Mutual Fund

1.                 indicates how much money can be generated per unit of mutual fund in case the scheme is liquidated.

• Asset Under Management

• Net Asset Value

• Market price

• Exit load

Each mutual fund scheme must have a stated investment objective. State whether True or False.

• True

• False

Which of the following is an advantage of mutual funds?

• Customized portfolio

• Convenience to buy stocks and bonds directly from the mutual fund

• Economies of scale

The transparency levels in mutual funds are very low. State whether True or False.

• True

• False

Which amongst the following categories of mutual funds have a fixed maturity date?

• Open-ended funds

• Exchange Traded Funds

• Close-ended funds

• Interval funds

Which among the following investment avenues does not offer income on a regular

basis?

• Real estate

• Physical Gold

• Stocks

• Debentures

Which amongst the following asset categories can also be purchased for consumption purposes apart from an investment?

• Real estate

• Stocks

• Bonds

• Debentures

The purchasing power of currency changes on account of which of the following?

• Asset allocation

• Compound interest

• Inflation

• Diversification

What is the real rate of return?

• Return that the investor gets after payment of all expenses

• Return that the investor gets after taxes

• Return that the investor gets after adjusting the risks

• Return that the investor gets after adjusting inflation

When the interest rate in the economy increases, the price of existing bonds __ .

• Increases

• Fluctuate

• Decreases