1. Portfolio turnover rate of a fund measure the

2. A high turnover rate for a fund indicates

3. Turnover rates would be most relevant to analyse the performance of

4. Transaction costs include

5. Which of the following are not included in Transaction costs ?

6. Which of the following transaction costs are not quantified in the offer document

7. The size of a fund has no bearing on its performance

8. As per SEBI, mutual funds can borrow for short term to the extent of

9. Which of the following is of no relevance in evaluating fund’s performance

10. The choice of an appropriate benchmark for evaluating a fund’s performance depends on

11. An actively managed equity fund expects to

12. For evaluating Sector funds, the preferred benchmark would be the

13. To evaluate a close-ended debt-fund, a suitable benchmark would be

14. When comparing performance of two funds, the following need not be similar

15. Which of the following is false ?

16. The basis of genuine investment advice should be

17. Financial goals do not include

18. Financial planning allows a person

19. Financial plans do not alter in any way the amount of tax an investor pays as the tax is on his income

20. Which of the following works with an investor on his overall financial situation

21. A Financial planner takes responsibility for the financial well being of his/her clients

22. Financial planners and their clients should focus on

23. Within an asset class, which individual security to invest in should be decided by

24. Financial Planning comprises

25. Financial planning is relevant only for high networth individuals

26. Financial planning does work for older clients

27. Financial planning is primarily tax planning

28. In financial planning, all responsibility ends with the financial planner and the client has
no responsibilities

29. The constraint on financial planning due to insufficient investable resources can be
remedied to some extent by

30. In the growth option offered by mutual funds, the number of units held by an investor
increases because of

31. To maximise returns on investment, once an investor buys into a fund, he/she should
hold on to it no matter what happens

32. If an investor keeps investing a fixed amount at regular intervals, the average cost of his
purchases will always be less than if he makes investment at irregular periods

33. Which of the following lets an investor book profits in rising market and increase
holdings in a falling market

34. A Flexible Ratio of Asset Allocation means

35. The strategy advisable for an investor to maximise investment return in the long run is

36. A criticism of rupee-cost averaging is

37. In India, individual investors do not have direct access to

38. Which of the following entities can give loans against securities

39. Which of the following investment products do not give guarantee for return or capital

40. The biggest advantage of investment in gold is

41. The biggest disadvantage of investment in real estate is

42. Which of the following is not an advantage of bank deposits ?

43. Listing of shares at a stock exchange ensures

44. The rate of interest paid by a company on debentures issued by it depends on

45. Which of the following is not a characteristic of company fixed deposits

46. The tenure of an Kisan Vikas Patra is

47. A small investor can build a diversified portfolio by

48. The amount an insurance company would pay to the nominee if a policyholder died is
known as the

49. There is no contractual guarantee for repayment of principal or interest to an investor in

50. Which of the following is untrue for Public Provident Fund Schemes

51. Gold and real estate are attractive investment options only in high inflation economies

52. Dividends distributed by mutual funds are

53. Direct investment in stock market can be a better option than investing through mutual
funds if the investor

54. Indira Vikas Patra is an investment product popular with

55. Finance Acts of 2000 and 2001 have reduced tax-free interest on Public Provident Fund
to

56. The annual yield on RBI Relief Bonds (2000-01) is

57. Which of the following is not an advantage of mutual fund investment over direct
investment

58. Which of the following debt investments is not rated

59. Deciding on strategies such as long-term compounding, cost averaging, value
averaging, active switching, all depend on the

60. Most individuals invest in life insurance policies for

61. The current yield (2024-25) on Indira Vikas Patra works out to

62. Investing through mutual fund is a better option than investing directly in the stock
market because

63. Financial planning involves

64. Annual contribution to Public Provident Fund should be

65. The maturity period of RBI Relief Bonds is

66. Greater returns come only from assuming higher risks, and a higher risk portfolio
guarantees higher returns

67. Individual investors do not normally invest in Government Securities because

68. The risk tolerance of an investor is independent of

69. A sector fund is a

70. International funds invest in various countries and so are low risk funds.

71. Investment in gold is a hedge against inflation but investment in a precious metal fund
falls in the high-risk category

72. By their very nature, growth funds are considered as high risk funds

73. Short term bond funds are

74. The risk level of commodity fund is

75. As compared to a fund with fluctuating total returns, a fund with stable positive earnings

76. “risk” is equated with

77. Volatility of an equity fund portfolio is independent of the

78. Equity price risks are

79. Diversification reduces

80. Which of the following is most risky

81. A fund with a high beta coefficient gives greater returns in a rising market, and is more
risky in a falling market

82. Which of the following is a disadvantage of standard deviation as a measure of risk

83. The role of an agent is to

84. One of the most effective ways to invest through mutual fund is to

85. Mutual fund should be advised to expect

86. Asset allocation is

87. Once a financial advisor works out ideal asset allocation, it can be used for all investor
whom he/she advises

88. Asset distribution among equity debt and money market securities should correspond to
the investors’ need for capital growth, income and liquidity

89. The liquidity needs of an investor are met through

90. A retired person generally needs a greater proportion of

91. To satisfy a young investor’s need for growth, a greater proportion of investment should
be advised in

92. A very high proportion of investment in all types of equity funds is advisable for
investors

93. The transition phase of an investor’s wealth cycle is when

94. A high proportion of investment in income funds is required by

95. Retired investor should

96. For older investors who want to transfer their wealth

97. Investors who acquire sudden wealth

98. If a specialty offshore fund has consistently given very good performance, it can be
considered for investment by a retiree

99. Past performance should not be solely relied on for selecting a fund

100. Between the past performance of the fund and its suitability for an investor, past
performance is more important