Top 150+ Solved Mutual Fund Management MCQ Questions Answer
Q. Investors in high tax brackets will normally achieve higher performance by selecting a mutualfund that generates
a. long-term dividends
b. long-term capital gains
c. long-term stock dividends
d. short-term capital gains
Q. If a scheme has 45Cr units issued and has an FV of Rs. 10 and NAV is at 11.33, unitcapital(Rs.Cr) would be equal to
a. 500.85
b. 50.85
c. 950.85
d. 450
Q. A scheme has average weekly net assets of Rs. 324 Cr and has annual expenses of Rs 3.24Cr, it'sexpenses ratio is
a. 1%
b. 10%
c. Can't say
d. Insufficient information
Q. For a scheme to be defined as an equal fund, it must have a minimum
a. 65% in Indian equities
b. 65% in equities
c. 51% Indian equities
d. 35% in Indian equities
Q. Which of the following characteristics is not true of close-ended funds?
a. They can be load or no-load funds.
b. They do not repurchase shares from investors.
c. They are bought and sold on stock exchanges.
d. They may sell above or below NAV.
Q. Regarding load and no-load mutual funds,
a. Load funds usually outperform no-load funds
b. no-load funds perform at least as well as load funds even fees are ignored.
c. Two types of fund perform about the same considering the fees
d. Load funds may be bought directly, whereas no-load funds must be purchased through a broker.
Q. On average, actively managed mutual funds have an expenses ratio of about
a. 1.5%
b. 2.5%
c. 3%
d. 5%.
Q. The component of the expense ratio that includes a fee charged by some mutual funds to pay brokers is
a. A management fee
b. A 12b-1 fee
c. An administrative expense.
d. A referral fee.
Q. which of the following is a stock mutual fund?
a. Ginnie Mae fund
b. Growth fund
c. Municipal securities fund
d. Treasury securities find
Q. Which of the following stock mutual fund focus on medium-sized companies that are more establishedthan small-cap firms, but may have less growth potential?
a. Equity income funds
b. Sector funds
c. Mid-size capitalisation funds
d. Balance growth and income funds
Q. Which of the following is not a reason why Index funds typically incur lower expenses than othermutual funds?
a. Index funds are not actively managed
b. There are no expenses for research
c. The portfolio is reversed infrequently, so the transaction cost is low.
d. The security and Exchange Commission set a limit on index fund expenses
Q. ______ funds are mutual funds that attempt to mirror the movements of the existing board marketindicators.
a. Internet
b. Stock
c. Index
d. International
Q. Index funds incur _______ expenses and are ______ managed compared to other funds.
a. fewer; not actively
b. fewer; actively
c. more; not actively
d. more; actively
Q. Index funds offer tax advantages because they ______ In much trading and, therefore, _______ capitalgains.
a. engage; generate
b. do not engage; generate
c. engage; do not generate
d. do not engage; do not generate