Top 150+ Solved Mutual Fund Management MCQ Questions Answer

Q. Mutual funds in India are permitted to invest in___________

a. Securitie

b. Securities and gold

c. Securities other than real estate

d. Securities, gold, real estate

Q. ……… is the first time subscription offer for a new scheme launched by the Asset Management Company.

a. FFO

b. CFO

c. IPO

d. NFO

Q. A mutual fund is a ……………intermediary (like a trust) regulated in India by the SEBI.

a. financial

b. professional

c. physical

d. Mental

Q. Transaction cost is ………… with investment in Mutual Funds.

a. high

b. low

c. very high

d. Nil

Q. ………………… helps to improve the risk return relationship.

a. Diversification

b. Liquidity

c. Professional Management

d. tax

Q. Open ended funds can be purchased and sold ………………….

a. Anytime during the day

b. Only at the beginning of the day

c. Only at the end of the day

d. Starting of the day

Q. ……………………. is a facility where investor will invest a fixed amount in a mutual fund scheme atregular intervals.

a. SIP

b. SWP

c. STP

d. SRT

Q. …………….. allows an investor to withdraw a fixed amount of money periodically.

a. SIP

b. SWP

c. STP

d. SRT

Q. In …………….. STP investor transfers the profit from one fund and invests in the other.

a. Flexi

b. Capital Appreciation

c. Fixed

d. Net

Q. ……………. is a facility provided by banks to investors in new fund offers (NFOs) of mutual funds.

a. ASBA

b. CASBA

c. MASBA

d. NASA

Q. A ……………… ended scheme shall be wound upon the expiry of duration fixed in the scheme on theredemption of units.

a. Open

b. close

c. Old

d. New

Q. A mutual fund has a beginning balance of 100 million earns interest of 10 million, receives dividends of15 million, and has expenses of 5 million. If 10 million shares are outstanding, what is the NAV?

a. 10.50

b. 11.00

c. 12.00

d. 12.50

Q. You invested 1,000 in a mutual fund with a 4% load when NAV was 20 per share. If you sell your sharesat a NAV of 20 per share, what is the return of your investment?

a. 14.8%

b. 15.2%

c. 12.5%

d. 10.8%

Q. If a mutual fund NAV Is 50 and its expense ratio is 2% what are the total expenses per share?

a. 2

b. 10

c. 1

d. 5

Q. How much money would you need to purchase 400 shares of a mutual fund with a NAV of$55 per share and a 3% load?

a. $22,000

b. $21,450

c. $23,200

d. $22,660