mutual fund

What type of mutual fund would be most appropriate for an investor who is interested in investing in health care stocks?

• Balanced Fund

• Global Stock Fund

• Regional Stock Fund

• Health Industry Fund

What type of mutual fund would be most appropriate for a person who is interested in long-term growth for future financial security?

• Balanced Fund

• Global Stock Fund

• Growth Fund

• Income Fund

What type of mutual fund would be most appropriate for a retired person who desires investment earnings to provide for current living expenses?

• Balanced Fund

• Growth Fund

• Income Fund

• Industry Fund

What type of mutual fund would be most appropriate for a person who wants to invest in a blend of stocks and bonds?

• Balanced Fund

• Growth Fund

• Income Fund

• Municipal Bond Fund

A mutual fund distributor is paid commission for

• First 5 years of Investment done by investor

• First 10 years of investment done by investor

• As long as investor held the investment

A sectoral fund is a ...?

• Low risk fund

• Moderate risk fund

• High risk fund

• Low-to-moderate risk fund

Rohan wants to invest in a mutual fund but is unsure about risks. The fund manager tells him that mutual funds reduce risk through diversification. What does this mean?

• The fund invests in multiple assets, reducing the impact of poor performance of a single stock

• The fund guarantees profits to investors

• The fund only invests in low-risk assets

• The fund does not charge any fees

Who appoints the Asset Management Company (AMC)?

• The sponsor of the mutual fund

• The investors

• SEBI

• The stock exchange

Which of the following is an example of an AMC in India?

• SBI Mutual Fund

• LIC Mutual Fund

• HDFC Mutual Fund

• All of the above

The sponsor is responsible for

• Managing the day-to-day operations of the mutual fund

• Appointing the trustees of the mutual fund

• Selecting stocks for investment

• Depositing funds in the investor’s bank account