Mutual Fund Module Quiz - Nirman Stock Market Institute

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Q1. What is the full form of NAV in mutual funds?

A. Net Account Value

B. Net Asset Value

C. Nominal Asset Value

D. Net Average Value

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Q2. Which document contains key information about a mutual fund scheme for investors?

A. Fund Offer Letter

B. Key Fact Statement

C. Scheme Information Document (SID)

D. Offer of Scheme

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Q3. Open-ended mutual funds can be purchased:

A. Only at the time of NFO

B. Only on stock exchanges

C. Anytime at prevailing NAV

D. Only at year-end

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Q4. What is the role of an Asset Management Company (AMC)?

A. Distributes mutual funds

B. Regulates stock exchanges

C. Manages investments of mutual fund schemes

D. Protects investors from fraud

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Q5. In mutual fund taxation, equity-oriented funds held for more than 12 months attract:

A. Short-Term Capital Gains

B. Long-Term Capital Gains @10% above ₹1 lakh

C. No tax at all

D. Flat 30% tax

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Q6. Who regulates mutual funds in India?

A. RBI

B. Ministry of Finance

C. SEBI

D. IRDAI

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Q7. A Systematic Investment Plan (SIP) helps in:

A. Investing a lump sum

B. Averaging cost of investment

C. Avoiding mutual fund investments

D. Getting fixed returns

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Q8. A debt mutual fund mainly invests in:

A. Equity shares

B. Derivatives

C. Government and corporate bonds

D. Real estate

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Q9. What is an Expense Ratio?

A. Profit earned by the AMC

B. Ratio of dividend to NAV

C. Annual expenses charged by AMC to manage fund

D. Entry load of mutual fund

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Q10. Mutual fund distributors must comply with:

A. RBI rules

B. IRDA guidelines

C. SEBI (Mutual Fund) Regulations, 1996

D. Income Tax Act, 1961

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Q11. A mutual fund is best described as?

A. A company trading in shares

B. A pool of money managed on behalf of investors

C. A type of bank deposit

D. A government loan instrument

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Q12. Who regulates Mutual Funds in India?

A. RBI

B. SEBI

C. IRDA

D. Ministry of Finance

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Q13. NAV of a mutual fund is calculated as?

A. Assets ÷ Liabilities

B. (Assets – Liabilities) ÷ Number of Units

C. Assets × Liabilities

D. Units × Assets

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Q14. Which one is a money market mutual fund instrument?

A. Equity shares

B. Treasury Bills

C. Corporate bonds

D. Gold

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Q15. Expense ratio in a mutual fund indicates?

A. Fund return percentage

B. Operational cost of managing the fund

C. Dividend percentage

D. Brokerage charges

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Q16. ELSS (Equity Linked Savings Scheme) has a minimum lock-in of?

A. 1 year

B. 3 years

C. 5 years

D. 7 years

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Q17. Which type of mutual fund has no maturity period?

A. Close-ended fund

B. Open-ended fund

C. Interval fund

D. Fixed maturity plan

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Q18. A balanced fund invests in?

A. Only equities

B. Only debt

C. Equities and debt

D. Real estate

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Q19. Index funds replicate?

A. Fund manager’s choice

B. A market index

C. Corporate bond portfolio

D. Gold

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Q20. A fund of funds invests in?

A. Real estate projects

B. Other mutual funds

C. Only government securities

D. Corporate fixed deposits

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Q21. Who is the trustee in a mutual fund?

A. Custodian of securities

B. Investor

C. AMC

D. Distributor

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Q22. The sponsor of a mutual fund is like?

A. Investor

B. Promoter of the fund

C. Fund manager

D. SEBI regulator

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Q23. Maximum TER (Total Expense Ratio) for equity funds (regular plan, AUM up to ₹500 crore) is?

A. 2.25%

B. 3%

C. 2.5%

D. 1.5%

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Q24. SEBI requires AMCs to publish portfolio disclosures?

A. Monthly

B. Quarterly

C. Half-yearly

D. Yearly

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Q25. What is SID in mutual funds?

A. Statement of Initial Deposit

B. Scheme Information Document

C. Security Investment Data

D. Systematic Investment Declaration

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Q26. SIP in mutual funds means?

A. Single Investment Plan

B. Systematic Investment Plan

C. Special Insurance Plan

D. Safe Investment Policy

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Q27. SWP stands for?

A. SWP stands for

B. Savings Wealth Program

C. Stock Wealth Plan

D. Secure Withdrawal Program

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Q28. STP means?

A. Systematic Transfer Plan

B. Short Term Plan

C. Secure Treasury Portfolio

D. Safe Transfer Program

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Q29. In SIP, the benefit of rupee cost averaging means?

A. Buying more units when the price is high

B. Buying more units when the price is low

C. Equal units every time

D. No effect of the market

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Q30. Dividend in a mutual fund is paid from?

A. Capital gains

B. Realized profits of scheme

C. Sponsor contribution

D. NAV appreciation

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Q31. Beta measures?

A. Fund’s risk compared to market

B. Interest rate risk

C. Credit risk

D. Liquidity risk

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Q32. Standard deviation measures?

A. Risk-free return

B. Volatility of returns

C. Market index growth

D. Dividend payout

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Q33. Sharpe ratio is used to measure?

A. Risk-adjusted return

B. Fund’s turnover ratio

C. Liquidity

D. Expense

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Q34. The risk of not being able to sell securities quickly is?

A. Credit risk

B. Liquidity risk

C. Interest rate risk

D. Market risk

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Q35. If interest rates rise, the bond fund's NAV will?

A. Increase

B. Decrease

C. Remain the same

D. Double

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Q36. Long-term capital gain on equity mutual funds (above ₹1 lakh per year) is taxed at?

A. 5%

B. 10%

C. 15%

D. 20%

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Q37. Short-term capital gains on equity-oriented mutual funds are taxed at?

A. 10%

B. 15%

C. 20%

D. 30%

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Q38. Indexation benefit is available for?

A. Equity funds

B. Debt funds

C. Balanced funds

D. ELSS

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Q39. Dividends from mutual funds are?

A. Tax-free in hands of investors before 2020

B. Always tax-free

C. Taxed at 30%

D. Not allowed

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Q40. ELSS offers deduction under which section?

A. 80D

B. 80C

C. 10(10D)

D. 24(b)

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Q41. ARN stands for?

A. Association Registration Number

B. AMFI Registration Number

C. Annual Regulatory Number

D. Asset Registration Note

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Q42. KYC for mutual fund investors is mandatory under?

A. RBI rules

B. SEBI regulations

C. AMC rules

D. Bank policy

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Q33. Which document is mandatory before investing in mutual funds?

A. SID

B. Passbook

C. Salary slip

D. PAN card only

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Q34. Which option allows reinvestment of profits in mutual funds?

A. Dividend payout

B. Dividend reinvestment

C. Growth option

D. Bonus option

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Q35. Exit load is charged when?

A. Investor redeems units before a specified period

B. AMC runs a scheme

C. SEBI asks for it

D. Investor holds beyond 1 year

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Q31. Hedgers use derivatives to?

A. Earn profit

B. Reduce risk

C. Gamble

D. Manipulate prices

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