Mutual Funds Quiz

What is the primary purpose of a mutual fund?

• To provide guaranteed returns

• To pool money from investors and invest in a diversified portfolio

• To offer tax benefits

• To provide financial advice

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

• Equity fund

• Debt fund

• Hybrid fund

• Savings account

What is the Net Asset Value (NAV) of a mutual fund?

• The total assets of the fund

• The total liabilities of the fund

• The price per share of the fund

• The total number of shares outstanding

Which of the following is an advantage of investing in mutual funds?

• Guaranteed returns

• Professional management

• Tax benefits

• All of the above

What is the purpose of a Systematic Investment Plan (SIP)?

• To invest a fixed amount at regular intervals

• To provide financial advice

• To offer guaranteed returns

• To reduce investment risk

Which of the following is the most important factor to consider when selecting a mutual fund?

• Past performance

• Fund manager's track record

• Fees and expenses

• Investment objectives

Which type of mutual fund primarily invests in stocks?

• Equity fund

• Debt fund

• Hybrid fund

• Index fund

What is the primary risk associated with investing in mutual funds?

• Market risk

• Interest rate risk

• Inflation risk

• Liquidity risk

Which of the following is not a type of risk associated with mutual funds?

• Credit risk

• Reinvestment risk

• Concentration risk

• Guaranteed risk

What is the average long-term return of equity mutual funds in India?

• 4-5%

• 6-7%

• 8-10%

• 12-15%