SIP and SWP_Quiz-1

A FOF aims-at diversifying the risk of a single fund by investing in several types of funds. True or False?

• True

• False

ETFs are considered more transparent than mutual funds because:

• They disclose their holdings daily

• They never disclose their holdings

• They disclose their holdings annually

• They disclose their holdings every five years

What is one advantage of investing in a Fund of Funds (FOF)?

• Higher risk due to concentration in a single asset

• Diversification across various funds

• Guaranteed returns

• Investment only in foreign markets

Which statement is true about ETFs?

• They cannot be bought and sold during market hours

• They have a fixed price throughout the day

• Their prices fluctuate throughout the trading day

• They are only available through mutual fund companies

Can mutual funds be traded throughout the day like ETFs?

• YES

• NO

Which of the following is NOT an advantage of ETFs?

• Liquidity

• Transparency

• Diversification

• Mandatory lock-in period