MFL201 1

You go to the market to get chocolates. But instead of getting different types, you decide to get a combined box of chocolates. Similarly, the fund with different stock/bond options is called?

• Debt funds

• Mutual funds

A mutual fund is a type of investment that brings together money from many people and invests it different stocks/bonds.

• True

• False

Mutual fund managers do not charge anything from the investors.

• True

• False

A mutual fund provides diversification through exposure to a multitude of stocks.

• True

• False

Individual stocks have lesser risk than a mutual fund.

• True

• False

The fund manager helps you choose a mutual fund with the best stocks, bonds, and assets to invest in.

• True

• False

The returns generated are passed on to the investor of the mutual fund.

• True

• False

Mutual funds are better because they have a combination of all the best stocks, bonds and other assets selected by the fund manager.

• True

• False

The sooner you start investing in the mutual funds, the better.

• True

• False

The expert fund manager creates the right mix of stocks and bonds to get the best result.

• True

• False