Stock Market Investing Masterclass

What is the primary goal of investing?

• Save money for emergencies
• Obtain additional income or profit
• Avoid taxes
• Keep cash in hand

What does the 50-30-20 rule of investment suggest for the allocation of your monthly income?

• 50% Needs, 30% Wants, 20% Invest
• 50% Wants, 30% Needs, 20% Savings
• 50% Savings, 30% Needs, 20% Wants
• 50% Needs, 30% Savings, 20% Wants

What is the term for the increase in the price of goods and services over time, reducing purchasing power?

• Deflation
• Stagnation
• Inflation
• Hyperinflation

Which of the following is NOT a method of risk management in investing?

• Diversification
• Regular monitoring
• Ignoring market trends
• Assessing risk tolerance

What is the minimum Market Capitalization suggested in the 5-point stock picking strategy?

• ₹10,000 crores
• ₹15,000 crores
• ₹20,000 crores
• ₹25,000 crores

Which type of mutual fund invests primarily in both equity and debt instruments?

• Equity Mutual Fund
• Debt Mutual Fund
• Hybrid Mutual Fund
• Index Fund

What is the assumed annual return used for SIP projections for NIFTY50?

• 8%
• 10%
• 12%
• 15%

What does ‘Capital Appreciation’ mean in the context of stock investments?

• Receiving dividends from a company
• The rise in the share price allowing you to sell at a higher price
• Decrease in the value of stocks over time
• Earning interest from fixed deposits

Which one of the following is an example of a listed public company?

• A company where the public has not invested money
• A company listed on the stock exchange
• A company not listed on the stock exchange
• A private limited company

What is the difference between Lumpsum and SIP investments in mutual funds?

• Lumpsum is regular monthly investments; SIP is a one-time investment
• Lumpsum is a one-time bulk investment; SIP is regular periodic investments
• Both require the same amount of money
• Lumpsum is only for debt mutual funds, SIP is for equity funds