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Mutual Funds Advanced by Rahul

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What type of mutual fund would be most appropriate for a person who wants to invest in a blend of stocks and bonds?

a)

Balanced Fund

b)

Growth Fund

c)

Income Fund

d)

Municipal Bond Fund

2.

A Mutual Fund may transfer investment from one scheme to another.

a)

not at all

b)

at current market rates

c)

at cost price

d)

at a fixed premium over market rate

3.

What is Mutual fund?

a)

An investment in which investors pool their money to buy stock.

b)

An investment that you put in your checking account

c)

Investment that you put in your swimming pool.

d)

Investment that you put in the ground.

4.
A sum of money paid to shareholders of a corporation out of its earnings.
a)
index
b)
dividend
c)
profit
d)
invest
5.

What is the disadvatage of Mutual Funds

a)

Liquidity

b)

Delay in redemption

c)

Portfolio diversification

d)

Transparency

6.

What are the aggressively managed portfolio of investments that uses advanced investment strategies such as leveraged, long, short and derivative positions in both domestic and international markets with the goal of generating high returns called?

a)

Real Estate Fund

b)

Gold Exchange Trade Fund

c)

Hedge Funds

d)

ELSS

7.

ELSS ( Equity Linked Saving Scheme ) has a lock-in period of?

a)

2years

b)

5years

c)

1year

d)

3years

8.

ELSS ( Equity Linked Saving Scheme ) is eligible under Section 80 C up to Rs.1.5 lakh allowed

a)

True

b)

False

9.

Whayt is the minimum % of corpus to invest in real estate projects for Real-Estate Funds

a)

45% atleast

b)

65% atleast

c)

30% atleast

d)

50% atleast

10.

Which of the following is not true about Gold Exchange-Traded Funds

a)

The price of gold ETFs will be directly linked to the price of gold itself and hence the returns from a gold ETF will more or less equal to returns from gold bars or coins

b)

invest in physical gold and derive their value from the underlying asset

c)

Investors can buy or sell units of these schemes, like any other stock listed on the exchange, through brokers.

d)

small investments to enjoy upswing of property without downside of high stamp duty

11.

In this phase: permission was granted for entry of private sector funds.

a)

Phase III – 1993 – 96

b)

Phase IV – 1996

c)

Phase II – 1987 – 93

d)

Phase I – 1964 – 87

12.

What is true about mutual funds

a)

Mutual Funds are not reliable and people rarely invest in them.

b)

The good thing about Mutual Funds is that you don’t have to pay attention to them.

c)

Mutual Funds invest only in shares.

d)

The biggest advantage of Mutual Funds is their ability to diversify the risk.

13.

For a close-ended fund, the repurchase price should not be lower than

a)

at NAV

b)

95% of NAV

c)

93% of NAV

d)

97% of NAV

14.

Mutual Funds are permitted to use derivative for

a)

hedging against risk

b)

re-balancing the portfolio

c)

leveraging

d)

only 1 and 2

15.

Which of the following would you suggest for a client who has high risk appetite?

a)

Debt Investments

b)

Gold Investments

c)

Equity Investments

d)

Insurance Investment

16.

Which of the following is not true about Index Fund?

a)

Index Fund mirrors the portfolio of a benchmark index

b)

Index Fund aims to outperform its benchmark

c)

Index Fund has lower cost as compared to an actively managed fund

d)

Index Funds NAV generally moves in line with the movement of its benchmark Index

17.

Debt schemes are exposed to

a)

Re-investment risk

b)

Credit risk

c)

Interest rate risk

d)

All of the above

18.

The cut-off time for liquid fund redemptions is 3PM

a)

True

b)

False

19.

Which of the following is a truly international asset class?

a)

Real Estate

b)

Equity

c)

Debt

d)

Gold

20.

Which of the following is most affected by High Expense Ratio?

a)

Equity Fund

b)

Liquid Fund

c)

Real Estate Fund

d)

ETF