Question 1

AMFI was incorporated on ________________.

Accepted Answer

AMFI, or the Association of Mutual Funds in India, was incorporated on 22nd August 1995 to develop the mutual fund industry in India, acting as a primary regulator and protector of mutual fund investors' interests.

Question 2

Which type of fund is more volatile?

Accepted Answer

A

Question 3

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

Accepted Answer

Dividend income from mutual funds is taxed at 10% if the dividend exceeds Rs. 10 lakhs in a financial year.

Question 4

Investors can enter and exit under _______ at any time

Accepted Answer

Open-Ended Funds allow investors to buy and sell shares at any time, providing flexibility for entering and exiting investments.

Question 5

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

Accepted Answer

The NAV of each scheme should be updated on AMFI's website every day as per regulatory requirements to ensure transparency and provide current information to investors.

Question 6

Mutual Fund schemes are first offered to investors through.

Accepted Answer

Mutual Fund schemes are first offered to investors through a New Fund Offer (NFO), which is similar to an Initial Public Offer (IPO) for stocks but specifically for mutual funds.

Question 7

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

Accepted Answer

State Bank of India (SBI) launched the first mutual fund in India in 1987.

Question 8

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

Accepted Answer

The answer of Which of the following organizations is the...

Question 9

A Mutual fund is owned by _____________.

Accepted Answer

A mutual fund is owned by all its investors who pool their money together to invest in various securities.

Question 10

SIP is a _______________.

Accepted Answer

SIP, or Systematic Investment Plan, is a method of investing a fixed sum regularly in a mutual fund scheme. It allows investors to buy units on a given date each month in order to implement a saving plan.

Question 11

SIP stands for ______________.

Accepted Answer

SIP stands for Systematic Investment Plan, which is a method of investing a fixed sum regularly in a mutual fund scheme.

Question 12

Day to day operations of a mutual fund is handled by

Accepted Answer

The Asset Management Company (AMC) is responsible for the day-to-day operations of a mutual fund, including making investment decisions and managing the fund's portfolio.

Question 13

Mutual funds are constituted in India as ____________.

Accepted Answer

Mutual funds in India are constituted as trusts. A trust is established by a sponsor, and a trustee is appointed to ensure that the fund is managed in the interest of its investors.

Question 14

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

Accepted Answer

Cash is not an applicable payment mode for purchasing mutual fund schemes due to regulatory restrictions aimed at preventing money laundering. Investments in mutual funds are typically made through banking channels like cheques, demand drafts, or pay orders to ensure traceability and compliance with financial regulations.

Question 15

____________ are an important link between fund managers and investors.

Accepted Answer

Registrar and Transfer Agents (RTAs) are responsible for maintaining investor records and facilitating transactions, acting as a crucial link between fund managers and investors.

Question 16

What is an open-ended mutual fund?

Accepted Answer

Open-ended mutual funds allow investors to buy and sell units at any time, unlike closed-ended funds which have a fixed number of shares.

Question 17

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

Accepted Answer

Liquid funds invest primarily in short-term or very short-term instruments like Treasury Bills (T-Bills) and Commercial Papers (CPs), offering liquidity and moderate income.

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.

Accepted Answer

A Systematic Investment Plan (SIP) is a method where an investor invests a fixed amount in a mutual fund scheme at regular intervals. This approach is favored for its discipline and the benefit of rupee cost averaging.

Question 19

Mutual funds in India are permitted to invest in___________

Accepted Answer

The answer of Mutual funds in India are permitted to...

Question 20

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

Accepted Answer

NFO, or New Fund Offer, is the term used for the first time subscription offer for a new scheme launched by an Asset Management Company. It is similar to an IPO in the stock market, where shares are offered to the public for the first time.

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