Finance Unbox-ED ($) - Grade 3-5 - Session 030 - Assessment 9

Select the statement that is true

• Mutual funds are a way to make diversified investments
• People who invest in mutual funds get units in a mutual fund
• Both of the above
• None of the above

Mutual funds collect money from several people and pool it together to make investments

• True
• False

Select the statement that is true

• Mutual funds have experts on various asset classes who invest the money on our behalf
• For this service that the mutual funds provide us they charge us a fee every year
• Both of the above
• None of the above

Select all the major types of mutual funds

• Equity Mutual Funds
• Debt Mutual Funds
• Balanced or Hybrid Mutual Funds
• Cryptocurrency or NFT Mutual Funds

Select the statement that is true

• Some equity mutual funds invest only in companies of a certain size e.g. Large-Cap
• Some equity mutual funds invest only in companies in a certain sector e.g. Consumer Goods
• Both of the above
• None of the above

Some mutual funds allow you to invest in companies around the world

• True
• False

Debt mutual funds are often split by the period or maturities of the debt investments i.e. Short-Term, Medium-Term, Long-Term

• True
• False

Debt mutual funds will always contain a mix of Fixed Deposits, Government Bonds and Corporate Bonds so the risk profile is neither too high nor too low

• True
• False

Balanced or hybrid mutual funds make both equity and debt investments and could be equity-oriented or debt-oriented

• True
• False

Multi-asset allocation mutual funds are mutual funds that invest in more than two different countries

• True
• False