1 NISM Mock Test 2

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Which type of mutual fund scheme is known for providing tax benefits under Section 80C?

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80 Terms

1

Which type of mutual fund scheme is known for providing tax benefits under Section 80C?

ELSS

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2

What does SIP stand for?

Systematic Investment Plan

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3

What is the primary objective of a liquid fund?

Short-term liquidity

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4

Which type of mutual fund is considered low risk and invests in government securities?

Gilt fund

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5

What is the main objective of an equity fund?

Capital appreciation

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6

What is the expense ratio of a mutual fund?

The ratio of the fund's expenses to its total assets

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7

Which regulatory body oversees mutual funds in India?

SEBI

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8

What is the primary advantage of an ETF over a mutual fund?

Lower costs

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9

Which type of mutual fund is suitable for long-term investors?

Equity fund

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10

What is the significance of NAV in mutual funds?

Indicates the per-unit value of the fund

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11

What does AUM stand for in mutual funds?

Assets Under Management

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12

What is a diversified fund?

A mutual fund that invests in various sectors to reduce risk

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13

What is the primary role of a custodian in mutual funds?

Safeguard the fund's assets

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14

What type of mutual fund is known for its high risk and high return potential?

Sector fund

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15

What is the difference between an open-ended and a closed-ended mutual fund?

Open-ended funds can issue and redeem units at any time

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16

What is the Sharpe ratio used to measure in mutual funds?

Risk-adjusted return

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17

What is the lock-in period for ELSS?

3 years

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18

Which type of fund invests primarily in corporate bonds?

Debt fund

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19

What is the key feature of a closed-ended mutual fund?

Fixed number of units

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20

What is the primary function of an AMC (Asset Management Company)?

Manage mutual funds

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21

What is the role of SEBI in mutual funds?

Regulate and oversee mutual funds

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22

What is the primary advantage of diversification in mutual funds?

Reduce risk

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23

What is the role of a fund manager in a mutual fund?

Make investment decisions and manage the portfolio

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24

What is a balanced fund?

A mutual fund that invests in both equities and debt instruments

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25

What is the significance of the expense ratio in mutual funds?

Indicates the cost of managing the fund

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26

What is the primary risk associated with debt funds?

Credit risk

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27

What does ETF stand for?

Exchange Traded Fund

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28

What is the main objective of a gilt fund?

Invest in government securities

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29

What is the lock-in period for tax-saving mutual funds?

3 years

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30

What is the primary advantage of investing in a mutual fund?

Diversification

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31

What is a liquid fund?

A mutual fund that invests in short-term securities for liquidity

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32

What is the main benefit of SIP in mutual funds?

Regular investment and rupee cost averaging

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33

What type of mutual fund is considered low risk and invests in government securities?

Gilt fund

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34

What is the primary objective of an index fund?

Match the performance of the market index

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35

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

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36

What is the primary benefit of diversification in a mutual fund?

Reduce risk

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37

What is the role of a custodian in mutual funds?

Safeguard the fund's assets

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38

What is the primary advantage of diversification in mutual funds?

Reduce risk

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39

What is the main objective of a growth fund?

Capital appreciation

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40

What is the primary role of SEBI in mutual funds?

Regulate and oversee mutual funds

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41

What is the primary function of an AMC (Asset Management Company)?

Manage mutual funds

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42

What is the main objective of an index fund?

Match the performance of the market index

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43

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

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44

What is the main objective of a liquid fund?

Short-term liquidity

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45

What is the primary benefit of SIP in mutual funds?

Regular investment and rupee cost averaging

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46

What is the main objective of a balanced fund?

Provide a mix of equity and debt investment

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47

What is the primary risk associated with debt funds?

Credit risk

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48

What does SIP stand for?

Systematic Investment Plan

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49

Which type of mutual fund is designed to provide tax benefits?

ELSS

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50

What is the significance of NAV in mutual funds?

Indicates the per-unit value of the fund

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51

What is a diversified fund?

A mutual fund that invests in various sectors to reduce risk

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52

What is the expense ratio of a mutual fund?

The ratio of the fund's expenses to its total assets

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53

Which regulatory body oversees mutual funds in India?

SEBI

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54

What is the main objective of a gilt fund?

Invest in government securities

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55

What is the lock-in period for ELSS?

3 years

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56

What type of mutual fund is known for its high risk and high return potential?

Sector fund

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57

What is the primary role of a custodian in mutual funds?

Safeguard the fund's assets

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58

What is the difference between an ETF and a mutual fund?

ETFs trade on stock exchanges, mutual funds do not

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59

What is the primary advantage of diversification in mutual funds?

Reduce risk

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60

What is the role of a fund manager in a mutual fund?

Make investment decisions and manage the portfolio

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61

What is the primary function of an AMC (Asset Management Company)?

Manage mutual funds

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62

What is the main objective of an index fund?

Match the performance of the market index

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63

Which type of mutual fund provides regular income through dividends?

Dividend yield fund

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64

What does AUM stand for in mutual funds?

Assets Under Management

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65

What type of mutual fund is considered low risk and invests in government securities?

Gilt fund

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66

What is the primary benefit of diversification in a mutual fund?

Reduce risk

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67

What is the primary role of SEBI in mutual funds?

Regulate and oversee mutual funds

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68

What is the difference between an open-ended and a closed-ended mutual fund?

Open-ended funds can issue and redeem units at any time

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69

What is the main objective of a balanced fund?

Provide a mix of equity and debt investment

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70

What is the significance of the expense ratio in mutual funds?

Indicates the cost of managing the fund

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71

Which type of fund invests primarily in corporate bonds?

Debt fund

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72

What is the key feature of a closed-ended mutual fund?

Fixed number of units

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73

What does ETF stand for?

Exchange Traded Fund

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74

What is the lock-in period for tax-saving mutual funds?

3 years

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75

What is the primary advantage of investing in a mutual fund?

Diversification

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76

What is a liquid fund?

A mutual fund that invests in short-term securities for liquidity

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77

What is the main benefit of SIP in mutual funds?

Regular investment and rupee cost averaging

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78

What type of mutual fund is considered low risk and invests in government securities?

Gilt fund

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79

What is the primary objective of an index fund?

Match the performance of the market index

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80

Which type of mutual fund provides regular income through dividends?

Dividend yield fun

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