1. The first set of Guidelines on Loan Financing was issued on :- 6.

6. The Net Asset Value of the fund is computed daily. This is to assess .....
A. 30th November 1994 A. The performance of other unit trust funds
B. 30th November 1995 B. The agent's commissions
C. 30th November 1996 C. The number of units in circulation
D. 30th November 1997 D. The real value of the assets of the scheme

2. Which of the following are the roles of the trustee? 7. Puan Wan has decided to withdraw of her savings to invest in unit trust. She would like to
I. To appoint an approved company auditor for the fund invest all of her money in a fund at one time and let it grow irrespective of the market
II. To calculate the trustee fee of the scheme condition. Whereas for Puan Anita, she has very little savings but every month she is
III. To ensure the proper accounts and financial records and reports are kept by the willing to cut down some of her expenses and put in the unit trust investment. Name the
management company respective ways, which they used to invest in the unit trust?
IV. To ensure that all the terms of the Trust Deed are followed A. Spot and Installment Plans
A. I, II, IV B. Lump Sum Investment and Regular Savings Plans
B. I, III, IV C. Lump Sum Investment and Contractual Plans
C. II, III, IV D. Fixed Investment and Installment Plans
D. All of the above
8. Which of the following statement is not valid?
3. All assets of a unit trust scheme are held in the name of the ______________ for A. The valuation and the determination of the selling and repurchase prices for units
safekeeping. must be carried out at least once each business day.
A. Investment Committee B. The management company must publish the selling price, repurchase price and net
B. Unitholder asset value per unit of the scheme daily in at least one National Bahasa Malaysia and
C. Trustee one National English Newspaper.
D. Fund Management Company C. The valuation and the determination of the selling and repurchase prices for units
are done by the trustee and must immediately notify the management company.
4. Which of the following are the expenses of a unit trust scheme? D. The period of the initial offer must not exceed 21 days.
I. management fees and trustee fee
II. Auditor fees 9. One of the unit trust features is ...
III. Cost of sending reports to unitholders A. When the interest rates increases, the return from unit trust funds will also increase
IV. Cost of issuing dividend warrant B. The unitholders do not have to look for buyers when they want to liquidate their
A. I, II, III investment as the fund manager must repurchase from its untitholders.
B. I, II, IV C. Lump sum investing is generally less risky than dollar cost averaging method of
C. I, III, IV investing.
D. All of the above D. An index fund serves as a benchmark for all the unit trust funds.

5. A unit trust fund declared a gross dividend of 12 sen per unit. The NAV on cum-dividend 10. Please calculate the MER for the period of 1 January 199X to 31 December 199X, the
is RM 240,000,000 and units in issue cum dividend are 200,000,000 units. What will be expenses incurred by the Fund were :-
the NAV per unit ex-dividend? Management fee : RM 35,000
A. RM 1.13 Trustee fee : RM 8,000
B. RM 1.08 Auditor fee : RM 2,000
C. RM 2.28 Bank charges & others : RM 5,000
D. RM 1.44 The average fund size is RM 10,000,000
A. 0.5% B. 1% C. 1.3% D. 2%

Set 3 / NSG Premier Consultants 1

11. Based on the Guidelines on Marketing and Distribution of unit trust, which of the A. Is is based on the repurchase price calculated at the end of trading day multiply with
following statements is not valid? the number of units sold by the unitholders.
A. Person registered with the management company and upon receiving the B. Is is based on the fund manager's selling price calculated at the end of trading day
authorization card issued by the management company, are allowed to start selling unit multiply with the number of units sold by the untitholders.
trust funds C. Is is based on the gross asset value of the fund divided by the number of units in
B. The registered persons must ensure that they bring along the authorization card circulation.
when visiting their prospect D. It depends on how much the unitholder is willing to dispose off their investment.
C. Investors who participate in loan financing scheme have to acknowledge the Risk
Disclosure Statement 16. Below are the areas that a fund management company can improve to better serve the
D. Without the prospectus a registered person is not allowed to market and/or distribute clients, except:
units A. Provide a channel of complaints
B. Regularly inform the unitholders on the latest fund performance
12. A registered person when dealing in unit trust must C. Constantly report the latest development in the company to the SC
I. Ensure that the fund proposed is suitable to the needs and not beyond the resources D. Ensures the unit trust outperforms the other unit trust funds in the market
of the customer
II. Decide on behalf of the unitholders to redeem their investment so as to realize the 17. The investment of the unit trust scheme in any class of security of any issuer must not
maximum return exceed __________________ of the security issued.
III. Encourage the customer to consider loan financing because that will help to reduce A. 10 % B. 15% C. 20% D. No limit
the customer's financial and investment burden
IV. Market and distribute unit trusts with the prospectus of the fund. 18. To uplift the professional marketing image :-
A. I, II I. PDUT must identify customer's needs and service those needs
B. I, IV II. PDUT must deliver a product which the customer's expectations
C. II, III III. PDUT must work against “over-promise and under-deliver”
D. III, IV IV. Multiple and alternative distribution channels need to be created
A. I, II & IV
13. As per requirement, the annual report of the scheme should include :- B. I, III & IV
I. Manager's Reports C. II, III & IV
II. Trustee's Reports D. All of the above
III. Statement of assets and liabilities
IV. Auditor's Reports 19. All the guidelines on distributing unit trust must be observed, except
A. I, II A. Marketing of distribution of units without a prospectus is prohibited by regulations
B. I, III B. A registered person should always conduct his dealings with due care, skill and
C. I, II, III diligence
D. All of the above C. A registered person must only use advertisements and/or promotional materials that
have been approved by the FMUTM
14. Which of the following is/are the benefit(s) of unit trust? D. A registered person should take every precaution to protect and preserve the
A. Ready access to funds confidentiality of investor information communicated to him
B. Spread of risk
C. Reduce the cost of investment 20. The selling price of units during the period of the initial offer should be determined by
D. All of the above _____________ and adequately disclosed in the prospectus of the scheme.
A. Guidelines on the Unit Trust Fund B. Trustee
15. When the unitholders want to redeem their units, how are their proceeds calculated? C. Securities Commission D. Management company

Set 3 / NSG Premier Consultants 2

21. Each unitholder is to be sent a copy of the financial report of the fund within _____ months
after the end of the financial period
A. One B. Two C. Three D. Four
22. One of the features of listed fund is :-
A. The number of units are unlimited
B. The prices are determined by the fund manager
C. Listed funds are traded on a stock exchange
D. Transactions are done between the fund manager and the investor
23. One type of equity unit trusts is “Islamic Fund”. What is the main investment objective of
this fund?
A. To provide regular income with less emphasis on capital growth
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 and thus allowing the unitholders to pay for their
zakat
D. To invest in accordance with the Syariah Principles
24. Which of the following statements is not valid?
A. One of the reasons as why the percentage of the unit trust 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
25. The role of the unit trust manager includes the following, except :-
A. Recommends the purchase and sale of assets B. Collect all incomes
C. Promotes the unit trust schemes D. Services the unitholders
26. Dollar-cost averaging is
A. A strategy that entitles buying low and selling high
B. A way to purchase unit trust funds and minimize the service charges
C. A systematic way of regular investment with fixed amount of money
D. A way to sell trust funds and to minimize the capital gains
27. Which of the following is not the advantage of investing in a unit trust scheme?
A. Diversification through a broad-based of portfolio
B. Professional fund management
C. Liquidity
D. Guaranteed return
28. In general, which of the following types of unit trusts is likely to depreciate the most when
the overall stock market falls?
A. Equity unit trust B. Money market unit trust
C. Fixed-income unit trust D. Property unit trust
29. “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
30. As the unit trust market becomes more competitive, which will be the best way ti create
more sources of prospects?
A. Send more leaflets and brochures to individual companies
B. Set up more branches
C. Advertise more frequently in the newspaper
D. Provide superior service to the existing customers, as new business comes from
repeated business or through the network of existing satisfied, happy customers
31. 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 marketing plan of the scheme
C. To highlight the projected returns of the scheme
D. To outline the profile of the target investors
32. How do the investors exercise their redemption right?
A. The process must go through a broker
B. They need to fill up th repurchase form and submit it to the fund manager, as the
fund manager is the ready buyer
C. they must look for suitable buyer and the fund manager will transfer the units
accordingly
D. The unitholders need to hold the units until maturity

Set 3 / NSG Premier Consultants 3

33. Some of the unit trust fund managers do charge a minimum amount of initial service B. The benefits of the dollar cost averaging principle is more significant in a
charge. What is the purpose of charging such fee? fluctuating market
A. Registration fee to participant in unit trust investment scheme C. Investors can benefit from applying the dollar cost averaging principle in the
B. Membership fee charged by FMUTM investment of unit trust schemes
C. To subscribe to the annual report of the scheme D. Dollar cost averaging principle is a way to obtain more units at a higher price
D. To cover the costs of distribution
39. In general, which of the following has the lowest risk?
34. The fund manager of the unit trust scheme is allowed to charge management fee A. Unit trust B. Fixed deposits
A. It is mainly to cover the management expenses incurred by the manager in managing C. Share D. Property
the funds
B. It is also known as advisory fee charged by the trustee 40. _________ is defined as spreading one's investment among many securities. It is an
C. This is the fee levied by the manager on the investor to cover the commission paid important method to reduce risk.
to the agents A. Dollar-cost averaging principle B. Liquidity
D. The fee is used to register the unitholders with the trustee C. Diversification D. Asset allocation

35. With regard to the sale of unit trust schemes .... 41. Which of the following are the reasons for providing regular fund financial report to
A. The investors must contribute to the capital of the management company before unitholder?
investing in the unit trust scheme I. To keep the unitholders informed
B. The management company must first engage an agency force before a scheme can II. It is statutory obligation
be established III. For the purpose of declaring the dividend
C. The management company must first obtain an approval from the Securities IV. To increase the MER of the fund
Commission before it can operate in the public domain A. I, II
D. The fund manager must first gather sufficient number of investors before a new B. II, III
scheme can be launched C. I, II, III
D. All of the above
36. What is NAV per unit?
A. It is the total value of the investment after deducting the service charge 42. The Malaysian Unit Trust Fund performance table compiled by Micropal highlights a few
B. It is the ratio of the investment in fixed-income securities area of concern which include :
C. It is the net asset value of the investment divided by the number of units in issue I. Rate of return over time
D. Total units held by the scheme multiply with the repurchase price II. Ranking
III. NAV
37. The composition of the net asset value of a unit trust scheme consists of the following :- IV. Selling & repurchase price
A. The cost pf advertisement published in newspaper, TV, radio, etc A. I, II
B. The assets and the liability of the management company B. I, III
C. The value of the equity investment, money market investment, uninvested cash, the C. II, III
cost in respect of the portfolio investment after deducting the management fee, trustee D. All of the above
fee and other administration expenses
D. All of the above 43. A client has RM 100,000 and how long would it take to double his money at an assumed
investment earning rate 12 % per annum?
38. Which of the following statement is not valid? A. 5 years B. 6 years
A. Dollar cost-averaging principle should be used over a long-term period in order to C. 7 years D. 8 years
maximize its benefits

Set 3 / NSG Premier Consultants 4

44. Unit Trust which invest in shares are a means of investment generally for the ......... A. Equity unit trusts B. Fixed income unit trusts
A. Short to middle term B. Short to long term C. Islamic unit trusts D. Money Market unit trusts
C. Middle to long term D. Undefined duration
52. After 1 January 1996, the maximum margin of finance for purchases of unit trust has been
45. In an open-ended unit trust, buying and selling are done ... fixed at
A. through the stock exchange A. exactly 90 % B. not more than 80 %
B. through the trustee of the fund C. not more than 67 % D. not more than 50 %
C. through the managers of the fund
D. through the persons dealing with unit trusts of the management company 53. “Rule of 72” is .........
A. Useful in determining and measuring the impact of inflation and compounding of
46. If an individual invests in unit trust fund, income derived from the investment comes returns
from .... B. To establish the loss in real value given an amount of funds and a given inflation
I. Interest Income rate
II. Dividend Equalization C. To establish how long it would take to double our money, given the sum of money
III. Initial service charge and annual management fee at a given interest rate
IV. Capital gain D. All of the above
A. I, Ii, III
B. I, II, IV 54. A client has RM 250,000 and wants an indication of how long it would take to double her
C. I, III, IV money at an assumed investment earning rate of 8 % per annum.
D. All of the above A. 9 years B. 10 years C. 11 years D. 12 years

47. The fund managers, who manage the unit trusts, purchase a wide range of investment
because
A. The wider the spread of investments, the less volatile the investment return will
B. The risk of investment will be reduced to zero as a result of diversification
C. The chances of selecting good performance stocks will increase
D. A & C
55. The unit trust loan financing Risk Disclosure Statement clearly outlines the risks involved
in the loan financing plan with the following information, except ....
A. The issue of margin calls or “top up” of loan
B. The margin of financing
C. Returns for the unit trusts are guaranteed in the up market
D. The service of loan repayment

48. The operation of the Trust is governed by a legal document called the ... 56. In the unit trust loan financing, what is the rate of interest charged by the financier?
A. Prospectus B. Trust Deed A. Based Lending Rate (BLR) + manager's selling price
C. Annual Report D. Interim Report B. Based Lending Rate (BLR) + financier's marked-up margin
C. Manager's selling price + financier's marked-up margin
49. The manager of a unit trust fund has the following responsibilities, except .... D. Manager's selling price only
A. Owns all of the assets of the trust B. Day to day management of the assets
C. The distribution of income D. The calculation of unit prices 57. The rights of an unitholders include .....
A. Cooling-off period of six working or business days
50. Which of the following is also called closed-ended fund? B. To make queries including making complaints to the UTMC
A. Islamic unit trusts B. Fixed income unit trusts C. Right to receive distribution of income
C. Property unit trusts D. State unit trusts D. All of the above

51. The objective of these unit trusts funds is to provide regular income with less emphasis on
capital growth

Set 3 / NSG Premier Consultants 5

58. An investor holding 5,000 units before 1:2 unit split issue has an investment value at RM A. The past investment performances of the unit trust scheme
7,500. After the unit split issue, he/she will ..... B. His/her qualifications or that of the management company he/she represents
A. Hold 2,500 units with investment value at RM 15,000 C. The products and/or its characteristics offered by the management company he/she
B. Hold 7,500 units with investment value at RM 7,500 represents
C. Hold 7,500 units with investment value at RM 15,000 D. All of the above
D. Hold 10,000 units with investment value at RM 3,750
66. All advertisements and/or promotional materials must be approved by ...
59. When a dividend is declared .... A. FMUTM B. Trustee
A. The investment value of an unitholder remains unchanged C. Securities Commission D. Bank Negara Malaysia (BNM)
B. The dividend can be reinvested at Manager's selling price
C. The investment value of an unitholder falls relative to the dividend paid 67. The process of deciding how your investment dollars will be split among various classes of
D. The investment value of an unitholder increases relative to the dividend paid financial assets such as stocks, bonds, and cash reserves is best described as ....
A. Dollar-cost averaging B. Asset allocation
60. When comparing the performance of a fund over a period of time, and the decreasing MER C. Investing D. Diversification
will indicate .....
A. The unit Trust Management Company (UTMC) is not managing the total fees and 68. The principal of applying the systematic and regular investment of a fixed amount
expenses well irrespective of the price level and works on the averaging cost principle of investment is
B. The Unit Trust Management Company (UTMC) is not managing the total fees and called ......
expenses well A. Dollar-cost averaging B. Asset allocation
C. Nothing at all C. Investing D. Diversification
D. The net asset value (NV) of the fund is increasing
69. Generally, a portfolio that has 80 % of its assets invested in growth stocks would be best
61. What is the percentage of the amount of EPF balance in excess of RM 55,000 to be suited for
invested in authorized unit trust? A. A college fund for a 18 year old
A. 10 % B. 15 % C. 20 % D. 30 % B. An individual retirement account for a 32 year old
C. An income producing portfolio for an 86 year old
62. Which of the following was established as a body to represent the unit trust industry? d. None of the above
A. FMUTM B. National Investment Committee
C. Danamodal D. Public Trustee 70. In general, which of the following unit trust funds is likely to decline the most when the
overall stock market falls?
63. Which of the following is not true concerning the Prospectus? A. Aggressive growth fund B. Growth and income fund
A. It is prepared by the Management Company and must be approved by the Trustee C. Bond fund D. Money market fund
B. It must be approved by SC before the unit trust fund is launched
C. It has t be renewed on an annual basis 71. Generally, during retirement, if investors epf to have a portion of their portfolio in equity
D. None of the above unit trust, it is because .....
A. They always provide excellent dividend income
64. All Provisional Registered Person Dealing Unit Trust (PDUT) must be registered with B. Their return usually outpace inflation over time
A. Unit Trust Management Company (UTMC) B. Securities Commission C. Historical returns show that stocks outperform bonds over the long term
C. FMUTM D. Trustee D. Both b and c

65. In order to maintain honesty, dignity and integrity, a registered person at all times must not
misrepresent or recklessly represent ....

Set 3 / NSG Premier Consultants 6

72. What is the most important benefit you get from creating a diversified portfolio that
includes stocks, bonds and money market funds?
A. Higher return than you get with a portfolio that isn't diversified
B. The ability to balance both risk and return in achieving your financial goals
C. A guarantee that your portfolio won't suffer if the stock market falls
D. All of the above
73. As you approach your investment goal, which one of the following statements is generally
most appropriate?
A. You should be willing to assume more risk with your investments
B. You should be willing to assume less risk with your investments
C. You can stop monitoring your investments
D. All of the above
74. Which of the following is not empowered to the Securities Commission?
A. offers guidelines and rules on the operational aspects of the unit trust industry
B. have the power to persecute and impose a penalty on breaches which have occurred
C. have powers over the unit trust scheme and management companies fund managers,
trustees and persons dealing with unit trusts
D. to set up foreign fund management companies
75. Which of the following is not the responsibility of the trustee?
A. look after the interests of unitholders by ensuring that the Manager follows the
conditions set out in the trust deed
B. run the trust
C. remove the Fund manager who ails to manage the trust effectively and follow the
conditions of the trust
D. charge a fee the services provided based on the value assets in a trust
76. In 1996, the Malaysian Unit Trust Funds Performance Table prepared by Micropal Asia
Limited was introduced. What is the purpose of the table ?
A. provide FMUTM with a means to keep track of the unit trust industry and to tap into
the fund manager's credibility
B. provide investors with a means to monitor and evaluate the performance of the
various unit trust scheme in Malaysia
C. enable the public to understand the fees and charges charged by unit trust companies
in Malaysia
D. provide person dealing with unit trust to maintain accurate records on the various
unit trust companies
unitholders are given the right to cancel their investment
B. the cooling-off right is exercised by calling for a refund of investment
C. the investor would receive the NAV or the repurchase price of units (whichever
higher) in the day of cancellation plus the amount of initial service charge and other
fees incurred
D. the investor will be protected from the risk of market movement if the investors
exercised the cooling-off right
78. The Guidelines on Unit Trust Funds was revised in 1995. The revision allowed
A. Stockbroking houses with a minimum RM 100 million paid-up capital to set up unit
trust management companies
B. Unit Trust management companies to manage EPF funds of investors having RM
50,000 and above in Account 1
C. Unit trust management companies to launch bond funds
D. Unit trust management companies to invest up to 10% of a NAV of a unit trust fund
in foreign securities
79. Choose the correct statements ......
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 a balanced fund is to build capital and provide some income
from a balanced mix of investment
A. All of the above
B. I, II, III
C. I, III, IV
D. III, IV
80. The Trust Deed is to set out the formula to calculate thee fees payable to ....
A. Securities Commissions B. Trustee and Manager
C. The bank D. The consultants

77. Which of the following is not true concerning the cooling-off period?
A. the said period is 6 business days from the purchase and during the said period,

Set 3 / NSG Premier Consultants 7