Finance Unbox-ED ($) - Grade 6-8 - Session 033 - Quiz 1

Benchmark or index consists of select companies that represent either the overall stock market or a specific sector e.g. healthcare or a certain size of companies e.g. small-caps

• True
• False

Index funds are a type of mutual fund which invest in stocks that form part of an index

• True
• False

Select the statement that is true

• Index funds are also called passive funds
• Fees charged on an index fund are the same as any other mutual fund
• Both of the above
• None of the above

Index funds or passive funds tend to perform better than active funds in developed markets such as USA and worse than active funds in developing markets such as India

• True
• False

Select all the statements that are true

• In growth option the profits made by the mutual fund are distributed back to us
• In dividend option the profits made by the mutual funds are reinvested to make more money for us
• Both of the above
• None of the above

Select all the statements that are true

• Direct investment is an investment made directly with a mutual fund without any broker
• Indirect investment is an investment in a mutual fund via a broker
• Both of the above
• None of the above

Indirect investments will lead to a much higher return than direct investments in the same mutual fund

• True
• False

NAV or net asset value is the price of each unit of a mutual fund similar to the share price of each share of companies

• True
• False

Select the statement that is true

• NAV is published by the mutual fund at the end of each hour
• NAV can go up or down basis how well the investments of the mutual fund are expected to do
• Both of the above
• None of the above