1. A fund that is basically an index fund that trades like a closed-end fund is called?
1. Internal -traded fund
2. Exchange-traded fund
3. External traded fund
4. exchange-trading fund
5. None of these
Option “2” is correct. An exchange-traded fund (ETF) is a type of security that involves a collection of securities—such as stocks—that often tracks an underlying index, although they can invest in any number of industry sectors or use various strategies.
2. An investment company that will repurchase shares at any time is called a(n) _____ fund?
1. Semi close -end
2. Semi Open-end
3. Open-end
4. Close -end
5. None of these
Option “3” is correct. An open-end fund is a diversified portfolio of pooled investor money that can issue an unlimited number of shares. The fund sponsor sells shares directly to investors and redeems them as well. These shares are priced daily, based on their current net asset value (NAV). Some mutual funds, hedge funds, and exchange-traded funds (ETFs) are types of open-end funds.
3. An investment company that issues a fixed number of shares which can only be resold in the open stock market is called _____ fund.
1. Closed-end
2. Open- end
3. Semi Closed-end
4. Semi open -end
5. None of these
Option “1” is correct. A closed-end fund is a portfolio of pooled assets that raises a fixed amount of capital through an initial public offering (IPO) and then lists shares for trade on a stock exchange. Like a mutual fund, a closed-end fund has a professional manager overseeing the portfolio and actively buying and selling holding assets.
4. The value of a load mutual fund’s assets less its liabilities, divided by the number of shares outstanding is referred to as the funds?
1. Total liabilities
2. Net asset value
3. Gross assets
4. Gross liabilities
5. None of these
Option “2” is correct. The net asset value (NAV) represents the net value of an entity and is calculated as the total value of the entity’s assets minus the total value of its liabilities.
5. Which is a highly regulated investment fund that escapes most regulations by being a sort of a private investment vehicle being offered to selected clients?
1. Fixed income funds.
2. Equity funds
3. Specialty funds
4. Hedge Fund
5. None of these
Option “4” is correct. A hedge fund is an aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions.
6. Which of the following has announced the launch of its Housing Opportunities Fund, in March 2022?
1. SBI Mutual Fund
2. Axis Mutual Fund
3. ICICI Prudential Mutual Fund
4. Kotak Mutual Fund
5. DSP Mutual Fund
Option “3” is correct. · ICICI Prudential Mutual Fund has announced the launch of its Housing Opportunities Fund. · It is an open-ended equity scheme that will invest in companies engaged in and/or expected to benefit from the growth in housing theme. · The scheme will invest in basic eligible industries that form a part of the Nifty Housing Index. · The new fund offer will open on 28 March and close on 11 April 2022.
7. Which mutual fund company has launched its Nifty 100 Low Vol 30 ETF (exchange-traded fund) to measure the performance of the low volatile securities in March 2022?
1. ICICI Prudential Mutual Fund
2. HDFC Mutual Fund
3. HSBC Mutual Fund (MF)
4. Kotak Mahindra Mutual Fund (MF)
5. Either Option 1 or 2
Option “4” is correct. · Kotak Mahindra Mutual Fund (MF) has launched Kotak Nifty 100 Low Vol 30 ETF (exchange-traded fund). · It is an open-ended scheme replicating/tracking the Nifty 100 Low Volatility 30 Index. · As per the NSE Indices’ information about the index, the NIFTY 100 Low Volatility 30 Index aims to measure the performance of the low volatile securities in the large market capitalization segment.
8. Which among the following statement is true?
1. Debenture can be issued at a premium, but equity shares cannot be issued at a premium
2. Debenture holders are owners of a company, but equity shareholders are creditors of a company
3. Debenture interest is a charge against profit, but equity dividend is an appropriation of profit.
4. Debenture interest varies from year to year but equity shares dividend is at same rate every year.
5. All of the above
Option “3” is correct. Debenture interest is a charge against profit, the interest paid on debenture is the cost of capital the company pays for the capital requirements without reducing the dividend paid to the shareholder and hence it is charged against the profits of the company but equity dividend is an appropriation of profit.
9. Under ____________ main objective is to safeguard the investors capital in the event of market downturns while providing them scope for capital appreciation by investing during the upturns of the equity market.
1. Tax Savings Funds
2. Fixed Maturity Funds
3. Pension Funds
4. Capital Protection Funds
5. None of the above
Option “4” is correct. It is a close end hybrid fund; whose main objective is to safeguard the investors capital in the event of market downturns while providing them scope for capital appreciation by investing during the upturns of the equity market. This kind of fund is skewed more towards debt, even if the portfolio is a mix of both equity and debt. The proportion of debt to equity in this fund is 8:2.
10. When the debentures are issued as collateral security:
1. A fixed amount is paid as interest
2. Interest is paid on face value of debentures
3. Interest is paid on issue price of debentures.
4. No interest will be paid
5. All of the above
Option “4” is correct. An issue of debentures as a collateral security means that debentures are issued for obtaining a loan. Here, debentures act as a security in case of the company fails to meet the debt obligations (Principal Amount + Interest Amount) on time.