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WorksheetsMutual Funds Advanced by Rahul
Total questions: 20
Worksheet time: 10mins
What type of mutual fund would be most appropriate for a person who wants to invest in a blend of stocks and bonds?
Balanced Fund
Growth Fund
Income Fund
Municipal Bond Fund
A Mutual Fund may transfer investment from one scheme to another.
not at all
at current market rates
at cost price
at a fixed premium over market rate
What is Mutual fund?
An investment in which investors pool their money to buy stock.
An investment that you put in your checking account
Investment that you put in your swimming pool.
Investment that you put in the ground.
What is the disadvatage of Mutual Funds
Liquidity
Delay in redemption
Portfolio diversification
Transparency
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?
Real Estate Fund
Gold Exchange Trade Fund
Hedge Funds
ELSS
ELSS ( Equity Linked Saving Scheme ) has a lock-in period of?
2years
5years
1year
3years
ELSS ( Equity Linked Saving Scheme ) is eligible under Section 80 C up to Rs.1.5 lakh allowed
True
False
Whayt is the minimum % of corpus to invest in real estate projects for Real-Estate Funds
45% atleast
65% atleast
30% atleast
50% atleast
Which of the following is not true about Gold Exchange-Traded Funds
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
invest in physical gold and derive their value from the underlying asset
Investors can buy or sell units of these schemes, like any other stock listed on the exchange, through brokers.
small investments to enjoy upswing of property without downside of high stamp duty
In this phase: permission was granted for entry of private sector funds.
Phase III – 1993 – 96
Phase IV – 1996
Phase II – 1987 – 93
Phase I – 1964 – 87
What is true about mutual funds
Mutual Funds are not reliable and people rarely invest in them.
The good thing about Mutual Funds is that you don’t have to pay attention to them.
Mutual Funds invest only in shares.
The biggest advantage of Mutual Funds is their ability to diversify the risk.
For a close-ended fund, the repurchase price should not be lower than
at NAV
95% of NAV
93% of NAV
97% of NAV
Mutual Funds are permitted to use derivative for
hedging against risk
re-balancing the portfolio
leveraging
only 1 and 2
Which of the following would you suggest for a client who has high risk appetite?
Debt Investments
Gold Investments
Equity Investments
Insurance Investment
Which of the following is not true about Index Fund?
Index Fund mirrors the portfolio of a benchmark index
Index Fund aims to outperform its benchmark
Index Fund has lower cost as compared to an actively managed fund
Index Funds NAV generally moves in line with the movement of its benchmark Index
Debt schemes are exposed to
Re-investment risk
Credit risk
Interest rate risk
All of the above
The cut-off time for liquid fund redemptions is 3PM
True
False
Which of the following is a truly international asset class?
Real Estate
Equity
Debt
Gold
Which of the following is most affected by High Expense Ratio?
Equity Fund
Liquid Fund
Real Estate Fund
ETF
