Financial Literacy Challenge

What is the primary benefit of a Systematic Investment Plan (SIP) in mutual funds?

• It guarantees higher returns

• It allows investing small amounts regularly and benefits from rupee cost averaging

• It eliminates all investment risks

• It offers a fixed return percentage

What does "AUM" stand for in mutual funds?

• Average Unit Market

• Asset Under Management

• Annual Utility Measure

• Allocated User Money

Name one benefit of investing in mutual funds.

• Diversification reduces risk.

• Complete control over individual stocks

• No fees involved

• Guaranteed high returns

Upto What income an individual is exempted for incoem tax as per proposed limits for FY 2025-26 ?

• 10 Lakhs

• 12 Lakhs

• 7 Lakhs

• 4 Lakhs

What does the Net Asset Value (NAV) of a mutual fund represent?

• The total profit earned by the fund

• The total assets under management (AUM) of the fund

• The per-unit market value of all securities held in the fund

• The dividend paid by the fund

How do mutual funds differ from individual stocks?

• Mutual funds can only invest in bonds, not stocks.

• Individual stocks provide automatic diversification.

• Mutual funds offer diversification and professional management, while individual stocks represent ownership in a single company.

• Mutual funds are always riskier than individual stocks.

Which type of mutual fund is best suited for investors looking for stable and regular income?

• Equity Fund

• Balanced Fund

• Debt Fund

• Sectoral Fund

If an investor wants to invest in a mutual fund that tracks a stock market index, which type of fund should they choose?

• Equity Fund

• Index Fund

• Thematic Fund

• Arbitrage Fund

What is the role of a financial advisor in investing?

• To manage a company's financial statements.

• To provide tax preparation services for clients.

• To sell insurance products exclusively.

• The role of a financial advisor in investing is to provide personalized investment advice and strategies to help clients achieve their financial goals.

Which type of mutual fund carries the highest risk?

• Debt Fund

• Liquid Fund

• Hybrid Fund

• Small-Cap Fund