Unit Trust Examination

MOCK Questions

For the purpose of training only

Contents :

pages

SET A

SET B

15

SET C

23

SET D

30

SET E

33

SET F

39

Questions by chapters

65

For the purpose of training only

MOCK QUESTIONS : SET A

1. The Federation of Unit Trust Managers was formed in
a)
b)
c)
d)

August 1992
August 1993
September 1993
September1994

2. The duration for investing in equity funds is ideally

a)
b)
c)
d)

Short term to medium term

Short term to long term
Medium term to long term
Undefined

3. What is switching?
a)
b)
c)
d)

Transfer of units from one fund to another

Transfer of funds from one account to another
Transfer of funds from individual to joint account
All of the above

4. Which of the following best describes an aggressive growth fund

a)
b)
c)
d)

It invests mainly in equities

It is managed by an aggressive fund manager
It invests mainly in bonds
It always distributes income

5. Under whose name would the assets and investments of a unit trust scheme be registered?
a)
b)
c)
d)

Trustee
UTMC
Investor
Stock-broking house

6. The Prospectus has to be renewed every :

a)
b)
c)
d)
7.

6 months
1 year
2 years
3 years

UTMC uses forward pricing method when computing the selling and repurchase prices. Assuming at 9:30 a.m. today,
the NAV of the fund was RM 180,000,000.00 and units-in-issue was 200,000,000. At the end of the day the NAV has
increased to RM 190,000,000.00 and units-in-issue unchanged. If a customer wants to redeem today, how much is the
repurchase price per unit if no repurchase fee is charged and the repurchase price is at NAV/unit?
a) 95 cts
b) $1.05
c) $1.11
d) 90 cts

For the purpose of training only

8.

An investor has been investing using the dollar cost averaging concept. Calculate the
average cost per unit with the following information given (nearest cent):
Date of Purchase

Price

Amount
invested

Jan 2004

RM 0.20

1000

Feb 2004

RM 0.30

1000

March 2004

RM 0.40

1000

a) RM0.20
c) RM0.40

b) RM0.30
d) none of the above

9. A unit trust listed on the stock exchange is commonly known as

a)
b)
c)
d)

open-ended
universal trust
closed ended
regional trust

10. Like all financial investment product, it is important for the industry to be regulated in order to protect
investing public. Which of the following is NOT an authority involved in a unit trust scheme?
a)
b)
c)
d)

BNM
Institut Bank-Bank Malaysia
Ministry of Finance
SC

11. An investor who invests in unit trusts with borrowed money from the bank must
a)
b)
c)
d)

Maintain an account with the bank until the loan is settled

Apply for 100 % loan financing
Ensure that the returns for the unit trusts are guaranteed
All of the above

12. Which is the most important benefit you will get with a diversified portfolio that
includes stocks, bonds and money market funds?
a)
b)
c)
d)

Higher returns than you get with a portfolio that is not diversified
The ability to balance both risk and return in achieving your financial goals
A guarantee that your portfolio will not suffer if the stock market falls
All of the above

13. What is the main role of a Person Dealing in Unit Trusts (PDUT) in the marketing and distribution of unit trusts?
a)
b)
c)
d)

To earn as much commission as possible

To sell unit trusts without understanding the the fee structure and product features
To understand and explain the structure and type of funds
To meet sales target

14. A registered PDUT must observe the standards of professional conduct which includes :
I Acting with due Care, Skill and Diligence
II Confidentiality of Communications and Transactions
III Compliance with Rules and Regulations
IV. Use of Authorization Card

For the purpose of training only

a)
b)
c)
d)

I only
I & II only
III & IV only
I, II, III & IV

15. Customer A invests in a one-off investment of RM10,000. Customer B invests RM300 every month. The above ways of
investment are called :
a)
b)
c)
d)

Lump sum investment

One-stop investment
Regular savings investment
Lump sum & regular savings investment

16. A family spent RM25,000 last year for expenses and RM26,125 this year for the same purpose. Assuming inflation rate
is the same, how much would they spend next year?
a)
b)
c)
d)

RM 26,125
RM 25,000
RM 27,300
None of the above

17. Calculate the MER with the information below

Initial Investment
Initial Charges
Management Fees
Trustee Fees
Fund Size
Auditors Fee
Bank Charges
Rate of return per annum
a) 0.43%

b) 1.10%

RM5,000
5%
RM25,000
RM5000
RM3,000,000
RM1,000
RM2,000
15%
c) 0.93%

d) 1.27%

18. The NAV cum-dividend for a unit trust fund is RM 80,000,000. Units-in-issue is 150,000,000. If the dividend declared is
7sen per unit and the fund manager is charging a 5% initial service charge, how much is the selling price ex-dividend?
a)
b)
c)
d)

$0.48
$0.45
$0.53
$0.56

19. Which of the following govern the operations of unit trusts?

a)
b)
c)
d)

Guidelines on Unit Trusts

Trust Deed
Securities Commission Act 1993
All of the above

20. Which of the following affects the effective rate of return?

a)
b)
c)
d)

Gearing
Taxation
Inflation
All of the above

21. What do you mean by the term cooling-off

a) Minimum period in which investor has the right to buy more units
For the purpose of training only

b)
c)
d)

6 days period before declaration of distribution

6 day period to make redemption of investment at prevailing buying price plus refund of original sales charge
6 day period to make redemption of investment at original buying price plus refund of original sales charge

22. Which of the following statements is not true?

a)
b)
c)
d)

Dollar-cost averaging principle should be used over the long term in order to maximize its benefit
The benefits of Dollar-cost averaging principle are more significant in a fluctuating market
Investors can benefit from applying dollar-cost averaging principle in their unit trust investments
Dollar-cost averaging is a way to obtain more units at a higher price

23. What are the characteristics of high returns funds?

a) Potentially high risks
b)

The higher the return, the lower the risk

c)

Generally suitable for empty nesters

d)

Do not invest in equities

24.

Which statements are true regarding MER?

I
II

A newly launched UTS will have no MER value

MER = Fee + Recovered Expenses x 100
Average Fund Size
III Decreasing MER indicates that the UTMC is managing the fees and
expenses well
IV MER = Fee +Average Fund Size x 100
Recovered Expenses
a)
b)
c)
d)

None of the above

I, II and III
I, III & IV
III & IV

25. The NAV cum-dividend for a unit trust fund is RM 150,000,000.00. Units-in-issue is 100,000,000.00. If the dividend
declared is 10 sen per unit and the fund manager is charging a 5% initial service charge, how much is the selling price
ex-dividend?
a)
b)
c)
d)

$1.47
$1.50
$1.40
$1.35

26. An investor had invested a single amount of money in a scheme with the Selling Price of RM 1 .00/unit.

5 years later

he decides to redeem his investment at the Buying Price of RM1.20/unit and the total proceeds amounted to RM 5760.
How much had he invested 5 years earlier?
a)

4,800

b)

5,600

c)

5,000

d)

5,760

27. The NAV for a unit trust fund is RM 180,000,000.00. Units-in-issue is 100,000,000. Assuming the fund manager is
charging a 10% initial service charge, how much is the selling price after a unit split of 1:4?
a)
b)
c)

$1.58
$1.13
$1.44

For the purpose of training only

d)

$1.98

28. The Selling Price of a unit trust fund is RM 12 per unit. Mr. Muthu invested into the fund with a lump sum of RM24,000.
How many units is he entitled to?
a)
b)
c)
d)

500
1000
1500
2000

29. En. Ibrahim invested RM 5,000 into a unit trust fund managed by ABC UTMC which is owned by ABC Berhad. En
Ibrahim now
a)
b)
c)
d)

owns RM 5,000 value worth of units entitlement

owns RM 5,000 value worth of quoted share in ABC Berhad
owns RM 5,000 value worth of shares in ABC Holding of companies
owns RM 5,000 paid up capital of ABC UTMC

30. What is the maximum amount of EPF Mr. Naseem is allowed to withdraw for the purchase of unit trusts on a single
withdrawal if his EPF account balance is as follows
Account 1

Account 2

Account 3

RM108,000

RM68,000

RM28,000

a)

$5,800

b)

$11,600

c)

$3,600

d)

7,200

31. An investor has 2000 units in Fund A. The NAV cum-dividend is RM 1.20 per unit. Fund A has since declared a dividend
of 10 sen per unit and the NAV ex-dividend is RM 1.10 per unit. What is the total value of her investment ex-dividend
(ignore initial service charge and tax)
a)

$2,200

b)

$2,400

c)

2,600

d)

none of the above

32. Ahmad has RM 400,000 in his bank account. If the current inflation rate is 4 %, how long would it take for his funds to
be halved?
a)
b)
c)
d)

12 years
16 years
18 years
20 years

33. How often should the prospectus be updated?

a)
b)
c)
d)

NO specific requirement
Every 3 years
Every 3 months
Every 12 months

34. Which of the following describes the role of the Trustee?

For the purpose of training only

a)
b)
c)
d)

Promotes the sale of units and provides repurchase facilities

Issues the prospectus of the scheme
Supervises the operation of the trust to ensure that the objectives of the scheme are followed
Ensures the fund manager provides guaranteed returns

35. Which of the following best describes income funds?

a)
b)
c)
d)

The funds invest primarily in stocks which earn significant dividend income
Normally invests in corporate bonds, government securities and liquid assets
Invest in stocks with higher growth potential
These funds generate returns which closely resemble the performance of the stock market index both in terms of
risk and return

36. Choose the correct statement about the Trust Deed

a)
b)
c)
d)

IT shows the rights and obligations of the Manager, Trustee and unitholders
The SC is liable to structure the Trust Deed for each scheme launched by each UTMC
In the event the prospectus is not approved by the SC, the Trust Deed may be used as a replacement
An appointed Trustee is responsible for the issuance of the Trust Deed

37. Which of the following documents govern the operation of a Trust fund?
a)
b)
c)
d)

Prospectus
Trust Deed
Fund Managers report
Trustees Report

38. Unitholders rights include the following except,

a)
b)
c)
d)

Attend the Board of Directors meeting

Vote in unitholders meetings
To make queries (including complaints) to UTMC
Right to receive distributions of income

39. An investor receives 20% nominal return from his investment and his marginal tax rate is 20%. IF the annual inflation
rate is 10%, what is his effective return?
a)
b)
c)
d)

-10%
0%
6%
8%

40. Which of the following charges is the fee levied by the manager on the investors to cover the costs of distributing the
unit trust?
a)
b)
c)
d)

Management fee
Initial Service charge
Trustee fee
Repurchase fee

41. The lowest managers buying price allowable under the Guidelines on Unit Trust funds equals the _______________
minus the ______________.
a)
b)
c)
d)

NAV/unit, initial service charge

NAV/unit, repurchase fee
Repurchase price, management fee
Selling price, initial service charge

For the purpose of training only

42. To meet the challenges posed by the new sophisticated customers, PDUT must strive
to do the following except :
a)
b)
c)
d)

Maintain high ethical standards in their marketing

Fine tune their product knowledge
Hard sell
Acquire suitable professional qualifications

43. The following are ways to improve the service quality to customers except :
a)
b)
c)
d)

Making application forms and other documents easy to read and use
Informing the investors about processes involved in the purchase and how long these might take
Ensuring those involved in servicing clients are well-informed and are aware of the extent of their responsibilities
Keeping customers happy by hiding negative news from them

44. Which of the following are regulations affecting the UTMC?

a)
b)
c)
d)

Maximum exposure to any one group of companies

Maximum exposure in a single company
Maximum exposure in foreign markets
All of the above

45. In financial planning, people are assisted with the following except
I
II
III
IV
V
VI
a)
b)
c)
d)

Cashflow planning
Retirement planning
Contingency Planning
Family Planning
Investment Planning
Tax planning
I & IV
III & V
IV
IV & VI

46. Which of the following statements about financial planning is false

a)
b)
c)
d)

Short term volatility in returns will have a greater impact on long term investors than on short term investors
Generally, the older the investor, the lower the risk he can tolerate
The investors future financial goals have to be expressed in future value (in terms of tomorrows Ringgit
The most important thing in portfolio design is to put the clients needs and wants first

47. Which of the following is not a feature of an open-ended fund?

a)
b)
c)
d)

Units in circulation are flexible and will increase or decrease in size with every creation and cancellation of units
The prices of the UTS are based on demand and supply
The trust is not listed on a stock exchange
Sales and repurchases of the units are transacted directly with the UTMC

48. Name the features of the listed fund

I The prices fluctuate daily and are based on supply and demand
II The number of units is restricted once the investment is floated on the stock
exchange
III Sale and repurchase of units are transacted with brokers
IV Sale and repurchase of units are transacted directly with the fund
manager
a)

I & III

For the purpose of training only

b)
c)
d)

I, II & III
II & IV
I & IV

49. Fixed interest investments have a high negative correlation with equities meaning :
a)
b)
c)
d)

When the equity market is down, the return from fixed interest investments increases
When the equity market is up, the return from fixed interest investment will supersede the return from equity market
The risk element of fixed-income fund is higher than equities
The returns from equities are always greater than fixed interest investments regardless of the market situation

50. Name the first state unit trust fund which was open to non-Bumiputra investors
a)
b)
c)
d)

ASNITA
Amanah Saham Wawasan 2020
Dana Johor
Amanah Saham BSN

51. Since _______ EPF contributors have been allowed to withdraw part of their savings from Account 1 to invest in
approved financial institutions
a)
b)
c)
d)

1996
1995
1994
1993

52. The Prospectus of each scheme must contain the following information except :
I
II
III
IV
a)
b)
c)
d)

Investment objectives
Authorised investment
Fees and charges
Earning distribution

I, II and IV
IV only
All of the above
I and II only

53. An investor is receiving 15% nominal yield from his investment and his marginal tax rate is 10%. If the annual inflation
rate is 5%, what is the difference between the nominal yield and effective yield?
a)
b)
c)
d)

6.5%
8.5%
12.75%
13.5%

54. The management fee is used to :

a)
b)
c)
d)

cover management expenses

cover commission paid to PDUTs
create more rewards for investors
expand the size of the unit trust funds

55. The basic ways in which the performance of a Unit Trust scheme should be analysed is :
I
II
III
IV
V
a)
b)
c)
d)

Raw return
Annualised return
Returns after fees and charges
Performance Tables
Consistency

I & II
III & IV
IV only
All of the above

For the purpose of training only

10

56. According to the guidelines, the following are true except :

a)
b)
c)
d)

The initial offer period of any new fund must not exceed 21 days
The UTMC must provide every investor with a cooling-of right of not less than 6 business days
The UTMC must pay the proceeds of the repurchase of units to the unitholder within 10 calendar days of receiving
the repurchase request
The UTMC needs to publish the daily selling/buying/NAV prices in either a Malay or English newspaper

57. Why do marketing of unit trusts sometimes fail?

I

Product awareness potential investors are unaware of how unit trust can help to increase
worth
II NOT for me PDUT unable to identify needs of clients
III Some UTMCs have not performed well in relation to their peers
IV Some potential investors fear losing their capital in UTS just like shares,
compared with safe havens such as savings a/c and fixed deposits
a)
b)
c)
d)

their net-

I, II & III
II & IV
II, III and IV
All the above

58. The following statements are true except

a)
b)
c)
d)

Basically, liquidity means how fast the investor can sell her investment
To redeem their units, unit trust investors only need to fill-in a redemption form and submit it to the UTMC
There is no risk associated with unit trust investment
Dollar-cost averaging principle helps turning fluctuating prices to investors advantage

59. Which of the following are the principles stated in the Code of Ethics?
I
II
III
IV
V
VI
a)
b)
c)
d)

Honesty
Dignity
Integrity
Friendliness
Fair Dealing
Good Faith

I,II,III,V and VI
I,II,III,IV and V
I,III,IV, V & VI
II,III,IV,V and VI

60. Which of the following is not true regarding methods of investing in unit trusts?
a)
b)
c)
d)

Lump sum investment

Regular savings
Loan financing
None of the above

61. The manager of the unit trust has the following responsibilities except :
a)
b)
c)
d)

Calculation of unit prices

Distribution of income
Day-to-day management of the assets
Ownership of the assets of the trust

62. When a dividend is declared, the :

a)
b)
c)
d)

investment value of the unitholder is not affected

investment value of the unitholder falls relative to the dividend paid
dividend must be reinvested
investment value of the unitholder increases relative to the dividend paid

For the purpose of training only

11

63. It is important to maintain a liquidity buffer in the Unit trust scheme to cater for redemption. What is the usual form
whereby liquidity is held?
a)
b)
c)
d)

Cash and short-dated interest instruments

Cash and short term property
Cash and short term insurance
Cash and listed securities

64. The following is a document transacted between the respective parties. Which document is incorrect?
a)
b)
c)
d)

SC and UTMC = Guidelines on Unit Trust Funds

UTMC and PDUT = Fund Application form
FMUTM and PDUT = Statutory Declaration Form
PDUT and Investor = Risk Disclosure Statement

65. __________ is the price at which units are sold to the public. It includes the initial service charge.
a)
b)
c)
d)
e)

Offer price
Bid Price
Redemption price
Buying price
NAV

66. According to the Guidelines on Unit Trust Funds, the management company must set up a/an ________
a)
b)
c)
d)

Unitholder Committee
Investment Committee
FMUTM Committee
Agent Committee

67. It is the duty of the _____________ to prepare a prospectus before launching a fund
a)
b)
c)
d)

Securities Commission
FMUTM
Trustee
UTMC

68. All Unit Trust funds must be approved by :

a)
b)
c)
d)

Bank Negara
Securities Commission
Trustee
Management Company

69. Dollar-cost averaging is the principle of investing _________ amount of money at ________ intervals irrespective of
the price level.
a)
b)
c)
d)

equal, regular
equal, irregular
unequal, regular
unequal, irregular

70. If the NAV of a fund is $1.05, the buying price is $1.00, and selling price is $1.09, what is the amount that an investor
would receive if he wants to redeem his 10,000 units?
a)
b)
c)
d)

$9,800
$10,000
$10,500
$10,200

For the purpose of training only

12

71. Which of the following is not in the contents of a Prospectus?

a)
b)
c)
d)

information on the UTMC

potential risks of investing in unit trusts
management expenses ratio
forecast return of the fund

72. Mr. Wong has a balance of RM250,000 in his EPF account. What is the maximum amount that he can withdraw from
his EPF account to invest in a unit trust fund?
a)
b)
c)
d)

$20,000
$30,000
$40,000
$50,000

73. Applying the Rule of 72, what rate of return should you look for in order for you to double RM40,000 in 5 years?
a)
b)
c)
d)

5.2%
7.2%
14.4%
28.8%

74. A Unit trust fund declared a bonus issue of 1:2. IF the NAV of the fund cum bonus is RM180,000,000 and units is issue
cum bonus is 100,000,000 units what will be the NAV per unit ex-bonus?
a)
b)
c)
d)

$0.60
$0.90
$1.20
$1.80

75. Which of the following is not valid?

a)
b)
c)
d)

The Management company is responsible for sending all reports and notices to the unitholders
The Management company is not permitted to make any loans out of the investment funds to any parties
It is the duty of the SC to set-up an Investment Committee
The SC must approve members of the investment committee of a unit trust fund

76. A unit trust fund declared a gross dividend of 12 sen per unit. The NAV on cum- dividend is RM240,000,000 and units is
issue cum dividend are 200,000,000 units. What will be the NAV per
unit ex-dividend?
a)
b)
c)
d)

$1.13
$1.08
$2.28
$1.44

77. Which of the following is not an advantage of investing in Unit Trusts?

a)
b)
c)
d)

Diversification through a broad-based portfolio

Professional Fund management
Liquidity
Guaranteed return

78. What is NAV per unit?

a)
b)
c)
d)

Total value of the investment after deducting service charge

Ratio of the investment in fixed-income securities
NAV of the investment divided by the number of units in issue
Total units held by the scheme multiplied with the repurchase price

79. What is the first thing a PDUT must do when approaching a client?

For the purpose of training only

13

a)
b)
c)
d)

Go through the Prospectus

Explain what unit trusts are
Produce his authorization card
Complete a Risk Analysis

80. Which is the most likely benefit you will get with a diversified portfolio that includes stocks, bonds and money market
funds?
a)
b)
c)
d)

Higher returns than you get with a portfolio that is not diversified
The ability to balance both risk and return in achieving your financial goals
A guarantee that your portfolio will not suffer if the stock market falls
All of the above

For the purpose of training only

14

MOCK QUESTONS SET B

1.

FMUTM stands for:

A. Federation of Malaysian Unit Trust Managers
B. Federal Malaysian Unit Trust Managers
C. Federal of Malayan Unit Trust Managers
D. Federation of Malaysian Unit Trust Management

2.

The FMUTM council consists of how many elected members?

A. 12
C. 15
B. 10
D. 9

3.

What are open-ended Unit Trusts?

A. The units are listed and traded on the stock exchange.
B. The units are not listed in the stock exchange; sales and repurchase are transacted directly with the fund manager.
C. Transactions are through the stockbroker.
D. They are Islamic Unit Trusts.

4.

Who is empowered to regulate the unit trusts industry as well as having powers of prosecution and penalty where
breaches are known to happen?
A. Securities Commission
C. Fund Managers
B. FMUTM
D. Agents

5.
A.
B.
6.

What legal document is being used in the Unit Trusts industry

Sales and Purchase Agreement
C. Power of Attorney
The Deed
D. None of the above

High-risk investors may choose to invest in aggressive growth funds and others may consider investing in balance
funds. What are the factors that cause the investors to consider investing in balance funds?
I. Generally, the return is higher than equity unit trust
II. The portfolio consists of wider range of asset classes.
III. The portfolio of the fund is well balanced and thus reduces the risk
IV. The returns are guaranteed.
A.
B.

I & II
II & III

C. III & IV
D. All the above

7.

Which of the following statements is not valid?

A. One of the reasons why the percentage of the unit trusts NAV to market capitalization in Malaysia is comparatively
lower than some other countries like the US and UK is because the Malaysian government has a comprehensive
retirement accumulation plan known as EPF.
B. By increasing the professionalism and better marketing of the products by the fund management company, it will
stimulate the growth of the unit trust industry in Malaysia.
C. The concept of unit trust has been introduced in Malaysia since 1959. However the industry only witnessed its
rapid growth since 1990.
D. The Securities Commission was established as a body solely representing the unit trust industry.

8.

Investors normally used fixed deposit rates and share market index to assess the performance of their investment.
However, it can be misleading by only analyzing the statistics provided. What are the other factors that need to be
considered when assessing the performance?
I. Consistency
II. Risk Level
III. Fees & Charges
A.
B.

9.

I & II
II & III

C. I, II & III
D. None of the above

The purpose of prospectus is

A. To provide potential and existing investors with all the necessary information to make an informed decision.
B. To outline the market plan for the scheme.
C. To highlight the projected returns of the scheme.
D. To outline the profile of the target investors.

10. Which of the following investment instrument is historically best protection against inflation?
A. Stocks
C. Gold
B. Bond
D. Fixed Deposit

For the purpose of training only

15

11. Mr. A is holding 2,000 units of Fund ABC. The NAV of the fund cum-distribution is RM1.20, and the fund declares
RM0.10 distribution (assuming no taxes and charges). Upon the declaration, the Ex-D NAV is RM1.10, Ex-D buying
price is RM1.10, Ex-D selling price is RM1.15. Assuming Mr. A wants his distribution to be reinvested, and the
reinvestment price is the same as NAV, what is the investment value of Mr. A after the distribution?
A. RM2,400
C. RM2,300
B. RM2,420
D. None of the above
12. Based on Question 11, what is the units holding of Mr. A after the distribution declaration?
A. 2,200 units
C. 2,181.82 units
B. 2,011.23 units
D. 2,400 units
13. A decreasing MER stand for which of the following
A. The performance of the fund is getting worse.
B. The fund performance is getting better.
C. The Management Company is managing the total fees and expenses well.
D. The Fund Manager is reducing the annual management fee.
Questions 14 to 17, to be answered based on the following.
The published prices of Fund A were as follows: Date
12/08/99
13/08/99
14/08/99

NAV
0.95
0.94
0.96

Buy
0.95
0.94
0.96

Sell
1.00
0.99
1.01

14.

Based on historical pricing, Mr. Lee invested RM2, 000 in Fund A on 12/08/99, how many units is he going to get?
A.2,000 units
C. 2,020.20 units
B.2,105.26 units
D. 2,127.65 units

15.

Based on historical pricing, Ms. Tan redeemed 5,000 units of Fund A on 13/08/99, how much money is she going to
get back?
A.RM4,950
C. RM4,800
B.RM4,700
D. RM4,750

16.

Based on forward pricing, Mr. Lim invested RM4, 000 in Fund A on 13/08/99, how many units is he going to get?
A.3,960.40 units
C. 4,000.67 units
B.4,040.40 units
D. 4,166.67 units

17.

Based on forward pricing, Ms. Cheng redeemed 10,000 units of Fund A on 13/08/99, how much money is she going
to get back?
A.RM9,400
C. RM9,600
B.RM9,500
D. RM10,100

18.
A.
B.
19.

The prices are determined by demand and supply. This is one of the characteristics of: Income Fund
C. Open-ended Fund
Growth Fund
D. Close- ended Fund
Mr. Lee has totally RM100,000 in EPF A/C, how much he can withdraw to invest in unit trust fund?
A.RM20,000
C. RM1,000
B.RM2,000
D. RM50,000

20. The agency structure of the unit trust must not exceed _____ tiers.
A. 3
C. 5
B. 4
D. 6
21. As per requirement, the annual report of the scheme should include
I. Managers report
II. Trustees report
III.
Statement of assets and liabilities
IV.
Auditors report
A.
B.

I, II
I, III

C. I, II & III
D. All of the above

22. Which of the following is not the duty of the management company?

For the purpose of training only

16

A.

To maintain an accurate register of unitholders with information such as addresses, date of sales and purchase and
nationality of unitholders,
To keep adequate accounting records in relation to its operations and the investment operations.
To keep trustee informed of any investments or disposals, which the management company undertakes.
To appoint an approved company auditor for the fund.

B.
C.
D.

23. What is the main investment objective of Islamic Unit Trust Funds?
A. To match the investment returns of non-interest banking products and Takaful insurance.
B. To provide an investment opportunity for the Muslim investors to access to conventional banking, insurance and
financial services and products.
C. To generate consistent income, thus allowing the unitholders to pay for their zakat.
D. To invest in accordance to the Syariah Principles.
24. The investment of unit trust scheme in any class of security of any issuer must not exceed _____ of the security issued.
A. 10%
C. 20%
B. 15%
D. No limit
25. When was the first Malayan unit trust launched?
A. 1953
C. 1960
B. 1959
D. 1969
26. The Deed is to set out the formula to calculate the fees payable to:
A. Securities Commission and Bank Negara
B. Trustee and Manager
C. Trustee and Securities Commission
D. Manager and Securities Commission
27. The Manager should not hold more than ______of the total units of the trust fund in circulation at any time.
A. 10%
C. 25%
B. 20%
D. 30%
28. The Manager:
I.
II.
III.
IV.
A.
B.

must be incorporated in Malaysia

can also be the trustee of a fund
should be a subsidiary of a financial services institution or any other institutions approved by the Securities
Commission
should appoint an independent auditor to the fund

I, IV
I, III

C. II, III & IV

D. All the above

29. The legal document that sets out the obligations and rights of the trustee, manager and unitholders is called:
A.
B.
30.

Certificate
Prospectus

C. Deed
D. Agreement

A.
B.

The Federation of Malaysia Unit Trust Managers (FMUTM) was formed on______________.
August, 1992
C. September, 1994
August, 1993
D. August, 1994

A.
B.

Who owns the assets of a unit trust?

Investor
Trustee

31.

C. Fund Manager
D. Management Company

32. What are the major characteristics of a property trust fund?

I.
II.
III.
IV.
A.
B.

Property trusts invest in real property

Property trusts are listed on a stock exchange
The most common type of unit trust in Malaysia
Invest into share market
I & IV only
I & II only

C. I, II & II only
D. I, II & IV only

33. Securities Commission (SC) was established in which year?

A.
B.

1996
1993

For the purpose of training only

C. 1990
D. 1992

17

34. Under which act of Parliament, regulation of the unit trust is the responsibility of the Securities Commission?
A.
B.

Securities Commission Act 1993

Securities Industry Act 1983

C. Companies Act 1965

D. Trustee Act 1949

35. Why is the unit trust industry regulated?

A.
B.
C.
D.

To protect the interest of the unit trust Management Company.

To protect the interest of the unit trust scheme.
To protect the interest of the investing public
To protect the capital market

36. Why is it necessary to provide investment guidelines?

I.
II.
III.
A.
B.

Investment guidelines are created to protect the interest of unit trust management company
Investment guidelines are created to reduce the risk of loss for the investors
Investment guidelines are created to maintain the level of prudence and professionalism in the industry
II only
I & II only

C. II & III only

D. All of the above

Question 37 to 41 is to be answered based on the followings:

The NAV cum-distribution of Fund B is RM292,500,000 and units in circulation is 195,000,000. The fund declared
distribution of 15 cents per unit, and the manager is charging 5% service charge.

37. What is the NAV per unit Cum-Distribution?

A.
B.

RM1.50
RM1.35

C. RM1.45
D. RM1.60

38. What is the NAV per unit Ex-Distribution?

A.
B.

RM1.50
RM1.35

C. RM1.45
D.RM1.60

39. What is the Ex-D selling price of Fund B, if the sales charge is 5% rounding to nearest cent?
A.
B.

RM1.50
RM1.35

C. RM1.45
D. RM1.42

40. What is the investment value of Mr Ho before the declaration of distribution, if he is holding 60,000 units?
A.
B.

RM93,000
RM92,000

C. RM90,000
D. RM91,500

41. Assuming no tax, what is the investment value of Mr Ho after the declaration of distribution, if he is holding 60,000 units
and the distribution is to reinvest at NAV per unit?
A. RM93,000
C. RM90,000
B. RM92,000
D. RM91,500

42. Which of the following is incorrect?

A.
B.
C.
D.

PNB launched the 1st national bumiputra unit trust fund the Amanah Saham National (ASN) in 1981
The second national bumiputra unit trust fund the Amanah Saham Bumiputra (ASB) was launched in 1990
In the year of 1993, the Securities Commission Act was passed
The 1st unit trust company in Malaysia was formed in 1963

43. Which of the following is correct?

A.
B.
C.
D.

Initial Service Charge = Selling Price NAV

Redemption Charge = Selling Price NAV
Management Fee = Selling Price NAV
Trustee Fee = Selling Price NAV

44. Unit trusts in Malaysia are allowed to invest in the following, except:
A.
B.

Fixed income instrument

Stock

C. Commodity
D. None of the above

45. Regulation of the unit trust industry has been entrusted to ____
A.
B.

FMUTM
Bank Negara

C. Securities Commission
D. Trustee

46. Which of the following are expenses of a unit trust scheme?

For the purpose of training only

18

I.
II.
A.
B.

Management fees
Auditor fees
I & III
I

III. Trustee Fee

IV. Cost of sending reports
C. II
D. I, II, III & IV

47. _______ is not a return, but it created more units for investors.
A.
B.

Profit
Bonus issue

C. Distribution
D. Net income

48. _______ is a return declared to unitholders in the forms of cash.

A.
B.

Profit
Bonus issue

C. Distribution
D. Net income

49. According to guidelines on unit trust fund, if the financial year for a fund ended at 30 June, the annual report has to be
sent out by _________.
A. 15 July
B. 31 July

C. 31 August
D. 30 June

50. Generally, the volatility or risk element of _______ is lower than that of equity funds like growth fund.
A.
B.

Property trust
Close-ended fund

C. Open-ended fund
D. Income fund

51. According to guidelines to the financing of unit trusts issued by SC on 30 Nov 1995, the maximum margin of finance for
purchases of unit trusts is ______
A. 50%
B. 33%

C. 67%
D. 90%

52. MER measures the _______ of the Management Company

A.
B.

Profitability
Efficiency

C. Management Fee
D. Income

53. According to the Guidelines on unit trust funds, a unit trust fund may invest in ____ up to 10% of its net asset value.
I.
Unlisted securities of a Malaysian issuer
II.
Share capital of any single issuer
III.
Collective investment scheme
IV.
Financial futures (for hedging purpose only)
A.
B.

II,
II, III

C. I, II & III
D. All of the above

54. Which of the following statement is valid?

A. The daily selling and repurchase prices for units are to be determined by the management company
B. The management companies are not allowed to impose more than 10% of service charge
C. The initial offer period of a unit trust fund must not exceed 30 days
D. The proceeds of redemption must be paid to the unitholder within 14 days according to the Guidelines on Unit Trust
Funds
55. Investment benchmarking is
A. Fund management objective that selects securities based on a specified Stock Exchange Composite Index
B. Standard measures when assessing investment performance
C. Shifting investment portfolio from stocks to fixed-income securities
D. A strategy that entails buying low and selling high
56. According to the Guidelines on unit trust funds, the investment in foreign securities is subject to _____ of its net asset
value.
A. 10%
C. 20%
B. 15%
D. None of the above
57. Mr Ganesh has RM500,000 and wants to know how long it would take to double his money at the earning rate of 7.5%
p.a.
A. 1.2 years
C. 4.8 years
B. 2.4 years
D. 9.6 years
58. What is the rate of return Mr. Ganesh should look for in order for his investment of RM500,000 to double in 5 years?
A. 5.2% p.a.
C. 14.4% p.a
B. 7.2% p.a.
D. 28.8% p.a.
For the purpose of training only

19

59. According to the Guidelines on Unit Trust Funds,

I.
Investment of any unit trust scheme in foreign Securities must first receive the approval of Bank Negara
Malaysia and the Securities.
II.
Investment of the scheme in Unlisted Securities must not exceed 10% of the schemes NAV.
III.
Investment of the scheme in other collective investment schemes must not exceed 10% of the schemes NAV.
IV.
Investment of the scheme in futures contracts must not exceed 10% of the schemes NAV.
A.
B.

I & II
II & IV

C. I, II & III
D. All of the above

60. Which of the following statement is valid in regards to the declaration of unit splits of a unit trust fund?
A. The NAV of the unit trust fund will be increased
B. The NAV of the unit trust fund will be decreased
C. The number of units in circulation will be increased
D. The number of units in circulation will be decreased
61. A distribution of RM0.05 per unit has been distributed for Fund ABC. NAV cum distribution was RM1.20. Total number of
units in circulation before income distribution was 1,000,000 units. The fund charges a 5% initial service fee and a 3%
repurchase fee. What is the ex-distribution managers repurchase price??
A. RM1.10
C. RM1.19
B. RM1.21
D. RM1.12
62. If an investor secures the maximum margin of loan financing (as specified in the guideline on unit trust funds) for the
investment in unit trust and the amount of investment on his own is RM40,000, what will be his total investment (round
up to the nearest Ringgit value)?
A. RM19,701
C. RM81,212
B. RM59,701
D. RM121,212
63. Which of the following document need to be signed by investors who wish to apply for the loan financing to purchase
unit trusts?
A. Absolute Assignment
C. Letter of Administration
B. Risk Disclosure Statement
D. Letter of Undertaking
64. Under what circumstances, a Financier may exercise call margin?
A. When the value of the investment depreciates and the value of the liability of the investor increases
B. When the returns of the investment exceed the loan amount
C. When the investor liquidates the investment
D. When the investor tops up additional investment amount into the same account
65. Which of the following are expenses of a unit trust scheme?
I. Management fees & Trustee fees
II. Auditor fees
III. Cost of sending out reports to unitholders
IV. Cost of issuing distribution warrant
A.
B.

I, II, III
I, II, IV

C. I, III & IV
D. All of the above

66. The main duty of the trustee is to protect the interest of the unitholder. If the trustee was to discover that the operation
of the fund does not comply with the terms and conditions stipulated in the deed, the trustee must then report to
A. Securities Commission (SC)
B. Ministry of Domestic Trade & Consumer Affair
C. Bank Negara Malaysia
D. Ministry of Finance
67. A unit trust scheme must appoint an investment committee in which the role of the investment committee of the scheme
is:
A. To formulate, implement and monitor the investment management policies of the scheme
B. To pool resources together in order to meet the request for redemption
C. To formulate the rules and regulations of the unit trust industry
D. To advise the Syariah Committee on how to invest in stock market
68. One of the unit trust fund features is
A. When the interest rates increase, the return from unit trust fund will also increase

For the purpose of training only

20

B.
C.
D.

The unitholders do not have to look for buyers when they want to liquidate their investment as the fund manager
must repurchase from its unitholders
Lump sum investment is generally less risky than dollar-cost averaging investment method
An index fund serves as a benchmark for all the unit trust funds

69. For the period of 1 January 1999 to 30 December 1999, the expenses incurred by the fund were:
Management fee
Trustee
Auditor fee
Bank charges & others

:
:
:
:

RM50,000
RM10,000
RM3,000
RM8,000

The average fund size is RM5,000,000. Please calculate the Management Expense Ratio (MER)
A. 1.42%
C. 1.3%
B. 1.5%
D. 2%
70. When comparing the performance of the fund over a period of time, a decreasing MER will indicate that
A. The UTMC is not managing the total fees and expenses well
B. The UTMC is managing the total fees and expenses well
C. The UTMC did not meet its investment strategy
D. Theres no effect to the fund
71. These are the responsibilities of unit trust managers, except:A. Manage the assets
B. Calculate NAV
C. Distribute income.
D. Own all the assets
72. Which of the following is/are the benefit(s) of unit trust?
A. Ready access to funds
C. Professional Management
B. Spread of risk
D. All of the above
73. All assets of the unit trust scheme are held in the name of __________ for safekeeping.
A. Trustee
C. Investment Committee
B. Unitholder
D. Unit Trust Management Company
74. Formed in 1993, ___________ provide a common platform for unit trust management companies to discuss issues
relating to the unit trust industry.
A. FMUTM
C. ROC
B. SC
D. UTMC
75. Under the Guidelines of Unit Trust Funds require each Unit Trust Scheme (UTS) to have prospectus. This document
must be updated or revised every:
A. 6 months
C. 12 months
B. 8 months
D. 24 months
76. NAV of PCK Fund before distribution declared was RM0.85. The distribution pay out 5 sen and unit split of 2:25. What
is the NAV per unit after distribution and unit split? (Round to near 3 decimal points)
A. RM0.737
C. RM0.787
B. RM0.741
D. RM0.751
77. Name the first bumiputera unit trust fund by PNB:
A. Amanah Saham Nasional
C. Amanah Saham Wawasan 2020
B. Amanah Saham Bumiputera
D. Amanah Saham Malaysia
78. Fund X strives to achieve income or a combination of both income and growth. It invests primarily in stocks that earn
significant income distribution. Which category of this fund belongs to?
A. Index fund
C. Income Fund
B. Bond fund
D. Growth fund
79. The role of a Fund Manager includes the following, except:
A. Prepare all notices and reports to be issued to unitholders
B. Arranges for audit of the trusts accounts
C. Acts as the custodian of the fund
D. Promotes the unit trust scheme

For the purpose of training only

21

80. The trustee:

I. is an independent company approved by the ministry
II. ensure that all the terms of the Deed are followed
III. appoint the independent auditor for the fund
IV. is the custodian for the fund
A.
B.

I, II, III
I, II, IV

For the purpose of training only

C. All of the above

D. None of the above

22

MOCK QUESTIONS SET C

1.

What is the purpose of the prospectus?

A. To provide potential and existing investors with all the necessary information to make an informed decision.
B. To outline the market plan for the scheme.
C. To highlight the projected returns of the scheme.
D. To outline the profile of the target investors.

2.

On Tuesday, 2 December 2003, the published selling price per unit is RM0.84. The NAV per unit is RM0.80. The selling
price per unit at the end of the business day is RM0.88. An investor would like to invest RM15, 000 on the same day.
How many units will he get based on forward pricing?
A. 17,045.45 units
C. 16,666.67 units
B. 13,500.00 units
D. 16,304.35 units

3.

Investors are allowed to withdraw from one of their EPF account for investment in unit trust. The account that they could
withdraw from is:
A. Account 1
C. Account 3
B. Account 2
D. Account 4

4.

There is a fee levied by the manager to the unit trust investors in order to cover the cost of distribution of unit trust. This
fee is
A. Management fee
C. Trustee fee
B. Initial service charge
D. Repurchase fee

5.

Which category of investment must sign a Risk Disclosure Statement?

A. Investment purchased with huge amount of cash.
B. Investment purchased repeatedly via Regular Saving Plan.
C. Investment purchased via Loan Financing
D. EPF investment scheme

6.

Which of the following information can be found in the prospectus of a unit trust scheme?
I.
Investment objectives.
III. Fees & charges
II.
Authorized investments.
IV. Trust expenses
A.
B.

I, II & III
I & III

C. I, III & IV
D. All of the above

7.

Which of the following factors should be taken into consideration before investing in unit trusts?
A. Fees & charges incurred
C. Risk of investing
B. Investment objective
D. All of the above

8.

Assuming an investor is practicing the principle of Dollar Cost Averaging Principle.

Given the following data, calculate the average cost per unit for the investor (round up to the nearest 1 cent).
Date
Mar 2002
April 2002
May 2002
A.
B.

9.

Selling price
RM0.80
RM0.91
RM0.83

RM 0.80
RM 0.92

Investment amount
RM1000.00
RM1000.00
RM1000.00
C. RM0.84
D. RM0.96

Choose the correct statement.

I. The primary objective of a growth fund is growth of capital.
II. Income Fund seeks the lowest possible current income.
III. Islamic Fund is a unit trust, which invests in accordance with Syariah Principles.
IV. The main objective of balanced fund is to build capital & provide some income from a balanced mix of investment.
A. I, II & III
C. I, III & IV
B. II, III & IV
D. All of the above

10. An investor had invested a single amount of money in a scheme with the selling price RM0.75 per unit. Three years
late, he decided to redeem his investment at buying price of RM1.00 per unit and the total proceed is RM5, 760.00.
How much he invested three years ago?
A. RM 2,880.00
C. RM5,760.00
B. RM 1,920.00
D. RM4,320.00
11. If a fund performance is doing good this year,
A. Performance is better next year.

For the purpose of training only

23

B.
C.
D.

Performance is worse next year.

Performance is difficult to predict next year.
Performance is the same next year.

12. Based on the Guidelines of Unit Trust, how many days should set aside as cooling-off period?
A. Must not more than 6 business days.
B. Must not less than 6 business days.
C. Must be equal to 6 business days.
D. Must not equal to 6 business days.
13. Which of the following governed the operation of the Unit Trust Scheme?
A. Guidelines of Unit Trust Scheme
C. Deed
B. Securities Commission
D. All of the above
14. Investor A has a total investment of RM25,000 in a Unit Trust Scheme. Assuming he has borrowed up to maximum
margin of financing for his investment, how much he has borrowed?
A. RM16,750
C. RM69,909
B. RM44,776
D. RM14,776
15. Mr. Simon holds 5,000 units of Fund XYZ before unit split of 1:2 with an investment value of RM10, 000.00. After the
unit split issue, his Fund XYZ account will has
A. 2,500 units at investment value of RM10,000.00
B. 5,000 units at investment value of RM15,000.00
C. 7,500 units at investment value of RM15,000.00
D. 7,500 units at investment value of RM10,000.00
16. Which type of unit trust fund is most commonly found in Malaysia?
A. Property
C. Equity
B. Islamic
D. Fixed Income
17. The initial service charge is also known as
A. Up-front charge
B. Forward fee

C. Management fee
D. Annual charge

18. With the rate of return 4%, how long does it take from RM100, 000 to become RM200, 000?
A. 18 years
C. 19 years
B. 18.5 years
D. 17.5 years
19. The manager of a unit trust scheme has the following responsibilities, except
A. Own all the assets of the trust.
B. Day-to-day management of the assets.
C. Distribution of units.
D. Calculation of unit prices.
20. If given tax rate of 15% and inflation rate of 4%, what is the effective rate of return after tax and inflation? Assume that
the return rate is 10%.
A. 3.5%
C. 4.5%
B. 8.5%
D. 6.5%
21. A prospectus is
A. A document to provide all necessary information, which should be read by all prospective investors.
B. Prepared by the Investigating Accountant.
C. A legal document that outlines the rights and obligations of all parties involved in a unit trust fund.
D. A marketing document that outlines the marketing plan of a unit trust fund.
22. Investment benchmark is
A. Fund management objective that selects securities based on a specified Stock Exchange Composite Index.
B. A standard measurement for comparing investment performance.
C. Shifting investment portfolio from stocks to fixed-income securities.
D. A strategy that entails buying low and selling high.
23. For the repurchase of the unit trust investment, proceeds shall be paid within
A. 10 calendar days
C. 6 business days
B. 10 business days
D. Not more than 6 business days
24. The actual management fee charged or ranged of fees charged has to be disclosed in the of the respective Unit
Trust Scheme.
A. Deed
C. Marketing material

For the purpose of training only

24

B.

Prospectus

D. All of the above

25. What is the risk of an investor who directly investing in a small number of shares?
A. The investor is exposed to the risk of either making or losing large portion of his investments.
B. The investors benefit from diversification of portfolio.
C. The investor is able to consistently reap high returns from the investment.
D. It is easy for investor to select good company.
26. What is the main role of PDUT in marketing and distribution of unit trust funds?
A. To receive commissions.
B. To sell unit trusts without complete understanding of unit trusts investments
C. To advise on structure and types of unit trust funds.
D. To meet sales target.
27. The following guidelines are to be complied by management companies in respect of agency structure and size
EXCEPT
A. A Group Agency manager is not allowed to set up an agency office.
B. An agent is not allowed to conduct recruitment.
C. The number of tiers in an agency structure must not exceed 4 tiers.
D. The size of a Unit must not exceed 50 persons at all times.
28. Lump sum investment
Initial service charge
On-going management fee
Rate of return
A.
B.

: RM100, 000.00
: 5%
: 1.5%
: 10%

What is the value of the investment after 3 years?

RM88, 469.10
C. RM89, 469.10
RM100, 687.40
D. RM121,342.47

29. In 1980, RM0.10 could buy 4 sweets. But, now (2000), RM0.10 can only buy 2 sweets. What is the inflation rate for
these 20 years?
A. 4.5 %
C. 18 %
B. 3.6 %
D. 7.2 %
30. Generally, the forms of return from a unit trust fund are
I.
Distribution
III. Unit split
II.
Capital appreciation
IV. Interest
A.
B.

I & II
I, II & III

C. I, II & IV
D. All of the above

31. Which of the following body maintain the registration of unitholders?

A. SC
C. UTMC
B. FMUTM
D. Trustee
32. Which of the following is the investment belongs to Aggressive Growth Fund?
A. Money Market
C. Shares of technology listed in KLSE
B. Fixed Income Securities
D. Capital guaranteed life insurance
33. What are the responsibilities of UTMC?
I.
Process application forms for unitholders
II.
Custodian of assets
III.
Unitholders registration
IV.
Regulate unit trust industry
A.
B.

I & II
I & III

C. II & IV
D. I & IV

34. Which of the following responsible to appoint auditor for a unit trust scheme?
A. Trustee
C. FMUTM
B. UTMC
D. Accountant
35. Last year expenses for Chans family were RM20, 000.00. This year expenses were RM21, 400.00. Assuming the
inflation rate unchanged for next year, what is the amount of expenses estimated for next year?
A. RM22, 898
C. RM24, 255
B. RM23, 800
D. RM25, 255

For the purpose of training only

25

36. Which of the following is the best feature to highlight to the unitholders when going through the prospectus?
A. Key data
C. Investment objectives
B. Fund performance
D. All of the above
37. NAV of ABC fund before distribution declared was 103 sen. The distribution pay out is 6 sen and unit split is 5 units for
every 100 units. What is the NAV per unit for Ex-distribution and post-unit split? (Round up to the nearest 1 sen )
A. 92 sen
C. 99 sen
B. 100 sen
D. 117 sen
38. Amanah Saham Mara Bhd launched ________________ in _________
A. Mara Bumiputra Fund, 1974
C. Amanah Saham Mara, 1971
B. First Mara Bumiputra Fund, 1967
D. First Bumiputra Fund, 1965
39. Which of the following is not the committee in FMUTM?
A. Education & Conference
C. Investor Education
B. Tax & Accounting
D. Ethics & Compliance
40. Below are the advantages of investing in unit trust, except
A. Professional management
C. Liquidity
B. Diversification
D. No control of buying & selling of share market.
41. Dollar Cost Averaging Principle means
A. Regular investment with fixed amount of money.
B. Regular investment with fixed amount of units.
C. Regular investment with lowest amount of money.
D. Regular investment with lowest amount of units.
42. Below are closed-ended fund features, except
A. Property trust fund is not a closed-ended fund.
B. Prices fluctuate throughout the day from time to time.
C. Investors can only trade their units through exchange.
D. Listed fund is a closed-ended fund.
43. When was FMUTM set up?
A. 7 August 1993
B. 30 November 1995

C. 7 August 1995
D. 30 November 1993

44. Which of the following affect the effective rate of return?

I.
Gearing / Leveraging
II.
Taxation
III.
Inflation
A.
B.

I & II
II & III

C. I & III
D. All of the above

45. The contents of prospectus include

I.
Expiry date
II.
Investment objective
III.
Investment strategy
IV.
Transaction information
V.
Rules of unit trust industry
VI.
Authorized investment
VII.
Auditors report
A.
B.

I, II, III, IV, V

I, II, III, VI, VII

46. Management fee

Trustee fee
Auditors fee
Bank Charges & others

C. II, III, V, VI, VII

D. I, II, III, IV, VI
: RM32, 000
: RM 7,000
: RM 1,200
:?

How much are the bank charges & others, if given MER = 1.38% and average fund size = RM3, 111,500?
A. RM2,800.00
C. RM3,738.70
B. RM2,738.70
D. RM3,800.00

For the purpose of training only

26

47. Name the first totally Malaysian unit trust fund.

A. First Malayan Fund
B. Malaysian Investment Fund

C. First Malaysia Fund

D. Malayan Investment Fund

For question 48, 49 & 50.

On 25 April 2000,the status of Fund XYZ at the closed of business day is as below:
NAV
Units in circulation
Initial service charge
Pricing Method

: RM90, 000,000
: 70, 000,000 units
: 5%
: Forward

48. What is the selling price for Fund XYZ that will be published in the following day?
A RM 1.35
C. RM 1.45
B.RM 1.29
D. RM 1.39
49. If Miss A is preparing to invest RM35, 000 on 25 April 2000, how many units does she entitle to receive?
A. 26, 925.93 units
C. 26, 119.40 units
B. 25, 925.93 units
D. 25, 119.40 units
50. If Mr. B is selling 5,000 units on 25 April 2000, how much will he gets?
Assume that no repurchase fee is charge.
A. RM 6, 328.50
C. RM 6, 750.00
B. RM 6, 450.00
D. RM 6, 800.00
51. For unlisted unit trusts, the sales and repurchases of units are transacted with:
A. The stockbroker.
C. The trustee
B. The unit trusts fund manager.
D. The remisier
52. The following are the characteristics of Islamic Fund, except:
A. Islamic unit trusts need to invest in accordance with the Syariah Principle.
B. Investors have to obtain the approval from the Syariah Advisors before they are allowed to invest in an Islamic Unit
Trust.
C. Returns of the Islamic Unit Trust will avoid riba.
D. The stocks of Islamic Unit Trusts will exclude companies involved in activities, products or services related to
conventional banking, insurance, financial services, gambling, alcoholic beverage and non-halal food products.
53. Name the first state unit trust fund, which was open to non-Bumiputra investors.
A. Amanah Saham Pahang
B. Amanah Saham Wawasan 2020
C. Dana Johor
D. Amanah Saham BSN
54. Please choose the correct statement about the Deed for unit trust funds.
A. It shows the rights and obligations of the Manager, the rights and duties of the Trustee and the rights of the
Unitholders.
B. The SC is liable to structure the Deed for each scheme launched by each UTMC.
C. In the event that the SC does not approve the prospectus, the Deed may be used as a replacement.
D. An appointed Trustee is responsible for the issuance of the Deed.
55. To meet the challenges posed by the new sophisticated customers, PDUT must strive to do the following, except
A. Maintain high ethical standards in their marketing.
B. Fine-tune their product knowledge.
C. Hard sell
D. Acquire suitable professional qualification.
56. The statement below is about managing customers expectation. Which of them is not correct?
A. To manage customers expectation, the sales process has to include comments and a full explanation of the
various risks associated with investment in unit trusts.
B. We should raise our clients expectation about unit trust investment because it is essentially an investment channel
that promises high, extraordinary return.
C. In managing our clients expectations, we will need to let them know what exactly they are buying. We will have to
make them aware of both the benefits and risks in investing unit trusts.
D. If the customers expectations are met, they will most probably be satisfied.
57. According to the Guidelines on Unit Trusts, all of the below are true except

For the purpose of training only

27

A.
B.
C.
D.

The UTMC needs to publish only the daily selling price and repurchase price in daily major newspapers.
The UTMC must pay the proceeds of the repurchase of units to the unitholders at most within 10 days of receiving
the repurchase request.
The UTMC must provide every investor with a cooling off right of not less than 6 Business days.
The initial offer period of any new fund must not exceed 21 days.

58. The size of a unit of an agency must not exceed ____ persons at all time. A unit comprises of a Supervisor(defined as
the upper three tiers) and his/her downlines.
If Supervisor C already has 15 downlines in his/her unit, he/she can recruit another
_____ downlines.
A. 5034
C. 4934
B. 5035
D. No restriction.
59. Which of the following statements describes the roles of the Trustee?
A. Promotes the sale of units and provide repurchase facilities.
B. Issues the prospectus of the scheme.
C. Supervises the operation of the trust and to ensure that the objectives of the scheme are followed.
D. Ensures the fund manager provides guaranteed returns.
60. Which of the following is not suitable to be used as a benchmarking tool for unit trust investment?
A. KLIBOR
C. Unemployment rate.
B. KLSE-CI
D. KLSE Emas Index
61. Which of the following statements is not valid?
A. Generally, the portfolio of unit trust investment is determined by the fund manager.
B. A unit trust is an investment mechanism, which allows investors who share similar financial objectives to pool their
money.
C. The portfolio of investment is allowed to include only one asset class.
D. Unitholders do not directly purchase the securities. The ownership of the fund is divided into units.
62. The purpose of Financial Planning include
A. Ensure adequate income when one needs it.
B. Provide roadmap of financial objective.
C. Improve present & future lifestyle.
D. All of the above.
1.
A.
B.

Deed and Prospectus must be approved by

SC
C. UTMC
FMUTM
D. All of the above

2. The Principles of Code of Ethics include

I.
Honesty, Dignity & Integrity
II.
Fair Dealing
III.
Good Faith
IV.
Charming
A.
B.

I, II, III
I, II, IV

3.
A.
B.

When someone who thinks that market price will fall is call as ____ market.
Bull
C. Cow
Bear
D. Deer

4.
A.
B.

In general, which of the following is highly illiquid?

Unit trusts
C. Share
Fixed deposit
D. Property

5.
A.
B.

All assets of a unit trust scheme as held under the name of _______ for safekeeping.
Investment Committees
C. Fund Manager
Trustee
D. Unitholders

6.
A.
B.

The risk of financing in investment of unit trusts is/are

Interest rate fluctuate
C. Guaranteed return
Default of payment
D. A & B only

7.
A.
B.

The unit trust prospectus is prepared by

Unit Trust Management Company
Trustee

For the purpose of training only

C. II, III, IV
D. All of the above

C. Auditor
D. Securities Commission

28

8.
A.
B.
C.
D.

Which of the following is not the responsibility of the unit trust manager?
Provides repurchase facilities
Recommends the purchase and sale of assets.
Supervises the operations.
Services the unitholders.

9.

A unit trust fund declared a gross distribution of 10 sen per unit. The NAV cum distribution is RM250, 000,000 and
units in circulation = 200,000,000. What is the NAV per unit for ex-distribution?
RM1.15
C. RM1.50
RM1.13
D. RM1.30

A.
B.

10. An investor would like to invest in a fund which closely resembles the performance of stock market. Which fund
would you recommend to the investor?
A. Growth fund
C. Index fund
B. Income fund
D. Bond fund
11.
A.
B.
C.
D.

What is the meaning of forward pricing?

Transaction done based on the price, which will be determined at the end of the day.
Transaction done based on the price, which was determined yesterday.
Transaction done based on the price, which was determined at the opening of the stock market.
Transaction done based on the price, which will be determined at the beginning of the week.

12. Investor M has borrowed up to maximum margin of financing to invest in Fund ABC. Now, his total investment
amount equal to RM250, 000.00. So, how much he has forked from his own pocket to invest in it.
A. RM 150, 000
C. RM82, 500
B. RM 87, 500
D. RM167, 500

13.
A.
B.
C.
D.

The primary objectives of FMUTM may be summarized as follows, except

To set up as many unit trust companies as possible, so that investing public will have more options for selection.
To provide information, assistance and other services to its members.
To improve the regulatory, fiscal and legal environment for unit trusts.
To promote public awareness of the benefits and the risks of investing in unit trust.

14.
A.
B.
C.
D.

The following is (are) the common benchmarks for returns from unit trust investment.
Fixed deposit interest rate.
KLSE-CI
EPF dividend rate
All of the above.

15. Fixed-Income Unit Trusts mainly invest in

I.
Corporate Bonds
II.
Highly growth stocks
III.
Government Securities
IV.
Liquid Securities
A.
B.

I, II, III
I, II, IV

C. II, III, IV
D. I, III, IV

16.
A.
B.
C.
D.

Below are the minimum standards for registration of PDUT, except

Must be at least 18 years old.
Must possess at least Grade 3 Sijil Pelajaran Malaysia (SPM) or its equivalent as determined by the FMUTM.
Must not be found by the court or other competent authority to have acted fraudulently or dishonestly.
Must not be convicted of any criminal offence.

17. For loan financing, the distribution declaration will be

A. Given to Financial Institution
C. Given to Management company
B. Given to Investor / Borrower
D. Reinvest
18.
A.
B.
C.
D.

What is the purpose of unit-split?

To distribute income to the investors.
To create more units in order to lower the unit price so as to make the units more affordable to new entrants.
To fulfill the requirement specified by the FMUTM
To fulfill the requirement specified by the Securities Commission.

For the purpose of training only

29

MOCK QUESTIONS D
1.

What does MER of 1.60% per annum mean?

A) It means the fund carries an expense of RM16.00 for every RM1,000.00 of the average NAV of the fund during that
financial year.
B) It means the fund carries an expense of RM0.016 for every RM1,000.00 of the average NAV of the fund during that
financial year.
C) It means the fund carries an expense of RM1.60 for every RM1,000.00 of the average NAV of the fund during that
financial year.
D) None of the above.

2.

An investor would like to invest RM35,000 in AB Equity Fund. If he is taking the maximum margin of loan financing as
specified in the Guidelines on Unit Trust Funds, what will be the minimum amount that he has to prepare on his own to
invest in AB Equity Fund?
A) RM11,550
C) RM13,600
B) RM19,000
D) RM23,333
For question 3 to 6, please to the table below:The following are XYZ Fund prices at the closed of the respective business day.
Date
1 Dec 2003 (Mon)
2 Dec 2003 (Tues)
3 Dec 2003 (Wed)

NAV per unit

(RM)
0.9921
0.9903
0.9925

Buying Price
(RM)
0.9921
0.9903
0.9925

Selling Price
(RM)
1.0417
1.0398
1.0421

Assuming the company is adopting Forward Pricing policy and observes the minimum cooling-off period as stipulated in
the Guidelines of Unit Trust Scheme.

On 2 Dec 2003, Cik Rohana invested RM15,000 of her spare cash into the fund. How many units will she gets?
A) 12,325.55 units
C) 13,896.35 units
B) 14,425.85 units
D) 15,118.65 units

4.

Due to emergency, Cik Rohana needs to redeem all her investment in XYZ Fund. When is her last day to exercise her
cooling-off right?
A) 8 Dec 2003 (Mon)
C) 9 Dec 2003 (Tues)
B) 10 Dec 2003 (Wed)
D) 11 Dec 2003 (Thurs)

5.

Mr. Ramasamy, an existing unitholder redeemed his 23,450.60 units of XYZ Fund on 3 Dec 2003. How much proceeds
he will receive?
A) RM23,274.72
C) RM24,400.00
B) RM31,101.20
D) RM30,110.00

6.

If Mr. Ramasamy bought the above stated units at RM0.8825 exactly a year ago, what is his raw return of his
investment for the entire period?
A) 10.12%
C) 12.46%
B) 13.80%
D) 14.11%

7.

What is the rate of return an investor should look for in order for his/her investment of RM500,000 to become RM1
Million in 10 years?
A) 5.2% p.a
C) 7.2% p.a.
B) 14.4% p.a.
D) 28.8% p.a.

8.

Miss Lee bought 1,000 units of AA Fund offered by company XYZ. In fact, what has Miss. Lee bought?
A) 1,000 units of shares of Company XYZ.
B) 1,000 units of shares of a subsidiary company of Company XYZ, which carries the name of AA Fund.
C) 1,000 units of AA Fund, which is managed by Company XYZ and invested in a diversified portfolio as spelled out in
the Deed.
D) 1,000 units of AA Fund, which is managed by Company XYZ. In other words, the fund is invested in Company XYZ
and its subsidiary companies, as laid out in the Deed.

9.

Please compute the MER for XYZ Fund, given

Management fee
Trustee fee
Cost of printing annual report

For the purpose of training only

RM15,000
RM720
RM510

30

Cost of printing interim report

Auditor fee
Cost of appointing Syariah Committee
Other expenses incurred by the fund
Average fund size of Fund XYZ
A) 1.66%
B) 1.88%

RM510
RM200
RM8,000
RM5,000
RM1,320,000
C) 2.00 %
D) 2.27 %

10. If given tax rate of 18% and inflation rate of 3%, what is the effective rate of return after tax and inflation? Assume that
the return rate is 10%.
A) 3.5%
C) 5.2%
B) 4.5%
D) 6.2%

11. Mr. Chan invested in Fund P and he is investing regularly with the Dollar Cost Averaging Principle. Given the following
information, calculate the average cost per unit for Mr. Chan. (Round up to nearest 4 decimal points)
Date
Selling Price
Investment Amount
30 Sept 2003
RM0.6061
RM1,000
31 Oct 2003
RM0.6285
RM1,000
28 Nov 2003
RM0.6233
RM1,000
31 Dec 2003
RM0.6098
RM1,000
A) RM0.6168
B) RM0.6169

C) RM0.6170
D) RM0.6171

12. Encik Ramli holds 5,000 units of AB Fund before unit split of 1:5 with an investment value of RM18,000. After the unit
split issue, his investment account of Fund AB will consists of
A) 4,000 units at investment value of RM15,000
B) 5,000 units at investment value of RM21,600
C) 6,000 units at investment value of RM18,000
D) 7,000 units at investment value of RM21,600
For question 13 to 16, please refer to the following:NAV cum-distribution of PQ Fund is RM120,000,000 and units in circulation is 150,000,000 units. The fund declared
distribution of RM0.08 per unit, Initial Service Charge is 6%.
13. What is the cum-distribution NAV per unit of Fund PQ?
A) RM.8000
C) RM0.7000
B) RM0.7200
D) RM0.8200
14. What is the ex-distribution NAV per unit of Fund PQ?
A) RM0.8000
C) RM0.7000
B) RM0.7200
D) RM0.8200
15. What is the ex-distribution selling price?
A) RM0.7000
B) RM0.8480

C) RM0.8552
D) RM0.7632

16. An investor invested RM10,000 in PQ Fund after the declaration of distribution. How many units the investor will get?
A) 13,102.73 units
C) 11,792.45 units
B) 14,285.71 units
D) 11,693.17 units
17. An investor had invested lump sum in a scheme with the selling price RM0.5000 per unit. Three years later, he decided
to redeem his investment at buying price of RM0.8500 per unit and the total proceed is RM2,550. How much did he
invest three years ago?
A) RM 2,880.00
C) RM1,500.00
B) RM1,920.00
D) RM1,200.00
18. Lump sum investment
Initial service charge
On-going management fee
Rate of return

: RM80, 000.00
: 6%
: 1.8%
: 10%

What is the value of the investment after 10 years?

A) RM88, 469.10
C) RM89, 469.10
B) RM100, 687.40
D) RM165,382.84

For the purpose of training only

31

19. ABC Fund had declared a unit split of 1:4. The pre-unit split of NAV per unit was RM1.2000. Total units in circulation
before the split were 100,000,000 units. The fund charges a service fee of 5% per unit and repurchase fee of 1% per
unit. What is the managers post-unit split selling price?
A) RM1.008
C) RM0.9600
B) RM0.9984
D) RM1.2600
20. Net Asset Value of ACX Fund before distribution declared was 90 sen. The distribution pay out is 7 sen and unit split is
4 units for every 100 units. What is the NAV per unit after the distribution and unit split? (Round up to the nearest 1 sen)
A) 98 sen
C) 99 sen
B) 79 sen
D) 80 sen

For the purpose of training only

32

MOCK QUESTIONS SET E

1.

On 8th December 2003 (Monday), the published selling price of Fund XYZ is RM0.848 and buying price is RM0.800. On
the same day, the selling price at the closed of the business day is RM0.869 and buying price is RM0.82. Given the
above information, if an investor would like to invest RM20,000 on that day, how many units will he/she gets?
A) 23,014.96 units
C) 21,657.93 units
B) 22,253.87 units
D) 20,645.36 units

2.

In 1980, Tic Tac candy cost about RM0.70. But in year 2000, a box of Tic Tac already increased to RM1.40. What is the
inflation rate for these 20 years?
A) 4.5 %
C) 18 %
B) 3.6 %
D) 7.2 %

3.

Last year, the Wongs family spent about RM60,000 as family expenses and this they spent about RM63,000. Assuming
overall value of consumption remains unchanged, however the inflation rate increased to another 1%. How much
money do they need to spend for next year to maintain the same standard of living as this year?
(Round up to nearest 1 ringgit)
A) RM65,120
C) RM67,450
B) RM66,780
D) RM70,580

For Question 4 to 8, please refer to as stated below:Financial year end of Fund Z, 31 Oct 2001 :Net Asset Value
:- RM200 Million
Units in circulation
:- 300 Million
Service Charge
:- 6.5%
Income distribution
:- 4 sen per unit
Unit Split
:- 2 : 5
(Unit price round up to nearest 3 decimal points)
4.

What is the units in circulation after income distribution and unit split?
A) Unchanged
C) 380 Million units
B) 420 Million units
D) 530 Million units

5.

What is the NAV per unit ex-distribution and post-unit split?

A) RM0.667
C) RM0.627
B) RM0.476
D) RM0.448

6.

What is the Selling Price as at 31 Oct 2001?

A) RM0.456
B) RM0.710

C) RM0.477
D) RM0.668

7.

What is the Buying Price, assuming there is a repurchase of 1%?

A) RM0.444*
C) RM0.457
B) RM0.706
D) RM0.720

8.

An investor invested RM18,000 of his EPF money into Fund Z on 31st Oct 2001, how many units will he gets?
A) 37,735.85 units
C) 38,386.37 units
B) 37,278.49 units
D) 38,756.98 units

9.

What are the impacts to NAV and Units in circulation due to income distribution?
A) Both NAV and Units in circulation will increase.
B) NAV with increase and Units in circulation will decrease.
C) NAV will decrease and Units in circulation remain unchanged.
D) NAV will remain unchanged and Units in circulation will increase.

10. What are the impacts to NAV and Units in circulation due to unit split?
A) Both NAV and Units in circulation will increase.
B) NAV with increase and Units in circulation will decrease.
C) NAV will decrease and Units in circulation remain unchanged.
D) NAV will remain unchanged and Units in circulation will increase.
11. Dollar Cost Averaging principle is referring to regular investment with fixed amount of money. What is the average cost
per unit as at below? (Round up to nearest 1 sen)

For the purpose of training only

33

Date
Buying Price
Jan 2003
Feb 2003
Mac 2003

Selling Price
RM0.50
RM0.55
RM0.53

A) RM0.56
B) RM0.61

Investment amount
RM0.53
RM1,200
RM0.58
RM1,200
RM0.56
RM1,200
C) RM0.58
D) RM0.63

12. An investor has borrowed up to maximum margin of financing to invest into Fund BB. His total investment amount is
RM120,000. How much he has forked out from his own pocket to invest in it?
A) RM44,600
C) RM38,647
B) RM39,600
D) RM42,678
13. Given tax rate is 15% and inflation rate of 4% and estimated return rate of 11% what is the effective rate of return after
tax and inflation?
A) 5.35%
C) 8.75%
B) 6.92%
D) 7.05%
14. Management Fee
Trustee fee
Auditors fee
Bank charges and others

:?
: RM7,500
: RM2,800
: RM6,000

Average Fund Size

MER

: RM3,002,580
: 1.81%

Given the above information, please calculate the Management Fee.

A) RM36,387.30
C) RM38,046.70
B) RM37,098.40
D) RM39,365.40
15. What is the maximum offer period of a newly launched fund?
A) 7 days
C) 21 days
B) 14 days
D) 1 month
16. Cik Siti invested lump sum RM20,000 in Fund ABX 8 years ago. Assuming the fund is giving an average return of 10%
for the last 8 years. The fund is charging up-front fee and annual management fee of 6% and 1.6% respectively
What is the value of her investment after 8 years?
A) RM35,841.99
C) RM40,649.56
B) RM38,375.78
D) RM41,937.39
17. Miss Cheah has accumulated 12,000 units before unit split at the value of RM6,000. After the unit split of 1:4, she has
A) 12,000 units at the value of RM7,500
B) 9,600 units at the value of RM6,000
C) 12,000 units at the value of RM4,800
D) 15,000 units at the value of RM6,000
For question 18, 19 and 20.
On 25 April 2000, the status of Fund XYZ at the closed of business day is as below:
NAV
Units in circulation
Initial service charge
Pricing Method
(Round up to nearest 1 sen)

: RM80,000,000
: 85,000,000 units
: 5%
: Forward

18.What is the selling price for Fund XYZ that will be published in the following day?
A) RM 1.35
C) RM 0.99
B) RM 1.29
D) RM 0.87
19. Miss would like to invest RM20,000 on 25 April 2000, how many units is she
entitle to receive?
C. 20,202.02 units
C) 26, 119.40 units
D. 25, 925.93 units
D) 25, 119.40 units
20. If Mr. B is selling 5,000 units on 25 April 2000, how much will he gets?
Assume there is no repurchase fee is charge.
A) RM 3,890
C) RM 5,750
B) RM 4,700
D) RM 6,800

For the purpose of training only

34

MOCK QUESTIONS SET F

1.

is the first totally Malaysia unit trust fund launched by in

A. Malaysia Investment Fund, Asia Unit Trust Bhd, 1966
B. First Malaysia Fund, Malayan Unit Trust Limited, 1965
C. Malaysian Investment Fund, Asia Unit Trust Bhd, 1965
D. First Malayan Fund, Malayan Unit Trust Limited, 1959

2.

MER of Fund ABC is 1.71%, which means

A. Fund ABC carries an expense of RM1.71 for every RM1,000.00 of the average NAV of the fund during that
financial year end.
B. Fund ABC carries an expense of RM0.171 for every RM100 of the average NAV of the fund during that financial
year end.
C. Fund ABC carries an expense of RM171 for every RM100.00 of the average NAV of the fund during that financial
year end.
D. Fund ABC carries an expense of RM17.10 for every RM1,000.00 of the average NAV of the fund during that
financial year end.

3.

Mr. A would like to invest in a unit trust fund, which closely resembles the performance of KLCI. Which unit trust fund
would you recommend to him?
A. Growth fund
C. Index fund
B. Income fund
D. Bond fund

For question 4 and 5

Initial investment
Estimated average return
Ongoing management fee
Initial service charge
4.

: RM50,000
: 10% per annum
: 1.5%
: 5%

What will be the expected return for 5 years?

A. RM71,423.69
B. RM73,364.49

C. RM74,283.37
D. RM74,563.87

5.

Assuming the ongoing management fee increased to 1.8%. What is the expected value of investment in 10 years?
A. RM100,356.58
C. RM106,378.30
B. RM104,463.90
D. RM108,378.39

6.

The FMUTM council consists of ____ elected members.

A. eight
C. ten
B. nine
D. eleven

7.

Who are the parties of a unit trust scheme?

I. UTMC
II. Trustee

III. Unitholders
IV. Fund Managers

A. I & II
B. II, III

C. I, II & III
D. II, III & IV

8.

Date
Jan 2003
Feb 2003
Mac 2003

Selling Price
RM0.8520
RM0.8389
RM0.8635

Investment amount
RM1,000
RM1,000
RM1,000

What is the average cost per unit for this investor who invested regularly on monthly basis?
A. RM0.8513
C. RM0.8613
B. RM0.8515
D. RM0.8615
9.

Investors are allowed to withdraw from one of their EPF account for investment in unit trust. Which of the following is
true about EPF?
A. Account One with minimum RM100,000
B. Account One with minimum RM55,000
C. Account One with minimum RM55,000 and Account Two with minimum of RM10,000
D. Account One and Two with minimum RM55,000

For the purpose of training only

35

10. 5 years ago, Mr. Cheong bought his double storey house at RM150,000. Now, his house worth about RM300,000. His
house value has appreciated tremendously for the last 5 years. What is the percentage of capital appreciation of his
house?
A. 10.5%
C. 13.2%
B. 11.8%
D. 14.4%
11. NAV per unit of Fund A is RM0.95, Management fee is 1.6%, service charge is 5.5%, repurchase fee is 1% and Trustee
fee is 0.75%. Calculate the buying price of Fund A.
(Round up to nearest 3 decimal points)
A. RM0.930
C. RM0.954
B. RM0.941
D. RM0.962
12. On Thursday, 14 September 2000, the published selling price per unit was RM0.85. The NAV per unit was RM0.81. The
selling price per unit at the end of the business day was RM0.87. An investor would like to invest RM20,000 on the
same day. How many units that he/she entitled? (Based on forward pricing)
A. 17,647.06 units
C. 16,666.67 units
B. 23,500.00 units
D. 22,988.51 units
13 Which type of unit trust fund commonly found in Malaysia?
A. Equity funds
C. Bond funds
B. Islamic funs
D. Property trust funds
14 One of the features of listed funds is
A. The number of units is unlimited.
B. The prices are determined by the fund manager.
C. Listed funds are traded on a stock exchange.
D. None of the above.
15. Which of the following governed the operation of Unit Trust Scheme?
A. Guidelines of Unit Trust Scheme
C. Securities Commission
B. Deed
D. All of the above
16. During the financial end, Fund PCK declared unit split of every 15 units will be entitled for 2 free units. And also a
distribution of 5 sen. Before the declaration, NAV per unit of Fund PCK is RM1.01. If given the service charge of 5%
and repurchase fee of 1%, what is the NAV per unit after both unit split and distribution?
A. RM0.841
C. RM0.941
B. RM0.847
D. RM0.947
For question 17 to 20:On 31 July 2003, units in circulation of Fund ABC is 150,000,000 and net asset value of RM120,000,000. The fund declared
distribution of 10 sen. Service charge of the fund is 5% and there is no repurchase incurred.
17. What is the ex-distribution NAV per unit of Fund ABC?
A. RM0.700
C. RM0.900
B. RM0.800
D. RM1.000
18. What is the selling price of Fund ABC?
A. RM0.735
B. RM0.756

C. RM0.802
D. RM0.811

19. Miss Lau, an investor of Fund ABC for the past 10 years. She decided to redeem all her units to pay for her house
downpayment? What is her proceeds if she has 35,000 units in her unit trust account?
A. RM20,600
C. RM28,970
B. RM24,500
D. RM30,837
20. With the proceeds she received, what is her total return if she initially invested RM12,000 ten years ago?
A. 90.8%
C. 104.2%
B. 98.4%
D. 110.5%
21. The main purpose of the Guidelines on Unit trusts is to
A. Deal with strategic implication of interaction development to overall Malaysian capital market.
B. Protect and safeguard the interest of the investing public.
C. Protect and safeguard the interest of Unit Trust Management Company.
D. Ensure these involved in selling unit trust are able to make a decent living.
22. For unlisted unit trust, the sales and repurchase of units are transacted with
A. The Stockbroker
C. The Trustee

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36

B.

The UTMC

D. The Remisier

23. A unit trust that has a fixed number of shares that can be issued is known as
A. An open-ended fund
C. A closed-ended fund
B. A universal trust
D. A regional fund
24. The prospectus of a new UTS need to be approved by
A. Securities Commission
C. Unit Trust Management Company
B. Trustee
D. FMUTM
25. Unit Trust Management Company may charge a maximum rate of annual fee of
A. 1.5%
C. 1.8%
B. 1.6%
D. As permitted by the Deed of the UTS.
26. Distribution can be derived from the following sources:I) Capital gain
III) Interest income
II) Dividend income
IV) Management fee
A.
B.

I & III
II & III

C. I, II & III
D. All of the above

27. MER = _______?_________ x 100%

Average Fund Size
A.
B.
C.
D.

Total expenses incurred by the fund.

Average expenses incurred by the fund
Total fees & charges of the fund.
Average fees and charges of the fund

For question 28 to 30, refer to as stated below.

Mr. Lee invested at RM0.50 the first time. During the second investment, he invested 20,000 units at RM0.60. Later
on, he redeemed his investment at buying price of RM0.70 and the total proceed was RM17,500.
28. How many units does Mr. Lee gets during his first investment?
A. 5,000 units
C. 7,000 units
B. 6,000 units
D. 8,000 units
29. What is his initial investment amount?
A. RM1,500
B. RM2,000

C. RM2,500
D. RM3,000

30. What is the amount that he invested after the second transaction?
A. RM12,000
C. RM14,000
B. RM13,500
D. RM14,500
31. What is a unit trust scheme?
A. A form of collective investment that allows investors with similar investment objectives to pool their funds to be
invested in a single portfolio of securities managed by professional fund managers.
B. A form of investment that the units represent the ownership in a company.
C. A form of investment that resembles a loan scheme.
D. A form of investment scheme that allows investors invest in a diversified portfolio of securities with guaranteed
returns.
32. The following describe the features of Dollar Cost Averaging principles, except:
I.
A systematic approach for short-term goals depending on the market fluctuation.
II.
A systematic and regular investment of fixed amount of money irrespective of the unit price.
III.
It assures investors to gain more returns.
IV.
Over the long term, the average cost per unit of their entire investment will be reduced.
A.
B.

I, II, III
II, III, IV

C. II & IV
D. I & III

33. The prices of unlisted trust are based on the market supply and demand.
A. True
C. True for unlisted equity funds only
B. False
D. False for unlisted equity funds only
34. The sources of income for Property Trust Fund are

For the purpose of training only

37

A.
B.

Distribution and capital appreciation C. Rental income and capital appreciation

Dividend and interest income
D. Rental income and interest income

35. Which of the following are the Code of Ethics

I.
Honesty
II.
Friendly
III.
Integrity
IV.
Dignity
V.
Fair Dealing
VI.
Good Faith
A.
B.

I, II, III, V & VI

I, III, IV, V & VI

C. II, III, IV, V & VI

D. I, II, III, V & VI

36. For loan financing, declaration of distribution will be

A. Reinvested
C. Given to Financial Institution
B. Given to investor
D. Given to Trustee
37. Which of the following is not equity fund?
A. Aggressive Growth Fund
B. Index Fund

C. Income Fund
D. Fixed Income Fund

38. Which of the following is true about selling price?

A. Selling price = NAV per unit + Initial Service Charge
B. Selling price = Buying price + Initial Service Charge
C. Selling price = NAV per unit Initial Service Charge
D. Selling price = Buying price Initial Service Charge
39. Before unit split, Encik Ahmad has 100,000 units of Fund ABC. During financial year-end, Fund ABC declared unit split
of 2:7. How many units does Encik Ahmad has?
A. 128,571.43 units
C. 122,222.22 units
B. 177,777.78 units
D. Remain unchanged
40. An important part of increasing returns of a unit trust scheme is to borrow and invest more in stocks.
A. The above statement is true because it is a basic fundamental principle of investment.
B. This statement is not true because unit trust scheme are not allowed to borrow funds in order to finance its
investment activities.
C. This statement is true because in developing country economies, this is the only ways which fund managers can
guarantee positive investment returns.
D. None of the above.

For the purpose of training only

38

MOCK QUESTIONS BY CHAPTERS

A) HISTORY AND DEVELOPMENT
1.

The first unit trust company in Malaysia was established in the

a) 50s
b) 60s
c) 70s
d) 80s

2.

What is the name of the first national bumiputera unit trust fund?
a)
First Mara Bumiputera Fund
b)
Amanah Saham Nasional
c)
Amanah Saham Bumiputera
d)
Amanah Saham Dana Pertama

3.

Who manages the largest unit trust fund in Malaysia?

a)
Permodalan Nasional Bhd
b)
Kuala Lumpur Mutual Fund Bhd
c)
ASM Mara Unit Trust Management Bhd
d)
Asia Unit Trust Bhd

4.

What year did Permodalan National Berhad launch its first Bumiputra fund?
a)
1967
b)
1975
c)
1981
d)
1986

5.

Which is the first state-owned UTMC?

a)
Amanah Saham Mara Bhd b)
c)
Amanah Saham Pahang Bhd

6.

Malaysia introduced the unit trust concept in 1959 when a unit trust was first established by a
company called _____________.
a)
b)
c)
d)

7.

Amanah Saham Sarawak Berhad

d)
PTB Unit Trust Bhd

Amanah Saham Mara Bhd.

Malayan Unit Trust Ltd.
MIC Unit Trust Bhd.
Permodalan Nasional Bhd.

Name the first state unit trust fund that was open to non-Bumiputra investors
a)
b)
c)
d)

ASNITA
Amanah Saham Wawasan 2020
Dana Johor
Amanah Saham BSN

For the purpose of training only

39

B) FMUTM
1.

The Federation of Malaysian Unit Trust Managers was formed in the year
a) 1991
b) 1993
c) 1995
d) 1997

2.

What are the primary objectives of the FMUTM?

i)
To improve the regulatory, fiscal and legal environments for unit trust activities
ii)
To formulate sound and ethical business practices
iii)
To provide information, assistance and other services to its members
iv)
To promote public awareness of the benefits and the risks of investing in unit trust
a) i, ii & iii

b) ii, iii & iv

c) i, iii & iv

d) i, ii, iii & iv

3.

How many council members are there in the FMUTM?

a) 12
b) 10
c) 8
d) 6

4.

FMUTM has developed Understanding Malaysian Unit Trust to

a)
Help investors understand the Malaysian unit trust industry better
b)
Help investors choose the most suitable unit trust to purchase
c)
Enable PDUTs to acquire basic knowledge and skills relating to unit trusts
d)
Enable PDUTs to improve on their selling skills

5.

What is the Vision of the FMUTM?

a)
To formulate sound and ethical business practices
b)
To improve the regularity, fiscal and legal environment for unit trusts
c)
The enhance the prestige and reputation of member UTMCs both locally and
internationally
d)
To develop the unit trust industry as the preferred vehicle for savings and
retirement

6.

The FMUTM Secretariat was formed in

a)
1993
b)
1994
c)

1995 d)1996

7. Which of the following is not one of the committees of the FMUTM Council?
I
II
III
IV
V
a)
b)
c)
d)

Ethics and Compliance

Tax and Accounting
Education and Conference
Agency Training and Examination
Banquet and Functions
I & II
II only
V only
All of the above

8. The first Council President of FMUTM was

a)
b)
c)
d)

En. Soh Teck Toh, Steven

Y Bhg DatoMalek Manucam
Y Bhg Dato Kamaruddin Mohamed
En. Abdul Azlin Mohd Zabidi

For the purpose of training only

40

C) TRUSTEE
1.

The main role of the UTs trustee includes

i)
safeguarding investor funds
ii)
approving and monitoring all financial transactions
iii)
retaining the title documents of all assets
iv)
collecting all income on behalf of the Trust
a)
c)

2.

All of the above except (ii)

d)
None of the above

The role and duties of trustee would include:

i)
Custody of the UTSs assets
ii)
Monitoring UTMC investment policies are as described in the prospectus
iii)
Collection and distribution of UTs income
iv)
Ensure compliance to all the terms of Trust Deed
a)
c)

3.

All of the above except (I) b)

All of the above

i & ii
i, ii & iv

b)
d)

i & iii
i, ii, iii & iv

The trustee is responsible for reporting the financial conditions of the trust and to ensure the
following are adhered to :
i)
Trustees opinion on the Trustee Statement
ii)
In accordance with the limitations imposed on the investment power of the UTMC
iii)
Sending out Annual Report within three months of a financial year
a)
c)

i, ii & iii
i & iii only

b)
d)

i & ii only
ii & iii only

4.

The assets of the UTS are registered under which party?

a)
Trustee
b)
UTMC
c)
Securities Commission
d)
Majority unitholder

5.

If the UTMC has not acted in accordance to the Trust Deed and Guidelines, the Trustee should
report to
a) UTMC
b) Securities Commission
c) FMUTM
d) The police

6.

Which of the following describes the role of the Trustee?

a) Promotes the sale of units and provides repurchase facilities
b) Issues the prospectus of the scheme
c) Supervises the operation of the trust to ensure that the objectives of the scheme are followed
d) Ensures the fund manager provides guaranteed returns

For the purpose of training only

41

D) TRUST DEED
1.

What is the document that legally governs the relationship between investor, UTMC and trustee?
a)
Loan Agreement
b)
Guidelines on Unit Trust Funds
c)
Memorandum of Association
d)
Trust Deed

2.

The following are unitholder rights:

i)
Right to request any information either by mail or telephone
ii)
Right to call a unitholders meeting
iii)
Right to vote in unitholders meeting
iv)
Right to receive interim and final report
a)
c)

i & ii
All of the above

b)
d)

i, ii & iii
None of the above

3.

UTMCs can only invest in

a)
Securities and assets authorised by the Securities Commission
b)
Securities and assets authorised by the Trust Deed
c)
Unlisted securities and securities listed on the stock exchange
d)
Securities listed on the stock exchange

4.

Which document governs the operations of unit trust fund?

a)
Trust Deed
b)
Securities Commission Act 1993
c)
Securities Industry Act 1983
d)
None of the above

5. Which of the following is not among the rights of the unitholders?

a)
b)
c)
d)

Right to request information

Right to receive discounts from sales charge
right to call a unitholders meeting
liberty to make complaints against the agent &/or UTMC

6. Unitholders rights include the following except,

a)
b)
c)
d)

Attend the Board of Directors meeting

Vote in unitholders meetings
To make queries (including complaints) to UTMC
Right to receive distributions of income

7. Choose the correct statement about the Trust Deed

a)
b)
c)
d)

It shows the rights and obligations of the Manager, Trustee and unitholders
The SC is liable to structure the Trust Deed for each scheme launched by each UTMC
In the event the prospectus is not approved by the SC, the Trust Deed may be used as a replacement
An appointed Trustee is responsible for the issuance of the Trust Deed

E) BENEFITS OF UNIT TRUSTS

1.

Which is the most likely benefit you will get with a diversified portfolio that includes stocks,
bonds and money market funds?
a)
b)
c)
d)

Higher returns that you get with a portfolio that is not diversified
The ability to balance both risk and return in achieving your financial goals
A guarantee that your portfolio will not suffer if the stock market falls
All of the above

For the purpose of training only

42

2.

In unit trust investment, ________________ is the reward for taking risks

a)
b)
c)
d)

3.

liquidity
loss
greed
return

Which of the following is not a benefit of unit trust investments?

a) Guaranteed returns
b) Diversification
c) Liquidity
d) Professional Management

F) METHODS OF INVESTING
1.

Which of the following is true regarding dollar-cost averaging concept?

i) It is a systematic programme
ii) It can turn fluctuating prices to advantages
iii) It can be used over both short and long term period
a)
b)
c)
d)

i & ii
i & iii
ii & iii
i, ii & iii

2.

Two convenient methods of investing in unit trusts are

a) regular savings and by financing
b) lump sum purchases and by financing
c) regular savings and lump sum purchases
d) direct debit and cheques

3.

An investor has been investing using the dollar cost averaging concept. Calculate the average cost
per unit with the following information given (nearest cent):

a)
c)

Date of Purchase

Price

Amount
invested

Jan 2002

RM 1.00

1000

Feb 2002

RM0.98

1000

March 2002

RM1.12

1000

RM1.03
RM0.97

b)
d)

Working :
i) Calculate total units

ii) Answer

RM1.13
none of the above

Amount invested
price
Total amount invested
Total units

__________________

__________________

4. Dollar-cost averaging is the principle of investing _________ amount of money at ________ intervals
irrespective of the price level.
a)
equal, regular
b)
equal, irregular
c)
unequal, regular
d)
unequal, irregular

For the purpose of training only

43

5. Which of the following is not true regarding methods of investing in unit trusts?
a)
Lump sum investment
b)
Regular savings
c)
Loan financing
d)
None of the above

G) LOAN FINANCING
1.

When the financed unit trust investment is sold, this transaction occurs between :
a)
unit trust manager and the financier
b)
unit trust manager and the unitholder
c)
unitholder and the financier
d)
unitholder and the lawyer

2.

What document would show that the customer intending to finance their UT investment has been
made aware of the risk involved?
a)
The Trust Deed
b)
Risk Declaration Statement
c)
Risk Disclosure Statement d)
The Prospectus

3.

When an investor borrows funds from a finance company to purchase unit trust, which keeps
the unit trust certificate?
a)
Trustee
b)
Unit Trust management company
c)
Finance company
d)
Investor

4.

If an investor secures maximum loan financing for unit trust investment, and the
amount of investment on his own is $40,000, what will be his total investment?
a) $19,701
b) $59,701
c) $81,212
d) $121,212
Working :
Maximum loan financing allowed is 67% of total investment, so the investors own investment of $40,000 is 33% of
total investment. To obtain total investment :
$40,000 x 100
------------------ = $ 121,212
33

5.

An investor has invested a total of RM 200,000 in a unit trust fund. How much
has he obtained from the end-financier to finance his investment? Assume he has
obtained maximum loan.
a) $66,000
b) $134,000
c) $200,000
d) None of the above
Working :
Maximum loan financing allowed is 67% of total investment, so :
$200,000 x 67% = $ 134,000

For the purpose of training only

44

6.

An investor has RM20,000 in his bank account and wishes to withdraw it to invest in a unit trust
scheme. He intends to maximize his return through leveraging. What is the maximum loan amount
allowable under the Guidelines on Loan Financing?
a) $13,400
b) $20,000
c) $40,606
d) $60,606
Working :
Since you can obtain financing for 67% or two-thirds of total investment, the $20,000 is
33% of the whole investment.
i) Calculate the total investment amount :
$20,000 X 100

= $60,606

33
ii) Calculate maximum loan amount :
$60,606 X 67%

= $40,606

7.

The way to maximize ones exposure in growth assets such as unit trusts through borrowed funds is
called
a) Hedging
b) Diversifying
c) Spreading
d) Leveraging

8.

What are the drawbacks of obtaining loan to finance unit trust?

I The true cost of financing over a given period may not be known as the interest
rate fluctuates
II Premature redemption may affect the returns of the individuals investment
III The value of the investment fluctuates, thus giving rise to the possibility of
the investor earning greater returns
IV If there is a default in payment of the loan, the financial institution can
liquidate the investment without the borrowers consent
a)
b)
c)
d)

I & II
I, II & IV
II, III & IV
All of the above

9.

The role of the PDUT when an investor is interested to finance the unit trust investment is
a) Fully explain to the investor the risks involved in leveraging the investment
b) Highlight the projected returns as a means of comparing the returns with the cost involved
c) PDUT must sign the Risk Disclosure Statement
d) Encourage the investor to obtain up to the maximum margin of finance

10.

Which of the following statements is true of loan financing?

a) So long as the Risk Disclosure statement is signed, the PDUT can encourage his client to purchase the units
through loans
b) IF the investor has approached the PDUT with the idea of financing his purchase of units, the PDUT can
assume that he is aware of the risk and thus, does not need to explain on the risk the investor is taking
c) According to the Guidelines on Loan Financing released on 30 November 1995, the maximum margin of
financing is 60%
d) The Risk Disclosure Statement has to be signed by the investor who wishes to invest through loans

11.

Which of the following is not outlined in the Risk Disclosure Statement ?

a) The issue of margin calls or top-up of loan
b) The higher the margin of financing, the greater the potential for loss as well as gains
c) If interest rates rise, your total repayment amount will decrease
d) Returns for the unit trusts are not guaranteed

For the purpose of training only

45

12.

Which of the following is/are the purpose(s) of the Risk Disclosure Statement?
I

To highlight to the potential investor of the major risks involved with the loan
financing
II To protect the unit trust management companies in the event of dispute over
the returns that may fall below the expectations of the investor
III To encourage the potential investor to purchase the unit trust through loanfinancing
IV To assess the credit worthiness of the potential investor
a)
b)
c)
d)

I
I & II
III & IV
I, II & IV

13.

In loan financing, what is the rate of interest charged by the financier?

a) BLR + Managers selling price
b) BLR + Financiers marked-up margin
c) Managers selling price + financiers marked-up margin
d) Managers selling price only

14.

The first set of Guidelines on Loan Financing was issued on

a) 30th November 1994
b) 30th November 1995
c) 30th November 1996
d) 30th November 1997

For the purpose of training only

46

H) EPF
1.

Mr. Wong has a balance of RM250,000 in his EPF account. What is the maximum amount that he
can withdraw from his EPF account to invest in a unit trust fund?
a)
b)
c)
d)

$20,000
$30,000
$40,000
$50,000

Working :
) Calculate how much is in a/c 1
= $250,000 x __% =
ii) EPF investment = $____________ - $50,000 x 20%
2.

= $_______________

What is the maximum amount of EPF Mr. Naseem is allowed to withdraw for the purchase of unit
trust on a single withdrawal if his EPF account balance is as follows
Account 1
RM108,000
a)

Account 2
RM68,000

RM11,600

Working :
i)
ii)

b) RM 3,600

Account 3
RM28,000
c) RM 21,600

d) RM 13,600

EPF withdrawal entitlement = Balance in A/c __ less $50,000 x 20 %

$_____________ - $50,000 x 20% =$___________

3.

Since ________, EPF contributors are allowed to withdraw part of their money in Account 1 to
invest in unit trusts
a) 1995
b) 1996
c) 1997
d) 1998

4.

En. Ali has made a single withdrawal from his EPF a/c for investment into Unit Trusts. He has
withdrawn the maximum which amounts to RM 6,000. How much does he have in his Account 1 now?
a) RM 30,000
b) RM 50,000
c) RM 74,000
d) RM 80,000
Working :
Since En. Ali has withdrawn maximum, the $6,000 equals to __% of the balance in A/c 1 less $50,000.
i) To obtain the original balance in A/c
= $6,000 / __% + $50,000 = $________
b) Current balance = $___________ - $6,000 = $__________

For the purpose of training only

47

I) TYPES AND CATEGORIES OF UNIT TRUSTS

1.

Which of the following best describes fixed income funds?

a) The funds invest primarily in stocks which earn significant dividend income
b) Normally invests in corporate bonds, government securities and liquid assets
c) Invest in stocks with higher growth potential
d) These funds generate returns which closely resemble the performance of the stock market index both in terms
of risk and return

2.

Which of the following best describes an equity trust?

a)
These are trusts that are not listed on a stock exchange
b)
They invest mainly in government securities or liquid securities
c)
They invest mainly in equities or securities of listed companies
d)
They invest mainly in equities of unlisted companies

3.

Which of the following is not a feature of an open-ended fund?

a) Units in circulation are flexible and will increase or decrease in size with every creation and cancellation of
units
b) The prices of the UTS are based on demand and supply
c) The trust is not listed on a stock exchange
d) Sales and repurchases of the units are transacted directly with the UTMC

4.

Name the features of the listed fund

I The prices fluctuate daily and are based on supply and demand
II The number of units is restricted once the investment is floated on the stock
exchange
III Sale and repurchase of units are transacted with brokers
IV Sale and repurchase of units are transacted directly with the fund
manager
a)
b)
c)
d)

5.

I & III
I, II & III
II & IV
I & IV

Fixed interest investments have a high negative correlation with equities meaning :
a)
When the equity market is down, the return from fixed interest investments increases
b)
When the equity market is up, the return from fixed interest investment will supersede the return from equity
market
c)
The risk element of fixed-income fund is higher than equities
d)
The returns from equities are always greater than fixed interest investments regardless of the market
situation

For the purpose of training only

48

J) PROSPECTUS
1.

Before purchasing unit trusts, investors should read and understand the
a)
Trust Deed
b)
Prospectus
c)
Annual Report
d)
Bank Negara Malaysia Annual Report

2.

Which information is found in a prospectus?

i) Investment objectives
ii) Fees & charges
iii) Trust fees
iv) Trust expenses
a)
c)

ii & iii
ii, iii & iv d)

b)
i, ii & iv
i, ii, iii & iv

3.

The best way to go through a prospectus with a customer is

a)
To go through the identity of UTS, UTMC, Trustee & Syariah Advisor
b)
To focus on the benefits of unit trust investment
c)
To go through the Key Data
d)
To go through the Auditors Report

4.

Which of the following is not stated in the Prospectus?

a) Objectives of the fund
b) Potential risks of investing in unit trusts
c) Projected returns
d) Management expenses ratio

5.

How often should the prospectus be updated?

a) NO specific requirement
b) Every 3 years
c) Every 3 months
d) Every 12 months

6.

The Prospectus of each scheme must contain the following information except :
I
II
III
IV

Investment objectives
Authorised investment
Fees and charges
Investment strategy

a)
b)
c)
d)

I, II and III
None of the above
All of the above
I and II only

7.

It is a legal document that provides information on the management company and trustee,
investment objectives of the fund, potential risks of the product, fees and charges and dividend history. It must be
made available to all prospective unit holders. Which of the following best represents the above statement?
a) Trust Deed
b) Prospectus
c) Annual Report
d) Guidelines on Unit Trusts

8.

It is the duty of the _____________ to prepare a prospectus before launching a fund

a) Securities Commission
b) FMUTM
c) Trustee
d) UTMC

For the purpose of training only

49

K) TAX AND INFLATION

1.

An investor receives 20% nominal return from his investment and his marginal
tax rate is 20%. IF the annual inflation rate is 10%, what is his effective return?
a) -10%
b) 0%
c) 6%
d) 8%
Working :
i) Effective return = nominal return tax inflation
ii) = 20% - 4% tax (this is 20% of the 20% return) 10% inflation
= ___%

2.

An investor is receiving 15% nominal yield from his investment and his marginal
tax rate is 10%. If the annual inflation rate is 5%, what is the difference between the nominal yield and effective
yield?
a)
b)
c)
d)

6.5%
8.5%
12.75%
13.5%

Working :
i) 15% - 1.5% tax (10% of 15% return) 5% inflation = ____%
ii) Difference between nominal yield and effective yield :

= 15% - ___%
= ___%

3.

Tax and inflation are important when making investment decisions because
a)
they are closely monitored by the government
b)
they affect the effective return on the investment
c)
they increase the nominal return on the investment
d)
they decrease the nominal return on the investment

4.

What is the real value of assets?

a)
The value of assets that are tangible
b)
The value of assets after taxation
c)
The value of assets after inflation
d)
The value of assets after both inflation and taxation

5.

Is your nominal return on investment your effective return?

b) Yes. This is the actual increase in my purchasing power
c) Yes. However, the nominal return will be lower than the effective return
d) NO. I have to take into consideration the impact of tax and inflation. The higher the tax and inflation, the higher
my real return
e) No. I have to take into consideration the impact of tax and inflation. The higher the tax and inflation, the lower
my real return.

L) RULE OF 72
1.

An investor has $40,000 and wants to double it in 5 years. What rate of return should he look for?
a) 5.2%
b) 7.2%
c) 14.4%
d) 28.8%
Working :
i)

2.

Apply the Rule of 72 : 72 / 5 = ____%

Ahmad has RM 400,000 in his bank account. If the current inflation rate is 4 %, how long would it
take for his funds to be halved?

For the purpose of training only

50

a)
b)
c)
d)

12 years
16 years
18 years
20 years

Working:
i)
3.

Apply the Rule of 72 :

72/ 4 = 18 years

My son has RM1,000 in his bank account. He will invest this RM1000 in an
investment vehicle that yields a return of 8% per year. How long will it take for
the money to double?
a)
b)
c)
d)

9 years
14 years
36 years
125 years

Working
i)

Apply the Rule of 72 :

72 / 8 = 9 years

M) COST AND CHARGES

1.

_____ price is the price at which units are sold to the public. It includes the initial sales charge.
a) Offer
b) Buying
c) Redemption
d) Bid

2.

The management fee is used to :

a) cover management expenses
b) cover commission paid to PDUTs
c) create more rewards for investors
d) expand the size of the unit trust funds

3.

What are initial charges meant for?

a)
To reduce management fee
b)
To cover the cost of distributing unit trust
c)
To cover the trust fee
d)
All of the above

4.

If an investor is investing for the long term (for example 20 years), the impact of fee and charges
should not be overlooked because
a)
fees and charges is the deciding factor for the investment
b)
it will affect the after-cost investments compounding return
c)
the UTMC may be unreasonable in charging the fee
d)
the UTMC should not be charging fees other than initial charges

5.

.. is a charge based on GNAV of the fund paid by the unit trust holder to the fund
manager for ongoing management of the unit trust fund.
a) Trustee fee
b) Consultants fee
c) Management fee
d) Sales charge

6.

Which of the following charges is the fee levied by the manager on the investors to
cover the costs of distributing the unit trust?
a) Management fee

For the purpose of training only

51

b)
c)
d)
7.

Initial Service charge

Trustee fee
Repurchase fee

Calculate the MER with the information below

Initial Investment
Initial Charges
Management Fees
Trustee Fees
Fund Size
Auditors Fee
Bank Charges
Rate of return per annum
a) 0.43%

b) 1.10%

RM5,000
5%
RM25,000
RM5000
RM3,000,000
RM1,000
RM2,000
15%
c) 0.93%

d) 1.27%

Working :
i) MER = Fees + Recovered Expenses x 100
---------------------------------------------------Average ___________
ii)

Add fees & expenses :

= $___ + $___ + $___ + $___ x 100
------------------------------------------- = ____%
$3m

8.

Which of the following statements are true?

I
II

A newly launched UTS will have no MER value

MER = Fee + Recovered Expenses x 100
Average Fund Size
III Decreasing MER indicates that the UTMC is managing the fees and
expenses well
IV MER = Fee +Average Fund Size x 100
Recovered Expenses
a)
b)
c)
d)

None of the above

I, II and III
I, III & IV
III & IV

N) MEASURING PERFORMANCE
1. The basic ways in which the performance of a Unit Trust scheme should be analysed
is :
I Raw return
II Annualised return
III Returns after fees and charges
IV Performance Tables
V Consistency
a)
b)
c)
d)

I & II
III & IV
IV only
All of the above

For the purpose of training only

52

2.

Which of the following can be used as a benchmark for unit trust funds?
a)
KLSE
b)
Islamic Index
c)
FD rate
d)
All of the above

3.

Which of the following can be used as a benchmark for equity trust?

a)
The performance of KLSE b)
The performance of Bond Market
c)
RHB Islamic Index
d)
All of the above

4.

The Malaysian Unit Trust Funds Performance Table was introduced in

a)
1994
b)
1995
c)
1996
d)
1997

O) UNIT PRICING
1.

If the NAV of a fund is $1.05, the buying price is $1.00, and selling price is 1.09, what is the amount that an investor
would receive if he wants to redeem his 10,000 units?
a) $9,800
b) $10,000
c) $10,500
d) $10,200
Working :
i)

Redemption value = units x _________ price

ii)

10,000 units x ______________

= $___________

2.

The NAV per unit of a unit trust fund is RM 1.00. Mr. Muthu invested into the fund with a lump sum of RM24,000 at
the Selling Price of NAV plus sales charge of 5%. How many units would he be entitled to?
a) 24,000
b) 25,263.15
c) 22,857.14
d) none of the above
Working :
i) Calculate selling price
= NAV + Sales charge
= $1.00 + 5% = $1.05
ii) Calculate number of units
= ______________ / selling price
= $__________ / $1.05
= ____________ units

3.
Date
NAV
Units in circulation

ABC FUND
28/3/2002
$450 million
300 million

29/3/2002
RM 450 million
320 million

The service charge for ABC fund is 10% above the NAV per unit and the repurchase charge is 5 sen below
NAV/unit. If the selling price of ABC Fund is based on the historical pricing, what will be the selling price for a
unitholder who invested on 29/3/2002?
a) $1.45
b) $1.55
c) $1.65
d) none of the above

For the purpose of training only

53

Working :
i)
ii)

iii)
4.

Historical pricing is the closing price on the previous day, which is ___ / 3/ 02
Calculate NAV per unit based on the NAV on __________
= $450,000,000
-------------------= $______
____________ units
Add 10% service charge = $______ + 10% = $______

Referring to the question above, if the buying price of ABC fund is based on
forward pricing, what will be the buying price for a unitholder who redeemed on 28/3/2002?
a)
b)
c)
d)

$1.45
$1.55
$1.65
none of the above

Working :
i)
ii)

Forward pricing is the closing price on the transaction day, which is 28 / 3/ 02

Calculate NAV per unit based on the NAV on 28/3/02
= $450,000,000
-----------------

= $1.50

300,000,000 units
iii)
5.

____ 5 sen = $______

If the published price today quotes the NAV per unit as 0.75, what is :
i) the selling price if initial sales charge is 8%?
ii) the Units in circulation if the NAV is RM 150,000,000?
a)
b)
c)
d)

0.81, 150,000,000 units

0.69, 200,000,000 units
0.81, 200,000,000 units
0.70, 150,000,000 units

Working :
i)

0.75 + 8% = 0.81

ii)

NAV
----------------------- = _________ units
?

6.

What is NAV per unit?

a)
b)
c)
d)

7.

__________ is the price at which units are bought from the public. It includes the
redemption charge.
a)
b)
c)
d)

8.

Total value of the investment after deducting service charge

Ratio of the investment in fixed-income securities
NAV of the investment divided by the number of units in issue
Total units held by the scheme multiplied with the repurchase price

Bid price
Offer price
Selling price
NAV

The lowest managers buying price allowable under the Guidelines on Unit Trust
funds equals the _______________ minus the ______________.
a)
b)

NAV/unit, initial service charge

NAV/unit, repurchase fee

For the purpose of training only

54

c)
d)
9.

Repurchase price, management fee

Selling price, initial service charge

The Selling Price of a unit trust fund is RM 1.20 per unit. En. Maidin invested into the fund
with a lump sum of RM2,400. How many units is he entitled to?
a)
20,000
b)
2,000
c)
200
d)
None of the above
Working :
i) 2,400_ = 2000 units
$1.20

10.

Which of the following best describes forward pricing?

a)
it is the closing price on the day of sales/repurchase
b)
it is the opening price on the day of sales/repurchase
c)
It is the closing price on the day following sales/repurchase
d)
It is the price to be fixed by a forwarding agent

11.

UTMC uses forward pricing method when computing the selling and repurchase prices.
Assuming at 9:30 a.m. today, the NAV of the fund was RM 180,000,000.00 and units-in-issue was
200,000,000. At the end of the day the NAV has increased to RM 190,000,000.00 and units-inissue remain unchanged. If a customer wants to redeem today, how much is the repurchase price
per unit if no repurchase fee is charged and the repurchase price is at NAV/unit?
a)
RM 0.95 c)
RM0.99
b)
RM 0.90 d)
0.85
Working :
i)
ii)

NAV per unit = NAV / UIC

As forward pricing is being used, the NAV at the end of the day must be taken to compute the
NAV per unit
=

RM______________ = RM________
200,000,000 UIC

12.

Unitholders redeem units from the Unit Trust Managers at which price?
a) Selling price
b) Repurchase price
c) Net Asset Value
d) Forward price

For the purpose of training only

55

P) DIVIDENDS AND UNIT SPLITS

1.

A Unit trust fund declared a bonus issue of 1:2. IF the NAV of the fund cum
bonus is RM180,000,000 and units is issue cum bonus is 100,000,000 units what will be the NAV per unit exbonus?
a) $0.60
Working :

b) $0.90

c) $1.20

d) $1.80

Before you can calculate the NAV per unit, you need to calculate the number of units after bonus
i) Calculate total units (xbi)
= 100,000,000 units x ____%
= ________________ units
ii) Calculate NAV per unit
=

$180,000,000 / _______________ units

= $_______
2.

A unit trust fund declared a gross dividend of 12 sen per unit. The NAV on cumdividend is RM240,000,000 and units is issue cum dividend are 200,000,000 units. What will be the NAV per unit
ex-dividend?
a)

$1.13

Working :
i)

b) $1.08c) $2.28

d) $1.44

calculate dividend amount

= 200,000,000 units x 12cts = $24,000,000

ii)

less dividend amount from NAV

= $240,000,000 - $24,000,000
= $216,000,000

iii)

calculate NAV per unit

$_____________
= -------------------200,000,000 units
= $________

3.

An investor has 2000 units in Fund A. The NAV cum-dividend is RM 1.20 per unit. Fund A has
since declared a dividend of 10 sen per unit. What is the total value of her investment ex-dividend?
a)
b)
c)
d)

$2,200
$2,400
2,600
none of the above

Working :
i)

Calculate the NAV ex-dividend

= RM1.20 10 sen
= RM1.10

ii)

Calculate value of investment

= 2000 units x RM__________
= RM ___________

4.

The NAV for a unit trust fund is RM 180,000,000.00. Units-in-issue are 100,000,000. Assuming
the fund manager is charging a 10% initial service charge, how much is the selling price after a unit split of 1:4?

For the purpose of training only

56

a)
b)
c)
d)

$1.58
$1.13
$1.44
$1.98

Working :
i) To calculate the selling price, you must first calculate the NAV per unit

To calculate the NAV per unit you need 2 items :

NAV

Units in circulation

The NAV remains the same at RM 180,000,000

The units in circulation has now increased by 25% (1:4)

So, to calculate total units (xbi) :

100,000,000 units x 125%

125,000,000 units

ii) Calculate NAV per unit

=

$180,000,000
125,000,000 units

= $1.44
iii) Add 10% service charge
= $1.44 + 10%
= $1.58

5.

Which of the following statements is true after dividend declaration?

a)
b)
c)
d)

The NAV of the fund will decrease

The NAV of the fund will increase
The units in circulation will increase
The units in circulation will decrease

6.

When a unit split is done :

a) NAV falls
b) NAV rises
c) NAV per unit falls
d) NAV per unit rises

7.

Calculate the difference between old and new NAV per unit with the following
information:
Fund NAV
Units in circulation
Unit splits
a)
c)

RM0.50
RM 0.40 d)

: RM 50,000,000
: 100,000,000 units
: Unit Split of 1:4

b)
RM0.10
None of the above

Working :
i) Calculate old NAV per unit
RM 50,000,000
------------------------

= 50 sen

100,000,000
ii) Calculate new NAV per unit

For the purpose of training only

57

NAV remains unchanged at

RM 50,000,000
---------------------- = 40 sen

Units in circulation increased by 25,000,000 (1:4) = 125,000,000

iii) Calculate difference between old and new NAV per unit :
= 50 sen 40 sen = 10 sen

8.

When there are bonus issues and dividend payments,

a) Theres no effect on unit price
b) Theres an adjustment to unit price, usually upwards, then downwards
c) Theres an adjustment to unit price, usually upwards
d) Theres an adjustment to unit price, usually downwards

9.

Should a unit holder not claim his/her dividend by the stipulated period, the dividend would be
a) retained with the UTMC as unclaimed dividend
b) transferred to Bank Negara as unclaimed dividend
c) transferred to Securities Commission as unclaimed dividend
d) automatically reinvested

10.

The NAV cum-dividend for a unit trust fund is RM 150,000,000.00. Units-inissue is 100,000,000. If the dividend declared is 10 sen per unit and the fund manager is charging a 5% initial
service charge, how much is the selling price ex-dividend?
a)
b)
c)
d)

$1.47
$1.50
$1.40
$1.35

Working:

In order to calculate the selling price you need to calculate the NAV per unit and add the sales charge to it.

To calculate the NAV per unit, you will need the NAV (less dividend issued) and the UIC
i) calculate dividend amount
= 100,000,000 units x 10cts = $10,000,000
ii) less dividend amount from NAV
= $150,000,000 - $10,000,000 = $140,000,000. This is the NAV after dividend issue
iii) calculate NAV per unit ex-div
$140,000,000
= ---------------------- = $1.40
100,000,000 units
iv) add 5% service charge
= $1.40 + 5% = $1.47

11.

A UTMC declared a bonus of 1:4. If the NAV of the fund (xbi) is $160,000,000 and Units in issue (xbi) are
200,000,000 units, what was the NAV per unit (cbi)?
a) $0.60
b) $0.80
c) $1.00
d) $1.20
Working :

This question asks you to work out the price before the bonus units were issued.

So, you have to work out the units in circulation before the bonus units were issued (cbi).

Note that the bonus units do not affect the NAV which remains the same whether cbi or xbi, i.e.
$160,000,000.
i)

Calculate units in circulation cbi

= 200,000,000 units

For the purpose of training only

58

------------------------

= 160,000,000 units cbi

125% (because bonus units of 1:4)

ii)

Calculate NAV cbi

=

$160,000,000
-----------------------

= $1.00

160,000,000 units
12.

A UTMC declares a dividend of 5 sen per unit. The NAV ex-dividend is $100,000,000 and UIC ex-dividend are
100,000,000 units. What was the NAV per unit cum-dividend?
a) $1.00
b) $1.05
c) $0.95
d) None of the above
Working:

In this question, you are asked what was the price before dividend was issued (cum dividend).

So you have to add back the dividend that was paid to the NAV to calculate the price cum dividend.
i)

Calculate the total dividend that was paid

= 100,000,000 units x 5 sen = $5,000,000

ii)

Add to NAV ex-div

iii)

Calculate NAV per unit cum dividend

= $5,000,000 + $100,000,000 = $105,000,000 (NAV cum-div)

= $105,000,000
------------------

= $1.05

100,000,000 units

For the purpose of training only

59

Q) THE REGULATORY FRAMEWORK

1.

Which of the following statements is not true?

I A UTMC can only invest in securities authorized in the Trust Deed
II A UTMC is allowed to borrow funds to finance its investment activities
III A UTMC is not allowed to make any loans out of the investment funds of the unit trusts to parties
related to it
IV A UTMC is responsible for payment of all trustee-related expenses, including trustee fees
a)
b)
c)
d)

II
I, II and III
I, III & IV
II & IV

2.

Which of the following is not valid?

a) The Management company is responsible for sending all reports and notices to the unitholders
b) The Management company is not permitted to make any loans out of the investment funds to any parties
c) It is the duty of the SC to set-up an Investment Committee
d) The SC must approve members of the investment committee of a unit trust fund

3.

All investments of a unit trust fund are registered in the name of the ___________.
a) Trustee
b) Management Company
c) Securities commission
d) Unitholder

4.

All Unit Trust funds must be approved by _________________.

a) FMUTM
b) Bank Negara
c) Securities commission
d) Management company

5.

What does this statement mean : Unit trusts have the benefit of professional management?
a)
The investment committee only manages fund in excess of RM500 million
b)
The unit trust fund always meets its objective
c)
The returns of unit trust are guaranteed
d)
The investment committee is trained in the field of fund management

6.

Leveraging to purchase additional investments for the fund is not allowed because while there is potential for
upside in leveraging,
i)
there is attractive return to be provided
ii)
there is attractive return guaranteed
iii)
there is considerable risk involved
iv)
there is cost in a falling investment market
a)
c)

7.

i, iii & iv b)
i & iii

ii, iii & iv

d)
iii & iv

The fund manager is required to maintain a liquidity buffer to meet redemptions. The liquidity
buffer is usually in the form of
i)
cash
ii)
high yield bond
iii)
short dated fixed interest instrument
iv)
quoted share
a) i & ii
c) i, ii & iii

b) i & iii
d) i,ii,iii & iv

For the purpose of training only

60

8.

What is the minimum number of investment committee members required to be independent?

a)
one
b)
one-half
c)
one-third
d)
one-quarter

9.

Which of the following are allowed to vote in a meeting call by the UTMC on matter relates to the
UTS?
i)
unitholder
ii) UTMC
iii)
FMUTM
iv) Securities Commission
a)
c)

i only
i, ii, iii only

b)
d)

i & ii only
All of the above

10.

According to the Guidelines on Unit Trust Funds, the management company must set up a/an ___
a) Unitholder Committee
b) Investment Committee
c) FMUTM Committee
d) Agent Committee

11.

The manager of the unit trust has the following responsibilities except :
a) Calculation of unit prices
b) Distribution of income
c) Day-to-day management of the assets
d) Ownership of the assets of the trust

12.

According to the guidelines, the following are true except :

a) The initial offer period of any new fund must not exceed 21 days
b) The UTMC must provide every investor with a cooling-of right of not less than 6 business days
c) The UTMC must pay the proceeds of the repurchase of units to the unitholder within 10 calendar days of
receiving the repurchase request
d) The UTMC needs to publish the daily selling/buying/NAV prices in either a Malay or English newspaper

13.

UTMCs are required to hold capital to support its obligation. What statement correctly qualifies this capital?
i)
ii)
iii)
iv)

Commitment to the business of unit trusts

More capital means more PDUTs can be employed
The capital can be used in the case of negligent claims against the management company
The capital can be used for distribution of dividend

a) i & ii
14.

b) ii & iii c) ii & iv d) i & iii

Which of the following are regulations affecting the UTMC?

a) Maximum exposure to any one group of companies
b) Maximum exposure in a single company
c) Maximum exposure in foreign markets
d) All of the above

R) MARKETING AND DISTRIBUTION OF UNIT TRUSTS

1.

What are the minimum standards for registration of persons who sell unit trusts?
I must be at least 18 years old
II must possess at least Grade 3 SPM or its equivalent
III must not be convicted of any criminal offence
IV must pass the pre-registration examination
a)
b)
c)
d)

I & II
I, II & III
II, III & IV
All of the above

For the purpose of training only

61

2.

According to the Guidelines on Marketing and Distribution of Unit Trusts, the PDUT must display
the authorization card issued by ____________.
a) FMUTM
b)

Securities Commission

c)

Trustee

d)

Bank Negara

3.

Why are PDUTs required to register?

a)
To improve the overall sales of the unit trust industry
b)
To improve efficiency and professionalism of the unit trust industry
c)
To keep track on the number of PDUT in the unit trust industry
d)
To make sure that there is sufficient number of PDUT in the unit trust industry

4.

What is the name of the body that registers and administers PDUTs for the purpose of the
marketing and distribution of unit trusts?
a)
FMUTM b)
Securities Commission
c)
Bank Negara
d)
UTMC

5.

What are the channels UTMCs use to market and distribute unit trusts?
a)
Banks and finance companies
b)
Salaried sales forces
c)
PDUTs
d)
All of the above

6.

PDUTs are hired by

a)
FMUTM
b)
c)
Securities Commission

7.

UTMCs
d)
Head Hunters

Which is the reason why marketing of unit trust investments sometimes fail to produce sales and
business volume?
i)
Potential investors are unaware on how unit trusts can help to increase their net worth
ii)
Potential investors are unaware of their needs
iii)
Potential investors are fear of losing their capital
iv)
The poor performance of UTMC in relation to their competitors
a)
c)

i only
i,ii & iii only

b)
d)

i & ii only
i, ii, iii & iv

8.

What is the size limit of a UNIT?

a) must not exceed 50 persons
b) can be from 50 100 persons maximum
c) no limit to the size of a unit
d) none of the above

9.

Which of the following is the best party to handle queries from investors ?
a) PDUT
b) UTMC
c) FMUTM
d) SC

For the purpose of training only

62

S) CODE OF ETHICS / STANDARDS OF PROFESSIONAL CONDUCT

1.

Which of the following are the principles stated in the Code of Ethics?
I
II
III
IV
V
VI
a)
b)
c)
d)

Honesty
Dignity
Integrity
Friendliness
Fair Dealing
Good Faith
I,II,III,V and VI
I,II,III,IV and V
I,III,IV, V & VI
II,III,IV,V and VI

2.

Which values are important to the growth and image of the unit trust industry?
a)
Professionalism b)
Integrity
c)
Consistency
d)
All of the above

3.

Which guideline recognizes the importance of absolute moral ethical behavior?

a)
Guidelines on Property Trust Fund
b)
Guidelines on Unit Trust Fund
c)
Guidelines on the Marketing and Distribution of Unit Trust
d)
Guidelines on the Code of Ethics and Standard of Professional Conduct

4.

To meet the challenges posed by the new sophisticated customers, PDUT must strive
to do the following except :
b) Maintain high ethical standards in their marketing
c) Fine tune their product knowledge
d) Hard sell
e) Acquire suitable professional qualifications

5.

The following are ways to improve the service quality to customers except :
a) Making application forms and other documents easy to read and use
b) Informing the investors about processes involved in the purchase and how long these might take
c) Ensuring those involved in servicing clients are well-informed and are aware of the extent of their
responsibilities
d) Keeping customers happy by hiding negative news from them

T) SERVICING CLIENTS
1.

What is the first thing PDUTs should do when marketing unit trusts to customers?
a)
Explain the prospectus in detail
b)
Clarify customer needs and risk profile
c)
Introduce different types of unit trust
d)
Explain the importance of unit trust

2.

Making application forms and other document simple to read and use would
a)
improve service quality and increase the importance of UT industry
b)
improve service quality and decrease the importance of UT industry
c)
save time in explaining the risk involved
d)
create a short cut for FDUT to close deal

3.

Complaints should be dealt with in the following manner

a)
Ignored because the customer is fussy
b)
Tell the customer that unit trust advantages outweigh its disadvantages
c)
Re-directed to UTMC immediately
d)
Seen as an opportunity to serve customer better

For the purpose of training only

63

4.

When there are complaints, PDUT should

a)
ignore them
b)
respond quickly and with care
c)
refer the complaints to UTMC
d)
refer the complaints to Securities Commission

5.

Customers with complaints should direct them to their

a)
PDUTs
b)
UTMCs
c)
Trustees d)
FMUTM

6.

As the market and investors become increasingly sophisticated, the PDUT should actively
a)
hard sell to customer
b)
provide information during the sales period
c)
provide information and hard sell at all times
d)
provide information during and after the sales period

7.

Managers Report should include

a)
UTSs objective and policy
c)
economic review

8.

b)
d)

stock market review

All of the above

Major contents of an Annual Report would include

a)
Key Performance Data
b)
Trustees Report
c)
Managers Report
d)
All of the above

U) FINANCIAL PLANNING
1.

Financial planning is an integrated process encompassing

i) Cashflow planning
ii) Retirement planning
iii) Investment planning
iv) Tax planning
a)
c)

2.

3.

i & ii
i, ii & iii

b)
d)

i & iii
All of the above

In financial planning, people are assisted with the following except

I
II
III
IV
V
VI

Cashflow planning
Retirement planning
Contingency Planning
Family Planning
Investment Planning
Tax planning

a)
b)
c)
d)

I & IV
III & V
IV
IV & VI

Which of the following statements about financial planning is false

a) Short term volatility in returns will have a greater impact on long term investors than on short term investors
b) Generally, the older the investor, the lower the risk he can tolerate
c) The investors future financial goals have to be expressed in future value (in terms of tomorrows Ringgit
d) The most important thing in portfolio design is to put the clients needs and wants first

For the purpose of training only

64

Answers to MOCK QUESTIONS

SET A

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

B
C
A
A
A
B
A
B
C
B
A
B
C
D
D
C
B
A
D
D

21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

D
D
A
B
A
A
A
D
A
B
A
C
D
C
A
A
B
A
C
B

41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

B
C
D
D
C
A
B
B
A
C
A
B
A
A
D
D
D
C
A
D

61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80

D
B
A
B
A
B
D
B
A
B
D
A
C
C
C
B
D
C
C
B

A
B
B
A
B
B
D
C
A
A
A
C
C
A
B
A
C
D
B
B

21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

D
D
D
A
B
B
A
B
C
B
B
B
B
A
C
C
A
B
D
C

41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

C
D
A
D
C
D
B
C
C
D
C
B
D
A
B
D
D
C
D
C

61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80

D
D
B
A
D
A
A
B
A
B
D
D
A
A
C
B
A
C
C
C

SET B
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

For the purpose of training only

65

SET C

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

A
A
A
B
C
D
D
C
C
D
C
B
D
A
D
C
A
A
A

21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

A
B
A
D
A
C
A
D
B
A
C
C
B
A
A
A
A
B
C

41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59

A
A
A
D
D
B
B
A
B
B
B
B
C
A
C
B
A
A
C

61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79

C
D
A
A
B
D
B
D
A
C
A
C
A
C
A
D
D
A
D

20

40

60

80

A
D
C
A
B
C
C
C
B
D
B
D
A
C
D
B
A
A
B
C

21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

B
B
C
A
D
B
A
A
C
D
A
C
B
C
B
A
D
A
A
B

SET D

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

SET E

A
A
B
C
A
C
C
C
A
C
A
C
A
B
D
A
C
D
A
D

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

For the purpose of training only

SET F

A
B
B
B
D
C
A
A
C
D
A
B
A
C
C
A
D
C
A
B

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

66

A)

B)

C)

H
I
S
T
O
R
Y

T
R
U
S
T
E
E

D)
TRUST

E)
BENEFITS
OF UNIT
TRUSTS

F)
METHODS OF
INVESTING

G)
LOAN

H)
EPF

I)
TYPES &
CATEGORIES OF
UNIT TRUSTS

FI
NA
NC
IN
G

J)
PROSPECTUS

K)
TAX &

L)
RULE
IN
FL
AT
IO
N

&
D
E
V
T
1
2
3
4
5
6
7

A
B
A
C
C
B
C

M)
COSTS AND
C
H
A
R
G
E
S

1
2
3
4
5
6
7
8

B
D
B
C
D
C
C
A

1
2
3
4
5
6

C
D
B
A
B
C

1
2
3
4
5
6
7

N)
MEASURING
PERFORM
ANCE

D
C
B
A
B
A
A

1
2
3

O)
UNIT

B
D
A

1
2
3
4
5

P
RI
CI
N
G

P)
DIVIDENDS
AND
UNI
T
SPLI
TS

A
C
A
A
D

1
2
3
4
5
6
7
8
9
10
11
12
13

Q)
THE
REGUL
ATORY
FRAM
EWOR
K

A
C
C
D
B
C
D
B
A
D
C
B
B

1
2
3
4

A
A
B
C

R)
MARKETING
AND
DISTRI
BUTIO
N OF
UNIT
TRUST
S

1
2
3
4
5

B
C
B
B
A

1
2
3
4
5
6
7
8

S)
CODE OF ETHICS /
STANDARDS OF
PROFESSIONAL
CONDUCT

B
D
C
C
D
B
B
D

1
2
3
4
5

T)
SERVICING
CLI
ENT
S

C
A
B
D
D

1
2
3

U) FINANCIAL
PLAN
NING

10

10

10

11

11

11

12

12

12

13

14

D
C
A

Good Luck !

For the purpose of training only

67