Basic Quiz on mutual funds:

Ques. The pattern of investment of a mutual fund is oriented to fixed income yielding securities under
(a) Growth fund scheme
(b) income fund scheme
(c) balanced fund scheme
(d) money market mutual fund scheme

Answer. (b)

Ques. This fund is one that is available for subscription all through the year.
(a) Open end fund
(b) Closed end fund
(c) Growth fund
(d) Income fund

Answer. (a)

Ques. What is ‘Mis-selling’ of Mutual Funds?
1. Mis-selling takes place when mutual funds are sold without telling them the likely returns.
2. When agents sell the products without telling investors what the risks are involved in investing in mutual funds.

3. When agents invest somebody’s money in mutual funds without their knowledge, it is called mis-selling.
(a) Only 1
(b) Only 2
(c) Only 3
(d) All 1, 2 and 3

Ans. (b)

Ques. This fund is open for subscription only during a specified period.
(a) Open end fund
(b) Closed end fund
(c) Growth fund
(d) Income fund

Answer. (b)

Ques. The company which actually deals with the corpus of the mutual fund is called
(a) sponsor company
(b) trustee company
(c) asset / wealth management company
(d) mutual fund company

Answer. (c)

Ques. What is a mutual fund?
(A) A type of collective investment scheme that pools money from many investors and invests it in stocks, bonds or other money market instruments.
(B) It is a subsidiary of a bank or financial company created specially to raise money to be invested in a particular industry, i.e. housing or insurance etc. The money raised thus cannot be invested anywhere else.
(C) When several banks and financial companies come together and create a common pool of money to fund mega-infrastructural projects like bridges, roads, power plants etc, the common pool is known as the Mutual Fund.
(a) Only A
(b) Only B
(c) Only C
(d) All A, B & C

Ans. (a)

Ques. The aim of this fund is to provide regular and steady income for investors.
(a) Open end fund
(b) Closed end fund
(c) Growth fund
(d) Income fund

Answer. (d)

Ques. The first mutual fund was established in the:
(a) 1890s
(b) 1920s
(c) 1940s
(d) 1960s

Ans. (d)

Ques. Systematic Investment Plans (SIPs) are an investment option also operated in the mode of .
(a) Mutual Funds
(b) Bond
(c) exchange traded fund
(d) Real Estate

Ans. (a)

Ques. These funds are mutual funds that invest in stocks with the potential for long term capital appreciation.
(a) Open end fund
(b) Closed end fund
(c) Growth fund
(d) Income fund

Answer. (c)

Ques. Stock mutual funds are also sometimes called
(a) Open end fund
(b) Closed end fund
(c) Growth fund
(d) Equity fund

Answer. (d)

Ques. This pools money from investors and invests in different securities.
(a) debts
(b) equities
(c) mutual funds
(d) virtual office