1. Over the long run, which of investment has historically provided the best protection C. Investor D.

estor D. Stock broking House

against inflation?
A. Stocks B. Bonds C. Cash reserve D. Gold 10. When comparing the performance of a fund over a period of time, a decreasing MER will
indicate?
2. An investor has 2,000 units in Fund A. The NAV cum-dividend is RM 1.20 per unit. Fund A. The Unit Trust Management Company is not managing the total fees and expenses well.
A has since declared a dividend of 10 sen per unit and the NAV ex-dividend id RM 1.10 B. The Unit Trust Management Company is managing the total fees and expenses well.
per unit. What is the total value of her investment ex-dividend (ignore initial service C. The NAV of the fund is rising.
charge & tax) D. The NAV of the fund is falling.
A. 2200 B. 2600 C. 2400 D. None of the above
11. Choose the correct statements :
3. The unit trust funds that are available in the market could be designed to meet the I. The primary objective of a growth fund is growth of capital.
following investor's requirement: II. Income fund seeks the lowest possible current income.
A. Long term savings B. Children's education III. Islamic fund is a unit trust which invests in accordance to the Syariah principles.
C. Retirement fund D. All of the above IV. The main objective of a balanced fund is to build capital and provide some income
form a balanced mix of investment.
4. Why must you NOT say to a potential investor? A. I, II, III B. II, III, IV C. I, III, IV D. All
A. Unit trust is a save as fixed deposits
B. The market value of your capital may be lower than initially invested 12. The actual initial management fee charged or range of fees has to be disclosed in the
C. Return in unit trust is not fixed __________ of the respective unit trust scheme.
D. You should diversify your portfolio and have some fixed deposits. A. Trust Deed B. Prospectus
C. Marketing material D. All of the above
5. The manager derives his income from _______________.
A. Service charge B. Annual management fee 13. What is the risk of an investor directly investing in a small number of shares?
C. Commissions D. A & B only A. The investor is exposed to the risk of either making or losing large portions of his
investment.
6. Which of the following information can be found in the prospectus? B. The investor benefits from diversification of portfolio.
I. Investment objective II. Authorised investments C. The investor is able to reap high return.
III. Fees & charges IV. Trust expenses D. It is easy for an investor to select good companies.
A. I, II, III B. I, II C. I, III, IV D. All
14. Which of the following offers convenient ways to invest in unit trusts?
7. Which of the following is NOT a primary objective of the FMUTM? I. Lump sum purchases II. Invest only for cooling-off periods
A. To formulate ethical practices to promote the unit trust industry. III. Regular savings IV. Regular redemption of units
B. Educate the public on benefits and risks of investing in unit trust funds. A. I, II, III B. I & III C. III & IV D. II & III
C. Encourage unit trust managers to produce bigger investment returns.
D. Enhance the regulatory, fiscal and legal environment for the unit trust. (Please refer to the data given for Question 15 & 16)
Date of purchase : 15/04/99
8. Which of the following type of fund is most risky?
A. Equity Income Fund C. Money Market Fund NAV : RM 100 million
C. Bond Index Fund D. Hedge Fund Units in circulation : 90 million
9. Under whose name would the assets and investments of the unit trust scheme be Service Charge : 5%
registered? Pricing policy : Historical
A. Trustee B. Unit Trust Management Company

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15. Calculate the maximum Selling Price of the fund as at 15/4/98? investors for redemption?
A. RM 1.11 B. RM 1.17 C. RM 1.06 D. None of the above A. 7 B. 10 C. 21 D. 30

16. From the above Selling Price, how many units would an investor get if she invest RM 25. The price of unlisted unit trust is based on market demand
10,000.00? A. True B. False
A. 9,009.01 B. 8,547.01 C. 9,433.96 D. None of the above C. True for unlisted equity only D. None of the above

17. EPF member can withdraw a portion of their account to purchase unit trust. Which EPF 26. What is the meaning of liquid advantage offered by unit trust scheme?
account Balance may be used for such investment? A. As liquid as cash.
A. A/C 1 B. A/C 2 C. A/C 3 D. All the accounts B. Able to purchase or redeem on any business day.
C. Buys more unit trust on rising and less on falling market.
18. Which of the following charges is the fee levied by managers on investment to cover the D. None of the above.
cost of distributing the unit trust?
A. Management Fee B. Initial Service Charge 27. Which body represents unit trust?
C. Trustee Fee D. Repurchase Fee A. Bank Negara B. FMUTM
C. National Investment Committee D. Danamodal
19. The NAV cum-dividend is RM 150,000,000.00. Units in issue is 100,000,000. Dividend
declared is RM 0.10 per unit. Initial charge is 5 %. How much is selling price ex-dividend? 28. To meet challenges posed by sophisticated customer, PDUT must strive to do the
A. RM 1.33 B. RM 1.43 C. RM 1.47 D. RM 1.57 following EXCEPT?
A. Maintain high ethical standard. B. Hard sell.
20. Who maintain the register of the unit holders? C. Acquire professional qualification. D. Good product knowledge.
A. Unit Trust Management Company B. Trustee
C. Securities Commission D. Registrar of Companies 29. Dollar cost average is :
A. Buy low sell high. B. Buy high sell low.
21. Which of the following category of investor must sign a “ Risk Disclosure Statement”? C. Regular investment at fixed amount of money D. Buy fixed unit every time
A. Those who purchase investment in cash.
B. Those who purchase via loan. 30. If you want to sell unit trust, which method should you see?
C. Those who purchase by transferring funds from their savings account A. The fund I'm selling is paying dividend now.
D. Those who purchase using EPF B. The fund I'm selling is not effected by the stock market.
C. The fund I'm selling meets your investment objective and has proven track record.
22. Which of the following drawbacks relate to leveraging? D. The fund I'm selling was ranked Number 1 by Lipper.
I. Interest rate fluctuate
II. Margin call 31. Unit trust scheme can invest in :
III. Borrower does not have the right to the investment until the loan is fully settled A. High return and low risk investment. B. According to the trust deed of the scheme.
A. I B. I & II C. I & III D. I, II & III C. In global fund. D. In equity fund.

23. Which of the following is NOT true about Trust Deed? 32. Unitholders redeem units from Unit Trust Managers at what price?
A. It shows right and obligation of manager, trustee and unitholder. A. Offer price B. Bid price C. Selling price D. NAV
B. It shows maximum fees.
C. It's life span is normally 10 years. 33. Which of the following best describes the equity fund?
D. It must be approved by Securities Commission. A. Mainly invest in the equity market. B. Mainly invest in bond and equity market
C. Mainly invest in money markets. D. Mainly invest in property markets.
24. What is the maximum number of days the Unit Trust Management Company has to pay to

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34. How is index fund matched ? C. Auditor's report D. List of investment
A. Composite Index B. Money Market
C. Kuala Lumpur Stock Exchange D. Property Market 43. Initial service charge is also known as :
A. Upfront fee B. Trustee Fee C. Forward Fee D. Management Fee
35. What are the primary objectives of FMUTM?
I. Improve the regulatory, fiscal and legal environment for unit trust. 44. If a customer invests RM 200,000 and would like to apply for end-financing, what is the
II. Improve sound and ethical business practices. maximum that he / she can borrow?
III. Provide information, assistance and other services to its members. A. 134,000 B. 140,000 C. 200,000 D. 100,000
IV. Promote public awareness of the benefits and risk of investing in unit trust.
A. I, II, III B. II, III, IV C. I, III, IV D. All if the above 45. Based on forward pricing, the selling price of a fund is based on :
I. Yesterday's closing price.
36. When the financed unit trust investment is sold, the transaction is usually settled between: II. Today's closing price.
A. The unit trust manager and the financier. III. Today's price quoted in the newspaper.
B. The unit trust manager and the unitholder. IV. Tomorrow's price quoted in the newspaper.
C. The unitholder and the lawyer. A. II only B. I, III C. I, II, III D. II, IV
D. The unitholder and the financier.
46. Which are NOT the advantages of unit trust?
37. What is the name of the body that registers and administer the PDUTs for marketing and I. Enables diversification of risks.
distribution of unit trusts? II. Provides ready access to funds.
A. FMUTM B. SC C. Bank Negara D. UTMC III. The funds are managed by a team of professionals.
IV. The return are guaranteed.
38. What is the initial charge meant for? A. I, II, III B. I, II C. I only D. IV only
A. To reduce the management fee. B. To cover the cost of distribution.
C. To cover the trust fee. D. All of the above 47. Which are NOT the main responsibilities of the trustee?
A. Collection and distribution of UT scheme's income.
39. When an investor borrows funds from a finance company to purchase unit trust Which of B. Ensure compliance to terms in the trust deed.
the following keeps the unit trust certificate? C. Ensure that the scheme makes generous returns.
A. Trustee B. UTMC C. Finance Company D. Investor D. Appointment and removal of auditors.

40. UTMC can only invest in ? 48. Islamic UT invest only in halal counter such as :
A. Securities and assets authorized by the SC. A. Conventional banking. B. Telecommunication.
B. Securities and assets authorized by the Trust Deed. C. Gambling. D. Alcohol.
C. Unlisted securities and securities listed on the stock exchange.
D. Securities listed on the stock exchange. 49. Which is included in the computation of NAV?
A. Value of investment B. Trustee fee
41. Which is NOT the right of a unitholder? C. Auditor's fee D. All of the above
A. Information about UTS and its performance.
B. Received profile of Board of Directors. 50. When a dividend is declared ............
C. Redeem units. A. Investment value increases.
D. Select shares for UT portfolio. B. Can be reinvested at the manager's selling price.
C. Investment value drops in tandem with the dividend price.
42. Which is NOT a standard item in the UT scheme annual report ? D. It will double the units held by the investor.
A. Chairman's message B. Trustee report

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51. Which of the following best describes a unit split issue? II. Default payment
A. It will double the UT price. III. Premature redemption
B. It will double the units held by the investor. IV. Call margin
C. It is the only way of distributing income. A. I only B. I, Ii, III C. IV only D. All
D. There will be added value and it will increase the unit price of the fund.
61. Historically, which asset class can be used to hedge against inflation?
52. Investors buy a unit trust and if the agent gives the wrong information, with whom can A. Shares B. Bonds C. Cash D. Gold
they lodge a complaint to?
A. FMUTM B. SC C. UTMC D. All 62. If an investor wishes to redeem his units, the UTMC must repurchase the fund
within .............
53. What is a Unit Trust Scheme (UTS): A. 7 days B. 10 days C. 21 days D. 30 days
A. Investment method for investors.
B. Investment strategy to maximize return on investment. 63. What is the purpose of UT performance table?
C. Investment method that allows investors with the same objective to pool their money A. For SC to regulate the funds
for investment. B. For FMUTM to regulate the funds
D. None of the above. C. Segregation of funds into different categories according to the fund size
54. What is the regulatory body of UT? D. To provide investors with the means to monitor and evaluate the performance of the
A. FMUTM B. ROC C. SC D. BNM fund.

55. What is the basic quality of a PDUT? 64. What are 2 convenient ways to invest?
I. Maintain high ethical standards in their marketing skill. A. Regular savings and Lump sum B. Daily savings and reinvesting
II. Fine-tune their product knowledge database. C. Redemption and reinvesting D. None of the above
III. Do hard selling.
IV. Do follow and after sales service. 65. What are the best ways to describe unlisted unit trusts?
A. I, II, III B. III C. I, II, IV D. All A. It's not listed on the stock exchange and sales and repurchases are transacted directly
with the fund manager
56. A'UTS manager is responsible for the below except : B. It's close-ended and purchased via stockbroker
A. Calculate the unit price B. Distribution of investment / income C. A major portion of such funds are generally held in equities of listed companies
C. Managing asset of UT D. Owns the assets of the unit trust D. It invest mainly in corporate bonds, government securities and liquid securities

57. In general, which of the follow trust fund would be affected the most when the share 66. What is the first unit trust scheme that invest only in Malaysia?
market falls? A. Malayan First Fund B. Malayan Investment Fund
A. Bond Fund B. Growth Fund C. Islamic Fund D. Balance Fund C. Malaysia Growth Fund D. Malaysia Investment Fund

58. What is the maximum Annual Management fee charged by UTMC? 67. Mr. Lim spent RM 25,000 last year and this year he spent RM 26,125 with the same
A. 1.5% B. 2% C. According to trust deed D. None purchasing power. How much does Mr. Lim has to spent if he wants to maintain it for the
next year?
59. Mr. Razak has RM 500,000 in his bank account. If the current inflation rate is 4%, how A. RM 27,301 B. RM 28,001 C. RM 27,250 D. RM 30,350
many years would it take for his fund to be halved?
A. 18 B. 20 C. 24 D. 36 68. If Mr. Mark wishes to invest RM 13,000 in unit trust, what is the maximum amount that he
can borrow?
60. What are the disadvantages of using leverage to finance an investment plan? A. RM 8,710 B. RM 4,290 C. RM 9,750 D. RM 3,250
I. Interest rate fluctuation

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69. Which of the item below is not included when calculating NAV? A. 90,000 B. 9,000 C. 40,000 D. 300,000
A. Shares B. Liabilities C. Fees D. Staff salary
76. What is the investment value after the units splits?
For question 70 & 71, please refer to the data given below A. RM 15,000 B. RM 120,000 C. RM 25,000 D. RM 20,000

Month Selling price per unit 77. What is the maximum rate of annual fees can be charged?
A. 1% B. 1.5% C. 1.8% D. As permitted by trust deed of scheme
April 0.50
May 0.60 78. Fund price increased by 15 % each year, how long does it takes to double the value if
inflation rate remains at 5 %?
June 0.70 A. 4.8 years B. 7.2 years C. 3.6 years D. 14.4 years

70. Mr. Fernandez invests regularly for the past 3 months. His total investment is RM 4,500. For question 79 & 80, please refer to the data given below on ABC Fund
What is the average price of his investment?
A. 0.60 B. 0.59 C. 0.43 D. 0.56 The service charge for ABC Fund is 10% above NAV per unit and the repurchase charge is 5
sen below NAV per unit.
71. How many units does Mr Fernandez has at the end of May?
A. 5,500 B. 7,643 C. 4,500 D. 4,000 Date NAV Units in Circulation
72. Ms. Ong made her first investment at the price of RM 0.20. She puts in more money on the 28/08/99 (5.30 pm) RM 450 million 300 million
second investment and got 10,000 units. She made redemption a month after that and 29/08/99 (5.30 pm) RM 450 million 320 million
receives RM 15,000 for RM 0.25 per unit. How much did she invest in her first
investment?
79. If the selling price of ABC Fund is based on historical pricing, what will be the selling
A. RM 15,000 B. RM 10,000 C. RM 5,000 D. RM 20,000
price for a unit holder who invested on 29/08/99?
A. RM 1.45 B. RM 1.55 C. RM 1.65 D. No answer
73. Your friend invests RM 10,000 per year and gets a return rate of 20 %. He said that if this
is continuous, he will have enough money when he retire. What should you advise him?
80. If the buying price of ABC Fund is based on forward pricing, what will be the buying price
A. 20 % return is not always achievable
for a unit holder who redeemed on 28/08/99?
B. Don't put all your investment into one basket
A. RM 1.45 B. RM 1.55 C. RM 1.65 D. No answer
C. Your capital will not be secured
D. All of the above

74. When was FMUTM formed?

A. July 1992 B. Aug 1992 C. Aug 1993 D. Aug 1994

For question 75 & 76, please refer to the data given

Units held : 60,000
Value : RM 15,000
Units splits : 2 for 3

75. How many units does an investor have after the units splits?

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