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  • Sector Selection Stock Selection: Weighted Average Maturity

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    Rishad k
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    An investor in a debt scheme would give most importance to the weighted average maturity of the portfolio. Debt is considered a safe haven asset class. The Sharpe Ratio is a measure of risk-adjusted return. Mutual funds in India are permitted to invest in securities, gold and real estate. The liquidity needs of an investor are best met through money market funds.

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    MCQs

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    MCQ2

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    An investor in a debt scheme would give most importance to the weighted average maturity of the portfolio. Debt is considered a safe haven asset class. The Sharpe Ratio is a measure of risk-adjusted return. Mutual funds in India are permitted to invest in securities, gold and real estate. The liquidity needs of an investor are best met through money market funds.

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    52 views7 pages

    Sector Selection Stock Selection: Weighted Average Maturity

    Uploaded by

    Rishad k
    An investor in a debt scheme would give most importance to the weighted average maturity of the portfolio. Debt is considered a safe haven asset class. The Sharpe Ratio is a measure of risk-adjusted return. Mutual funds in India are permitted to invest in securities, gold and real estate. The liquidity needs of an investor are best met through money market funds.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 7

    Which of the following aspects of portfolio would an investor in a debt

    scheme give most importance?

    Sector selection

    Stock selection

    Weighted Average Maturity

    Number of securities in portfolio

    ________ is a safe haven asset class

    Debt

    Gold

    Equity

    Real Estate

    __________ is a measure of risk-adjusted return

    Simple return

    Standard Deviation

    Beta

    Sharpe Ratio

    Securities Transaction Tax is applicable to Equity Schemes.

    True

    False

    Investment objective is closely linked to ________.

    Scheme

    Option
    Plan

    SIP

    Mutual funds in India are permitted to invest in

    Securities

    Securities and Gold

    Securities other than real estate


    Securities, gold and real estate

    The liquidity needs of an investor are met through


    Equity Funds
    Index Funds
    Money Market Funds
    Sector Funds
    The day on which NAV is calculated by a fund is known as
    computation date
    valuation date
    record date
    book closure date
    SIP is best example of
    Rupee Cost Averaging
    Value Averaging
    Buy and Hold
    Which of the following is not true for Index Funds
    These funds invests in the shares that constitute a specific index
    The investment in shares is in the same proportion as in the index
    These funds take only the overall market risk
    These funds are not diversified
    Net assets of a scheme is nothing but its investment portfolio
    True
    False

    What percentage tax does an investor of an equity oriented mutual fund have pay if the units
    are held for one year or less?
    10%
    8%
    15%
    0.5%
    ETF is a hybrid product having the features of both a mutual fund and a stock
    True
    False
    A retired person generally needs a greater proportion of
    Equity funds
    Money Market funds
    All of the above
    Debt funds
    A significant benefit of open-end schemes is
    Low cost
    Better portfolio
    Superior returns
    Liquidity
    A high turnover rate for a fund indicates
    high transaction costs
    greater efficiency
    high returns to the investor
    a rising market
    Debt Funds target
    Low risk and stable income
    Protection of principle
    Low growth with risk
    Long term capital appreciation
    Mutual funds in India are permitted to invest in
    Securities
    Securities and Gold
    Securities other than real estate
    Securities, gold and real estate
    What type of portfolio asset mix would you choose when you are 55 years old plan to retire at
    the age of 58?
    40% in equity schemes 60% in debt
    40% in equity 60% in balanced
    20% in equity 20% in liquid 60% in debt
    100% in monthly income schemes
    PAN Card is compulsory for all MF investments above Rs 50,000 including SIPs
    True
    False
    Investors are totally exempt from paying any tax on the dividend income they receive from
    mutual funds
    True
    False
    Charge to an investor at the time he redeems his units from the fund is known as
    Repurchase load
    Redemption weight
    Exit load
    You have won Rs 1 Crore in Lottery. What would your immediate action be?
    Invest the entire amount without any delay in "Old Economy stocks" – since they are back in
    favor
    Invest the entire amount immediately in an Equity Index Fund since the index is at historic
    low
    Invest in very safe liquid investment options and take the time needed to work out a financial
    plan
    Invest immediately in IT stocks, since their valuations are low
    Which of the following aspects of portfolio would an investor in a debt scheme give most
    importance
    Sector selection
    Stock selection
    Weighted Average Maturity
    Number of securities in portfolio
    SIP is best example of
    Rupee Cost Averaging
    Value Averaging
    Buy and Hold
    The investor of which kind of fund would bear a tax on short term capital gains, as per the
    investors tax slab
    Debt oriented mutual fund
    Equity oriented mutual fund
    The systematic approaches offered by mutual funds to promote an investment discipline for
    long term wealth creation are
    SIP, STP
    SIP, STP, SWP
    SIP, SWP
    None of the above
    Excess distribution expenses are to be borne by the
    AMC
    Unit holders
    SEBI
    AMC
    Open-ended schemes generally offer exit option to investors through a stock exchange.
    True
    False
    An NRI holds units in a MF. What should he do if he takes up a foreign citizenship?
    Redeems
    Continues
    Transfers units to his mother, who resides in INDIA
    None of the above
    Certificates of Deposits (CDs) are issued by
    Regional Rural Banks
    Corporate India
    Schedules commercial banks
    None of the above
    A greater portion of returns from conventional debt investments is generally through
    Capital gain
    Interest income
    Dividend income
    Inflation
    Which of the following is not a benefit from a Mutual Fund?
    Investor is able to diversify risk
    Investor has custody of securities where fund invests
    Investor can save costs
    Professional Management of money
    Which is the correct method of calculating NAV of a mutual fund?
    (Total Assets minus Liabilities other than to Unit holders) ÷ No. of Units
    Unit-holders’ Funds in the Scheme ÷ No. of Units
    Both of the above formula
    None of the above formula
    Beta of an equity fund measures its
    Performance
    Systematic Risk.
    Non Systematic Risk
    Both the above.
    Which of the following is not true for Index Funds
    These funds invests in the shares that constitute a specific index
    The investment in shares is in the same proportion as in the index
    These funds take only the overall market risk
    These funds are not diversified

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