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Mutual Fund Quiz

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Which of the following statements about Expense Ratio is TRUE?

a)

Higher AUM automatically leads to higher expense ratio

b)

Expense ratio is inversely related to fund size

c)

Expense ratio includes exit load charges

d)

SEBI does not regulate expense ratio in India

2.

For an open-ended mutual fund, if the NAV increases from ₹20 to ₹22 in one year and the fund distributed a dividend of ₹1 per unit, what is the annual return?

a)

10%

b)

15%

c)

20%

d)

5%

3.

Which type of mutual fund is MOST exposed to interest rate risk?

a)

Gilt Fund

b)

Equity Fund

c)

Liquid Fund

d)

Balanced Fund

4.

Which mutual fund has the lowest risk?

a)

Equity Fund

b)

Liquid Fund

c)

Sector Fund

d)

Mid-cap Equity Fund

5.

What is the main objective of an index fund?

a)

To outperform the market index

b)

To replicate and track a market index

c)

To invest only in government securities

d)

To offer guaranteed returns

6.

What is an Expense Ratio in mutual funds?

a)

Commission charged by agents

b)

Total fund expenses expressed as a percentage of total assets

c)

Tax on mutual fund investments

d)

Penalty for early withdrawal

7.

Which of the following is true about Close-ended mutual funds?

a)

They can be bought or sold anytime

b)

They are traded only during a specified period after launch

c)

They always guarantee returns

d)

They are only debt-oriented

8.

What is the lock-in period for Equity Linked Savings Scheme (ELSS) in India?

a)

1 year

b)

3 years

c)

5 years

d)

7 years

9.

Which factor does NOT directly affect NAV of a mutual fund?

a)

Market value of portfolio securities

b)

Fund expenses

c)

Dividend payouts

d)

Investor's income tax bracket

10.

Which risk is highest in sectoral funds?

a)

Market risk

b)

Interest rate risk

c)

Credit risk

d)

Inflation risk

11.

Which statement about SIP is FALSE?

a)

SIP helps in rupee cost averaging

b)

SIP eliminates market risk completely

c)

SIP encourages disciplined investing

d)

SIP involves regular, small investments over time