1. What is a major benefit of the nomination facility for mutual fund distributors?

2. When can commissions be paid to a nominee without requiring legal heir documents?

3. Which entity is responsible for ensuring that the mutual fund distributor follows suitability guidelines?

4. Who is NOT allowed to transfer assets procured by the deceased distributor?

5. What must a nominee or legal heir do before receiving commission payments from a deceased distributor’s business?

6. How long can commission be paid to a nominee or legal heir of a deceased distributor?

7. What should distributors encourage to avoid legal complications for their heirs?

8. Which type of transaction is allowed under the ARN code of a deceased distributor?

9. Who must inform AMFI about the demise of a distributor?

10. In what scenario would a new distributor receive trail commission after a change in distributor code?

11. Can a legal heir of a deceased distributor transfer assets to their own ARN?

12. What is the purpose of trail commission in mutual fund distribution?

13. Who oversees the nomination facility for mutual fund distributors?

14. Which document is NOT required for a nominee to claim commission?

15. What is the condition

16. Who is the beneficial owner of mutual fund units?

17. What is the primary objective of SEBI’s fair valuation principles?

18. According to SEBI regulations, who is responsible for the valuation of investments in a mutual fund scheme?

19. What is the primary goal of valuation policies in mutual funds?

20. According to Principle No. 1, valuation shall be based on which principle?

21. What must an asset management company’s Board do before investing in new types of securities?

22. What must be provided for the periodic review of valuation policies and procedures?

23. What is the responsibility of the asset management company in regard to valuation and NAV accuracy?

24. How often must valuation policies and procedures be reviewed by an independent auditor?

25. What must the AMC do if the established policies do not result in appropriate valuation?

26. What must the AMC do to ensure fairness in debt and money market securities valuation?

27. What kind of securities are valued at the last quoted closing price on the stock exchange?

28. When can an AMC use the price from another stock exchange for valuation?

29. What happens if a security is not traded on any stock exchange for 30 days?

30. How are nontraded securities valued?

31. Who must approve the valuation methods for nontraded securities?

32. How are convertible debentures valued?

33. How should warrants to subscribe for shares be valued?

34. At what price is gold in a gold ETF scheme valued?

35. At what price is silver in a silver ETF scheme valued?

36. What must be documented when valuing nontraded securities in good faith?

37. Which principle ensures that the AMC prevents incorrect valuation?

38. Who is responsible for ensuring transparency in the AMC’s valuation norms?

39. What does Principle No. 5 address?

40. What must AMCs disclose to ensure transparency of valuation norms?

41. What must an AMC document according to Principle No. 9?

42. What happens if there is a conflict between SEBI’s Fair Valuation Principles and Valuation Guidelines?

43. How should equity instruments generally be valued for nontraded securities?

44. What must be considered when valuing debt and money market securities?

45. In case a security is not traded for more than 30 days, what principle governs its valuation?

46. What is the initial capital mobilized in the example of the mutual fund scheme?

47. What was the percentage appreciation in the equities held by the scheme?

48. How much interest and dividend did the scheme receive?

49. What was the total of scheme liabilities, including expenses payable?

50. What is the market value of investments after capital appreciation?

51. What is the NAV of the scheme calculated in the example?

52. Which principle must be followed when calculating the profits of a scheme, even if expenses have not been paid yet?

53. Which of the following decreases NAV?

54. What happens when a scheme delays payment of expenses?

55. Which of the following increases NAV?

56. What is meant by “mark to market”?

57. What would happen if a scheme did not mark its portfolio to market?

58. What would happen to the NAV if new units are issued at a price lower than the current NAV?

59. What would happen to the NAV if units are redeemed at a price lower than the NAV?

60. What is the NAV formula used in the provided example?

61. In the NAV calculation example, what was the value of bonds?

62. In the second example, what was the NAV calculated for 2.65 crore outstanding units?

63. What is the effect of realized capital losses on NAV?

64. What happens to NAV when interest income increases?

65. Which of the following components contributes to the profitability metric in the NAV formula?

66. What happens to a scheme’s assets when they appreciate in value?

67. What is considered a current liability for a mutual fund scheme?

68. What role does “marking to market” play in NAV calculation?

69. How many units were issued in the example where Rs. 1,00,000 was invested with a face value of Rs. 10?

70. What would be the NAV if 100 units are redeemed at Rs. 10 when the NAV is Rs. 15?

71. What is the key benefit of marking to market for investors?

72. What is the result of issuing fresh units at a price lower than the NAV?

73. What does NAV stand for?

74. What is the NAV per unit if the net assets of a scheme are Rs. 217 crore and the outstanding units are 20 crore?

75. Which of the following affects the NAV calculation?

76. What must Asset Management Companies (AMCs) do with expenses incurred by mutual fund schemes?

77. What type of fees are charged to the scheme by the AMC?

78. Which document discloses the details of investment and advisory fees?

79. Which of the following is NOT listed as a recurring expense for mutual fund schemes?

80. What type of fee is incurred specifically by gold exchange-traded funds?

81. Which mutual fund scheme has recurring expenses for the storage and handling of silver?

82. What type of expense applies to real estate mutual fund schemes?

83. What is the maximum total expense ratio for a fund-of-funds scheme investing in liquid schemes or ETFs?

84. What is the maximum total expense ratio for an equity-oriented fund-of-funds scheme?

85. Which type of fund has a maximum total expense ratio of 1.00% of daily net assets?

86. What is the total expense ratio limit for equity-oriented open-ended schemes for assets up to Rs. 500 crore?

87. What is the total expense ratio limit for other than equity-oriented open-ended schemes for assets up to Rs. 500 crore?

88. For assets above Rs. 5,000 crore, what is the expense ratio reduction rate for equity-oriented schemes?

89. What is the total expense ratio limit for close-ended equity-oriented schemes?

90. What is the maximum brokerage and transaction cost for cash market transactions?

91. How much can a mutual fund charge as additional expense for inflows from beyond the top 30 cities?

92. What happens if inflows from beyond the top 30 cities are redeemed within a year?

93. What is the additional expense limit for mutual fund schemes where exit load is not levied?

94. What do AMCs need to prominently disclose on their website daily?

95. What type of bonds do AT1 and AT2 refer to?

96. What is the maximum exposure a mutual fund can have to bonds issued by a single issuer?

97. What is the deemed residual maturity for AT1 bonds till March 31, 2022?

98. From April 1, 2023 onwards, what is the residual maturity considered for AT1 bonds?

99. What is the residual maturity for AT2 bonds after March 31, 2023?

100. Which type of mutual fund scheme cannot invest in perpetual bonds?