Unit Trust Quiz 2 - Intermediate Level

10 Questions | By Vjdevan | Updated: May 18, 2022 | Attempts: 740

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Unit Trust Quiz 2 - Intermediate Level - Quiz

Hi there! I hope you have tried your hand on the Level 1 quiz. How did you do? You are in here because you have performed better in answering questions in Quiz 1. Quiz 2 questions are a bit tough but not impossible to answer. Choose the best answer that correlates to your understanding of Unit Trust investment. A learned investor makes the best financial decision, so go for it!

Questions and Answers

1.

Equity type unit trust funds has volatility that matches with the bond type funds.
- A.
  
  Yes, equity types funds are same as the bond type funds.
- B.
  
  No, both have different risk pattern
- C.
  
  No, bond type funds are more riskier than equity type funds.
- D.
  
  Not all the above
2.

Dividend distribution in unit trust investment in Malaysia is not taxed in unitholder's hand.
- A.
  
  True
- B.
  
  False
3.

By investing in more unit trust funds of different risks exposure, i am able to optimize total return.
- A.
  
  Yes
- B.
  
  No
4.

Trustees fees and Management fees are charged to Unit trust company and not to the unitholders account.
- A.
  
  Yes, the company pay all the fees
- B.
  
  No, unit holder pay all the fees stated above.
- C.
  
  Only trustees fees is charged to the company.Unitholder pay the management fee.
- D.
  
  Only management fee is charged to the company. Unit holder pay the trustees fees.
5.

Upfront fees is charged to all new funds. What is the name given to this fees?
- A.
  
  Service charge
- B.
  
  Sales charge
6.

If i invest RM 50000 in Fund A that charges 5.50% sales fee. Calculate how much my sales fee is in RM?
- A.
  
  RM 2750.00
- B.
  
  RM 2650.00
- C.
  
  RM 2606.63
- D.
  
  RM 2500.50
7.

What will be the net investment (less sales charge) from question 6 above?
- A.
  
  RM 47250.00
- B.
  
  RM 47350.00
- C.
  
  RM 47393.37
- D.
  
  RM 47499.50
8.

The total value of a particular fund's unit for the day, divide by the number of units in circulation is called fund's closing price. What is the real term used in everyday practice in the field?
- A.
  
  Selling price
- B.
  
  Trading price
- C.
  
  Net asset value (NAV)
- D.
  
  Bit price
9.

If i would like to sell a certain fund now, and the fund's NAV as yesterday's closing was RM 1.0105. I bought this fund at RM 1.0000 a few years ago. My selling price now is RM 1.0105. True or False?
- A.
  
  True
- B.
  
  False
10.

Mr. Obama bought unit trust fund B. He paid RM 80000 to you (assume you are his unit trust consultant). You told him the sales charge is 5.50% and the closing NAV is RM 0.2500 a unit. Calculate how many units Mr. Obama get? (NAV = Net asset value)
- A.
  
  30240.00 units
- B.
  
  30331.75 units
- C.
  
  32000.00 units
- D.
  
  32031.75 units