Asset management and ETF

ETF stands for

• Exchange Traded funds

• Electronic Transfer Funds

• Equity Traded Funds

• Exchange Transfer Funds

Are ETFs open- or closed-end investment vehicles?

• Open end

• Close end

Which of the following is NOT a reason to invest in mutual funds?

• Professional management of your investment

• Invest low amounts (as low as Rs. 500) in a diversified portfolio

• Flexibility to buy and sell your investments as and when you want

• Personal customized portfolio

Which of the following instruments can mutual funds scheme invest in?

• Stocks

• Corporate Bonds

• Government Bonds

• Gold

• All of the above

What is a premium or discount as it pertains to ETF trading?

• The management fee of the ETF

• When the ETF price is materially different to the value of the underlying securities

• When an ETF is moving higher or lower

The implied liquidity of an ETF is based on

• The average number of shares traded on exchange

• The number of ETF shares in existence

• The liquidity of the underlying securities in the ETF basket

ETFs are:

• Traded on an intraday basis

• Priced and exchangeable only at the end of each trading day

• Traded over the counter

Which of the following receives creation units during the ETF creation process

• Fund sponsor

• Authorized participant

• Retail investors

ETFs tend to trade:

• At a significant discount to their NAV

• At a significant premium to their NAV

• Close to their NAV

Which of the following ETFs account for the bulk of the exchange-traded fund market

• Equity ETFs

• Fixed Income ETFs

• Commodity ETFs

• Currency ETFs