Finance Unbox-ED ($) - Grade 3-5 - Session 023 - Quiz 1

Benchmark or index consists of select companies that represent either the overall stock market or a specific sector e.g. healthcare or a certain size of companies e.g. small-caps

• True
• False

Index funds are a type of mutual fund which invest in stocks that form part of an index

• True
• False

Index funds are also called passive funds

• True
• False

Fees charged on an index fund are the same as any other mutual fund

• True
• False

Index funds or passive funds tend to perform better than active funds in developed markets such as USA and worse than active funds in developing markets such as India

• True
• False

Select all the statements that are true

• In growth option the profits made by the mutual fund are distributed back to us
• In dividend option the profits made by the mutual funds are reinvested to make more money for us
• Both of the above
• None of the above

One should choose the growth option when one is looking to make investments that create wealth over a period of time

• True
• False

NAV or net asset value is the price of each unit of a mutual fund similar to the share price of each share of companies

• True
• False

Select the statement that is true

• NAV is published by the mutual fund at the end of each hour
• NAV can go up or down basis how well the investments of the mutual fund are expected to do
• Both of the above
• None of the above

Select the statement that is true

• SIP stands for Systematic Investment Plan
• SIP allows us to make lumpsum or one-time investments
• Both of the above
• None of the above