Deck 2: Mutual Fund FAQ: Volatility, Taxes, Nav, Market Regulator, and More

Question 1

AMFI was incorporated on ________________.

A)22nd August 1995
B)12th April 1992
C)1st April 1935
D)15th August 1947

Answer 1

22nd August 1995

Question 2

Which type of fund is more volatile?

A)Large-cap fund
B)Mid-cap funds
C)Small-cap funds
D)Hybrid Funds

Answer 2

Large-cap fund

Question 3

An investor pays a tax on the dividend that he receives from a mutual fund scheme at

A)10%
B)20%
C)30%
D)Tax is not applicable

Answer 3

10%

Question 4

Investors can enter and exit under _______ at any time

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

Question 5

The NAV of each scheme should be updated on AMFI's website

A)Every Day
B)Every month
C)Every hour
D)Every quarter

Question 6

Mutual Fund schemes are first offered to investors through.

A)Stock exchange
B)New Fund Offer
C)Initial Public Offer
D)AMFI

Question 7

Which of the following banks launched the first mutual fund in India?

A)SBI
B)Canara Bank
C)Bank of India
D)Indian Bank

Question 8

Which of the following organizations is the Mutual Fund Market regulator in India?

A)SEBI
B)RBI
C)AMFI
D)CIBIL

Question 9

A Mutual fund is owned by _____________.

A)SEBI
B)The Government of India
C)AMFI
D)All its investors

Question 10

SIP is a _______________.

A)Method of regular investment
B)Name of a mutual fund
C)Brand of a tea stock
D)Method of one time investment

Question 11

SIP stands for ______________.

A)Systematic investment plan
B)Simple investment plan
C)Simplified investment programme
D)Single investment plan

Question 12

Day to day operations of a mutual fund is handled by

A)Asset Management Company
B)Sponsor
C)Trustee
D)Shareholders

Question 13

Mutual funds are constituted in India as ____________.

A)Trust
B)Limited liability partnership
C)Companies
D)Non-Government organisations

Question 14

Which payment mode is not applicable while purchasing mutual fund scheme?

A)Cheque
B)Demand Draft
C)Cash
D)Pay Order

Question 15

____________ are an important link between fund managers and investors.

A)Trustee
B)Asset Management Company
C)Custodian
D)Registrar And Transfer Agents

Question 16

What is an open-ended mutual fund?

A)It is the one that has an option to invest in any kind of security
B)It has units available for sale and repurchase at all times.
C)It has an upper limit on its NAV
D)It has a fixed fund size

Question 17

In ____________ funds, the money is invested primarily in short-term or very short-term instruments e.g. T-Bills, CPs etc.

A)Growth fund
B)Income funds
C)Liquid funds
D)Tax-Saving Funds (ELSS)

Question 18

________ is a method of investing in mutual funds wherein an investor chooses a mutual fund scheme and invests a the fixed amount of his choice at fixed intervals.

A)Systematic Transfer Plan
B)Systematic Withdrawal Plan
C)Systematic Investment Plan
D)Systematic Innovative Plan

Question 19

Mutual funds in India are permitted to invest in___________

A)Securitie
B)Securities and gold
C)Securities other than real estate
D)Securities, gold, real estate

Question 20

……… is the first time subscription offer for a new scheme launched by the Asset Management Company.

A)FFO
B)CFO
C)IPO
D)NFO

Question 21

A mutual fund is a ……………intermediary (like a trust) regulated in India by the SEBI.

A)financial
B)professional
C)physical
D)Mental

Question 22

Transaction cost is ………… with investment in Mutual Funds.

A)high
B)low
C)very high
D)Nil

Question 23

………………… helps to improve the risk return relationship.

A)Diversification
B)Liquidity
C)Professional Management
D)tax