ETF, Debt and Liquid Funds - Day 1

Gold ETF helps us to diversify the portfolio : State True/False

• True

• False

The Tracking Error of ETFs is generally low : Why?

• The Expense ratio is high

• The Expense ratio is low

• The Expense ratio is indeterminate

• None of the options are correct

An index fund would have expenses in the range of ______ of in the Net Assets, an ETF might have expenses around _____.

• 0.75% , 1.5%

• 1.5%, 0.75%

• 0.25%, 0.75%

• 0.75%,0.25%

In India we have ETFs on

• Gold

• Indices such as Nifty 50

• Bank Nifty

• All the options are correct

For an equal amount of investment for the same tenure at the same CAGR, higher expense ratio leads to _______ CAGR post expenses

• low

• high

• same

• indeterminate

Real Estate investment trust is like a mutual fund : why?

• Collects money from investors and invest in real estate properties

• They invest in real estate and give return to investor based on the return from the real estates

• Both the options are correct

Gold ETFs are 'as good as gold' : True/False

• True

• False

What is Portfolio Deposit?

• The Gold which the AP deposits for buying bundled ETF units

• The Gold which the AP withdraws for buying bundled ETF units

• The Gold which the AP circulate for buying bundled ETF units

• The Gold which the AP raises from public for buying bundled ETF units

Cash Component is not the same as Portfolio Deposit : True/False

• True

• False

Creation Units are _______

• The units which the investors create

• The units which are investors sale

• The units which the AP receives on payment of Portfolio Deposit/Cash component to the AMC