CHAPTER NISM VA 12

While selecting scheme which of the following should be considered?

The —– portfolio will be invested according to the long term needs and goals of the investor. The —- portfolio will be invested to take advantage of expected short-term market movements.

Arrange the following mutual fund in order of increasing risk: [i] Debt funds {ii} Hybrid funds {iii} liquid funds {iv} Equity funds

Arrange the following debt funds in order of decreasing interest rate risk: {Overnight funds {ii Medium duration funds {iii liquid funds {iv long duration funds

Arrange the following equity funds in order of increasing risk: i Large cap funds ii large and mid-cap funds iii Multi cap funds

Arrange the following funds in order of increasing risk: i Sector funds ii Focused funds iii Thematic funds

A close-ended scheme offers liquidity through its listing on a stock exchange.

Timing is the key in investing sector funds.

As the economy recovers, and investors start investing in the market, at this stage, the——funds offer attractive investment opportunities.

Funds that follow the —–strategy seek to identify companies that are expected to grow at rates higher than the average economic growth rate.

—- seeks to identify stocks that are available at a price that is seen as cheap relative to the value that could be unlocked in the future

Since floating rate debt securities tend to hold their investment, even if interest rates fluctuate, the NAV of floaters tend to be steady.

Portfolio Turnover Ratio is calculated as

—- has the benefit of money flow to the investor; growth option has the benefit of letting the money grow in the fund on gross basis.

Which of the following scheme categories would be considered the least risky interms of credit risk?

For an investor to get a quick sense of the level of risk involved in a mutual fundscheme, SEBI suggested a simplified framework known as ______.

Passive funds are safe, as the NAV of such funds do not go down even when the respective markets fall. State whether this is True or False.

Which among the following schemes would have lower risk of concentration?

_____ are close-ended debt funds.