Mutual Fund Quiz

What is a mutual fund?

• A mutual fund is a type of insurance policy.

• A mutual fund is an investment vehicle consisting of a portfolio of stocks, bonds, or other securities.

• A mutual fund is a type of savings account.

• A mutual fund is a type of loan.

Which of the following is NOT a type of mutual fund?

• B

• A

• C

• D

What is the main advantage of investing in a mutual fund?

• Higher returns

• Lower risk

• Tax advantages

• Diversification

Which type of mutual fund invests in government securities and corporate bonds?

• equity fund

• index fund

• bond fund

• money market fund

What is the minimum investment required to start investing in a mutual fund?

• $10

• $500

• $1000

• $100

Which type of mutual fund invests in a specific sector or industry?

• industry fund

• sector fund

• diversified fund

• global fund

What is the expense ratio of a mutual fund?

Which type of mutual fund aims to replicate the performance of a specific market index?

• bond fund

• money market fund

• index fund

• equity fund

What is the lock-in period for tax-saving mutual funds?

• 1 year

• 10 years

• 5 years

• 3 years

What is the role of a fund manager in a mutual fund?

• The role of a fund manager in a mutual fund is to handle administrative tasks.

• The role of a fund manager in a mutual fund is to manage the investment portfolio and make investment decisions.

• The role of a fund manager in a mutual fund is to market the fund to potential investors.

• The role of a fund manager in a mutual fund is to provide legal advice and compliance support.