Fin Quiz

Which of these deductions is allowed in the new tax regime?

• ELSS

• HRA

• NPS

• Debt Funds

Answer explanation

It is important to understand how taxation is done basis the regime selected. Deduction for employer’s contribution to NPS account is available in new regime.

From a taxation perspective, which of the following gold investments are the most profitable?

• Digital Gold

• Physical Gold

• Sovereign Gold Bonds

• Gold ETF

Answer explanation

Which type of mutual fund can anyone invest in blindly?

• One with highest returns

• One that provides complete protection

• One with consistent returns

• None

Answer explanation

Do your research. Mutual funds are subject to market risk and QM can't go rap god.

What are the must have insurances in India?

• Term Life, Automobile, Health

• Life

• Health

• Money Back

Answer explanation

• It is important to weigh the benefits, riders, premia, claim settlement ratio, company background before choosing the right insurance policy for yourself.

• Insurance plans bought online typically have a lower premium as compared to those bought offline.

Mutual funds which help you save taxes are also referred to with this name. Which one?

• TSMF

• ELSS

• ELMF

• ELSMF

Answer explanation

Equity Linked Savings Scheme (ELSS) funds are tax-saving mutual funds in India. These investments combine the benefits of equity investments with tax deductions under Section 80C. These ELSS schemes come with a 3-year lock-in period. Once the lock-in period is over, investors are free to redeem their units or switch.

How often is Net Asset Value (NAV) calculated?

• Once a week

• Once a month

• Every working day

• Once a quarter

Answer explanation

NAV is calculated by dividing the total value of all the cash and securities in a fund's portfolio, minus any liabilities, by the number of outstanding shares. The NAV calculation is important because it tells us how much one share of the fund should be worth.

What is the cut off time for Mutual Funds?

• 11 59PM

• 3 PM

• 6PM

• 9PM

Answer explanation

For all the purchase transactions, the cut-off time on any trading day is 3:00 p.m. If you wish to invest in a fund at the current NAV, you must submit your application to AMCs or RTAs (Asset Management Companies or Registrar and Transfer Agents) before the clock strikes 3:00 p.m

Which of these funds invest 65% in Large cap, mid cap and small cap?

• Flexi-Cap funds

• Multi Cap Funds

• Value Funds

• Dividend Yield Funds

Answer explanation

The average allocation to large caps stands at around 65%, and for the first time in 6 years, it fell below 60% in 2023.

How often should you check-up on how well your equity mutual fund investments are doing?

• Every day

• Every Monday

• First day of month

• Once every one or two years

Answer explanation

Which of the following is the advantage of investing in an arbitrage fund?

• Highly reliable

• Offers a high rate of return

• Tax treatment is similar to equity fund

• get indexation benefits

Answer explanation

Arbitrage funds can be a good choice for investors who want to profit from a volatile market without taking on too much risk. Although arbitrage funds are relatively low risk, the payoff can be unpredictable. Arbitrage funds are taxed like equity funds.