Mutual Funds Quiz

What is the primary purpose of a Mutual Fund?

• To provide life insurance

• To pool savings for investment

• To offer loans to investors

• To manage real estate

Which of the following is NOT an advantage of investing in Mutual Funds?

• Professional Management

• High Risk

• Diversification

• Liquidity

What type of Mutual Fund allows investors to buy and sell units at any time?

• Interval Funds

• Close-Ended Funds

• Open-Ended Funds

• Fixed Funds

Which entity is responsible for managing the investments of a Mutual Fund?

• Transfer Agents

• Asset Management Company (AMC)

• Custodians

• Trustees

What is the main objective of Growth Funds?

• To invest in government securities

• To preserve capital

• To achieve capital appreciation

• To provide regular income

Which of the following is a characteristic of Close-Ended Funds?

• No listing on stock exchanges

• Unlimited subscription

• Daily purchase and sale

• Fixed maturity period

What is the role of a Transfer Agent in a Mutual Fund?

• To hold securities

• To provide financial advice

• To maintain records of unit holders

• To manage the fund's investments

Which type of Mutual Fund invests primarily in fixed income securities?

• Sectoral Funds

• Balanced Funds

• Income Funds

• Growth Funds

What is the primary regulatory body for Mutual Funds in India?

• Ministry of Finance

• Securities and Exchange Board of India (SEBI)

• Insurance Regulatory and Development Authority

• Reserve Bank of India

What is the purpose of the Net Asset Value (NAV) in Mutual Funds?

• To assess the risk level of the fund

• To calculate the fund's expenses

• To set the price for buying and selling units

• To determine the fund's performance