Quick Revision – Chapter 1 Crash Course

1. Investors subscribe to a particular Mutual Fund scheme which conforms to objective and need____________.

2. In Mutual Fund, the investment management is left to the competence of the fund manager and investor cannot influence what securities should scheme invest in.

3. Fund running expenses tend to be_______in case of Actively Managed Funds:

4. Credit Risk Funds Schemes invest in securities with ____ credit ratings and______ interest rates.

5. As per SEBI categorisation, Conservative Hybrid Funds invest predominantly in debt securities  with a small allocation to ______which can range between _____ of the total assets.

6. REIT is the abbreviation for:

7. Liquid Schemes are a kind of Debt Fund Scheme which invest only in short term Debt securities of a maturity of up to ______ :

8. If a Mutual Fund Scheme is profitable, the true worth of its units will____.

9. Open ended funds are the funds which are open for entry or exit any time even after the NFO period.

10. All Mutual Fund Trusts have beneficiaries.

11. Schemes with an investment objective of regular income generation which invest in securities like Government Securities, Treasury Bills, Bonds and Debentures are called Equity scheme.

12. As per SEBI categorisation of Equity Schemes, Large & Mid Cap Funds have to invest a minimum of _______% in Large cap Stocks and _____% in Mid cap stocks out of the total assets:

13. Capital Protection Schemes are ____________schemes with an objective of protecting the capital irrespective of market fluctuations.

14. Enhanced Channels of distribution are one of the factors which has driven the growth of Mutual Funds Industry:

15. Value Funds are the funds which invest in stocks which are valued at a higher price based on the fundamental analysis:

16. In a Mutual Fund, the investor has to separately pay for the Professional Fund Management services.

17. A new mutual fund scheme is launched through -

18. Mutual Funds help generate employment and also help enhancement in economic development.

19. Mutual funds are not liable to pay taxes on their income.

20. Mid Cap companies are the ones which are numbering from ______ in the list of companies in the descending order of market capitalisation.

21. In an Active Fund, the investor is supposed to take _______risk and the cost is _______.

22. Mutual Funds generally have access to ______funds collected from a _________number of investors. Fill the blanks.

23. AUM stands for

24. The specified time frame for an open-ended mutual fund scheme is_________

25. Tax Deferral is achieved by opting for:

26. After investing in a mutual fund scheme, the investor gets a right to select the securities in the portfolio of that scheme:

27. All profits/losses in the Mutual Fund scheme portfolio belong to the _____________of that scheme.

28. Existing investor may acquire additional units or new investor can acquire units any time in an open ended fund at a price linked to NAV.

29. Gilt Funds invest only in Treasury Bills and _________________.

30. Primary function of a mutual fund is to help investors earn income or build wealth by

31. Investors can invest in units of a particular scheme at ___________ when a new scheme is launched which is called 'New Fund Offer' (NFO).

32. An Investor can control the cost or the expense ratio of the Mutual Fund Scheme.

33. The Scheme of a Mutual Fund  is  paying regular dividends. Can this scheme be used for Capital Appreciation?

34. Exchange Traded Funds (ETFs) are ___________________funds since scheme portfolio is identical to the related Index or benchmark.

35. What would be the AUM of the scheme at the time of its first launch

36. Which fund units must be listed in Stock Exchange?

37. Under Solution Oriented Schemes, Retirement Fund is the scheme which is ___________ with a lock in period of 5 years or till retirement age, whichever is __________.

38. The investment objective of a ____________ is to achieve growth by investing in equity and equity related investments, along with income generation by investing in debt and money market instruments.

39. A Multi cap Fund has to invest at least 75% of its assets in equity and equity related instruments with a minimum of 25% each in large, Mid and small cap funds.

40. A Flexi cap Fund is a dynamic Equity scheme which invests at least 65% of its total assets across Large, Mid and Small cap stocks.

41. All Debt securities in a Liquid Fund have to be values on "Mark to market " basis.