20 questions weighted across all 12 units of the syllabus. Answer, get the explanation immediately, and see your topic-wise score at the end.
For review after you’ve attempted the quiz above — or as a quick reference. Back to the interactive quiz.
1. SEBI mandates rebalancing within how many business days when a scheme's asset allocation deviates from its SID due to a passive breach (schemes other than Index Funds/ETFs/Overnight Funds)?
SEBI has set a uniform 30-business-day rebalancing window for passive breaches of mandated asset allocation, applicable to all schemes except Index Funds, ETFs and Overnight Funds.
2. An investor refuses to sell a losing stock, hoping it will recover, even though selling and reinvesting elsewhere may be more rational. This best illustrates which behavioural bias?
Loss aversion is the tendency to strongly prefer avoiding a realized loss over acquiring an equivalent gain, which often keeps investors holding losing positions too long.
3. A Multi Cap Fund must invest a minimum of 75% of total assets in equity, distributed with at least 25% each across which three categories?
SEBI's categorization circular requires Multi Cap Funds to hold at least 25% each in large-, mid-, and small-cap equity, totalling a minimum 75% equity exposure.
4. An Aggressive Hybrid Fund must hold equity and equity-related instruments within which range of total assets?
Aggressive Hybrid Fund: 65-80% in equity, 20-35% in debt. (Balanced Hybrid is 40-60% each; Conservative Hybrid is 10-25% equity, 75-90% debt.)
5. What minimum proportion of a mutual fund's Board of Trustees must be independent (not associated with the sponsor, AMC, or trustee company)?
At least two-thirds of the trustees must be independent directors, to keep the trustees' investor-protection role free of AMC/sponsor influence.
6. Which statement about celebrity endorsements of mutual funds is correct under SEBI's rules?
SEBI permits celebrity endorsement only for industry-level investor-awareness campaigns (funded from pooled industry investor-education money), never to promote or brand one AMC's scheme, and prior SEBI approval is needed.
7. Within how many calendar days from receipt must an AMC redress an investor grievance?
SEBI requires AMCs to redress investor grievances promptly, not later than 21 calendar days from receipt.
8. Under SEBI's TER slabs, what is the maximum Total Expense Ratio on the first Rs. 500 crore of daily net assets for an equity-oriented open-ended scheme (other than FoF/index schemes)?
2.10% is the TER ceiling on the first Rs. 500 crore for equity-oriented schemes; the non-equity-oriented limit for the same slab is 1.85%.
9. How many risk levels does the standard mutual fund Riskometer display?
The Riskometer has six levels: Low, Low to Moderate, Moderate, Moderately High, High, and Very High.
10. As per SEBI's current (2026) commission framework, how are mutual fund distributors compensated?
AMCs must pay distributors only through the trail model — no upfront commission, and no upfronting of trail commission except for SIP inflows. Transaction charges have also been withdrawn.
11. What is the minimum age to obtain an AMFI Registration Number (ARN)?
18 years is the minimum age for obtaining an ARN — the same as the age of legal majority in India.
12. A scheme's Unit-holders' Funds (net assets) total Rs. 217 crore, with 20 crore units outstanding. What is the NAV per unit?
NAV = Net Assets ÷ Outstanding Units = Rs. 217 crore ÷ 20 crore units = Rs. 10.85 per unit.
13. What stamp duty rate applies on issue of mutual fund units against purchase transactions (lump sum, SIP, STP, switch-in, or IDCW reinvestment)?
Issue of units attracts stamp duty of 0.005% of the amount invested; transfer of units (e.g., between demat accounts) attracts a higher 0.015%.
14. For equity-oriented mutual funds, what are the long-term capital gains (LTCG) tax rate and the annual exemption threshold (post the July 2024 changes)?
Post-July 2024, LTCG on equity-oriented funds (holding period over 12 months) is taxed at 12.5%, with the first Rs. 1.25 lakh of such gains in a financial year exempt.
15. Securities Transaction Tax (STT) applies to which of these mutual fund transactions?
STT applies only on the sale/redemption/switch-out side of equity-oriented scheme units, never on purchase, and never on debt schemes at all.
16. For purchase transactions in equity-oriented schemes (other than liquid/overnight funds), what is the cut-off time for that day's NAV to apply (assuming funds are available for utilisation before the cut-off)?
3:00 pm is the cut-off for equity/debt (non-liquid) purchases and switch-ins; liquid and overnight funds use a 1:30 pm cut-off instead.
17. For an investment made on behalf of a minor, from which bank account can the payment be made?
SEBI requires that payment for a minor's investment come only from the minor's own account, or a joint account of the minor with the parent/legal guardian — not a third party's account.
18. A scheme has a Beta of 1.2. If its benchmark index rises by 10%, what movement would you expect from the scheme, all else equal?
Beta measures sensitivity to market moves. A Beta of 1.2 implies the scheme tends to move 1.2x the market's movement — so a 10% market rise suggests roughly a 12% move in the scheme, in the same direction.
19. The Sharpe Ratio is calculated as:
Sharpe Ratio = (Rs − Rf) ÷ Standard Deviation — risk premium per unit of total risk. Treynor Ratio uses the same numerator but divides by Beta instead.
20. Among these debt fund categories, which carries the lowest credit risk?
Gilt Funds invest only in sovereign government securities, which carry no credit risk. The rising order of credit risk is: Gilt → Banking & PSU → Corporate Bond → Credit Risk Fund.