You must score at least 80% to complete this topic.

1. Under which situation will a fund manager keep scheme’s funds in liquid form?

2. Which of the following statement is correct as far as it pertains to scheme’s liabilities?

3. Mutual funds can invest in derivatives. However, investment for one of the following purposes is disallowed by SEBI. Which one is it?

4. SEBI has stipulated that every scheme should have at least _____ investors and no investor should represent more than _________ percent of net assets of a scheme.

5. Higher portfolio turnover indicates low risk because the fund manager is keeping an extra close watch on the portfolio of securities and immediately buys the securities which are in line with the investment objective of his scheme. Correct or incorrect?

6. Which of the following risks affect debt securities?

7. If the investor wants to take low risk and earn only interest income from a debt scheme, where should he invest?

8. Which security has lower price risk because of fluctuation in NAV – Bonds or Liquid?

9. Fixed Monthly Plans align the maturity of their portfolio to the maturity of the scheme. Correct or incorrect?

10. An investor wants to invest in the investment option which carries least credit risk. Which of the following options is least risky?

11. Conservative Hybrid Fund is basically an equity scheme with only a small proportion of debt and large proportion of equity. True or False?

12. Can Indian mutual funds invest in Real Estate?

13. Fluctuations in returns of a security does not make it riskier than any other security if over a long period the average returns of both are same. Correct or incorrect?

14. Can Indian mutual funds invest in Gold?