Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 8 of 18

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Q71.
What is the minimum fund investment required in an AIF, as per the AIF Regulations?

a.

INR 100 million

b.

INR 150 million

c.

INR 200 million

d.

INR 250 million

Discuss
Answer: (c).INR 200 million Explanation:The minimum fund investment in an AIF shall be INR 200 million.
Q72.
What is the minimum investment required by each investor in an AIF?

a.

INR 5 million

b.

INR 10 million

c.

INR 15 million

d.

INR 20 million

Discuss
Answer: (b).INR 10 million Explanation:The minimum investment by each investor in an AIF shall be INR 10 million.
Q73.
If an investor is a director, employee, manager, or sponsor of the AIF, what is the relaxed minimum investment limit?

a.

INR 1 million

b.

INR 2.5 million

c.

INR 5 million

d.

INR 7.5 million

Discuss
Answer: (b).INR 2.5 million Explanation:In case the investor is a director, employee, manager, or sponsor of the AIF, the minimum investment limit is relaxed to INR 2.5 million.
Q74.
What are AIFs allowed to invest in, according to the AIF Regulations?

a.

Only Indian securities

b.

Only debt instruments

c.

Securities of foreign companies subject to certain conditions

d.

Only government bonds

Discuss
Answer: (c).Securities of foreign companies subject to certain conditions Explanation:AIFs may invest in securities of foreign companies subject to certain conditions.
Q75.
What can the un-invested portion of an AIF's corpus be invested in until deployment of funds?

a.

Real estate

b.

Stocks

c.

Liquid mutual funds, bank deposits, other liquid assets

d.

Gold

Discuss
Answer: (c).Liquid mutual funds, bank deposits, other liquid assets Explanation:The un-invested portion of the AIF's corpus may be invested in liquid mutual funds, bank deposits, or other liquid assets until the deployment of funds in accordance with the investment objective of the fund.
Q76.
Under the AIF Regulations, what can units of close-ended AIF be subject to?

a.

Minimum tradable lot of 50 lakhs rupees

b.

Minimum tradable lot of 75 lakhs rupees

c.

Minimum tradable lot of 1 crore rupees

d.

Minimum tradable lot of 1.5 crores rupees

Discuss
Answer: (c).Minimum tradable lot of 1 crore rupees Explanation:Units of close-ended AIF may be listed on the stock exchange subject to a minimum tradable lot of 1 crore rupees.
Q77.
What information should AIFs disclose to investors on at least an annual basis?

a.

Only financial information of Investee Companies

b.

Only material risks

c.

Financial information of Investee Companies, material risks, and other specified details

d.

Only financial performance of the AIF

Discuss
Answer: (c).Financial information of Investee Companies, material risks, and other specified details Explanation:AIFs shall provide at least on an annual basis, within 180 days from the year end, reports to investors including financial information of Investee Companies, material risks, and other specified details.
Q78.
What type of risk at the fund level should be disclosed by AIFs in their annual reports?

a.

Only concentration risk

b.

Only foreign exchange risk

c.

Concentration risk, foreign exchange risk, and leverage risk

d.

Only leverage risk

Discuss
Answer: (c).Concentration risk, foreign exchange risk, and leverage risk Explanation:AIFs should disclose material risks at the fund level, including concentration risk, foreign exchange risk, and leverage risk in their annual reports.
Q79.
When should AIFs provide reports to investors, including financial information of Investee Companies and material risks?

a.

Semi-annually

b.

Quarterly

c.

Annually, within 180 days from the year end

d.

Biennially

Discuss
Answer: (c).Annually, within 180 days from the year end Explanation:AIFs shall provide reports to investors on at least an annual basis, within 180 days from the year end, including financial information of Investee Companies and material risks.
Q80.
What risk at the investee company level should be disclosed by AIFs in their annual reports?

a.

Only concentration risk

b.

Only foreign exchange risk

c.

Only reputation risk

d.

Extra-financial risks, including environmental, social, and corporate governance risks

Discuss
Answer: (d).Extra-financial risks, including environmental, social, and corporate governance risks Explanation:AIFs should disclose extra-financial risks, including environmental, social, and corporate governance risks at the fund and investee company levels in their annual reports.
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