The Concept and Role of Mutual Funds
1. Which of the following is not a Mutual Fund characteristic?
a) Diversified portfolio
b) Careful research and monitoring of the market
c) Substantial capital
d) Expertise in stock market
2. Choose the advantage of Mutual Funds
a) Small amount of investment
b) Professional management
c) Risk diversification
d) All of the above
3. UTI was the only capital market intermediary for the period :
a) 1964 to 1987
b) 1963 to 1988
c) 1964 to 1992
d) None of the above
4. Mutual Funds can be defined as
a) a link between the saving public and the capital markets
b) an active participant in promoting good corporate governance, investor protection
c) a participant that has brought in liquidity into the financial system
d) All of the above
5. The ownership of a Mutual Fund belongs to
Board of Trustees
Sponsor
AMC
Unit-holders
6. A Mutual Funds’ investments are guided by
a) AMC
b) Board of Trustees
c) Investment objectives
d) Unit-holders
