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Mutual Funds Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is the primary purpose of a Mutual Fund?

a)

To provide life insurance

b)

To pool savings for investment

c)

To offer loans to investors

d)

To manage real estate

2.

Which of the following is NOT an advantage of investing in Mutual Funds?

a)

Professional Management

b)

High Risk

c)

Diversification

d)

Liquidity

3.

What type of Mutual Fund allows investors to buy and sell units at any time?

a)

Interval Funds

b)

Close-Ended Funds

c)

Open-Ended Funds

d)

Fixed Funds

4.

Which entity is responsible for managing the investments of a Mutual Fund?

a)

Transfer Agents

b)

Asset Management Company (AMC)

c)

Custodians

d)

Trustees

5.

What is the main objective of Growth Funds?

a)

To invest in government securities

b)

To preserve capital

c)

To achieve capital appreciation

d)

To provide regular income

6.

Which of the following is a characteristic of Close-Ended Funds?

a)

No listing on stock exchanges

b)

Unlimited subscription

c)

Daily purchase and sale

d)

Fixed maturity period

7.

What is the role of a Transfer Agent in a Mutual Fund?

a)

To hold securities

b)

To provide financial advice

c)

To maintain records of unit holders

d)

To manage the fund's investments

8.

Which type of Mutual Fund invests primarily in fixed income securities?

a)

Sectoral Funds

b)

Balanced Funds

c)

Income Funds

d)

Growth Funds

9.

What is the primary regulatory body for Mutual Funds in India?

a)

Ministry of Finance

b)

Securities and Exchange Board of India (SEBI)

c)

Insurance Regulatory and Development Authority

d)

Reserve Bank of India

10.

What is the purpose of the Net Asset Value (NAV) in Mutual Funds?

a)

To assess the risk level of the fund

b)

To calculate the fund's expenses

c)

To set the price for buying and selling units

d)

To determine the fund's performance