MODULE 4 (INVESTMENT THROUGH MANAGED PORTFOLIO)

____ are the vehicles to mobilize money from investors to invest in different markets and securities in line with investment objectives agreed upon between mutual fund and investor.

Each product offered by a mutual fund is called a _____.

The application to SEBI for registration of mutual fund is made by ____.

Mutual Fund is Set up as:

Mutual Fund is set up as trust under which act:

_____ are appointed to take care of the interests of the investors in the various schemes launched by the mutual fund.

_____ is appointed to manage the activities related to launching a scheme, marketing it, collecting funds, investing the funds according to the scheme’s investment objectives, and enabling investor transactions.

When a scheme is first made available for investment, it is called a _____.

New Fund Offer (NFO) of the scheme is kept open for a period not exceeding ____ days.

The asset class in which a fund will invest will be defined by _____.

_____ is the total market value of assets that an investment company manages on behalf of investors.

Net Asset Value =

All investor transactions are conducted at the ____ NAV of Scheme.

The portfolio has to reflect the current market price of the securities held. This process of valuing the portfolio on a daily basis at the current value is called ____.

Which among the following are advantages of Mutual Fund?

Which among the following is a limitation of Mutual Fund?

____ funds are open for investors to enter or exit at any time, even after the NFO.

____ is for a fixed period or tenor. It offers units to investors only during the new fund offer (NFO)

Interval funds combine features of both open-ended and close-ended schemes. They are largely close-ended, but become open-ended at pre-specified intervals.

Listing in stock exchange is compulsory for _____.

_____ is the primary regulator of mutual funds in India.

_____ is the industry body that oversees the functioning of the industry and recommends best practices to be followed by the industry members.

_____invests the money in the companies represented in an index such as Nifty or Sensex in the same proportion as the company’s representation in the index. There is no selection of securities or investment decisions taken by the fund manager as to when to invest or how much to invest in each security?

_____ select stocks for the portfolio based on a strategy that is intended to generate a higher return than the index.

_____ invest in multiple sectors and stocks falling within a theme.

_____ invest in a given sector.

_____ Equity funds may focus on a particular size of companies (based on market capitalization) to benefit from the features of such companies.

_____ Invest in companies with high dividend yield.

_____ restrict portfolio to a particular number of selected securities. These funds have selection risks.

_____ Passive funds are based on equity indices.

_____ invest in companies whose earnings are expected to grow at an above-average rate

_____ scheme should follow a contrarian investment strategy.

Which among the following are the features of Equity Linked Savings Scheme (ELSS)?

_____ are very short-term maturity. They invest in debt securities with less than 91 days to maturity.

_____ invest in medium-term and long-term securities issued by the government, banks, and corporates, Benefit of higher coupon, High-interest rate risk due to long term orientation

_____ invest in government securities of medium and long-term maturities.

_____ invest largely in floating rate debt securities.

_____ seek higher interest income by investing in debt instruments that have lower credit ratings.

_____ seek flexible and dynamic management of interest rate risk and credit risk, Moves across the yield curve depending on the changes in the interest rates.

Which of the following are the features of fixed maturity plans?

For a scheme to be defined as equity fund it must have minimum ___% investment in Indian Equities.

_____ can change the proportion between debt and equity depending upon market outlook.

_____ invest in debt securities with a derivative instrument or equity shares. Structured portfolio such that ‘Amount invested + interest = Investor’s principal.

____ invests in funds of same fund house or various fund houses.

____ Open-Ended Funds that track a market index and are listed on the exchange.

____ is an index fund that invests in gold, gold receipts, or gold deposit schemes of banks.

____ invests directly or indirectly in real estate assets or other permissible assets in accordance with the SEBI (Mutual Funds) Regulations, 1996.

In the case of Real Estate Mutual Fund at least ___ percent of the portfolio should be held in physical assets.

Dividends received by investors from mutual funds are exempt from tax.

If the fund pay-out the returns generated in the form of periodic dividend it represents which mutual fund investment option?

If the dividend declared is not paid out but re-invested in the scheme, it represents which mutual fund investment option?

The returns generated are retained in the scheme and translate into an appreciation in the NAV, and hence the value of the investment. The investor can realize this appreciation at any time by redeeming the units, it represents which mutual fund investment option?

PAN stands for:

____ is the proof of investment for an investor who has purchased units in a mutual fund scheme.

____ is required to be sent to investors for each month in which there has been a transaction in the folio before the 10th of the subsequent month.

____ means to invest a fixed sum of money at regular intervals over a period of time in a mutual fund scheme. It enables investors to build a corpus over time even with small sums invested.

SIP allows investors to benefit from the volatility in the market.

Since the same amount is being invested in each installment, investors buy more units when the price is low and fewer units when the price is high. Over time, the average cost of acquisition per unit comes down. This is called _____.

_____ enables recurring redemptions from a scheme over a period of time at the applicable NAV on the date of each redemption.

_____ combines redemption from one scheme and investment to another scheme of the same mutual fund.

_____ is a single transfer from one scheme or option of a scheme to another scheme or option of the same scheme.

The Interest Rate Risk in a debt fund will depend on _____.

The dividend distribution tax applicable for individuals in equity mutual funds ____.

Custodian is appointed by:

RTA stands for ____.