Deck 1: Understanding the Basics of Mutual Funds in India

Question 1

The First player of the Mutual fund industry was______________.

A)ICICI MF
B)UTI MF
C)SBI MF
D)LIC MF

Answer 1

UTI MF

Question 2

. UTI mutual fund was set up in the Year _______________.

A)1963
B)1986
C)1956
D)1947

Answer 2

1963

Question 3

_______________ Mutual fund company was set up as a joint venture between RBI and Government of India

A)UTI MF
B)LIC MF
C)SBI MF
D)ICICI MF

Answer 3

UTI MF

Question 4

Who establishes the Mutual Fund in India?

A)Securities Exchange Board of India
B)Asset Management Company
C)Sponsor
D)Shareholders

Question 5

In India, AMC must be registered with____________.

A)Company's Act, 2013
B)No registration required.
C)Securities Exchange Board of India
D)Reserve Bank of India

Question 6

___________ is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities.

A)Government Securitie
B)Mutual Funds
C)Derivatives
D)Shares

Question 7

The value of one unit of investment in Mutual fund is called the _______________.

A)Net Asset Value
B)Issue value
C)Market value
D)Gross Asset value

Question 8

________________ regulates the Mutual fund industry in India.

A)Reserve Bank of India
B)Association of Mutual Funds of India
C)Securities Exchange Board of India
D)State Bank of India

Question 9

What is the full form of NAV?

A)Net Assessment Value
B)National Asset Value
C)Net Asset Value
D)National Asset variation

Question 10

_______________ schemes not exposed to sudden and large movements of funds.

A)Fixed maturity plan
B)Open-Ended Funds
C)Close-Ended Funds
D)Interval fund

Question 11

The feature of a mutual fund, where it spreads the investment in varied stocks and sectors by pooling the funds of various investors, is called as ______________.

A)Professional Management
B)Affordability
C)Diversification
D)Profit

Question 12

Dividend income received from mutual in the hands of unit holders

A)Fully Taxable
B)Fully Exempt
C)Partly Exempt
D)Partly Taxable

Question 13

Which of the following is not a limitation of mutual funds?

A)No guarantee of return
B)Fees and Expenses
C)Poor Performance
D)Professional Management

Question 14

The Mutual fund industry follows which of the following regulation?

A)SEBI (Mutual fund) regulations 1996
B)Mutual fund regulation 2004
C)Mutual fund regulation 2003
D)RBI

Question 15

Presently there are __________ AMC in India

A)40
B)50
C)44
D)39

Question 16

A _________________ is a trust that pools the savings of a number of investors who share common financial goals.

A)Share
B)Mutual Funds
C)Government Securities
D)Derivatives

Question 17

What are the reasons for economies of scale to the benefit of Mutual funds?

A)Large volumes of trade
B)Portfolio diversification
C)Risk reduction
D)Loss

Question 18

_____________ are also known as the protectors of the fund and are employed by the fund sponsor.

A)Sponsor
B)Trustees
C)Asset Management Company
D)Custodian

Question 19

A minimum start-up capital of about ______________is required for open-ended schemes

A)500 million
B)1000 million
C)350 million
D)200 million

Question 20

A minimum start-up capital of about ______________is required for close-ended schemes

A)150 million
B)100 million
C)350 million
D)200 million

Question 21

The funds in which units can be purchased only during the initial offer period are called

A)Open-Ended Fund
B)Close-Ended Funds
C)Interval Funds
D)Fixed maturity plan

Question 22

______________ are considered high-risk funds but also tend to provide high returns.

A)Equity Fund
B)Money Market Funds
C)Balanced or Hybrid Funds
D)Debt Funds

Question 23

____________ are funds that invest in company debentures, government bonds and other fixed-income assets.

A)Equity Fund
B)Money Market Funds
C)Balanced or Hybrid Funds
D)Debt Funds

Question 24

HDFC Sensex ETF is an example of ____________.

A)Sector Fund
B)Index Funds
C)Fund of funds
D)International funds

Question 25

Nippon India Pharma fund is an example of ______________.

A)Sector Fund
B)Index Funds
C)Equity funds
D)Global funds