Mutual Fund Schemes Quiz!

2.

Which of the following funds come under open-ended ?

Debt fund
Liquid fund
Equity Fund
All the above

Correct Answer

A. All the above

Explanation

All the funds mentioned in the options, namely debt fund, liquid fund, and equity fund, come under the category of open-ended funds. Open-ended funds are those in which investors can buy or sell units on any business day at the current net asset value (NAV). This means that there is no fixed maturity period for these funds, and investors have the flexibility to enter or exit the fund as per their convenience. Therefore, the correct answer is "All the above."

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3.

Which fund comes under closed-ended fund?

Fixed maturity
Thematic fund
Sector fund
Gilt fund

Correct Answer

A. Fixed maturity

Explanation

Closed-ended funds are investment funds that have a fixed number of shares or units available for purchase. Once the initial offering is complete, new investors cannot buy into the fund, and existing investors can only sell their shares on the secondary market. Fixed maturity funds are a type of closed-ended fund that have a specific maturity date, at which point the fund will be liquidated and the proceeds distributed to investors. Therefore, fixed maturity funds come under closed-ended funds. Thematic funds, sector funds, and gilt funds are not necessarily closed-ended funds.

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4.

A hybrid fund is the part of which fund?

Balance fund
Money market fund
Cant be said
All of the above

Correct Answer

A. Balance fund

Explanation

A hybrid fund is a type of fund that combines both equity and debt investments. It aims to provide a balance between growth and stability by investing in a mix of stocks and bonds. Therefore, the correct answer is "Balance fund" as it accurately describes the nature of a hybrid fund.

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5.

The combination of the open-ended and closed-ended funds is called?

Interval fund
Sector fund
Thematic fund
None of the above

Correct Answer

A. Interval fund

Explanation

An interval fund is a type of investment fund that combines the features of open-ended and closed-ended funds. It allows investors to buy and sell shares at predetermined intervals, typically quarterly. This structure provides investors with the flexibility of open-ended funds while also offering some of the advantages of closed-ended funds, such as the ability to invest in illiquid assets. Therefore, the combination of open-ended and closed-ended funds is referred to as an interval fund.

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6.

Debt fund is consisted of?

Gilt fund
Short term bond
Long term bond
All the above

Correct Answer

A. All the above

Explanation

A debt fund is a type of mutual fund that invests in fixed income securities such as gilt funds, short-term bonds, and long-term bonds. Gilt funds are government securities with no default risk, while short-term and long-term bonds refer to the maturity period of the bonds held in the fund. Therefore, the correct answer is "All the above" as a debt fund can consist of all these types of investments.

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7.

Which of the following is not the part of the Equity fund?

Sector fund
Thematic fund
Index fund
Gilt fund

Correct Answer

A. Gilt fund

Explanation

Gilt funds are not part of the Equity fund because they invest primarily in government securities, specifically in the form of treasury bills and government bonds. On the other hand, Equity funds invest in stocks of companies, providing investors with ownership in those companies. Sector funds, thematic funds, and index funds are all types of Equity funds as they focus on specific sectors, themes, or track a specific index respectively.

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8.

Mid-cap, small-cap, and tax savings funds come under?

Equity fund
Debt fund
Both
None of the above

Correct Answer

A. Equity fund

Explanation

Mid-cap, small-cap, and tax savings funds are all types of mutual funds that primarily invest in equity or stocks of companies. Therefore, they come under the category of equity funds. These funds aim to generate higher returns by investing in the stock market, but they also come with higher risk compared to debt funds.

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9.

New fund offer comes under:

Closed ended funds
Open ended funds
Both
None of the above

Correct Answer

A. Both

Explanation

New fund offers (NFOs) can come under both closed-ended funds and open-ended funds.

Closed-ended funds have a fixed maturity period and a fixed number of units. NFOs in closed-ended funds are launched when the fund is open for subscription for a limited period. Once the subscription period is over, the fund is closed for new investments.

Open-ended funds, on the other hand, do not have a fixed maturity period and allow investors to buy or sell units at any time. NFOs in open-ended funds are launched to attract new investors and increase the fund's size.

Therefore, the correct answer is "Both" as NFOs can be launched for both closed-ended and open-ended funds.

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10.

ELSS is a tax savings scheme.

True
False

Correct Answer

A. True

Explanation

ELSS stands for Equity Linked Savings Scheme, which is a type of mutual fund that offers tax benefits under Section 80C of the Income Tax Act in India. Investors can claim deductions on their taxable income by investing in ELSS. Therefore, the statement "ELSS is a tax savings scheme" is true as it accurately describes the purpose and benefits of investing in ELSS.

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Mutual Fund Schemes Quiz!

Mutual funds are having different schemes:

Quiz Preview

Which of the following funds come under open-ended ?

Which fund comes under closed-ended fund?

A hybrid fund is the part of which fund?

The combination of the open-ended and closed-ended funds is called?

Debt fund is consisted of?

Which of the following is not the part of the Equity fund?

Mid-cap, small-cap, and tax savings funds come under?

New fund offer comes under:

ELSS is a tax savings scheme.