Quiz on Mutual Fund

Q1. The strategy advisable for an investor to maximize investment returns in the long run is a. b. c. d.

Buy & Hold on to Investments for a long time Liquidate poorly performing investment from time to time Liquidate good performing investment from time to time Switch from poor performers to good performers

Q2. One of the most effective ways to invest through mutual funds is to a. b. c. d.

Develop a model portfolio Buy a few units of every mutual fund scheme available Invest all the money in one fund scheme Invest all the money in different scheme of the same fund family

Q3. Circumstances that might cause an investor to the composition of this portfolio a. b. c. d.

Cyclical Changes in Economy Unforeseen economic Changes affecting the portfolio’s preferred Sectors Both the above None of the Above

Q4. A money market mutual fund is most likely to invest in a. b. c. d.

Corporate Bonds Equity Shares Government Securities with maturity less than one year All of the above

Q5. The most important advantage of a money market mutual fund is a. b. c. d.

Quick capital appreciation High regular income Safety of principal No Loads

Q6. The decision to allocate your investments among various asset classes is known as:a) b) c) d)

Asset Allocation. Class Allocation. Stock Pricing. Class Grouping.

Q7. What is the lock-in period in an Equity Linked Saving Scheme (ELSS)? a) b) c) d)

3 Years. 1 Year. 5 Years. 2 Years.

Q8.What is a Systematic Investment Plan (SIP)? a) An investment program designed to time the market. b) A plan whereby you invest a fixed amount of money at regular intervals. c) A plan to prevent losses when markets are falling.

Q9. How many stocks make up BSE Sensex? a) b) c) d)

30. 10. 100. 50.

Q10. What does Beta of a fund denote? a) b) c) d)

Measure of market risk. Amount of Dividend declared. Measure of total risk. Scheme expense.

Q11. Risk can be measured by a. b. c. d.

Variance Standard Deviation Beta Any of the above

Q12. The most appropriate measure of returns for a scheme in existence for several years is: a. b. c. d.

Simple Return Dividend Return Annualized Return CAGR

Q13. The New Pension Scheme is regulated by a. b. c. d.

SEBI IRDA PFRDA AMFI

Q14. The assets of the mutual fund are held by a. b. c. d.

AMC Trustees Custodian Registrar

Q15. Units of ________ must be listed on the stock exchange a. b. c. d.

Sector Funds Arbitrage Funds Close ended Funds Liquid Funds

Q16. What is a NAV? a) The total value of the securities of the fund. b) The market value of the asset held by the scheme, minus expense, dividend by the number of units outstanding. c) The value of your holdings in the fund. d) The number of units outstanding.

Q17. What is an index find? a) b) c) d)

Investment in high growth stocks. Investment in the best performing sector of the economy. An actively managed fund. Invest in shares of a stock Index in the same proportion.

Q18. The steps involved in the selection of an equity fund for investment are a. b. c. d.

Sector selection, asset classification, selection of fund managers and schemes Sector selection, selection of fund managers and schemes, asset classification Asset classification, sector selection, selection of fund managers and schemes Selection of fund managers and schemes, sector selection, asset classification

Q19. What is the Standard Deviation of a fund? a) b) c) d)

Measure of returns Measure of expenses Measure of volatility Measure of fund size

Q20. Which of these Investments is considered to be the least risky? a) b) c) d)

Income fund Equity fund Liquid fund Balanced fund

Q21. The difference between NAV and re-purchase price is a. b. c. d.

Entry Load Exit Load Expense Dividend Stripping

Q22. Investments in mutual fund can be made using a. b. c. d.

Cheque / DD Remittance ASBA Any of the above

Q23. Intuitional distributors build reach through a. b. c. d.

Employees Agents Sub-Brokers Any of the Above

Q24. The maximum initial commission that an AMC can pay to distributors is: a. b. c. d.

Nil 0.05% 1% 2%

Q25. New Fund Offers (NFOs) other than Equity Linked Saving Scheme (ELSS) can be open for a maximum of: a. b. c. d.

7 days 10 days 15 days 30 days

Q26. Can you invest in gold through mutual funds? a) No b) Yes

Q27. Bond prices move in the same direction as interest rates a) False b) Stays the same c) True

Q28. Which of these is not considered to be an asset class? a) b) c) d)

Gold Credit Cards Bonds Stocks

Q29. What is an exit load? a) A fee charged as a percentage of fund’s performance b) A fee charged when you purchase units in a mutual fund scheme c) A fee Charged when you sell your units in a mutual fund scheme

Q30. If you had invested Rs.1000 in an equity mutual fund twenty years ago, and the present value of your investment is Rs.2000, what is your annualized rate of return? a) b) c) d)

7.5% 10% 50% 3.53%