by AMC
Explanation:
✅ Ex-dividend NAV is the reduced NAV after dividend payout.
❌ Before dividend payout is not the correct answer.
❌ Including distributable surplus is not the correct answer.
❌ NAV guaranteed by AMC is not the correct answer.

Q37. In dividend reinvestment, the investor:
☑ Reinvested to allot additional units in the same scheme
☐ Paid as cash to investor
☐ Transferred to another scheme automatically
☐ Used to pay TER
Explanation:
✅ Dividends are reinvested to allot additional units in the same scheme.
❌ Paid as cash to investor is not the correct answer.
❌ Transferred to another scheme automatically is not the correct answer.
❌ Used to pay TER is not the correct answer.

Q38. Exit load collected by a scheme is credited to:
☑ The scheme itself
☐ AMC’s own account
☐ SEBI
☐ Distributors
Explanation:
✅ Exit load is credited back to the scheme for the benefit of unitholders.
❌ AMC’s own account is not the correct answer.
❌ SEBI is not the correct answer.
❌ Distributors is not the correct answer.

Q39. SEBI requires TER changes to be:
☑ Update website at least 3 working days in advance
☐ Inform only distributors privately
☐ No disclosure needed
☐ File with RBI
Explanation:
✅ AMCs must update their website at least 3 working days before a base TER change.
❌ Inform only distributors privately is not the correct answer.
❌ No disclosure needed is not the correct answer.
❌ File with RBI is not the correct answer.

Q40. Debt valuation agencies appointed by AMFI include:
☑ CRISIL & ICRA
☐ SEBI & RBI
☐ CAMS & KFinTech
☐ NSE & BSE
Explanation:
✅ AMFI has appointed CRISIL and ICRA as valuation agencies for debt securities.
❌ SEBI & RBI is not the correct answer.
❌ CAMS & KFinTech is not the correct answer.
❌ NSE & BSE is not the correct answer.

Q41. Gold held by a Gold ETF is valued at:
☑ LBMA AM fixing price (USD per troy ounce, 995 fineness)
☐ Domestic jewelry prices
☐ Average of last 30 days
☐ Sponsor-declared price
Explanation:
✅ Gold ETFs use LBMA AM fixing price (USD per troy ounce, 995 fineness).
❌ Domestic jewelry prices is not the correct answer.
❌ Average of last 30 days is not the correct answer.
❌ Sponsor-declared price is not the correct answer.

Q42. TER cap for index funds/ETFs:
☑ 1.00% of daily net assets
☐ 2.25% of daily net assets
☐ 0.50% of daily net assets
☐ No cap
Explanation:
✅ TER for index funds/ETFs shall not exceed 1.00% of daily net assets.
❌ 2.25% of daily net assets is not the correct answer.
❌ 0.50% of daily net assets is not the correct answer.
❌ No cap is not the correct answer.

Q43. Fund-of-Funds investing in liquid/index/ETF can charge up to:
☑ 1.00% of daily net assets
☐ 2.25% of daily net assets
☐ 2.00% of daily net assets
☐ No limit
Explanation:
✅ FoF investing in liquid/index/ETF can charge up to 1.00% of daily net assets.
❌ 2.25% of daily net assets is not the correct answer.
❌ 2.00% of daily net assets is not the correct answer.
❌ No limit is not the correct answer.

Q44. FoF TER cap (investing in liquid scheme) is:
☑ 2.25% of daily net assets
☐ 1.00% of daily net assets
☐ 0.75% of daily net assets
☐ 3.00% of daily net assets
Explanation:
✅ As per the simplified slab, a FoF investing in liquid scheme can charge up to 2.25%.
❌ 1.00% of daily net assets is not the correct answer.
❌ 0.75% of daily net assets is not the correct answer.
❌ 3.00% of daily net assets is not the correct answer.

Q45. Valuation policies should include controls to avoid:
☑ Incorrect valuation
☐ Higher distributor payouts
☐ SIP failures
☐ Custodian reconciliations
Explanation:
✅ SEBI requires AMCs to have policies to detect and prevent incorrect valuation.
❌ Higher distributor payouts is not the correct answer.
❌ SIP failures is not the correct answer.
❌ Custodian reconciliations is not the correct answer.

Q46. For audit trail, AMCs must keep:
☑ Documented and preserved to enable audit trail
☐ Verbally conveyed only
☐ Kept with distributors
☐ Shared only with stock exchanges
Explanation:
✅ AMCs must document and preserve valuation rationales to enable audit trail.
❌ Verbally conveyed only is not the correct answer.
❌ Kept with distributors is not the correct answer.
❌ Shared only with stock exchanges is not the correct answer.

Q47. The formula for NAV is:
☑ (Total Assets – Liabilities) / Number of outstanding units
☐ (Total Assets + Liabilities) / Number of outstanding units
☐ (Total Assets × TER) / Number of outstanding units
☐ Market price of benchmark index
Explanation:
✅ NAV equals (Assets – Liabilities) divided by the number of outstanding units.
❌ (Total Assets + Liabilities) / Number of outstanding units is not the correct answer.
❌ (Total Assets × TER) / Number of outstanding units is not the correct answer.
❌ Market price of benchmark index is not the correct answer.

Q48. ‘Mark to Market’ in mutual funds means:
☑ Valuing each security at its current market price
☐ Valuing at the purchase price
☐ Using average historical cost
☐ Ignoring price movements for 30 days
Explanation:
✅ Mark-to-market values portfolio securities at current market prices.
❌ Valuing at the purchase price is not the correct answer.
❌ Using average historical cost is not the correct answer.
❌ Ignoring price movements for 30 days is not the correct answer.

Q49. NAV of open-ended schemes must be disclosed:
☑ Every business day
☐ Weekly only
☐ Monthly only
☐ Only at redemption
Explanation:
✅ Open-ended scheme NAVs are declared every business day.
❌ Weekly only is not the correct answer.
❌ Monthly only is not the correct answer.
❌ Only at redemption is not the correct answer.

Q50. NAV for Liquid/Overnight funds should be available:
☑ Even on Sundays/holidays
☐ Only on business days
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Liquid and Overnight funds declare NAVs even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q51. A charge levied at redemption is:
☑ A charge deducted when units are redeemed
☐ A fee charged on entry only
☐ Part of custodian fee
☐ Always zero by regulation
Explanation:
✅ Exit load is a charge deducted when units are redeemed (credited to the scheme).
❌ A fee charged on entry only is not the correct answer.
❌ Part of custodian fee is not the correct answer.
❌ Always zero by regulation is not the correct answer.

Q52. Entry load may be charged on:
☑ Banned across all mutual fund schemes
☐ Allowed for equity only
☐ Allowed for debt only
☐ Allowed for ELSS only
Explanation:
✅ SEBI has banned entry load across all mutual fund schemes.
❌ Allowed for equity only is not the correct answer.
❌ Allowed for debt only is not the correct answer.
❌ Allowed for ELSS only is not the correct answer.

Q53. Total Expense Ratio (TER) represents:
☑ Total recurring expenses as % of daily net assets
☐ AMC profit margin per unit
☐ Exit load percentage
☐ Brokerage alone
Explanation:
✅ TER is the total recurring expenses charged to the scheme as a % of daily net assets.
❌ AMC profit margin per unit is not the correct answer.
❌ Exit load percentage is not the correct answer.
❌ Brokerage alone is not the correct answer.

Q54. Regarding TER slabs for open-ended schemes:
☑ It is capped by SEBI with slab-wise reductions as AUM increases
☐ There is no cap on TER
☐ TER is fixed the same for all schemes
☐ TER can be arbitrarily changed daily without disclosure
Explanation:
✅ SEBI caps TER with slab-wise reductions as AUM increases; changes must be disclosed.
❌ There is no cap on TER is not the correct answer.
❌ TER is fixed the same for all schemes is not the correct answer.
❌ TER can be arbitrarily changed daily without disclosure is not the correct answer.

Q55. AMCs must prominently display which daily metric on their website?
☑ TER (and NAV)
☐ Only annual report
☐ Distributor commission slabs only
☐ Only benchmark index value
Explanation:
✅ AMCs must prominently display scheme-wise daily TER and NAV.
❌ Only annual report is not the correct answer.
❌ Distributor commission slabs only is not the correct answer.
❌ Only benchmark index value is not the correct answer.

Q56. Cut-off timing primarily affects:
☑ Which day’s NAV applies to a purchase/redemption
☐ Portfolio turnover ratio
☐ TER charged
☐ AMC office hours
Explanation:
✅ Cut-off time determines which day’s NAV is applicable for the transaction.
❌ Portfolio turnover ratio is not the correct answer.
❌ TER charged is not the correct answer.
❌ AMC office hours is not the correct answer.

Q57. A core requirement for valuation is:
☑ True and fair, documented, and consistently applied
☐ Kept confidential and ad-hoc
☐ Based on sponsor’s expected returns
☐ Done once at inception only
Explanation:
✅ SEBI requires true and fair valuation, documented policies, and consistent application.
❌ Kept confidential and ad-hoc is not the correct answer.
❌ Based on sponsor’s expected returns is not the correct answer.
❌ Done once at inception only is not the correct answer.

Q58. Open-ended debt funds must maintain minimum liquid assets of:
☑ 10% of corpus
☐ 5% of corpus
☐ 15% of corpus
☐ No minimum
Explanation:
✅ Open-ended debt funds must maintain at least 10% of corpus in liquid assets.
❌ 5% of corpus is not the correct answer.
❌ 15% of corpus is not the correct answer.
❌ No minimum is not the correct answer.

Q59. Ex-dividend NAV is best described as:
☑ After dividend payout (reduced NAV)
☐ Before dividend payout
☐ Including distributable surplus
☐ NAV guaranteed by AMC
Explanation:
✅ Ex-dividend NAV is the reduced NAV after dividend payout.
❌ Before dividend payout is not the correct answer.
❌ Including distributable surplus is not the correct answer.
❌ NAV guaranteed by AMC is not the correct answer.

Q60. Under dividend reinvestment, dividends are:
☑ Reinvested to allot additional units in the same scheme
☐ Paid as cash to investor
☐ Transferred to another scheme automatically
☐ Used to pay TER
Explanation:
✅ Dividends are reinvested to allot additional units in the same scheme.
❌ Paid as cash to investor is not the correct answer.
❌ Transferred to another scheme automatically is not the correct answer.
❌ Used to pay TER is not the correct answer.

Q61. Exit load must be credited to:
☑ The scheme itself
☐ AMC’s own account
☐ SEBI
☐ Distributors
Explanation:
✅ Exit load is credited back to the scheme for the benefit of unitholders.
❌ AMC’s own account is not the correct answer.
❌ SEBI is not the correct answer.
❌ Distributors is not the correct answer.

Q62. Before changing base TER, AMCs must:
☑ Update website at least 3 working days in advance
☐ Inform only distributors privately
☐ No disclosure needed
☐ File with RBI
Explanation:
✅ AMCs must update their website at least 3 working days before a base TER change.
❌ Inform only distributors privately is not the correct answer.
❌ No disclosure needed is not the correct answer.
❌ File with RBI is not the correct answer.

Q63. Debt valuation agencies appointed by AMFI include:
☑ CRISIL & ICRA
☐ SEBI & RBI
☐ CAMS & KFinTech
☐ NSE & BSE
Explanation:
✅ AMFI has appointed CRISIL and ICRA as valuation agencies for debt securities.
❌ SEBI & RBI is not the correct answer.
❌ CAMS & KFinTech is not the correct answer.
❌ NSE & BSE is not the correct answer.

Q64. Gold valuation for Gold ETFs is based on:
☑ LBMA AM fixing price (USD per troy ounce, 995 fineness)
☐ Domestic jewelry prices
☐ Average of last 30 days
☐ Sponsor-declared price
Explanation:
✅ Gold ETFs use LBMA AM fixing price (USD per troy ounce, 995 fineness).
❌ Domestic jewelry prices is not the correct answer.
❌ Average of last 30 days is not the correct answer.
❌ Sponsor-declared price is not the correct answer.

Q65. TER cap for index funds/ETFs:
☑ 1.00% of daily net assets
☐ 2.25% of daily net assets
☐ 0.50% of daily net assets
☐ No cap
Explanation:
✅ TER for index funds/ETFs shall not exceed 1.00% of daily net assets.
❌ 2.25% of daily net assets is not the correct answer.
❌ 0.50% of daily net assets is not the correct answer.
❌ No cap is not the correct answer.

Q66. FoF TER cap when underlying is liquid/index/ETF is:
☑ 1.00% of daily net assets
☐ 2.25% of daily net assets
☐ 2.00% of daily net assets
☐ No limit
Explanation:
✅ FoF investing in liquid/index/ETF can charge up to 1.00% of daily net assets.
❌ 2.25% of daily net assets is not the correct answer.
❌ 2.00% of daily net assets is not the correct answer.
❌ No limit is not the correct answer.

Q67. When FoF invests in liquid schemes, the max TER is:
☑ 2.25% of daily net assets
☐ 1.00% of daily net assets
☐ 0.75% of daily net assets
☐ 3.00% of daily net assets
Explanation:
✅ As per the simplified slab, a FoF investing in liquid scheme can charge up to 2.25%.
❌ 1.00% of daily net assets is not the correct answer.
❌ 0.75% of daily net assets is not the correct answer.
❌ 3.00% of daily net assets is not the correct answer.

Q68. Valuation policies should include controls to avoid:
☑ Incorrect valuation
☐ Higher distributor payouts
☐ SIP failures
☐ Custodian reconciliations
Explanation:
✅ SEBI requires AMCs to have policies to detect and prevent incorrect valuation.
❌ Higher distributor payouts is not the correct answer.
❌ SIP failures is not the correct answer.
❌ Custodian reconciliations is not the correct answer.

Q69. For audit trail, AMCs must keep:
☑ Documented and preserved to enable audit trail
☐ Verbally conveyed only
☐ Kept with distributors
☐ Shared only with stock exchanges
Explanation:
✅ AMCs must document and preserve valuation rationales to enable audit trail.
❌ Verbally conveyed only is not the correct answer.
❌ Kept with distributors is not the correct answer.
❌ Shared only with stock exchanges is not the correct answer.

Q70. Net Asset Value (NAV) equals:
☑ (Total Assets – Liabilities) / Number of outstanding units
☐ (Total Assets + Liabilities) / Number of outstanding units
☐ (Total Assets × TER) / Number of outstanding units
☐ Market price of benchmark index
Explanation:
✅ NAV equals (Assets – Liabilities) divided by the number of outstanding units.
❌ (Total Assets + Liabilities) / Number of outstanding units is not the correct answer.
❌ (Total Assets × TER) / Number of outstanding units is not the correct answer.
❌ Market price of benchmark index is not the correct answer.

Q71. What does ‘mark to market’ imply for a scheme’s portfolio?
☑ Valuing each security at its current market price
☐ Valuing at the purchase price
☐ Using average historical cost
☐ Ignoring price movements for 30 days
Explanation:
✅ Mark-to-market values portfolio securities at current market prices.
❌ Valuing at the purchase price is not the correct answer.
❌ Using average historical cost is not the correct answer.
❌ Ignoring price movements for 30 days is not the correct answer.

Q72. How often must open-ended scheme NAV be declared?
☑ Every business day
☐ Weekly only
☐ Monthly only
☐ Only at redemption
Explanation:
✅ Open-ended scheme NAVs are declared every business day.
❌ Weekly only is not the correct answer.
❌ Monthly only is not the correct answer.
❌ Only at redemption is not the correct answer.

Q73. For Liquid and Overnight Funds, NAV is declared:
☑ Even on Sundays/holidays
☐ Only on business days
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Liquid and Overnight funds declare NAVs even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q74. Exit load is:
☑ A charge deducted when units are redeemed
☐ A fee charged on entry only
☐ Part of custodian fee
☐ Always zero by regulation
Explanation:
✅ Exit load is a charge deducted when units are redeemed (credited to the scheme).
❌ A fee charged on entry only is not the correct answer.
❌ Part of custodian fee is not the correct answer.
❌ Always zero by regulation is not the correct answer.

Q75. Entry load may be charged on:
☑ Banned across all mutual fund schemes
☐ Allowed for equity only
☐ Allowed for debt only
☐ Allowed for ELSS only
Explanation:
✅ SEBI has banned entry load across all mutual fund schemes.
❌ Allowed for equity only is not the correct answer.
❌ Allowed for debt only is not the correct answer.
❌ Allowed for ELSS only is not the correct answer.

Q76. Total Expense Ratio (TER) represents:
☑ Total recurring expenses as % of daily net assets
☐ AMC profit margin per unit
☐ Exit load percentage
☐ Brokerage alone
Explanation:
✅ TER is the total recurring expenses charged to the scheme as a % of daily net assets.
❌ AMC profit margin per unit is not the correct answer.
❌ Exit load percentage is not the correct answer.
❌ Brokerage alone is not the correct answer.

Q77. Which statement about TER limits is correct (open-ended schemes)?
☑ It is capped by SEBI with slab-wise reductions as AUM increases
☐ There is no cap on TER
☐ TER is fixed the same for all schemes
☐ TER can be arbitrarily changed daily without disclosure
Explanation:
✅ SEBI caps TER with slab-wise reductions as AUM increases; changes must be disclosed.
❌ There is no cap on TER is not the correct answer.
❌ TER is fixed the same for all schemes is not the correct answer.
❌ TER can be arbitrarily changed daily without disclosure is not the correct answer.

Q78. Which must be available daily per scheme on AMC sites?
☑ TER (and NAV)
☐ Only annual report
☐ Distributor commission slabs only
☐ Only benchmark index value
Explanation:
✅ AMCs must prominently display scheme-wise daily TER and NAV.
❌ Only annual report is not the correct answer.
❌ Distributor commission slabs only is not the correct answer.
❌ Only benchmark index value is not the correct answer.

Q79. Applicable NAV for a transaction depends on:
☑ Which day’s NAV applies to a purchase/redemption
☐ Portfolio turnover ratio
☐ TER charged
☐ AMC office hours
Explanation:
✅ Cut-off time determines which day’s NAV is applicable for the transaction.
❌ Portfolio turnover ratio is not the correct answer.
❌ TER charged is not the correct answer.
❌ AMC office hours is not the correct answer.

Q80. A core requirement for valuation is:
☑ True and fair, documented, and consistently applied
☐ Kept confidential and ad-hoc
☐ Based on sponsor’s expected returns
☐ Done once at inception only
Explanation:
✅ SEBI requires true and fair valuation, documented policies, and consistent application.
❌ Kept confidential and ad-hoc is not the correct answer.
❌ Based on sponsor’s expected returns is not the correct answer.
❌ Done once at inception only is not the correct answer.

Q81. Minimum liquid-assets requirement (open-ended debt funds) is:
☑ 10% of corpus
☐ 5% of corpus
☐ 15% of corpus
☐ No minimum
Explanation:
✅ Open-ended debt funds must maintain at least 10% of corpus in liquid assets.
❌ 5% of corpus is not the correct answer.
❌ 15% of corpus is not the correct answer.
❌ No minimum is not the correct answer.

Q82. After a dividend is declared/paid, the NAV shown as ex-dividend is:
☑ After dividend payout (reduced NAV)
☐ Before dividend payout
☐ Including distributable surplus
☐ NAV guaranteed by AMC
Explanation:
✅ Ex-dividend NAV is the reduced NAV after dividend payout.
❌ Before dividend payout is not the correct answer.
❌ Including distributable surplus is not the correct answer.
❌ NAV guaranteed by AMC is not the correct answer.

Q83. In dividend reinvestment, the investor:
☑ Reinvested to allot additional units in the same scheme
☐ Paid as cash to investor
☐ Transferred to another scheme automatically
☐ Used to pay TER
Explanation:
✅ Dividends are reinvested to allot additional units in the same scheme.
❌ Paid as cash to investor is not the correct answer.
❌ Transferred to another scheme automatically is not the correct answer.
❌ Used to pay TER is not the correct answer.

Q84. Where should exit load proceeds go?
☑ The scheme itself
☐ AMC’s own account
☐ SEBI
☐ Distributors
Explanation:
✅ Exit load is credited back to the scheme for the benefit of unitholders.
❌ AMC’s own account is not the correct answer.
❌ SEBI is not the correct answer.
❌ Distributors is not the correct answer.

Q85. SEBI requires TER changes to be:
☑ Update website at least 3 working days in advance
☐ Inform only distributors privately
☐ No disclosure needed
☐ File with RBI
Explanation:
✅ AMCs must update their website at least 3 working days before a base TER change.
❌ Inform only distributors privately is not the correct answer.
❌ No disclosure needed is not the correct answer.
❌ File with RBI is not the correct answer.

Q86. Who provides valuation inputs for thinly traded debt?
☑ CRISIL & ICRA
☐ SEBI & RBI
☐ CAMS & KFinTech
☐ NSE & BSE
Explanation:
✅ AMFI has appointed CRISIL and ICRA as valuation agencies for debt securities.
❌ SEBI & RBI is not the correct answer.
❌ CAMS & KFinTech is not the correct answer.
❌ NSE & BSE is not the correct answer.

Q87. Gold held by a Gold ETF is valued at:
☑ LBMA AM fixing price (USD per troy ounce, 995 fineness)
☐ Domestic jewelry prices
☐ Average of last 30 days
☐ Sponsor-declared price
Explanation:
✅ Gold ETFs use LBMA AM fixing price (USD per troy ounce, 995 fineness).
❌ Domestic jewelry prices is not the correct answer.
❌ Average of last 30 days is not the correct answer.
❌ Sponsor-declared price is not the correct answer.

Q88. For index funds/ETFs, total expense ratio shall not exceed:
☑ 1.00% of daily net assets
☐ 2.25% of daily net assets
☐ 0.50% of daily net assets
☐ No cap
Explanation:
✅ TER for index funds/ETFs shall not exceed 1.00% of daily net assets.
❌ 2.25% of daily net assets is not the correct answer.
❌ 0.50% of daily net assets is not the correct answer.
❌ No cap is not the correct answer.

Q89. Maximum expense ratio for FoF (liquid/index/ETF underlying):
☑ 1.00% of daily net assets
☐ 2.25% of daily net assets
☐ 2.00% of daily net assets
☐ No limit
Explanation:
✅ FoF investing in liquid/index/ETF can charge up to 1.00% of daily net assets.
❌ 2.25% of daily net assets is not the correct answer.
❌ 2.00% of daily net assets is not the correct answer.
❌ No limit is not the correct answer.

Q90. When FoF invests in liquid schemes, the max TER is:
☑ 2.25% of daily net assets
☐ 1.00% of daily net assets
☐ 0.75% of daily net assets
☐ 3.00% of daily net assets
Explanation:
✅ As per the simplified slab, a FoF investing in liquid scheme can charge up to 2.25%.
❌ 1.00% of daily net assets is not the correct answer.
❌ 0.75% of daily net assets is not the correct answer.
❌ 3.00% of daily net assets is not the correct answer.

Q91. AMCs must have policies to detect and prevent:
☑ Incorrect valuation
☐ Higher distributor payouts
☐ SIP failures
☐ Custodian reconciliations
Explanation:
✅ SEBI requires AMCs to have policies to detect and prevent incorrect valuation.
❌ Higher distributor payouts is not the correct answer.
❌ SIP failures is not the correct answer.
❌ Custodian reconciliations is not the correct answer.

Q92. A requirement under valuation principles is that documentation must be:
☑ Documented and preserved to enable audit trail
☐ Verbally conveyed only
☐ Kept with distributors
☐ Shared only with stock exchanges
Explanation:
✅ AMCs must document and preserve valuation rationales to enable audit trail.
❌ Verbally conveyed only is not the correct answer.
❌ Kept with distributors is not the correct answer.
❌ Shared only with stock exchanges is not the correct answer.

Q93. NAV is calculated as:
☑ (Total Assets – Liabilities) / Number of outstanding units
☐ (Total Assets + Liabilities) / Number of outstanding units
☐ (Total Assets × TER) / Number of outstanding units
☐ Market price of benchmark index
Explanation:
✅ NAV equals (Assets – Liabilities) divided by the number of outstanding units.
❌ (Total Assets + Liabilities) / Number of outstanding units is not the correct answer.
❌ (Total Assets × TER) / Number of outstanding units is not the correct answer.
❌ Market price of benchmark index is not the correct answer.

Q94. What does ‘mark to market’ imply for a scheme’s portfolio?
☑ Valuing each security at its current market price
☐ Valuing at the purchase price
☐ Using average historical cost
☐ Ignoring price movements for 30 days
Explanation:
✅ Mark-to-market values portfolio securities at current market prices.
❌ Valuing at the purchase price is not the correct answer.
❌ Using average historical cost is not the correct answer.
❌ Ignoring price movements for 30 days is not the correct answer.

Q95. How often must open-ended scheme NAV be declared?
☑ Every business day
☐ Weekly only
☐ Monthly only
☐ Only at redemption
Explanation:
✅ Open-ended scheme NAVs are declared every business day.
❌ Weekly only is not the correct answer.
❌ Monthly only is not the correct answer.
❌ Only at redemption is not the correct answer.

Q96. For Liquid and Overnight Funds, NAV is declared:
☑ Even on Sundays/holidays
☐ Only on business days
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Liquid and Overnight funds declare NAVs even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q97. A charge levied at redemption is:
☑ A charge deducted when units are redeemed
☐ A fee charged on entry only
☐ Part of custodian fee
☐ Always zero by regulation
Explanation:
✅ Exit load is a charge deducted when units are redeemed (credited to the scheme).
❌ A fee charged on entry only is not the correct answer.
❌ Part of custodian fee is not the correct answer.
❌ Always zero by regulation is not the correct answer.

Q98. Entry load status as per SEBI is:
☑ Banned across all mutual fund schemes
☐ Allowed for equity only
☐ Allowed for debt only
☐ Allowed for ELSS only
Explanation:
✅ SEBI has banned entry load across all mutual fund schemes.
❌ Allowed for equity only is not the correct answer.
❌ Allowed for debt only is not the correct answer.
❌ Allowed for ELSS only is not the correct answer.

Q99. Expense ratio indicates:
☑ Total recurring expenses as % of daily net assets
☐ AMC profit margin per unit
☐ Exit load percentage
☐ Brokerage alone
Explanation:
✅ TER is the total recurring expenses charged to the scheme as a % of daily net assets.
❌ AMC profit margin per unit is not the correct answer.
❌ Exit load percentage is not the correct answer.
❌ Brokerage alone is not the correct answer.

Q100. TER for open-ended equity/debt schemes:
☑ It is capped by SEBI with slab-wise reductions as AUM increases
☐ There is no cap on TER
☐ TER is fixed the same for all schemes
☐ TER can be arbitrarily changed daily without disclosure
Explanation:
✅ SEBI caps TER with slab-wise reductions as AUM increases; changes must be disclosed.
❌ There is no cap on TER is not the correct answer.
❌ TER is fixed the same for all schemes is not the correct answer.
❌ TER can be arbitrarily changed daily without disclosure is not the correct answer.

~

Q1. Capital gain in mutual funds is typically realized when units are:
☑ Sold/redeemed at a price different from cost
☐ Purchased at NAV
☐ Switched with no redemption
☐ Transferred as gift
Explanation:
✅ Capital gains arise when units are sold/redeemed at a price different from acquisition cost.
❌ Purchased at NAV is not the correct answer.
❌ Switched with no redemption is not the correct answer.
❌ Transferred as gift is not the correct answer.

Q2. To qualify as equity-oriented for tax, the equity exposure must be:
☑ 65% in equity shares/equity-oriented instruments
☐ 50% in equity shares
☐ 35% in equity shares
☐ 80% in equity shares
Explanation:
✅ For tax, equity-oriented funds must invest at least 65% in equity shares/equity-related instruments.
❌ 50% in equity shares is not the correct answer.
❌ 35% in equity shares is not the correct answer.
❌ 80% in equity shares is not the correct answer.

Q3. Equity fund units become long-term for tax if held for more than:
☑ 12 months
☐ 24 months
☐ 36 months
☐ 6 months
Explanation:
✅ Equity-oriented fund units are long-term if held for more than 12 months.
❌ 24 months is not the correct answer.
❌ 36 months is not the correct answer.
❌ 6 months is not the correct answer.

Q4. Debt fund units qualify as long-term for tax if held for more than:
☑ 36 months
☐ 12 months
☐ 24 months
☐ 6 months
Explanation:
✅ Debt fund units are long-term if held for more than 36 months (subject to prevailing tax rules).
❌ 12 months is not the correct answer.
❌ 24 months is not the correct answer.
❌ 6 months is not the correct answer.

Q5. Dividend Distribution Tax (DDT) status after 2020 is:
☑ Taxable in the hands of the investor at applicable slab
☐ Tax-free for investors; DDT paid by AMC
☐ Taxed at flat 10%
☐ Exempt from tax
Explanation:
✅ DDT was abolished in 2020; dividends are taxable in investors’ hands at slab rates.
❌ Tax-free for investors; DDT paid by AMC is not the correct answer.
❌ Taxed at flat 10% is not the correct answer.
❌ Exempt from tax is not the correct answer.

Q6. Equity fund STCG is generally taxed at:
☑ 15% plus applicable surcharge and cess
☐ 10% plus cess
☐ 20% with indexation
☐ Slab rate always
Explanation:
✅ STCG on equity (where STT applies) is taxed at 15% plus applicable surcharge and cess.
❌ 10% plus cess is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Slab rate always is not the correct answer.

Q7. Long-term capital gains (LTCG) on equity-oriented funds above ₹1 lakh in a financial year are taxed at:
☑ 10% without indexation (plus surcharge & cess)
☐ 20% with indexation
☐ 15% flat
☐ Exempt fully
Explanation:
✅ Equity LTCG above ₹1 lakh is taxed at 10% without indexation (plus surcharge & cess).
❌ 20% with indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt fully is not the correct answer.

Q8. Short-term capital gains on debt-oriented funds are taxed at:
☑ Investor’s applicable slab rate
☐ 10% flat
☐ 20% with indexation
☐ Exempt
Explanation:
✅ Debt fund STCG is taxed at the investor’s applicable slab rate.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Exempt is not the correct answer.

Q9. Traditional treatment of LTCG on debt funds involved:
☑ 20% with indexation benefits
☐ 10% without indexation
☐ 15% flat
☐ Exempt
Explanation:
✅ Historically, debt LTCG was taxed at 20% with indexation; (note: tax laws change—refer latest rules).
❌ 10% without indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt is not the correct answer.

Q10. Resident individual TDS rate on MF dividends (subject to threshold) is:
☑ 10% (if dividend exceeds the prescribed threshold)
☐ 0% always
☐ 5%
☐ 20%
Explanation:
✅ TDS at 10% applies on dividends to residents if the amount exceeds the threshold.
❌ 0% always is not the correct answer.
❌ 5% is not the correct answer.
❌ 20% is not the correct answer.

Q11. In case of NRI investors, AMCs deduct TDS on:
☑ Capital gains depending on nature (equity/debt, STCG/LTCG)
☐ Only dividends
☐ Principal amount
☐ No TDS at all
Explanation:
✅ For NRIs, TDS is deducted on capital gains per applicable rates (nature and holding period).
❌ Only dividends is not the correct answer.
❌ Principal amount is not the correct answer.
❌ No TDS at all is not the correct answer.

Q12. Indexed cost of acquisition is computed using:
☑ Cost Inflation Index (CII)
☐ Repo rate
☐ CPI alone
☐ P/E ratio
Explanation:
✅ Indexation uses the Cost Inflation Index (CII) to adjust cost for inflation.
❌ Repo rate is not the correct answer.
❌ CPI alone is not the correct answer.
❌ P/E ratio is not the correct answer.

Q13. Short-term capital loss (STCL) can be set off against:
☑ Both STCG and LTCG
☐ Only STCG
☐ Only LTCG
☐ Not allowed to set off
Explanation:
✅ STCL can be set off against both STCG and LTCG.
❌ Only STCG is not the correct answer.
❌ Only LTCG is not the correct answer.
❌ Not allowed to set off is not the correct answer.

Q14. Long-term capital loss (LTCL) can be set off against:
☑ Only LTCG
☐ Only STCG
☐ Both STCG and LTCG
☐ Not allowed
Explanation:
✅ LTCL can be set off only against LTCG.
❌ Only STCG is not the correct answer.
❌ Both STCG and LTCG is not the correct answer.
❌ Not allowed is not the correct answer.

Q15. Capital loss carry-forward period (subject to filing returns in time) is:
☑ 8 assessment years
☐ 4 assessment years
☐ 2 assessment years
☐ Indefinitely
Explanation:
✅ Capital losses can generally be carried forward up to 8 assessment years (subject to conditions).
❌ 4 assessment years is not the correct answer.
❌ 2 assessment years is not the correct answer.
❌ Indefinitely is not the correct answer.

Q16. For SIP investments, capital gains are calculated:
☑ Separately from its individual date of investment
☐ From the first SIP date for all units collectively
☐ From financial year start date
☐ From AMC’s chosen date
Explanation:
✅ Each SIP installment is a separate investment; holding period is counted from its own date.
❌ From the first SIP date for all units collectively is not the correct answer.
❌ From financial year start date is not the correct answer.
❌ From AMC’s chosen date is not the correct answer.

Q17. STP from debt to equity triggers:
☑ Redemption from source scheme (capital gains/loss) and purchase in target scheme
☐ No tax event at all
☐ Only dividend
☐ A loan
Explanation:
✅ STP involves a redemption (tax event) in the source scheme and purchase in the target scheme.
❌ No tax event at all is not the correct answer.
❌ Only dividend is not the correct answer.
❌ A loan is not the correct answer.

Q18. SWP withdrawals are taxed as:
☑ Capital gains arising on redemption of units
☐ Interest income
☐ Dividend income
☐ Always exempt
Explanation:
✅ SWP is a redemption; tax applies on the capital gains portion as per holding period and scheme type.
❌ Interest income is not the correct answer.
❌ Dividend income is not the correct answer.
❌ Always exempt is not the correct answer.

Q19. FATCA is aimed at identifying:
☑ Tax residency and certain foreign reportable accounts
☐ Only PAN status
☐ Only Aadhaar linking
☐ Brokerage rates
Explanation:
✅ FATCA requires declaration of tax residency and reporting of certain foreign accounts.
❌ Only PAN status is not the correct answer.
❌ Only Aadhaar linking is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q20. MF taxation differs partly based on investor’s:
☑ Residential status (Resident/NRI)
☐ AMC’s location
☐ Distributor’s city
☐ RTA’s choice
Explanation:
✅ Residential status (Resident vs NRI) impacts TDS and tax treatment.
❌ AMC’s location is not the correct answer.
❌ Distributor’s city is not the correct answer.
❌ RTA’s choice is not the correct answer.

Q21. Gift tax treatment for units given to specified relatives is:
☑ Generally not taxable in recipient’s hands
☐ Always taxed at 30%
☐ Taxed as business income
☐ Subject to TDS
Explanation:
✅ Gifts to specified relatives are generally not taxable for the recipient.
❌ Always taxed at 30% is not the correct answer.
❌ Taxed as business income is not the correct answer.
❌ Subject to TDS is not the correct answer.

Q22. In case of minor investors, tax liability on MF income is usually:
☑ Clubbed with parent’s income (subject to exemptions)
☐ Taxed only to the minor always
☐ Assigned to AMC
☐ Exempt for life
Explanation:
✅ Minor’s income is generally clubbed with the parent’s income (subject to exemptions).
❌ Taxed only to the minor always is not the correct answer.
❌ Assigned to AMC is not the correct answer.
❌ Exempt for life is not the correct answer.

Q23. Final tax on MF gains includes:
☑ Applicable surcharge and health & education cess
☐ Wealth tax only
☐ GST always
☐ No additional levies
Explanation:
✅ Capital gains tax may attract surcharge and health & education cess as per laws.
❌ Wealth tax only is not the correct answer.
❌ GST always is not the correct answer.
❌ No additional levies is not the correct answer.

Q24. Grandfathering for equity LTCG considered the higher of cost and:
☑ FMV as on 31 January 2018
☐ Average price of FY2018-19
☐ Price on 1 April 2019
☐ Any month-end price in 2018
Explanation:
✅ Grandfathering for equity LTCG used the fair market value as on 31 Jan 2018.
❌ Average price of FY2018-19 is not the correct answer.
❌ Price on 1 April 2019 is not the correct answer.
❌ Any month-end price in 2018 is not the correct answer.

Q25. Capital gain in mutual funds is typically realized when units are:
☑ Sold/redeemed at a price different from cost
☐ Purchased at NAV
☐ Switched with no redemption
☐ Transferred as gift
Explanation:
✅ Capital gains arise when units are sold/redeemed at a price different from acquisition cost.
❌ Purchased at NAV is not the correct answer.
❌ Switched with no redemption is not the correct answer.
❌ Transferred as gift is not the correct answer.

Q26. To qualify as equity-oriented for tax, the equity exposure must be:
☑ 65% in equity shares/equity-oriented instruments
☐ 50% in equity shares
☐ 35% in equity shares
☐ 80% in equity shares
Explanation:
✅ For tax, equity-oriented funds must invest at least 65% in equity shares/equity-related instruments.
❌ 50% in equity shares is not the correct answer.
❌ 35% in equity shares is not the correct answer.
❌ 80% in equity shares is not the correct answer.

Q27. Holding period threshold for LTCG in equity-oriented schemes is:
☑ 12 months
☐ 24 months
☐ 36 months
☐ 6 months
Explanation:
✅ Equity-oriented fund units are long-term if held for more than 12 months.
❌ 24 months is not the correct answer.
❌ 36 months is not the correct answer.
❌ 6 months is not the correct answer.

Q28. Debt scheme units become LTCG when held for:
☑ 36 months
☐ 12 months
☐ 24 months
☐ 6 months
Explanation:
✅ Debt fund units are long-term if held for more than 36 months (subject to prevailing tax rules).
❌ 12 months is not the correct answer.
❌ 24 months is not the correct answer.
❌ 6 months is not the correct answer.

Q29. Dividend Distribution Tax (DDT) status after 2020 is:
☑ Taxable in the hands of the investor at applicable slab
☐ Tax-free for investors; DDT paid by AMC
☐ Taxed at flat 10%
☐ Exempt from tax
Explanation:
✅ DDT was abolished in 2020; dividends are taxable in investors’ hands at slab rates.
❌ Tax-free for investors; DDT paid by AMC is not the correct answer.
❌ Taxed at flat 10% is not the correct answer.
❌ Exempt from tax is not the correct answer.

Q30. Short-term capital gains (STCG) on equity-oriented funds (where STT applicable) are taxed at:
☑ 15% plus applicable surcharge and cess
☐ 10% plus cess
☐ 20% with indexation
☐ Slab rate always
Explanation:
✅ STCG on equity (where STT applies) is taxed at 15% plus applicable surcharge and cess.
❌ 10% plus cess is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Slab rate always is not the correct answer.

Q31. Tax rate for LTCG on equity MF (beyond ₹1 lakh exemption) is:
☑ 10% without indexation (plus surcharge & cess)
☐ 20% with indexation
☐ 15% flat
☐ Exempt fully
Explanation:
✅ Equity LTCG above ₹1 lakh is taxed at 10% without indexation (plus surcharge & cess).
❌ 20% with indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt fully is not the correct answer.

Q32. Short-term capital gains on debt-oriented funds are taxed at:
☑ Investor’s applicable slab rate
☐ 10% flat
☐ 20% with indexation
☐ Exempt
Explanation:
✅ Debt fund STCG is taxed at the investor’s applicable slab rate.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Exempt is not the correct answer.

Q33. Traditional treatment of LTCG on debt funds involved:
☑ 20% with indexation benefits
☐ 10% without indexation
☐ 15% flat
☐ Exempt
Explanation:
✅ Historically, debt LTCG was taxed at 20% with indexation; (note: tax laws change—refer latest rules).
❌ 10% without indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt is not the correct answer.

Q34. TDS on mutual fund dividends for resident individuals applies at:
☑ 10% (if dividend exceeds the prescribed threshold)
☐ 0% always
☐ 5%
☐ 20%
Explanation:
✅ TDS at 10% applies on dividends to residents if the amount exceeds the threshold.
❌ 0% always is not the correct answer.
❌ 5% is not the correct answer.
❌ 20% is not the correct answer.

Q35. For NRIs, TDS is deducted on:
☑ Capital gains depending on nature (equity/debt, STCG/LTCG)
☐ Only dividends
☐ Principal amount
☐ No TDS at all
Explanation:
✅ For NRIs, TDS is deducted on capital gains per applicable rates (nature and holding period).
❌ Only dividends is not the correct answer.
❌ Principal amount is not the correct answer.
❌ No TDS at all is not the correct answer.

Q36. Indexation adjusts the purchase price using:
☑ Cost Inflation Index (CII)
☐ Repo rate
☐ CPI alone
☐ P/E ratio
Explanation:
✅ Indexation uses the Cost Inflation Index (CII) to adjust cost for inflation.
❌ Repo rate is not the correct answer.
❌ CPI alone is not the correct answer.
❌ P/E ratio is not the correct answer.

Q37. Short-term capital loss (STCL) can be set off against:
☑ Both STCG and LTCG
☐ Only STCG
☐ Only LTCG
☐ Not allowed to set off
Explanation:
✅ STCL can be set off against both STCG and LTCG.
❌ Only STCG is not the correct answer.
❌ Only LTCG is not the correct answer.
❌ Not allowed to set off is not the correct answer.

Q38. Long-term capital loss (LTCL) can be set off against:
☑ Only LTCG
☐ Only STCG
☐ Both STCG and LTCG
☐ Not allowed
Explanation:
✅ LTCL can be set off only against LTCG.
❌ Only STCG is not the correct answer.
❌ Both STCG and LTCG is not the correct answer.
❌ Not allowed is not the correct answer.

Q39. Carry forward of capital losses allowed up to:
☑ 8 assessment years
☐ 4 assessment years
☐ 2 assessment years
☐ Indefinitely
Explanation:
✅ Capital losses can generally be carried forward up to 8 assessment years (subject to conditions).
❌ 4 assessment years is not the correct answer.
❌ 2 assessment years is not the correct answer.
❌ Indefinitely is not the correct answer.

Q40. In SIP, each installment’s holding period is counted:
☑ Separately from its individual date of investment
☐ From the first SIP date for all units collectively
☐ From financial year start date
☐ From AMC’s chosen date
Explanation:
✅ Each SIP installment is a separate investment; holding period is counted from its own date.
❌ From the first SIP date for all units collectively is not the correct answer.
❌ From financial year start date is not the correct answer.
❌ From AMC’s chosen date is not the correct answer.

Q41. A transfer under STP is treated as:
☑ Redemption from source scheme (capital gains/loss) and purchase in target scheme
☐ No tax event at all
☐ Only dividend
☐ A loan
Explanation:
✅ STP involves a redemption (tax event) in the source scheme and purchase in the target scheme.
❌ No tax event at all is not the correct answer.
❌ Only dividend is not the correct answer.
❌ A loan is not the correct answer.

Q42. Tax on SWP amounts represents:
☑ Capital gains arising on redemption of units
☐ Interest income
☐ Dividend income
☐ Always exempt
Explanation:
✅ SWP is a redemption; tax applies on the capital gains portion as per holding period and scheme type.
❌ Interest income is not the correct answer.
❌ Dividend income is not the correct answer.
❌ Always exempt is not the correct answer.

Q43. Under FATCA, investors must declare:
☑ Tax residency and certain foreign reportable accounts
☐ Only PAN status
☐ Only Aadhaar linking
☐ Brokerage rates
Explanation:
✅ FATCA requires declaration of tax residency and reporting of certain foreign accounts.
❌ Only PAN status is not the correct answer.
❌ Only Aadhaar linking is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q44. MF taxation differs partly based on investor’s:
☑ Residential status (Resident/NRI)
☐ AMC’s location
☐ Distributor’s city
☐ RTA’s choice
Explanation:
✅ Residential status (Resident vs NRI) impacts TDS and tax treatment.
❌ AMC’s location is not the correct answer.
❌ Distributor’s city is not the correct answer.
❌ RTA’s choice is not the correct answer.

Q45. Gifting mutual fund units to specified relatives:
☑ Generally not taxable in recipient’s hands
☐ Always taxed at 30%
☐ Taxed as business income
☐ Subject to TDS
Explanation:
✅ Gifts to specified relatives are generally not taxable for the recipient.
❌ Always taxed at 30% is not the correct answer.
❌ Taxed as business income is not the correct answer.
❌ Subject to TDS is not the correct answer.

Q46. Minor’s MF income is typically clubbed with:
☑ Clubbed with parent’s income (subject to exemptions)
☐ Taxed only to the minor always
☐ Assigned to AMC
☐ Exempt for life
Explanation:
✅ Minor’s income is generally clubbed with the parent’s income (subject to exemptions).
❌ Taxed only to the minor always is not the correct answer.
❌ Assigned to AMC is not the correct answer.
❌ Exempt for life is not the correct answer.

Q47. Capital gains tax on MFs is subject to:
☑ Applicable surcharge and health & education cess
☐ Wealth tax only
☐ GST always
☐ No additional levies
Explanation:
✅ Capital gains tax may attract surcharge and health & education cess as per laws.
❌ Wealth tax only is not the correct answer.
❌ GST always is not the correct answer.
❌ No additional levies is not the correct answer.

Q48. Equity LTCG grandfathering used price as on:
☑ FMV as on 31 January 2018
☐ Average price of FY2018-19
☐ Price on 1 April 2019
☐ Any month-end price in 2018
Explanation:
✅ Grandfathering for equity LTCG used the fair market value as on 31 Jan 2018.
❌ Average price of FY2018-19 is not the correct answer.
❌ Price on 1 April 2019 is not the correct answer.
❌ Any month-end price in 2018 is not the correct answer.

Q49. Capital gain in mutual funds is typically realized when units are:
☑ Sold/redeemed at a price different from cost
☐ Purchased at NAV
☐ Switched with no redemption
☐ Transferred as gift
Explanation:
✅ Capital gains arise when units are sold/redeemed at a price different from acquisition cost.
❌ Purchased at NAV is not the correct answer.
❌ Switched with no redemption is not the correct answer.
❌ Transferred as gift is not the correct answer.

Q50. For tax purposes, an equity-oriented fund holds minimum:
☑ 65% in equity shares/equity-oriented instruments
☐ 50% in equity shares
☐ 35% in equity shares
☐ 80% in equity shares
Explanation:
✅ For tax, equity-oriented funds must invest at least 65% in equity shares/equity-related instruments.
❌ 50% in equity shares is not the correct answer.
❌ 35% in equity shares is not the correct answer.
❌ 80% in equity shares is not the correct answer.

Q51. For equity-oriented funds, long-term capital gains (LTCG) apply when holding period exceeds:
☑ 12 months
☐ 24 months
☐ 36 months
☐ 6 months
Explanation:
✅ Equity-oriented fund units are long-term if held for more than 12 months.
❌ 24 months is not the correct answer.
❌ 36 months is not the correct answer.
❌ 6 months is not the correct answer.

Q52. Debt scheme units become LTCG when held for:
☑ 36 months
☐ 12 months
☐ 24 months
☐ 6 months
Explanation:
✅ Debt fund units are long-term if held for more than 36 months (subject to prevailing tax rules).
❌ 12 months is not the correct answer.
❌ 24 months is not the correct answer.
❌ 6 months is not the correct answer.

Q53. Post-2020, dividends from mutual funds are:
☑ Taxable in the hands of the investor at applicable slab
☐ Tax-free for investors; DDT paid by AMC
☐ Taxed at flat 10%
☐ Exempt from tax
Explanation:
✅ DDT was abolished in 2020; dividends are taxable in investors’ hands at slab rates.
❌ Tax-free for investors; DDT paid by AMC is not the correct answer.
❌ Taxed at flat 10% is not the correct answer.
❌ Exempt from tax is not the correct answer.

Q54. STCG tax rate for equity mutual funds, where STT applies, is:
☑ 15% plus applicable surcharge and cess
☐ 10% plus cess
☐ 20% with indexation
☐ Slab rate always
Explanation:
✅ STCG on equity (where STT applies) is taxed at 15% plus applicable surcharge and cess.
❌ 10% plus cess is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Slab rate always is not the correct answer.

Q55. Tax rate for LTCG on equity MF (beyond ₹1 lakh exemption) is:
☑ 10% without indexation (plus surcharge & cess)
☐ 20% with indexation
☐ 15% flat
☐ Exempt fully
Explanation:
✅ Equity LTCG above ₹1 lakh is taxed at 10% without indexation (plus surcharge & cess).
❌ 20% with indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt fully is not the correct answer.

Q56. Debt fund STCG is taxed according to:
☑ Investor’s applicable slab rate
☐ 10% flat
☐ 20% with indexation
☐ Exempt
Explanation:
✅ Debt fund STCG is taxed at the investor’s applicable slab rate.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Exempt is not the correct answer.

Q57. Under earlier rules, debt LTCG (holding >36 months) attracted:
☑ 20% with indexation benefits
☐ 10% without indexation
☐ 15% flat
☐ Exempt
Explanation:
✅ Historically, debt LTCG was taxed at 20% with indexation; (note: tax laws change—refer latest rules).
❌ 10% without indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt is not the correct answer.

Q58. When paying dividends to residents, TDS by AMC is:
☑ 10% (if dividend exceeds the prescribed threshold)
☐ 0% always
☐ 5%
☐ 20%
Explanation:
✅ TDS at 10% applies on dividends to residents if the amount exceeds the threshold.
❌ 0% always is not the correct answer.
❌ 5% is not the correct answer.
❌ 20% is not the correct answer.

Q59. For NRIs, TDS is deducted on:
☑ Capital gains depending on nature (equity/debt, STCG/LTCG)
☐ Only dividends
☐ Principal amount
☐ No TDS at all
Explanation:
✅ For NRIs, TDS is deducted on capital gains per applicable rates (nature and holding period).
❌ Only dividends is not the correct answer.
❌ Principal amount is not the correct answer.
❌ No TDS at all is not the correct answer.

Q60. Indexed cost of acquisition is computed using:
☑ Cost Inflation Index (CII)
☐ Repo rate
☐ CPI alone
☐ P/E ratio
Explanation:
✅ Indexation uses the Cost Inflation Index (CII) to adjust cost for inflation.
❌ Repo rate is not the correct answer.
❌ CPI alone is not the correct answer.
❌ P/E ratio is not the correct answer.

Q61. STCL is allowed to be adjusted against:
☑ Both STCG and LTCG
☐ Only STCG
☐ Only LTCG
☐ Not allowed to set off
Explanation:
✅ STCL can be set off against both STCG and LTCG.
❌ Only STCG is not the correct answer.
❌ Only LTCG is not the correct answer.
❌ Not allowed to set off is not the correct answer.

Q62. As per capital gains rules, LTCL is set off against:
☑ Only LTCG
☐ Only STCG
☐ Both STCG and LTCG
☐ Not allowed
Explanation:
✅ LTCL can be set off only against LTCG.
❌ Only STCG is not the correct answer.
❌ Both STCG and LTCG is not the correct answer.
❌ Not allowed is not the correct answer.

Q63. Unabsorbed capital losses can generally be carried forward for up to:
☑ 8 assessment years
☐ 4 assessment years
☐ 2 assessment years
☐ Indefinitely
Explanation:
✅ Capital losses can generally be carried forward up to 8 assessment years (subject to conditions).
❌ 4 assessment years is not the correct answer.
❌ 2 assessment years is not the correct answer.
❌ Indefinitely is not the correct answer.

Q64. SIP tax treatment considers each installment:
☑ Separately from its individual date of investment
☐ From the first SIP date for all units collectively
☐ From financial year start date
☐ From AMC’s chosen date
Explanation:
✅ Each SIP installment is a separate investment; holding period is counted from its own date.
❌ From the first SIP date for all units collectively is not the correct answer.
❌ From financial year start date is not the correct answer.
❌ From AMC’s chosen date is not the correct answer.

Q65. A transfer under STP is treated as:
☑ Redemption from source scheme (capital gains/loss) and purchase in target scheme
☐ No tax event at all
☐ Only dividend
☐ A loan
Explanation:
✅ STP involves a redemption (tax event) in the source scheme and purchase in the target scheme.
❌ No tax event at all is not the correct answer.
❌ Only dividend is not the correct answer.
❌ A loan is not the correct answer.

Q66. SWP withdrawals are taxed as:
☑ Capital gains arising on redemption of units
☐ Interest income
☐ Dividend income
☐ Always exempt
Explanation:
✅ SWP is a redemption; tax applies on the capital gains portion as per holding period and scheme type.
❌ Interest income is not the correct answer.
❌ Dividend income is not the correct answer.
❌ Always exempt is not the correct answer.

Q67. FATCA compliance primarily relates to:
☑ Tax residency and certain foreign reportable accounts
☐ Only PAN status
☐ Only Aadhaar linking
☐ Brokerage rates
Explanation:
✅ FATCA requires declaration of tax residency and reporting of certain foreign accounts.
❌ Only PAN status is not the correct answer.
❌ Only Aadhaar linking is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q68. MF taxation differs partly based on investor’s:
☑ Residential status (Resident/NRI)
☐ AMC’s location
☐ Distributor’s city
☐ RTA’s choice
Explanation:
✅ Residential status (Resident vs NRI) impacts TDS and tax treatment.
❌ AMC’s location is not the correct answer.
❌ Distributor’s city is not the correct answer.
❌ RTA’s choice is not the correct answer.

Q69. Gifting mutual fund units to specified relatives:
☑ Generally not taxable in recipient’s hands
☐ Always taxed at 30%
☐ Taxed as business income
☐ Subject to TDS
Explanation:
✅ Gifts to specified relatives are generally not taxable for the recipient.
❌ Always taxed at 30% is not the correct answer.
❌ Taxed as business income is not the correct answer.
❌ Subject to TDS is not the correct answer.

Q70. Clubbing provisions may apply to minor’s MF income, taxing it in the hands of:
☑ Clubbed with parent’s income (subject to exemptions)
☐ Taxed only to the minor always
☐ Assigned to AMC
☐ Exempt for life
Explanation:
✅ Minor’s income is generally clubbed with the parent’s income (subject to exemptions).
❌ Taxed only to the minor always is not the correct answer.
❌ Assigned to AMC is not the correct answer.
❌ Exempt for life is not the correct answer.

Q71. Capital gains tax on MFs is subject to:
☑ Applicable surcharge and health & education cess
☐ Wealth tax only
☐ GST always
☐ No additional levies
Explanation:
✅ Capital gains tax may attract surcharge and health & education cess as per laws.
❌ Wealth tax only is not the correct answer.
❌ GST always is not the correct answer.
❌ No additional levies is not the correct answer.

Q72. Grandfathering for equity LTCG considered the higher of cost and:
☑ FMV as on 31 January 2018
☐ Average price of FY2018-19
☐ Price on 1 April 2019
☐ Any month-end price in 2018
Explanation:
✅ Grandfathering for equity LTCG used the fair market value as on 31 Jan 2018.
❌ Average price of FY2018-19 is not the correct answer.
❌ Price on 1 April 2019 is not the correct answer.
❌ Any month-end price in 2018 is not the correct answer.

Q73. Capital gain in mutual funds is typically realized when units are:
☑ Sold/redeemed at a price different from cost
☐ Purchased at NAV
☐ Switched with no redemption
☐ Transferred as gift
Explanation:
✅ Capital gains arise when units are sold/redeemed at a price different from acquisition cost.
❌ Purchased at NAV is not the correct answer.
❌ Switched with no redemption is not the correct answer.
❌ Transferred as gift is not the correct answer.

Q74. An equity-oriented mutual fund is one that invests at least:
☑ 65% in equity shares/equity-oriented instruments
☐ 50% in equity shares
☐ 35% in equity shares
☐ 80% in equity shares
Explanation:
✅ For tax, equity-oriented funds must invest at least 65% in equity shares/equity-related instruments.
❌ 50% in equity shares is not the correct answer.
❌ 35% in equity shares is not the correct answer.
❌ 80% in equity shares is not the correct answer.

Q75. For equity-oriented funds, long-term capital gains (LTCG) apply when holding period exceeds:
☑ 12 months
☐ 24 months
☐ 36 months
☐ 6 months
Explanation:
✅ Equity-oriented fund units are long-term if held for more than 12 months.
❌ 24 months is not the correct answer.
❌ 36 months is not the correct answer.
❌ 6 months is not the correct answer.

Q76. Debt scheme units become LTCG when held for:
☑ 36 months
☐ 12 months
☐ 24 months
☐ 6 months
Explanation:
✅ Debt fund units are long-term if held for more than 36 months (subject to prevailing tax rules).
❌ 12 months is not the correct answer.
❌ 24 months is not the correct answer.
❌ 6 months is not the correct answer.

Q77. Post-2020, dividends from mutual funds are:
☑ Taxable in the hands of the investor at applicable slab
☐ Tax-free for investors; DDT paid by AMC
☐ Taxed at flat 10%
☐ Exempt from tax
Explanation:
✅ DDT was abolished in 2020; dividends are taxable in investors’ hands at slab rates.
❌ Tax-free for investors; DDT paid by AMC is not the correct answer.
❌ Taxed at flat 10% is not the correct answer.
❌ Exempt from tax is not the correct answer.

Q78. Short-term capital gains (STCG) on equity-oriented funds (where STT applicable) are taxed at:
☑ 15% plus applicable surcharge and cess
☐ 10% plus cess
☐ 20% with indexation
☐ Slab rate always
Explanation:
✅ STCG on equity (where STT applies) is taxed at 15% plus applicable surcharge and cess.
❌ 10% plus cess is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Slab rate always is not the correct answer.

Q79. Long-term capital gains (LTCG) on equity-oriented funds above ₹1 lakh in a financial year are taxed at:
☑ 10% without indexation (plus surcharge & cess)
☐ 20% with indexation
☐ 15% flat
☐ Exempt fully
Explanation:
✅ Equity LTCG above ₹1 lakh is taxed at 10% without indexation (plus surcharge & cess).
❌ 20% with indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt fully is not the correct answer.

Q80. Short-term capital gains on debt-oriented funds are taxed at:
☑ Investor’s applicable slab rate
☐ 10% flat
☐ 20% with indexation
☐ Exempt
Explanation:
✅ Debt fund STCG is taxed at the investor’s applicable slab rate.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Exempt is not the correct answer.

Q81. Under earlier rules, debt LTCG (holding >36 months) attracted:
☑ 20% with indexation benefits
☐ 10% without indexation
☐ 15% flat
☐ Exempt
Explanation:
✅ Historically, debt LTCG was taxed at 20% with indexation; (note: tax laws change—refer latest rules).
❌ 10% without indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt is not the correct answer.

Q82. Resident individual TDS rate on MF dividends (subject to threshold) is:
☑ 10% (if dividend exceeds the prescribed threshold)
☐ 0% always
☐ 5%
☐ 20%
Explanation:
✅ TDS at 10% applies on dividends to residents if the amount exceeds the threshold.
❌ 0% always is not the correct answer.
❌ 5% is not the correct answer.
❌ 20% is not the correct answer.

Q83. In case of NRI investors, AMCs deduct TDS on:
☑ Capital gains depending on nature (equity/debt, STCG/LTCG)
☐ Only dividends
☐ Principal amount
☐ No TDS at all
Explanation:
✅ For NRIs, TDS is deducted on capital gains per applicable rates (nature and holding period).
❌ Only dividends is not the correct answer.
❌ Principal amount is not the correct answer.
❌ No TDS at all is not the correct answer.

Q84. Indexation benefit in capital gains uses:
☑ Cost Inflation Index (CII)
☐ Repo rate
☐ CPI alone
☐ P/E ratio
Explanation:
✅ Indexation uses the Cost Inflation Index (CII) to adjust cost for inflation.
❌ Repo rate is not the correct answer.
❌ CPI alone is not the correct answer.
❌ P/E ratio is not the correct answer.

Q85. STCL is allowed to be adjusted against:
☑ Both STCG and LTCG
☐ Only STCG
☐ Only LTCG
☐ Not allowed to set off
Explanation:
✅ STCL can be set off against both STCG and LTCG.
❌ Only STCG is not the correct answer.
❌ Only LTCG is not the correct answer.
❌ Not allowed to set off is not the correct answer.

Q86. Long-term capital loss (LTCL) can be set off against:
☑ Only LTCG
☐ Only STCG
☐ Both STCG and LTCG
☐ Not allowed
Explanation:
✅ LTCL can be set off only against LTCG.
❌ Only STCG is not the correct answer.
❌ Both STCG and LTCG is not the correct answer.
❌ Not allowed is not the correct answer.

Q87. Carry forward of capital losses allowed up to:
☑ 8 assessment years
☐ 4 assessment years
☐ 2 assessment years
☐ Indefinitely
Explanation:
✅ Capital losses can generally be carried forward up to 8 assessment years (subject to conditions).
❌ 4 assessment years is not the correct answer.
❌ 2 assessment years is not the correct answer.
❌ Indefinitely is not the correct answer.

Q88. SIP tax treatment considers each installment:
☑ Separately from its individual date of investment
☐ From the first SIP date for all units collectively
☐ From financial year start date
☐ From AMC’s chosen date
Explanation:
✅ Each SIP installment is a separate investment; holding period is counted from its own date.
❌ From the first SIP date for all units collectively is not the correct answer.
❌ From financial year start date is not the correct answer.
❌ From AMC’s chosen date is not the correct answer.

Q89. STP from debt to equity triggers:
☑ Redemption from source scheme (capital gains/loss) and purchase in target scheme
☐ No tax event at all
☐ Only dividend
☐ A loan
Explanation:
✅ STP involves a redemption (tax event) in the source scheme and purchase in the target scheme.
❌ No tax event at all is not the correct answer.
❌ Only dividend is not the correct answer.
❌ A loan is not the correct answer.

Q90. In SWP, the taxability is based on:
☑ Capital gains arising on redemption of units
☐ Interest income
☐ Dividend income
☐ Always exempt
Explanation:
✅ SWP is a redemption; tax applies on the capital gains portion as per holding period and scheme type.
❌ Interest income is not the correct answer.
❌ Dividend income is not the correct answer.
❌ Always exempt is not the correct answer.

Q91. Under FATCA, investors must declare:
☑ Tax residency and certain foreign reportable accounts
☐ Only PAN status
☐ Only Aadhaar linking
☐ Brokerage rates
Explanation:
✅ FATCA requires declaration of tax residency and reporting of certain foreign accounts.
❌ Only PAN status is not the correct answer.
❌ Only Aadhaar linking is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q92. Which factor influences the TDS and tax reporting on MF transactions?
☑ Residential status (Resident/NRI)
☐ AMC’s location
☐ Distributor’s city
☐ RTA’s choice
Explanation:
✅ Residential status (Resident vs NRI) impacts TDS and tax treatment.
❌ AMC’s location is not the correct answer.
❌ Distributor’s city is not the correct answer.
❌ RTA’s choice is not the correct answer.

Q93. Gifting mutual fund units to specified relatives:
☑ Generally not taxable in recipient’s hands
☐ Always taxed at 30%
☐ Taxed as business income
☐ Subject to TDS
Explanation:
✅ Gifts to specified relatives are generally not taxable for the recipient.
❌ Always taxed at 30% is not the correct answer.
❌ Taxed as business income is not the correct answer.
❌ Subject to TDS is not the correct answer.

Q94. Clubbing provisions may apply to minor’s MF income, taxing it in the hands of:
☑ Clubbed with parent’s income (subject to exemptions)
☐ Taxed only to the minor always
☐ Assigned to AMC
☐ Exempt for life
Explanation:
✅ Minor’s income is generally clubbed with the parent’s income (subject to exemptions).
❌ Taxed only to the minor always is not the correct answer.
❌ Assigned to AMC is not the correct answer.
❌ Exempt for life is not the correct answer.

Q95. In addition to base rate, MF capital gains may attract:
☑ Applicable surcharge and health & education cess
☐ Wealth tax only
☐ GST always
☐ No additional levies
Explanation:
✅ Capital gains tax may attract surcharge and health & education cess as per laws.
❌ Wealth tax only is not the correct answer.
❌ GST always is not the correct answer.
❌ No additional levies is not the correct answer.

Q96. Equity LTCG rules introduced in 2018 included grandfathering based on:
☑ FMV as on 31 January 2018
☐ Average price of FY2018-19
☐ Price on 1 April 2019
☐ Any month-end price in 2018
Explanation:
✅ Grandfathering for equity LTCG used the fair market value as on 31 Jan 2018.
❌ Average price of FY2018-19 is not the correct answer.
❌ Price on 1 April 2019 is not the correct answer.
❌ Any month-end price in 2018 is not the correct answer.

Q97. Capital gain in mutual funds is typically realized when units are:
☑ Sold/redeemed at a price different from cost
☐ Purchased at NAV
☐ Switched with no redemption
☐ Transferred as gift
Explanation:
✅ Capital gains arise when units are sold/redeemed at a price different from acquisition cost.
❌ Purchased at NAV is not the correct answer.
❌ Switched with no redemption is not the correct answer.
❌ Transferred as gift is not the correct answer.

Q98. An equity-oriented mutual fund is one that invests at least:
☑ 65% in equity shares/equity-oriented instruments
☐ 50% in equity shares
☐ 35% in equity shares
☐ 80% in equity shares
Explanation:
✅ For tax, equity-oriented funds must invest at least 65% in equity shares/equity-related instruments.
❌ 50% in equity shares is not the correct answer.
❌ 35% in equity shares is not the correct answer.
❌ 80% in equity shares is not the correct answer.

Q99. For equity-oriented funds, long-term capital gains (LTCG) apply when holding period exceeds:
☑ 12 months
☐ 24 months
☐ 36 months
☐ 6 months
Explanation:
✅ Equity-oriented fund units are long-term if held for more than 12 months.
❌ 24 months is not the correct answer.
❌ 36 months is not the correct answer.
❌ 6 months is not the correct answer.

Q100. For debt-oriented funds, long-term capital gains apply when holding period exceeds:
☑ 36 months
☐ 12 months
☐ 24 months
☐ 6 months
Explanation:
✅ Debt fund units are long-term if held for more than 36 months (subject to prevailing tax rules).
❌ 12 months is not the correct answer.
❌ 24 months is not the correct answer.
❌ 6 months is not the correct answer.

~

Q1. Turnaround time to send account statement post transaction is:
☑ 5 working days
☐ 10 working days
☐ 15 calendar days
☐ 30 calendar days
Explanation:
✅ AMCs/RTAs must send account statements within 5 working days of the transaction.
❌ 10 working days is not the correct answer.
❌ 15 calendar days is not the correct answer.
❌ 30 calendar days is not the correct answer.

Q2. The consolidated account statement (CAS) provides:
☑ Holdings/transactions across mutual funds and demat under PAN
☐ Only one scheme position
☐ AMC internal profit data
☐ Distributor commission rates
Explanation:
✅ CAS consolidates MF and demat holdings/transactions mapped to the investor’s PAN.
❌ Only one scheme position is not the correct answer.
❌ AMC internal profit data is not the correct answer.
❌ Distributor commission rates is not the correct answer.

Q3. Complaints against mutual funds and intermediaries can be lodged on:
☑ SCORES
☐ MFU
☐ NMF II
☐ BSE Star MF
Explanation:
✅ SCORES is SEBI’s centralized online complaint redress system.
❌ MFU is not the correct answer.
❌ NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.

Q4. Next recourse after AMC grievance process is:
☑ SEBI via SCORES
☐ RTA only
☐ Stock exchange
☐ Finance Ministry
Explanation:
✅ Unresolved complaints at AMC level can be escalated to SEBI via SCORES.
❌ RTA only is not the correct answer.
❌ Stock exchange is not the correct answer.
❌ Finance Ministry is not the correct answer.

Q5. Redemption proceeds must be paid within:
☑ 10 working days
☐ 3 working days
☐ 15 working days
☐ 30 calendar days
Explanation:
✅ SEBI allows up to 10 working days for dispatch of redemption proceeds.
❌ 3 working days is not the correct answer.
❌ 15 working days is not the correct answer.
❌ 30 calendar days is not the correct answer.

Q6. Change in fundamental attributes requires investor notice of:
☑ 30 days
☐ 7 days
☐ 15 days
☐ 60 days
Explanation:
✅ A 30-day notice is mandated for changes to fundamental attributes.
❌ 7 days is not the correct answer.
❌ 15 days is not the correct answer.
❌ 60 days is not the correct answer.

Q7. When schemes merge, investors must be given:
☑ Exit option without exit load
☐ No option to exit
☐ Only verbal intimation
☐ Higher exit load option
Explanation:
✅ Investors must be given an exit option without exit load.
❌ No option to exit is not the correct answer.
❌ Only verbal intimation is not the correct answer.
❌ Higher exit load option is not the correct answer.

Q8. A key purpose of KYC is to verify:
☑ Identity and address of the investor
☐ AMC profit record
☐ Distributor’s ARN
☐ Custodian’s license
Explanation:
✅ KYC verifies identity and address, forming the basis for AML/CFT compliance.
❌ AMC profit record is not the correct answer.
❌ Distributor’s ARN is not the correct answer.
❌ Custodian’s license is not the correct answer.

Q9. Under FATCA/CRS, investors disclose:
☑ Tax residency and reportable foreign accounts
☐ PAN allotment date only
☐ Aadhaar seeding status only
☐ Brokerage rates
Explanation:
✅ FATCA/CRS declarations determine tax residency and reportable foreign accounts.
❌ PAN allotment date only is not the correct answer.
❌ Aadhaar seeding status only is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q10. Riskometer is a pictorial depiction of:
☑ Risk level to principal invested
☐ AMC’s annual profit
☐ Distributor commission
☐ Investor’s KYC status
Explanation:
✅ Riskometer displays the level of risk to the principal invested.
❌ AMC’s annual profit is not the correct answer.
❌ Distributor commission is not the correct answer.
❌ Investor’s KYC status is not the correct answer.

Q11. Investors must receive KIM along with:
☑ Application forms
☐ Only annual report
☐ Portfolio disclosure
☐ Advertisement copy
Explanation:
✅ KIM summarises SID/SAI and accompanies application forms.
❌ Only annual report is not the correct answer.
❌ Portfolio disclosure is not the correct answer.
❌ Advertisement copy is not the correct answer.

Q12. Monthly factsheets typically provide:
☑ Performance, asset allocation, portfolio snapshot
☐ Confidential SEBI inspection notes
☐ Only NAV without context
☐ Distributor EUIN data
Explanation:
✅ Factsheets normally present performance, allocation and portfolio snapshot.
❌ Confidential SEBI inspection notes is not the correct answer.
❌ Only NAV without context is not the correct answer.
❌ Distributor EUIN data is not the correct answer.

Q13. AMCs must inform investors about TER changes by updating website at least:
☑ 3 working days in advance
☐ Same day after market close
☐ No disclosure needed
☐ End of the month
Explanation:
✅ Base TER changes must be disclosed at least 3 working days in advance on the website.
❌ Same day after market close is not the correct answer.
❌ No disclosure needed is not the correct answer.
❌ End of the month is not the correct answer.

Q14. CAS periodicity is generally:
☑ Monthly/half-yearly as applicable
☐ Once in two years
☐ Only on request
☐ Never mandatory
Explanation:
✅ CAS is sent monthly/half-yearly as per activity and regulatory norms.
❌ Once in two years is not the correct answer.
❌ Only on request is not the correct answer.
❌ Never mandatory is not the correct answer.

Q15. A switch is treated for processing as:
☑ Redemption from source and purchase in target scheme
☐ A free transfer without any processing
☐ Loan to AMC
☐ Dividend payout
Explanation:
✅ A switch is treated as redemption plus purchase and processed accordingly.
❌ A free transfer without any processing is not the correct answer.
❌ Loan to AMC is not the correct answer.
❌ Dividend payout is not the correct answer.

Q16. Bank mandate change usually needs:
☑ A signed request with proof (cancelled cheque/statement)
☐ Only a phone call
☐ Only verbal confirmation
☐ SEBI approval
Explanation:
✅ A signed request with supporting bank proof is required to change bank mandate.
❌ Only a phone call is not the correct answer.
❌ Only verbal confirmation is not the correct answer.
❌ SEBI approval is not the correct answer.

Q17. Nomination facility enables:
☑ Easy transfer of units to nominee on death of holder
☐ Higher returns
☐ Lower TER
☐ Guaranteed dividends
Explanation:
✅ Nomination enables transmission of units to the nominee upon the investor’s demise.
❌ Higher returns is not the correct answer.
❌ Lower TER is not the correct answer.
❌ Guaranteed dividends is not the correct answer.

Q18. For transmission after death of holder, generally required are:
☑ Death certificate and KYC/completion of formalities
☐ AMC’s board resolution
☐ SEBI special permission
☐ No documents—automatic transfer
Explanation:
✅ Death certificate and KYC documents are required for transmission to heirs/nominee.
❌ AMC’s board resolution is not the correct answer.
❌ SEBI special permission is not the correct answer.
❌ No documents—automatic transfer is not the correct answer.

Q19. Investors receive SMS/email intimations for:
☑ Financial transactions (purchase/redemption/switch)
☐ Only annual report release
☐ SEBI circulars
☐ Brokerage revisions
Explanation:
✅ AMCs/RTAs send electronic confirmations for financial transactions.
❌ Only annual report release is not the correct answer.
❌ SEBI circulars is not the correct answer.
❌ Brokerage revisions is not the correct answer.

Q20. SCORES requires entities to reply within approximately:
☑ 30 days
☐ 7 days
☐ 60 days
☐ No timeline
Explanation:
✅ SCORES generally expects responses within about 30 days.
❌ 7 days is not the correct answer.
❌ 60 days is not the correct answer.
❌ No timeline is not the correct answer.

Q21. IEPF initiatives in MF industry are meant to:
☑ Promote awareness and protect investor interests
☐ Set NAVs daily
☐ Decide TER for AMCs
☐ Approve new schemes
Explanation:
✅ IEPF/industry initiatives aim to educate and protect investors.
❌ Set NAVs daily is not the correct answer.
❌ Decide TER for AMCs is not the correct answer.
❌ Approve new schemes is not the correct answer.

Q22. Turnaround time to send account statement post transaction is:
☑ 5 working days
☐ 10 working days
☐ 15 calendar days
☐ 30 calendar days
Explanation:
✅ AMCs/RTAs must send account statements within 5 working days of the transaction.
❌ 10 working days is not the correct answer.
❌ 15 calendar days is not the correct answer.
❌ 30 calendar days is not the correct answer.

Q23. CAS sent to investors includes:
☑ Holdings/transactions across mutual funds and demat under PAN
☐ Only one scheme position
☐ AMC internal profit data
☐ Distributor commission rates
Explanation:
✅ CAS consolidates MF and demat holdings/transactions mapped to the investor’s PAN.
❌ Only one scheme position is not the correct answer.
❌ AMC internal profit data is not the correct answer.
❌ Distributor commission rates is not the correct answer.

Q24. Complaints against mutual funds and intermediaries can be lodged on:
☑ SCORES
☐ MFU
☐ NMF II
☐ BSE Star MF
Explanation:
✅ SCORES is SEBI’s centralized online complaint redress system.
❌ MFU is not the correct answer.
❌ NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.

Q25. Next recourse after AMC grievance process is:
☑ SEBI via SCORES
☐ RTA only
☐ Stock exchange
☐ Finance Ministry
Explanation:
✅ Unresolved complaints at AMC level can be escalated to SEBI via SCORES.
❌ RTA only is not the correct answer.
❌ Stock exchange is not the correct answer.
❌ Finance Ministry is not the correct answer.

Q26. Dispatch of redemption proceeds in open-ended schemes must be within:
☑ 10 working days
☐ 3 working days
☐ 15 working days
☐ 30 calendar days
Explanation:
✅ SEBI allows up to 10 working days for dispatch of redemption proceeds.
❌ 3 working days is not the correct answer.
❌ 15 working days is not the correct answer.
❌ 30 calendar days is not the correct answer.

Q27. Change in fundamental attributes requires investor notice of:
☑ 30 days
☐ 7 days
☐ 15 days
☐ 60 days
Explanation:
✅ A 30-day notice is mandated for changes to fundamental attributes.
❌ 7 days is not the correct answer.
❌ 15 days is not the correct answer.
❌ 60 days is not the correct answer.

Q28. When schemes merge, investors must be given:
☑ Exit option without exit load
☐ No option to exit
☐ Only verbal intimation
☐ Higher exit load option
Explanation:
✅ Investors must be given an exit option without exit load.
❌ No option to exit is not the correct answer.
❌ Only verbal intimation is not the correct answer.
❌ Higher exit load option is not the correct answer.

Q29. KYC compliance for MF investors primarily verifies:
☑ Identity and address of the investor
☐ AMC profit record
☐ Distributor’s ARN
☐ Custodian’s license
Explanation:
✅ KYC verifies identity and address, forming the basis for AML/CFT compliance.
❌ AMC profit record is not the correct answer.
❌ Distributor’s ARN is not the correct answer.
❌ Custodian’s license is not the correct answer.

Q30. Under FATCA/CRS, investors disclose:
☑ Tax residency and reportable foreign accounts
☐ PAN allotment date only
☐ Aadhaar seeding status only
☐ Brokerage rates
Explanation:
✅ FATCA/CRS declarations determine tax residency and reportable foreign accounts.
❌ PAN allotment date only is not the correct answer.
❌ Aadhaar seeding status only is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q31. Riskometer is a pictorial depiction of:
☑ Risk level to principal invested
☐ AMC’s annual profit
☐ Distributor commission
☐ Investor’s KYC status
Explanation:
✅ Riskometer displays the level of risk to the principal invested.
❌ AMC’s annual profit is not the correct answer.
❌ Distributor commission is not the correct answer.
❌ Investor’s KYC status is not the correct answer.

Q32. KIM, a summary of SID/SAI, is attached to:
☑ Application forms
☐ Only annual report
☐ Portfolio disclosure
☐ Advertisement copy
Explanation:
✅ KIM summarises SID/SAI and accompanies application forms.
❌ Only annual report is not the correct answer.
❌ Portfolio disclosure is not the correct answer.
❌ Advertisement copy is not the correct answer.

Q33. A factsheet contains:
☑ Performance, asset allocation, portfolio snapshot
☐ Confidential SEBI inspection notes
☐ Only NAV without context
☐ Distributor EUIN data
Explanation:
✅ Factsheets normally present performance, allocation and portfolio snapshot.
❌ Confidential SEBI inspection notes is not the correct answer.
❌ Only NAV without context is not the correct answer.
❌ Distributor EUIN data is not the correct answer.

Q34. Prior disclosure period before changing base TER is:
☑ 3 working days in advance
☐ Same day after market close
☐ No disclosure needed
☐ End of the month
Explanation:
✅ Base TER changes must be disclosed at least 3 working days in advance on the website.
❌ Same day after market close is not the correct answer.
❌ No disclosure needed is not the correct answer.
❌ End of the month is not the correct answer.

Q35. Frequency of sending CAS is:
☑ Monthly/half-yearly as applicable
☐ Once in two years
☐ Only on request
☐ Never mandatory
Explanation:
✅ CAS is sent monthly/half-yearly as per activity and regulatory norms.
❌ Once in two years is not the correct answer.
❌ Only on request is not the correct answer.
❌ Never mandatory is not the correct answer.

Q36. Switch requests are processed as:
☑ Redemption from source and purchase in target scheme
☐ A free transfer without any processing
☐ Loan to AMC
☐ Dividend payout
Explanation:
✅ A switch is treated as redemption plus purchase and processed accordingly.
❌ A free transfer without any processing is not the correct answer.
❌ Loan to AMC is not the correct answer.
❌ Dividend payout is not the correct answer.

Q37. Bank mandate change usually needs:
☑ A signed request with proof (cancelled cheque/statement)
☐ Only a phone call
☐ Only verbal confirmation
☐ SEBI approval
Explanation:
✅ A signed request with supporting bank proof is required to change bank mandate.
❌ Only a phone call is not the correct answer.
❌ Only verbal confirmation is not the correct answer.
❌ SEBI approval is not the correct answer.

Q38. Nominee in mutual funds is entitled to:
☑ Easy transfer of units to nominee on death of holder
☐ Higher returns
☐ Lower TER
☐ Guaranteed dividends
Explanation:
✅ Nomination enables transmission of units to the nominee upon the investor’s demise.
❌ Higher returns is not the correct answer.
❌ Lower TER is not the correct answer.
❌ Guaranteed dividends is not the correct answer.

Q39. For transmission after death of holder, generally required are:
☑ Death certificate and KYC/completion of formalities
☐ AMC’s board resolution
☐ SEBI special permission
☐ No documents—automatic transfer
Explanation:
✅ Death certificate and KYC documents are required for transmission to heirs/nominee.
❌ AMC’s board resolution is not the correct answer.
❌ SEBI special permission is not the correct answer.
❌ No documents—automatic transfer is not the correct answer.

Q40. RTA/AMC sends electronic confirmations for:
☑ Financial transactions (purchase/redemption/switch)
☐ Only annual report release
☐ SEBI circulars
☐ Brokerage revisions
Explanation:
✅ AMCs/RTAs send electronic confirmations for financial transactions.
❌ Only annual report release is not the correct answer.
❌ SEBI circulars is not the correct answer.
❌ Brokerage revisions is not the correct answer.

Q41. SCORES requires entities to reply within approximately:
☑ 30 days
☐ 7 days
☐ 60 days
☐ No timeline
Explanation:
✅ SCORES generally expects responses within about 30 days.
❌ 7 days is not the correct answer.
❌ 60 days is not the correct answer.
❌ No timeline is not the correct answer.

Q42. Purpose of investor awareness programs is to:
☑ Promote awareness and protect investor interests
☐ Set NAVs daily
☐ Decide TER for AMCs
☐ Approve new schemes
Explanation:
✅ IEPF/industry initiatives aim to educate and protect investors.
❌ Set NAVs daily is not the correct answer.
❌ Decide TER for AMCs is not the correct answer.
❌ Approve new schemes is not the correct answer.

Q43. Investors have the right to receive account statements for transactions within:
☑ 5 working days
☐ 10 working days
☐ 15 calendar days
☐ 30 calendar days
Explanation:
✅ AMCs/RTAs must send account statements within 5 working days of the transaction.
❌ 10 working days is not the correct answer.
❌ 15 calendar days is not the correct answer.
❌ 30 calendar days is not the correct answer.

Q44. CAS typically shows:
☑ Holdings/transactions across mutual funds and demat under PAN
☐ Only one scheme position
☐ AMC internal profit data
☐ Distributor commission rates
Explanation:
✅ CAS consolidates MF and demat holdings/transactions mapped to the investor’s PAN.
❌ Only one scheme position is not the correct answer.
❌ AMC internal profit data is not the correct answer.
❌ Distributor commission rates is not the correct answer.

Q45. Complaints against mutual funds and intermediaries can be lodged on:
☑ SCORES
☐ MFU
☐ NMF II
☐ BSE Star MF
Explanation:
✅ SCORES is SEBI’s centralized online complaint redress system.
❌ MFU is not the correct answer.
❌ NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.

Q46. Next recourse after AMC grievance process is:
☑ SEBI via SCORES
☐ RTA only
☐ Stock exchange
☐ Finance Ministry
Explanation:
✅ Unresolved complaints at AMC level can be escalated to SEBI via SCORES.
❌ RTA only is not the correct answer.
❌ Stock exchange is not the correct answer.
❌ Finance Ministry is not the correct answer.

Q47. Dispatch of redemption proceeds in open-ended schemes must be within:
☑ 10 working days
☐ 3 working days
☐ 15 working days
☐ 30 calendar days
Explanation:
✅ SEBI allows up to 10 working days for dispatch of redemption proceeds.
❌ 3 working days is not the correct answer.
❌ 15 working days is not the correct answer.
❌ 30 calendar days is not the correct answer.

Q48. Change in fundamental attributes requires investor notice of:
☑ 30 days
☐ 7 days
☐ 15 days
☐ 60 days
Explanation:
✅ A 30-day notice is mandated for changes to fundamental attributes.
❌ 7 days is not the correct answer.
❌ 15 days is not the correct answer.
❌ 60 days is not the correct answer.

Q49. On scheme merger, investors should receive:
☑ Exit option without exit load
☐ No option to exit
☐ Only verbal intimation
☐ Higher exit load option
Explanation:
✅ Investors must be given an exit option without exit load.
❌ No option to exit is not the correct answer.
❌ Only verbal intimation is not the correct answer.
❌ Higher exit load option is not the correct answer.

Q50. A key purpose of KYC is to verify:
☑ Identity and address of the investor
☐ AMC profit record
☐ Distributor’s ARN
☐ Custodian’s license
Explanation:
✅ KYC verifies identity and address, forming the basis for AML/CFT compliance.
❌ AMC profit record is not the correct answer.
❌ Distributor’s ARN is not the correct answer.
❌ Custodian’s license is not the correct answer.

Q51. FATCA/CRS primarily captures:
☑ Tax residency and reportable foreign accounts
☐ PAN allotment date only
☐ Aadhaar seeding status only
☐ Brokerage rates
Explanation:
✅ FATCA/CRS declarations determine tax residency and reportable foreign accounts.
❌ PAN allotment date only is not the correct answer.
❌ Aadhaar seeding status only is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q52. Investors use the Riskometer to gauge:
☑ Risk level to principal invested
☐ AMC’s annual profit
☐ Distributor commission
☐ Investor’s KYC status
Explanation:
✅ Riskometer displays the level of risk to the principal invested.
❌ AMC’s annual profit is not the correct answer.
❌ Distributor commission is not the correct answer.
❌ Investor’s KYC status is not the correct answer.

Q53. Investors must receive KIM along with:
☑ Application forms
☐ Only annual report
☐ Portfolio disclosure
☐ Advertisement copy
Explanation:
✅ KIM summarises SID/SAI and accompanies application forms.
❌ Only annual report is not the correct answer.
❌ Portfolio disclosure is not the correct answer.
❌ Advertisement copy is not the correct answer.

Q54. AMCs share monthly factsheets showing:
☑ Performance, asset allocation, portfolio snapshot
☐ Confidential SEBI inspection notes
☐ Only NAV without context
☐ Distributor EUIN data
Explanation:
✅ Factsheets normally present performance, allocation and portfolio snapshot.
❌ Confidential SEBI inspection notes is not the correct answer.
❌ Only NAV without context is not the correct answer.
❌ Distributor EUIN data is not the correct answer.

Q55. Prior disclosure period before changing base TER is:
☑ 3 working days in advance
☐ Same day after market close
☐ No disclosure needed
☐ End of the month
Explanation:
✅ Base TER changes must be disclosed at least 3 working days in advance on the website.
❌ Same day after market close is not the correct answer.
❌ No disclosure needed is not the correct answer.
❌ End of the month is not the correct answer.

Q56. CAS periodicity is generally:
☑ Monthly/half-yearly as applicable
☐ Once in two years
☐ Only on request
☐ Never mandatory
Explanation:
✅ CAS is sent monthly/half-yearly as per activity and regulatory norms.
❌ Once in two years is not the correct answer.
❌ Only on request is not the correct answer.
❌ Never mandatory is not the correct answer.

Q57. Switching between schemes is considered:
☑ Redemption from source and purchase in target scheme
☐ A free transfer without any processing
☐ Loan to AMC
☐ Dividend payout
Explanation:
✅ A switch is treated as redemption plus purchase and processed accordingly.
❌ A free transfer without any processing is not the correct answer.
❌ Loan to AMC is not the correct answer.
❌ Dividend payout is not the correct answer.

Q58. To change bank details, investors must submit:
☑ A signed request with proof (cancelled cheque/statement)
☐ Only a phone call
☐ Only verbal confirmation
☐ SEBI approval
Explanation:
✅ A signed request with supporting bank proof is required to change bank mandate.
❌ Only a phone call is not the correct answer.
❌ Only verbal confirmation is not the correct answer.
❌ SEBI approval is not the correct answer.

Q59. Nomination facility enables:
☑ Easy transfer of units to nominee on death of holder
☐ Higher returns
☐ Lower TER
☐ Guaranteed dividends
Explanation:
✅ Nomination enables transmission of units to the nominee upon the investor’s demise.
❌ Higher returns is not the correct answer.
❌ Lower TER is not the correct answer.
❌ Guaranteed dividends is not the correct answer.

Q60. For transmission after death of holder, generally required are:
☑ Death certificate and KYC/completion of formalities
☐ AMC’s board resolution
☐ SEBI special permission
☐ No documents—automatic transfer
Explanation:
✅ Death certificate and KYC documents are required for transmission to heirs/nominee.
❌ AMC’s board resolution is not the correct answer.
❌ SEBI special permission is not the correct answer.
❌ No documents—automatic transfer is not the correct answer.

Q61. Investors receive SMS/email intimations for:
☑ Financial transactions (purchase/redemption/switch)
☐ Only annual report release
☐ SEBI circulars
☐ Brokerage revisions
Explanation:
✅ AMCs/RTAs send electronic confirmations for financial transactions.
❌ Only annual report release is not the correct answer.
❌ SEBI circulars is not the correct answer.
❌ Brokerage revisions is not the correct answer.

Q62. Typical response timeline on SCORES is:
☑ 30 days
☐ 7 days
☐ 60 days
☐ No timeline
Explanation:
✅ SCORES generally expects responses within about 30 days.
❌ 7 days is not the correct answer.
❌ 60 days is not the correct answer.
❌ No timeline is not the correct answer.

Q63. IEPF initiatives in MF industry are meant to:
☑ Promote awareness and protect investor interests
☐ Set NAVs daily
☐ Decide TER for AMCs
☐ Approve new schemes
Explanation:
✅ IEPF/industry initiatives aim to educate and protect investors.
❌ Set NAVs daily is not the correct answer.
❌ Decide TER for AMCs is not the correct answer.
❌ Approve new schemes is not the correct answer.

Q64. Investors have the right to receive account statements for transactions within:
☑ 5 working days
☐ 10 working days
☐ 15 calendar days
☐ 30 calendar days
Explanation:
✅ AMCs/RTAs must send account statements within 5 working days of the transaction.
❌ 10 working days is not the correct answer.
❌ 15 calendar days is not the correct answer.
❌ 30 calendar days is not the correct answer.

Q65. CAS sent to investors includes:
☑ Holdings/transactions across mutual funds and demat under PAN
☐ Only one scheme position
☐ AMC internal profit data
☐ Distributor commission rates
Explanation:
✅ CAS consolidates MF and demat holdings/transactions mapped to the investor’s PAN.
❌ Only one scheme position is not the correct answer.
❌ AMC internal profit data is not the correct answer.
❌ Distributor commission rates is not the correct answer.

Q66. Complaints against mutual funds and intermediaries can be lodged on:
☑ SCORES
☐ MFU
☐ NMF II
☐ BSE Star MF
Explanation:
✅ SCORES is SEBI’s centralized online complaint redress system.
❌ MFU is not the correct answer.
❌ NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.

Q67. If an investor is unsatisfied with AMC response, the next escalation is to:
☑ SEBI via SCORES
☐ RTA only
☐ Stock exchange
☐ Finance Ministry
Explanation:
✅ Unresolved complaints at AMC level can be escalated to SEBI via SCORES.
❌ RTA only is not the correct answer.
❌ Stock exchange is not the correct answer.
❌ Finance Ministry is not the correct answer.

Q68. Time limit to pay redemption money for open-ended funds is:
☑ 10 working days
☐ 3 working days
☐ 15 working days
☐ 30 calendar days
Explanation:
✅ SEBI allows up to 10 working days for dispatch of redemption proceeds.
❌ 3 working days is not the correct answer.
❌ 15 working days is not the correct answer.
❌ 30 calendar days is not the correct answer.

Q69. Prior notice to investors for fundamental attribute change is:
☑ 30 days
☐ 7 days
☐ 15 days
☐ 60 days
Explanation:
✅ A 30-day notice is mandated for changes to fundamental attributes.
❌ 7 days is not the correct answer.
❌ 15 days is not the correct answer.
❌ 60 days is not the correct answer.

Q70. Scheme consolidation requires providing investors:
☑ Exit option without exit load
☐ No option to exit
☐ Only verbal intimation
☐ Higher exit load option
Explanation:
✅ Investors must be given an exit option without exit load.
❌ No option to exit is not the correct answer.
❌ Only verbal intimation is not the correct answer.
❌ Higher exit load option is not the correct answer.

Q71. KYC in mutual funds establishes:
☑ Identity and address of the investor
☐ AMC profit record
☐ Distributor’s ARN
☐ Custodian’s license
Explanation:
✅ KYC verifies identity and address, forming the basis for AML/CFT compliance.
❌ AMC profit record is not the correct answer.
❌ Distributor’s ARN is not the correct answer.
❌ Custodian’s license is not the correct answer.

Q72. Under FATCA/CRS, investors disclose:
☑ Tax residency and reportable foreign accounts
☐ PAN allotment date only
☐ Aadhaar seeding status only
☐ Brokerage rates
Explanation:
✅ FATCA/CRS declarations determine tax residency and reportable foreign accounts.
❌ PAN allotment date only is not the correct answer.
❌ Aadhaar seeding status only is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q73. Riskometer is a pictorial depiction of:
☑ Risk level to principal invested
☐ AMC’s annual profit
☐ Distributor commission
☐ Investor’s KYC status
Explanation:
✅ Riskometer displays the level of risk to the principal invested.
❌ AMC’s annual profit is not the correct answer.
❌ Distributor commission is not the correct answer.
❌ Investor’s KYC status is not the correct answer.

Q74. KIM, a summary of SID/SAI, is attached to:
☑ Application forms
☐ Only annual report
☐ Portfolio disclosure
☐ Advertisement copy
Explanation:
✅ KIM summarises SID/SAI and accompanies application forms.
❌ Only annual report is not the correct answer.
❌ Portfolio disclosure is not the correct answer.
❌ Advertisement copy is not the correct answer.

Q75. A factsheet contains:
☑ Performance, asset allocation, portfolio snapshot
☐ Confidential SEBI inspection notes
☐ Only NAV without context
☐ Distributor EUIN data
Explanation:
✅ Factsheets normally present performance, allocation and portfolio snapshot.
❌ Confidential SEBI inspection notes is not the correct answer.
❌ Only NAV without context is not the correct answer.
❌ Distributor EUIN data is not the correct answer.

Q76. AMCs must inform investors about TER changes by updating website at least:
☑ 3 working days in advance
☐ Same day after market close
☐ No disclosure needed
☐ End of the month
Explanation:
✅ Base TER changes must be disclosed at least 3 working days in advance on the website.
❌ Same day after market close is not the correct answer.
❌ No disclosure needed is not the correct answer.
❌ End of the month is not the correct answer.

Q77. Investors receive CAS at least:
☑ Monthly/half-yearly as applicable
☐ Once in two years
☐ Only on request
☐ Never mandatory
Explanation:
✅ CAS is sent monthly/half-yearly as per activity and regulatory norms.
❌ Once in two years is not the correct answer.
❌ Only on request is not the correct answer.
❌ Never mandatory is not the correct answer.

Q78. Switching between schemes is considered:
☑ Redemption from source and purchase in target scheme
☐ A free transfer without any processing
☐ Loan to AMC
☐ Dividend payout
Explanation:
✅ A switch is treated as redemption plus purchase and processed accordingly.
❌ A free transfer without any processing is not the correct answer.
❌ Loan to AMC is not the correct answer.
❌ Dividend payout is not the correct answer.

Q79. Bank mandate change usually needs:
☑ A signed request with proof (cancelled cheque/statement)
☐ Only a phone call
☐ Only verbal confirmation
☐ SEBI approval
Explanation:
✅ A signed request with supporting bank proof is required to change bank mandate.
❌ Only a phone call is not the correct answer.
❌ Only verbal confirmation is not the correct answer.
❌ SEBI approval is not the correct answer.

Q80. Nominee in mutual funds is entitled to:
☑ Easy transfer of units to nominee on death of holder
☐ Higher returns
☐ Lower TER
☐ Guaranteed dividends
Explanation:
✅ Nomination enables transmission of units to the nominee upon the investor’s demise.
❌ Higher returns is not the correct answer.
❌ Lower TER is not the correct answer.
❌ Guaranteed dividends is not the correct answer.

Q81. Documents for transmission typically include:
☑ Death certificate and KYC/completion of formalities
☐ AMC’s board resolution
☐ SEBI special permission
☐ No documents—automatic transfer
Explanation:
✅ Death certificate and KYC documents are required for transmission to heirs/nominee.
❌ AMC’s board resolution is not the correct answer.
❌ SEBI special permission is not the correct answer.
❌ No documents—automatic transfer is not the correct answer.

Q82. Electronic alerts are sent by AMCs/RTAs for:
☑ Financial transactions (purchase/redemption/switch)
☐ Only annual report release
☐ SEBI circulars
☐ Brokerage revisions
Explanation:
✅ AMCs/RTAs send electronic confirmations for financial transactions.
❌ Only annual report release is not the correct answer.
❌ SEBI circulars is not the correct answer.
❌ Brokerage revisions is not the correct answer.

Q83. Typical response timeline on SCORES is:
☑ 30 days
☐ 7 days
☐ 60 days
☐ No timeline
Explanation:
✅ SCORES generally expects responses within about 30 days.
❌ 7 days is not the correct answer.
❌ 60 days is not the correct answer.
❌ No timeline is not the correct answer.

Q84. Investor Education & Protection Fund (IEPF) initiatives aim to:
☑ Promote awareness and protect investor interests
☐ Set NAVs daily
☐ Decide TER for AMCs
☐ Approve new schemes
Explanation:
✅ IEPF/industry initiatives aim to educate and protect investors.
❌ Set NAVs daily is not the correct answer.
❌ Decide TER for AMCs is not the correct answer.
❌ Approve new schemes is not the correct answer.

Q85. Turnaround time to send account statement post transaction is:
☑ 5 working days
☐ 10 working days
☐ 15 calendar days
☐ 30 calendar days
Explanation:
✅ AMCs/RTAs must send account statements within 5 working days of the transaction.
❌ 10 working days is not the correct answer.
❌ 15 calendar days is not the correct answer.
❌ 30 calendar days is not the correct answer.

Q86. CAS typically shows:
☑ Holdings/transactions across mutual funds and demat under PAN
☐ Only one scheme position
☐ AMC internal profit data
☐ Distributor commission rates
Explanation:
✅ CAS consolidates MF and demat holdings/transactions mapped to the investor’s PAN.
❌ Only one scheme position is not the correct answer.
❌ AMC internal profit data is not the correct answer.
❌ Distributor commission rates is not the correct answer.

Q87. SEBI’s centralized online grievance redress platform is:
☑ SCORES
☐ MFU
☐ NMF II
☐ BSE Star MF
Explanation:
✅ SCORES is SEBI’s centralized online complaint redress system.
❌ MFU is not the correct answer.
❌ NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.

Q88. If an investor is unsatisfied with AMC response, the next escalation is to:
☑ SEBI via SCORES
☐ RTA only
☐ Stock exchange
☐ Finance Ministry
Explanation:
✅ Unresolved complaints at AMC level can be escalated to SEBI via SCORES.
❌ RTA only is not the correct answer.
❌ Stock exchange is not the correct answer.
❌ Finance Ministry is not the correct answer.

Q89. Time limit to pay redemption money for open-ended funds is:
☑ 10 working days
☐ 3 working days
☐ 15 working days
☐ 30 calendar days
Explanation:
✅ SEBI allows up to 10 working days for dispatch of redemption proceeds.
❌ 3 working days is not the correct answer.
❌ 15 working days is not the correct answer.
❌ 30 calendar days is not the correct answer.

Q90. Change in fundamental attributes requires investor notice of:
☑ 30 days
☐ 7 days
☐ 15 days
☐ 60 days
Explanation:
✅ A 30-day notice is mandated for changes to fundamental attributes.
❌ 7 days is not the correct answer.
❌ 15 days is not the correct answer.
❌ 60 days is not the correct answer.

Q91. Scheme consolidation requires providing investors:
☑ Exit option without exit load
☐ No option to exit
☐ Only verbal intimation
☐ Higher exit load option
Explanation:
✅ Investors must be given an exit option without exit load.
❌ No option to exit is not the correct answer.
❌ Only verbal intimation is not the correct answer.
❌ Higher exit load option is not the correct answer.

Q92. KYC compliance for MF investors primarily verifies:
☑ Identity and address of the investor
☐ AMC profit record
☐ Distributor’s ARN
☐ Custodian’s license
Explanation:
✅ KYC verifies identity and address, forming the basis for AML/CFT compliance.
❌ AMC profit record is not the correct answer.
❌ Distributor’s ARN is not the correct answer.
❌ Custodian’s license is not the correct answer.

Q93. Under FATCA/CRS, investors disclose:
☑ Tax residency and reportable foreign accounts
☐ PAN allotment date only
☐ Aadhaar seeding status only
☐ Brokerage rates
Explanation:
✅ FATCA/CRS declarations determine tax residency and reportable foreign accounts.
❌ PAN allotment date only is not the correct answer.
❌ Aadhaar seeding status only is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q94. Riskometer indicates the scheme’s:
☑ Risk level to principal invested
☐ AMC’s annual profit
☐ Distributor commission
☐ Investor’s KYC status
Explanation:
✅ Riskometer displays the level of risk to the principal invested.
❌ AMC’s annual profit is not the correct answer.
❌ Distributor commission is not the correct answer.
❌ Investor’s KYC status is not the correct answer.

Q95. Investors must receive KIM along with:
☑ Application forms
☐ Only annual report
☐ Portfolio disclosure
☐ Advertisement copy
Explanation:
✅ KIM summarises SID/SAI and accompanies application forms.
❌ Only annual report is not the correct answer.
❌ Portfolio disclosure is not the correct answer.
❌ Advertisement copy is not the correct answer.

Q96. Monthly factsheets typically provide:
☑ Performance, asset allocation, portfolio snapshot
☐ Confidential SEBI inspection notes
☐ Only NAV without context
☐ Distributor EUIN data
Explanation:
✅ Factsheets normally present performance, allocation and portfolio snapshot.
❌ Confidential SEBI inspection notes is not the correct answer.
❌ Only NAV without context is not the correct answer.
❌ Distributor EUIN data is not the correct answer.

Q97. AMCs must inform investors about TER changes by updating website at least:
☑ 3 working days in advance
☐ Same day after market close
☐ No disclosure needed
☐ End of the month
Explanation:
✅ Base TER changes must be disclosed at least 3 working days in advance on the website.
❌ Same day after market close is not the correct answer.
❌ No disclosure needed is not the correct answer.
❌ End of the month is not the correct answer.

Q98. Frequency of sending CAS is:
☑ Monthly/half-yearly as applicable
☐ Once in two years
☐ Only on request
☐ Never mandatory
Explanation:
✅ CAS is sent monthly/half-yearly as per activity and regulatory norms.
❌ Once in two years is not the correct answer.
❌ Only on request is not the correct answer.
❌ Never mandatory is not the correct answer.

Q99. Switch requests are processed as:
☑ Redemption from source and purchase in target scheme
☐ A free transfer without any processing
☐ Loan to AMC
☐ Dividend payout
Explanation:
✅ A switch is treated as redemption plus purchase and processed accordingly.
❌ A free transfer without any processing is not the correct answer.
❌ Loan to AMC is not the correct answer.
❌ Dividend payout is not the correct answer.

Q100. Bank mandate change usually needs:
☑ A signed request with proof (cancelled cheque/statement)
☐ Only a phone call
☐ Only verbal confirmation
☐ SEBI approval
Explanation:
✅ A signed request with supporting bank proof is required to change bank mandate.
❌ Only a phone call is not the correct answer.
❌ Only verbal confirmation is not the correct answer.
❌ SEBI approval is not the correct answer.

~

Q1. Net Asset Value equals:
☑ (Assets – Liabilities) / Units
☐ (Assets + Liabilities) / Units
☐ Assets × TER
☐ Benchmark price
Explanation:
✅ NAV equals (Total Assets – Liabilities) divided by the number of outstanding units.
❌ (Assets + Liabilities) / Units is not the correct answer.
❌ Assets × TER is not the correct answer.
❌ Benchmark price is not the correct answer.

Q2. Cut-off timing decides:
☑ Which day’s NAV applies
☐ AMC office hours
☐ Portfolio turnover
☐ TER charged
Explanation:
✅ Cut-off time determines which day’s NAV applies to the transaction.
❌ AMC office hours is not the correct answer.
❌ Portfolio turnover is not the correct answer.
❌ TER charged is not the correct answer.

Q3. Ex-dividend NAV means:
☑ NAV after dividend payout (reduced)
☐ NAV before dividend
☐ NAV incl. distributable surplus
☐ Guaranteed NAV
Explanation:
✅ Ex-dividend NAV is the reduced NAV after dividend payout.
❌ NAV before dividend is not the correct answer.
❌ NAV incl. distributable surplus is not the correct answer.
❌ Guaranteed NAV is not the correct answer.

Q4. Liquid/Overnight fund NAVs are declared:
☑ Even on Sundays/holidays
☐ Only on business days
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Liquid/Overnight fund NAVs are declared even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q5. Exit load is:
☑ Charge deducted on redemption
☐ Entry fee
☐ Custodian fee
☐ Always zero
Explanation:
✅ Exit load is a charge deducted when units are redeemed (credited to the scheme).
❌ Entry fee is not the correct answer.
❌ Custodian fee is not the correct answer.
❌ Always zero is not the correct answer.

Q6. TER represents:
☑ Total recurring expenses as % of daily net assets
☐ AMC profit margin
☐ Exit load
☐ Brokerage alone
Explanation:
✅ TER is total recurring expenses as a percentage of daily net assets.
❌ AMC profit margin is not the correct answer.
❌ Exit load is not the correct answer.
❌ Brokerage alone is not the correct answer.

Q7. SEBI on TER caps:
☑ Capped by SEBI with slab-wise reductions as AUM rises
☐ Unlimited
☐ Same for all schemes
☐ Arbitrary daily change allowed
Explanation:
✅ SEBI caps TER with slab-wise reductions as AUM increases; changes must be disclosed.
❌ Unlimited is not the correct answer.
❌ Same for all schemes is not the correct answer.
❌ Arbitrary daily change allowed is not the correct answer.

Q8. Website must show per scheme (daily):
☑ TER and NAV
☐ Only annual report
☐ Distributor slabs only
☐ Index level
Explanation:
✅ AMCs must prominently display scheme-wise daily TER and NAV.
❌ Only annual report is not the correct answer.
❌ Distributor slabs only is not the correct answer.
❌ Index level is not the correct answer.

Q9. Equity fund threshold is:
☑ 65% in equity instruments
☐ 50% in equity
☐ 35% in equity
☐ 80% in equity
Explanation:
✅ For tax purposes, equity-oriented funds must invest at least 65% in equity/equity-related instruments.
❌ 50% in equity is not the correct answer.
❌ 35% in equity is not the correct answer.
❌ 80% in equity is not the correct answer.

Q10. Tax rate for equity LTCG (exceeding ₹1 lakh) is:
☑ 10% without indexation (+surcharge/cess)
☐ 20% with indexation
☐ 15% flat
☐ Exempt fully
Explanation:
✅ Equity LTCG above ₹1 lakh is taxed at 10% without indexation (+surcharge/cess).
❌ 20% with indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt fully is not the correct answer.

Q11. Equity STCG (where STT applies) taxed at:
☑ 15% + applicable surcharge & cess
☐ 10% flat
☐ 20% with indexation
☐ Always slab rate
Explanation:
✅ Equity STCG (where STT applies) is taxed at 15% + applicable surcharge & cess.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Always slab rate is not the correct answer.

Q12. Debt fund STCG taxed at:
☑ Investor’s slab rate
☐ 10% flat
☐ 20% with indexation
☐ Exempt
Explanation:
✅ Debt fund STCG is taxed at the investor’s applicable slab rate.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Exempt is not the correct answer.

Q13. Debt LTCG treatment (historic):
☑ 20% with indexation
☐ 10% without indexation
☐ 15% flat
☐ Exempt
Explanation:
✅ Historically, debt LTCG was taxed at 20% with indexation (tax rules may change).
❌ 10% without indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt is not the correct answer.

Q14. Dividend tax regime now:
☑ Taxable in investor’s hands at slab
☐ DDT by AMC; investor exempt
☐ Taxed at 10% flat
☐ Always exempt
Explanation:
✅ DDT abolished; dividends taxable in investor’s hands at slab rates.
❌ DDT by AMC; investor exempt is not the correct answer.
❌ Taxed at 10% flat is not the correct answer.
❌ Always exempt is not the correct answer.

Q15. Dividend TDS (resident) applies at:
☑ 10% if above threshold
☐ 0% always
☐ 5%
☐ 20%
Explanation:
✅ TDS at 10% applies if dividends exceed the prescribed threshold.
❌ 0% always is not the correct answer.
❌ 5% is not the correct answer.
❌ 20% is not the correct answer.

Q16. SOA timeline is:
☑ 5 working days
☐ 10 working days
☐ 15 days
☐ 30 days
Explanation:
✅ AMCs/RTAs must send account statements within 5 working days of the transaction.
❌ 10 working days is not the correct answer.
❌ 15 days is not the correct answer.
❌ 30 days is not the correct answer.

Q17. CAS provides:
☑ MF & demat holdings/transactions under PAN
☐ Only one scheme
☐ AMC profits
☐ Distributor commissions
Explanation:
✅ CAS consolidates MF and demat holdings/transactions mapped to PAN.
❌ Only one scheme is not the correct answer.
❌ AMC profits is not the correct answer.
❌ Distributor commissions is not the correct answer.

Q18. Centralized complaint portal is:
☑ SCORES
☐ MFU
☐ NMF II
☐ BSE Star MF
Explanation:
✅ SCORES is SEBI’s centralized online complaint redress system.
❌ MFU is not the correct answer.
❌ NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.

Q19. Redemption proceeds must be paid within:
☑ 10 working days
☐ 3 working days
☐ 15 working days
☐ 30 days
Explanation:
✅ SEBI allows up to 10 working days to dispatch redemption proceeds.
❌ 3 working days is not the correct answer.
❌ 15 working days is not the correct answer.
❌ 30 days is not the correct answer.

Q20. Notice before changing fundamental attributes:
☑ 30 days’ notice
☐ 7 days’ notice
☐ No notice
☐ 60 days’ notice
Explanation:
✅ A 30-day notice is mandated for changes to fundamental attributes.
❌ 7 days’ notice is not the correct answer.
❌ No notice is not the correct answer.
❌ 60 days’ notice is not the correct answer.

Q21. Primary scheme document is:
☑ SID
☐ SAI
☐ KIM
☐ Factsheet
Explanation:
✅ SID is the primary document describing the scheme.
❌ SAI is not the correct answer.
❌ KIM is not the correct answer.
❌ Factsheet is not the correct answer.

Q22. Summary of SID/SAI attached to applications:
☑ KIM
☐ Prospectus
☐ Addendum
☐ Fact sheet
Explanation:
✅ KIM summarizes SID/SAI and must accompany application forms.
❌ Prospectus is not the correct answer.
❌ Addendum is not the correct answer.
❌ Fact sheet is not the correct answer.

Q23. Fund-house statutory info is disclosed in:
☑ Fund-house statutory information
☐ Only scheme performance
☐ Distributor EUIN data
☐ Brokerage rates
Explanation:
✅ SAI provides statutory information about the fund house.
❌ Only scheme performance is not the correct answer.
❌ Distributor EUIN data is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q24. RTA role primarily is:
☑ Maintain investor records & process transactions
☐ Hold securities
☐ Decide investments
☐ Provide SEBI approvals
Explanation:
✅ RTAs maintain investor records and process transactions.
❌ Hold securities is not the correct answer.
❌ Decide investments is not the correct answer.
❌ Provide SEBI approvals is not the correct answer.

Q25. Custodian primarily:
☑ Holds securities and settles trades
☐ Markets schemes
☐ Issues ARN
☐ Runs SCORES
Explanation:
✅ Custodian holds the scheme’s securities and settles trades.
❌ Markets schemes is not the correct answer.
❌ Issues ARN is not the correct answer.
❌ Runs SCORES is not the correct answer.

Q26. Direct vs Regular TER:
☑ Lower TER
☐ Higher TER
☐ Same TER
☐ Guaranteed returns
Explanation:
✅ Direct Plan excludes distributor commission, hence lower TER.
❌ Higher TER is not the correct answer.
❌ Same TER is not the correct answer.
❌ Guaranteed returns is not the correct answer.

Q27. Distributors place orders on NSE’s:
☑ NMF II
☐ BSE Star MF
☐ MFU
☐ SCORES
Explanation:
✅ NMF II is NSE’s MF order platform.
❌ BSE Star MF is not the correct answer.
❌ MFU is not the correct answer.
❌ SCORES is not the correct answer.

Q28. BSE MF platform is:
☑ BSE Star MF
☐ NMF II
☐ MFU
☐ SCORES
Explanation:
✅ BSE Star MF is BSE’s online platform for mutual funds.
❌ NMF II is not the correct answer.
❌ MFU is not the correct answer.
❌ SCORES is not the correct answer.

Q29. MF Utilities (MFU) provides:
☑ Common Account Number (CAN) & aggregated transactions
☐ Only grievance portal
☐ Demat services
☐ Custody services
Explanation:
✅ MFU aggregates transactions and provides a CAN across participating AMCs.
❌ Only grievance portal is not the correct answer.
❌ Demat services is not the correct answer.
❌ Custody services is not the correct answer.

Q30. Formula for NAV is:
☑ (Assets – Liabilities) / Units
☐ (Assets + Liabilities) / Units
☐ Assets × TER
☐ Benchmark price
Explanation:
✅ NAV equals (Total Assets – Liabilities) divided by the number of outstanding units.
❌ (Assets + Liabilities) / Units is not the correct answer.
❌ Assets × TER is not the correct answer.
❌ Benchmark price is not the correct answer.

Q31. Cut-off timing decides:
☑ Which day’s NAV applies
☐ AMC office hours
☐ Portfolio turnover
☐ TER charged
Explanation:
✅ Cut-off time determines which day’s NAV applies to the transaction.
❌ AMC office hours is not the correct answer.
❌ Portfolio turnover is not the correct answer.
❌ TER charged is not the correct answer.

Q32. Post dividend, NAV shown is:
☑ NAV after dividend payout (reduced)
☐ NAV before dividend
☐ NAV incl. distributable surplus
☐ Guaranteed NAV
Explanation:
✅ Ex-dividend NAV is the reduced NAV after dividend payout.
❌ NAV before dividend is not the correct answer.
❌ NAV incl. distributable surplus is not the correct answer.
❌ Guaranteed NAV is not the correct answer.

Q33. NAV disclosure for Liquid/Overnight funds:
☑ Even on Sundays/holidays
☐ Only on business days
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Liquid/Overnight fund NAVs are declared even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q34. Exit load is:
☑ Charge deducted on redemption
☐ Entry fee
☐ Custodian fee
☐ Always zero
Explanation:
✅ Exit load is a charge deducted when units are redeemed (credited to the scheme).
❌ Entry fee is not the correct answer.
❌ Custodian fee is not the correct answer.
❌ Always zero is not the correct answer.

Q35. TER represents:
☑ Total recurring expenses as % of daily net assets
☐ AMC profit margin
☐ Exit load
☐ Brokerage alone
Explanation:
✅ TER is total recurring expenses as a percentage of daily net assets.
❌ AMC profit margin is not the correct answer.
❌ Exit load is not the correct answer.
❌ Brokerage alone is not the correct answer.

Q36. TER limits are:
☑ Capped by SEBI with slab-wise reductions as AUM rises
☐ Unlimited
☐ Same for all schemes
☐ Arbitrary daily change allowed
Explanation:
✅ SEBI caps TER with slab-wise reductions as AUM increases; changes must be disclosed.
❌ Unlimited is not the correct answer.
❌ Same for all schemes is not the correct answer.
❌ Arbitrary daily change allowed is not the correct answer.

Q37. AMCs must display daily:
☑ TER and NAV
☐ Only annual report
☐ Distributor slabs only
☐ Index level
Explanation:
✅ AMCs must prominently display scheme-wise daily TER and NAV.
❌ Only annual report is not the correct answer.
❌ Distributor slabs only is not the correct answer.
❌ Index level is not the correct answer.

Q38. Equity-oriented fund (for tax) must invest at least:
☑ 65% in equity instruments
☐ 50% in equity
☐ 35% in equity
☐ 80% in equity
Explanation:
✅ For tax purposes, equity-oriented funds must invest at least 65% in equity/equity-related instruments.
❌ 50% in equity is not the correct answer.
❌ 35% in equity is not the correct answer.
❌ 80% in equity is not the correct answer.

Q39. Equity LTCG above ₹1 lakh taxed at:
☑ 10% without indexation (+surcharge/cess)
☐ 20% with indexation
☐ 15% flat
☐ Exempt fully
Explanation:
✅ Equity LTCG above ₹1 lakh is taxed at 10% without indexation (+surcharge/cess).
❌ 20% with indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt fully is not the correct answer.

Q40. Equity STCG rate is:
☑ 15% + applicable surcharge & cess
☐ 10% flat
☐ 20% with indexation
☐ Always slab rate
Explanation:
✅ Equity STCG (where STT applies) is taxed at 15% + applicable surcharge & cess.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Always slab rate is not the correct answer.

Q41. Debt STCG rate:
☑ Investor’s slab rate
☐ 10% flat
☐ 20% with indexation
☐ Exempt
Explanation:
✅ Debt fund STCG is taxed at the investor’s applicable slab rate.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Exempt is not the correct answer.

Q42. Traditional tax on debt LTCG (>36 months):
☑ 20% with indexation
☐ 10% without indexation
☐ 15% flat
☐ Exempt
Explanation:
✅ Historically, debt LTCG was taxed at 20% with indexation (tax rules may change).
❌ 10% without indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt is not the correct answer.

Q43. Dividend tax regime now:
☑ Taxable in investor’s hands at slab
☐ DDT by AMC; investor exempt
☐ Taxed at 10% flat
☐ Always exempt
Explanation:
✅ DDT abolished; dividends taxable in investor’s hands at slab rates.
❌ DDT by AMC; investor exempt is not the correct answer.
❌ Taxed at 10% flat is not the correct answer.
❌ Always exempt is not the correct answer.

Q44. Dividend TDS (resident) applies at:
☑ 10% if above threshold
☐ 0% always
☐ 5%
☐ 20%
Explanation:
✅ TDS at 10% applies if dividends exceed the prescribed threshold.
❌ 0% always is not the correct answer.
❌ 5% is not the correct answer.
❌ 20% is not the correct answer.

Q45. SOA timeline is:
☑ 5 working days
☐ 10 working days
☐ 15 days
☐ 30 days
Explanation:
✅ AMCs/RTAs must send account statements within 5 working days of the transaction.
❌ 10 working days is not the correct answer.
❌ 15 days is not the correct answer.
❌ 30 days is not the correct answer.

Q46. CAS provides:
☑ MF & demat holdings/transactions under PAN
☐ Only one scheme
☐ AMC profits
☐ Distributor commissions
Explanation:
✅ CAS consolidates MF and demat holdings/transactions mapped to PAN.
❌ Only one scheme is not the correct answer.
❌ AMC profits is not the correct answer.
❌ Distributor commissions is not the correct answer.

Q47. SEBI grievance portal is:
☑ SCORES
☐ MFU
☐ NMF II
☐ BSE Star MF
Explanation:
✅ SCORES is SEBI’s centralized online complaint redress system.
❌ MFU is not the correct answer.
❌ NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.

Q48. Redemption TAT in open-ended funds:
☑ 10 working days
☐ 3 working days
☐ 15 working days
☐ 30 days
Explanation:
✅ SEBI allows up to 10 working days to dispatch redemption proceeds.
❌ 3 working days is not the correct answer.
❌ 15 working days is not the correct answer.
❌ 30 days is not the correct answer.

Q49. Investors must get at least:
☑ 30 days’ notice
☐ 7 days’ notice
☐ No notice
☐ 60 days’ notice
Explanation:
✅ A 30-day notice is mandated for changes to fundamental attributes.
❌ 7 days’ notice is not the correct answer.
❌ No notice is not the correct answer.
❌ 60 days’ notice is not the correct answer.

Q50. Primary scheme document is:
☑ SID
☐ SAI
☐ KIM
☐ Factsheet
Explanation:
✅ SID is the primary document describing the scheme.
❌ SAI is not the correct answer.
❌ KIM is not the correct answer.
❌ Factsheet is not the correct answer.

Q51. Concise document with application is:
☑ KIM
☐ Prospectus
☐ Addendum
☐ Fact sheet
Explanation:
✅ KIM summarizes SID/SAI and must accompany application forms.
❌ Prospectus is not the correct answer.
❌ Addendum is not the correct answer.
❌ Fact sheet is not the correct answer.

Q52. AMC-level statutory info is in:
☑ Fund-house statutory information
☐ Only scheme performance
☐ Distributor EUIN data
☐ Brokerage rates
Explanation:
✅ SAI provides statutory information about the fund house.
❌ Only scheme performance is not the correct answer.
❌ Distributor EUIN data is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q53. RTAs such as CAMS/KFinTech mainly:
☑ Maintain investor records & process transactions
☐ Hold securities
☐ Decide investments
☐ Provide SEBI approvals
Explanation:
✅ RTAs maintain investor records and process transactions.
❌ Hold securities is not the correct answer.
❌ Decide investments is not the correct answer.
❌ Provide SEBI approvals is not the correct answer.

Q54. Custodian primarily:
☑ Holds securities and settles trades
☐ Markets schemes
☐ Issues ARN
☐ Runs SCORES
Explanation:
✅ Custodian holds the scheme’s securities and settles trades.
❌ Markets schemes is not the correct answer.
❌ Issues ARN is not the correct answer.
❌ Runs SCORES is not the correct answer.

Q55. Plan excluding distributor commission:
☑ Lower TER
☐ Higher TER
☐ Same TER
☐ Guaranteed returns
Explanation:
✅ Direct Plan excludes distributor commission, hence lower TER.
❌ Higher TER is not the correct answer.
❌ Same TER is not the correct answer.
❌ Guaranteed returns is not the correct answer.

Q56. Distributors place orders on NSE’s:
☑ NMF II
☐ BSE Star MF
☐ MFU
☐ SCORES
Explanation:
✅ NMF II is NSE’s MF order platform.
❌ BSE Star MF is not the correct answer.
❌ MFU is not the correct answer.
❌ SCORES is not the correct answer.

Q57. BSE MF platform is:
☑ BSE Star MF
☐ NMF II
☐ MFU
☐ SCORES
Explanation:
✅ BSE Star MF is BSE’s online platform for mutual funds.
❌ NMF II is not the correct answer.
❌ MFU is not the correct answer.
❌ SCORES is not the correct answer.

Q58. With MFU, investors get:
☑ Common Account Number (CAN) & aggregated transactions
☐ Only grievance portal
☐ Demat services
☐ Custody services
Explanation:
✅ MFU aggregates transactions and provides a CAN across participating AMCs.
❌ Only grievance portal is not the correct answer.
❌ Demat services is not the correct answer.
❌ Custody services is not the correct answer.

Q59. NAV is computed as:
☑ (Assets – Liabilities) / Units
☐ (Assets + Liabilities) / Units
☐ Assets × TER
☐ Benchmark price
Explanation:
✅ NAV equals (Total Assets – Liabilities) divided by the number of outstanding units.
❌ (Assets + Liabilities) / Units is not the correct answer.
❌ Assets × TER is not the correct answer.
❌ Benchmark price is not the correct answer.

Q60. Cut-off timing decides:
☑ Which day’s NAV applies
☐ AMC office hours
☐ Portfolio turnover
☐ TER charged
Explanation:
✅ Cut-off time determines which day’s NAV applies to the transaction.
❌ AMC office hours is not the correct answer.
❌ Portfolio turnover is not the correct answer.
❌ TER charged is not the correct answer.

Q61. Ex-dividend NAV refers to:
☑ NAV after dividend payout (reduced)
☐ NAV before dividend
☐ NAV incl. distributable surplus
☐ Guaranteed NAV
Explanation:
✅ Ex-dividend NAV is the reduced NAV after dividend payout.
❌ NAV before dividend is not the correct answer.
❌ NAV incl. distributable surplus is not the correct answer.
❌ Guaranteed NAV is not the correct answer.

Q62. Liquid/Overnight NAV frequency:
☑ Even on Sundays/holidays
☐ Only on business days
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Liquid/Overnight fund NAVs are declared even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q63. Charge at redemption is:
☑ Charge deducted on redemption
☐ Entry fee
☐ Custodian fee
☐ Always zero
Explanation:
✅ Exit load is a charge deducted when units are redeemed (credited to the scheme).
❌ Entry fee is not the correct answer.
❌ Custodian fee is not the correct answer.
❌ Always zero is not the correct answer.

Q64. TER represents:
☑ Total recurring expenses as % of daily net assets
☐ AMC profit margin
☐ Exit load
☐ Brokerage alone
Explanation:
✅ TER is total recurring expenses as a percentage of daily net assets.
❌ AMC profit margin is not the correct answer.
❌ Exit load is not the correct answer.
❌ Brokerage alone is not the correct answer.

Q65. SEBI on TER caps:
☑ Capped by SEBI with slab-wise reductions as AUM rises
☐ Unlimited
☐ Same for all schemes
☐ Arbitrary daily change allowed
Explanation:
✅ SEBI caps TER with slab-wise reductions as AUM increases; changes must be disclosed.
❌ Unlimited is not the correct answer.
❌ Same for all schemes is not the correct answer.
❌ Arbitrary daily change allowed is not the correct answer.

Q66. Mandatory daily display on AMC site:
☑ TER and NAV
☐ Only annual report
☐ Distributor slabs only
☐ Index level
Explanation:
✅ AMCs must prominently display scheme-wise daily TER and NAV.
❌ Only annual report is not the correct answer.
❌ Distributor slabs only is not the correct answer.
❌ Index level is not the correct answer.

Q67. Equity-oriented fund (for tax) must invest at least:
☑ 65% in equity instruments
☐ 50% in equity
☐ 35% in equity
☐ 80% in equity
Explanation:
✅ For tax purposes, equity-oriented funds must invest at least 65% in equity/equity-related instruments.
❌ 50% in equity is not the correct answer.
❌ 35% in equity is not the correct answer.
❌ 80% in equity is not the correct answer.

Q68. Equity LTCG beyond ₹1 lakh per FY:
☑ 10% without indexation (+surcharge/cess)
☐ 20% with indexation
☐ 15% flat
☐ Exempt fully
Explanation:
✅ Equity LTCG above ₹1 lakh is taxed at 10% without indexation (+surcharge/cess).
❌ 20% with indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt fully is not the correct answer.

Q69. Equity STCG rate is:
☑ 15% + applicable surcharge & cess
☐ 10% flat
☐ 20% with indexation
☐ Always slab rate
Explanation:
✅ Equity STCG (where STT applies) is taxed at 15% + applicable surcharge & cess.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Always slab rate is not the correct answer.

Q70. Debt STCG rate:
☑ Investor’s slab rate
☐ 10% flat
☐ 20% with indexation
☐ Exempt
Explanation:
✅ Debt fund STCG is taxed at the investor’s applicable slab rate.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Exempt is not the correct answer.

Q71. Debt LTCG treatment (historic):
☑ 20% with indexation
☐ 10% without indexation
☐ 15% flat
☐ Exempt
Explanation:
✅ Historically, debt LTCG was taxed at 20% with indexation (tax rules may change).
❌ 10% without indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt is not the correct answer.

Q72. Dividends from MFs (post-2020) are:
☑ Taxable in investor’s hands at slab
☐ DDT by AMC; investor exempt
☐ Taxed at 10% flat
☐ Always exempt
Explanation:
✅ DDT abolished; dividends taxable in investor’s hands at slab rates.
❌ DDT by AMC; investor exempt is not the correct answer.
❌ Taxed at 10% flat is not the correct answer.
❌ Always exempt is not the correct answer.

Q73. TDS on MF dividends for residents:
☑ 10% if above threshold
☐ 0% always
☐ 5%
☐ 20%
Explanation:
✅ TDS at 10% applies if dividends exceed the prescribed threshold.
❌ 0% always is not the correct answer.
❌ 5% is not the correct answer.
❌ 20% is not the correct answer.

Q74. SOA timeline is:
☑ 5 working days
☐ 10 working days
☐ 15 days
☐ 30 days
Explanation:
✅ AMCs/RTAs must send account statements within 5 working days of the transaction.
❌ 10 working days is not the correct answer.
❌ 15 days is not the correct answer.
❌ 30 days is not the correct answer.

Q75. CAS includes:
☑ MF & demat holdings/transactions under PAN
☐ Only one scheme
☐ AMC profits
☐ Distributor commissions
Explanation:
✅ CAS consolidates MF and demat holdings/transactions mapped to PAN.
❌ Only one scheme is not the correct answer.
❌ AMC profits is not the correct answer.
❌ Distributor commissions is not the correct answer.

Q76. Centralized complaint portal is:
☑ SCORES
☐ MFU
☐ NMF II
☐ BSE Star MF
Explanation:
✅ SCORES is SEBI’s centralized online complaint redress system.
❌ MFU is not the correct answer.
❌ NMF II is not the correct answer.
❌ BSE Star MF is not the correct answer.

Q77. Redemption TAT in open-ended funds:
☑ 10 working days
☐ 3 working days
☐ 15 working days
☐ 30 days
Explanation:
✅ SEBI allows up to 10 working days to dispatch redemption proceeds.
❌ 3 working days is not the correct answer.
❌ 15 working days is not the correct answer.
❌ 30 days is not the correct answer.

Q78. Fundamental attribute change notice period:
☑ 30 days’ notice
☐ 7 days’ notice
☐ No notice
☐ 60 days’ notice
Explanation:
✅ A 30-day notice is mandated for changes to fundamental attributes.
❌ 7 days’ notice is not the correct answer.
❌ No notice is not the correct answer.
❌ 60 days’ notice is not the correct answer.

Q79. For scheme-specific details read:
☑ SID
☐ SAI
☐ KIM
☐ Factsheet
Explanation:
✅ SID is the primary document describing the scheme.
❌ SAI is not the correct answer.
❌ KIM is not the correct answer.
❌ Factsheet is not the correct answer.

Q80. Summary of SID/SAI attached to applications:
☑ KIM
☐ Prospectus
☐ Addendum
☐ Fact sheet
Explanation:
✅ KIM summarizes SID/SAI and must accompany application forms.
❌ Prospectus is not the correct answer.
❌ Addendum is not the correct answer.
❌ Fact sheet is not the correct answer.

Q81. SAI contains:
☑ Fund-house statutory information
☐ Only scheme performance
☐ Distributor EUIN data
☐ Brokerage rates
Explanation:
✅ SAI provides statutory information about the fund house.
❌ Only scheme performance is not the correct answer.
❌ Distributor EUIN data is not the correct answer.
❌ Brokerage rates is not the correct answer.

Q82. RTAs such as CAMS/KFinTech mainly:
☑ Maintain investor records & process transactions
☐ Hold securities
☐ Decide investments
☐ Provide SEBI approvals
Explanation:
✅ RTAs maintain investor records and process transactions.
❌ Hold securities is not the correct answer.
❌ Decide investments is not the correct answer.
❌ Provide SEBI approvals is not the correct answer.

Q83. Who holds scheme securities?
☑ Holds securities and settles trades
☐ Markets schemes
☐ Issues ARN
☐ Runs SCORES
Explanation:
✅ Custodian holds the scheme’s securities and settles trades.
❌ Markets schemes is not the correct answer.
❌ Issues ARN is not the correct answer.
❌ Runs SCORES is not the correct answer.

Q84. Plan excluding distributor commission:
☑ Lower TER
☐ Higher TER
☐ Same TER
☐ Guaranteed returns
Explanation:
✅ Direct Plan excludes distributor commission, hence lower TER.
❌ Higher TER is not the correct answer.
❌ Same TER is not the correct answer.
❌ Guaranteed returns is not the correct answer.

Q85. NSE MF order platform:
☑ NMF II
☐ BSE Star MF
☐ MFU
☐ SCORES
Explanation:
✅ NMF II is NSE’s MF order platform.
❌ BSE Star MF is not the correct answer.
❌ MFU is not the correct answer.
❌ SCORES is not the correct answer.

Q86. BSE distribution platform:
☑ BSE Star MF
☐ NMF II
☐ MFU
☐ SCORES
Explanation:
✅ BSE Star MF is BSE’s online platform for mutual funds.
❌ NMF II is not the correct answer.
❌ MFU is not the correct answer.
❌ SCORES is not the correct answer.

Q87. MFU offers:
☑ Common Account Number (CAN) & aggregated transactions
☐ Only grievance portal
☐ Demat services
☐ Custody services
Explanation:
✅ MFU aggregates transactions and provides a CAN across participating AMCs.
❌ Only grievance portal is not the correct answer.
❌ Demat services is not the correct answer.
❌ Custody services is not the correct answer.

Q88. Net Asset Value equals:
☑ (Assets – Liabilities) / Units
☐ (Assets + Liabilities) / Units
☐ Assets × TER
☐ Benchmark price
Explanation:
✅ NAV equals (Total Assets – Liabilities) divided by the number of outstanding units.
❌ (Assets + Liabilities) / Units is not the correct answer.
❌ Assets × TER is not the correct answer.
❌ Benchmark price is not the correct answer.

Q89. Cut-off time determines:
☑ Which day’s NAV applies
☐ AMC office hours
☐ Portfolio turnover
☐ TER charged
Explanation:
✅ Cut-off time determines which day’s NAV applies to the transaction.
❌ AMC office hours is not the correct answer.
❌ Portfolio turnover is not the correct answer.
❌ TER charged is not the correct answer.

Q90. Ex-dividend NAV refers to:
☑ NAV after dividend payout (reduced)
☐ NAV before dividend
☐ NAV incl. distributable surplus
☐ Guaranteed NAV
Explanation:
✅ Ex-dividend NAV is the reduced NAV after dividend payout.
❌ NAV before dividend is not the correct answer.
❌ NAV incl. distributable surplus is not the correct answer.
❌ Guaranteed NAV is not the correct answer.

Q91. Liquid/Overnight NAV frequency:
☑ Even on Sundays/holidays
☐ Only on business days
☐ Only monthly
☐ Only at redemption
Explanation:
✅ Liquid/Overnight fund NAVs are declared even on Sundays/holidays.
❌ Only on business days is not the correct answer.
❌ Only monthly is not the correct answer.
❌ Only at redemption is not the correct answer.

Q92. Charge at redemption is:
☑ Charge deducted on redemption
☐ Entry fee
☐ Custodian fee
☐ Always zero
Explanation:
✅ Exit load is a charge deducted when units are redeemed (credited to the scheme).
❌ Entry fee is not the correct answer.
❌ Custodian fee is not the correct answer.
❌ Always zero is not the correct answer.

Q93. Total Expense Ratio is:
☑ Total recurring expenses as % of daily net assets
☐ AMC profit margin
☐ Exit load
☐ Brokerage alone
Explanation:
✅ TER is total recurring expenses as a percentage of daily net assets.
❌ AMC profit margin is not the correct answer.
❌ Exit load is not the correct answer.
❌ Brokerage alone is not the correct answer.

Q94. SEBI on TER caps:
☑ Capped by SEBI with slab-wise reductions as AUM rises
☐ Unlimited
☐ Same for all schemes
☐ Arbitrary daily change allowed
Explanation:
✅ SEBI caps TER with slab-wise reductions as AUM increases; changes must be disclosed.
❌ Unlimited is not the correct answer.
❌ Same for all schemes is not the correct answer.
❌ Arbitrary daily change allowed is not the correct answer.

Q95. AMCs must display daily:
☑ TER and NAV
☐ Only annual report
☐ Distributor slabs only
☐ Index level
Explanation:
✅ AMCs must prominently display scheme-wise daily TER and NAV.
❌ Only annual report is not the correct answer.
❌ Distributor slabs only is not the correct answer.
❌ Index level is not the correct answer.

Q96. Equity fund threshold is:
☑ 65% in equity instruments
☐ 50% in equity
☐ 35% in equity
☐ 80% in equity
Explanation:
✅ For tax purposes, equity-oriented funds must invest at least 65% in equity/equity-related instruments.
❌ 50% in equity is not the correct answer.
❌ 35% in equity is not the correct answer.
❌ 80% in equity is not the correct answer.

Q97. Equity LTCG beyond ₹1 lakh per FY:
☑ 10% without indexation (+surcharge/cess)
☐ 20% with indexation
☐ 15% flat
☐ Exempt fully
Explanation:
✅ Equity LTCG above ₹1 lakh is taxed at 10% without indexation (+surcharge/cess).
❌ 20% with indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt fully is not the correct answer.

Q98. Equity STCG rate is:
☑ 15% + applicable surcharge & cess
☐ 10% flat
☐ 20% with indexation
☐ Always slab rate
Explanation:
✅ Equity STCG (where STT applies) is taxed at 15% + applicable surcharge & cess.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Always slab rate is not the correct answer.

Q99. Debt STCG rate:
☑ Investor’s slab rate
☐ 10% flat
☐ 20% with indexation
☐ Exempt
Explanation:
✅ Debt fund STCG is taxed at the investor’s applicable slab rate.
❌ 10% flat is not the correct answer.
❌ 20% with indexation is not the correct answer.
❌ Exempt is not the correct answer.

Q100. Debt LTCG historically taxed at:
☑ 20% with indexation
☐ 10% without indexation
☐ 15% flat
☐ Exempt
Explanation:
✅ Historically, debt LTCG was taxed at 20% with indexation (tax rules may change).
❌ 10% without indexation is not the correct answer.
❌ 15% flat is not the correct answer.
❌ Exempt is not the correct answer.

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