Mutual Fund Management Set 1
Mutual Fund Management Set 1
Mutual Fund Management Set 1
11. The feature of a mutual fund, where it spreads the investment in varied stocks
and sectors by pooling the funds of various investors, is called as ______________.
A. Professional Management
B. Affordability
C. Diversification
D. Profit
Answer: C
12. Dividend income received from mutual in the hands of unit holders
A. Fully Taxable
B. Fully Exempt
C. Partly Exempt
D. Partly Taxable
Answer: B
14. The Mutual fund industry follows which of the following regulation?
A. SEBI (Mutual fund) regulations 1996
B. Mutual fund regulation 2004
C. Mutual fund regulation 2003
D. RBI
Answer: A
17. What are the reasons for economies of scale to the benefit of Mutual funds?
A. Large volumes of trade
B. Portfolio diversification
C. Risk reduction
D. Loss
Answer: B
18. _____________ are also known as the protectors of the fund and are employed
by the fund sponsor.
A. Sponsor
B. Trustees
C. Asset Management Company
D. Custodian
Answer: B
21. The funds in which units can be purchased only during the initial offer period
are called
A. Open-Ended Fund
B. Close-Ended Funds
C. Interval Funds
D. Fixed maturity plan
Answer: B
22. ______________ are considered high-risk funds but also tend to provide high
returns.
A. Equity Fund
B. Money Market Funds
C. Balanced or Hybrid Funds
D. Debt Funds
Answer: A
23. ____________ are funds that invest in company debentures, government bonds
and other fixed-income assets.
A. Equity Fund
B. Money Market Funds
C. Balanced or Hybrid Funds
D. Debt Funds
Answer: D