JAIIB · IEIFS

MUTUAL FUNDS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

What is a mutual fund?

A

A mutual fund is a professionally managed investment vehicle that pools money from multiple investors to invest in a diversified portfolio of securities such as stocks, bonds, and money market instruments.

Q

What is the lock-in period for an ELSS mutual fund scheme?

A

3 years, shortest among tax-saving instruments under 80C.

Q

Which regulatory body governs mutual funds in India?

A

Mutual funds in India are regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Mutual Funds) Regulations, 1996.

Q

What does the term 'scheme' mean in the context of mutual funds?

A

A distinct investment portfolio launched by an AMC under a fund.

Q

What is a Net Asset Value (NAV) in mutual funds?

A

NAV is the per-unit market value of a mutual fund scheme, calculated by dividing the total net assets of the scheme by the number of outstanding units on a given date.

Q

What is a sectoral fund in mutual funds?

A

A fund that invests exclusively in stocks of one specific sector.

Q

What is the role of an Asset Management Company (AMC) in a mutual fund?

A

An AMC is a company registered with SEBI that manages the investment portfolio of a mutual fund scheme on behalf of investors, making buy/sell decisions in line with the scheme's investment objective.

Q

What is a thematic fund in mutual funds?

A

A fund investing across sectors tied to one common investment theme.

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