MUTUAL FUNDS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is a mutual fund?
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.
What is the lock-in period for an ELSS mutual fund scheme?
3 years, shortest among tax-saving instruments under 80C.
Which regulatory body governs mutual funds in India?
Mutual funds in India are regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Mutual Funds) Regulations, 1996.
What does the term 'scheme' mean in the context of mutual funds?
A distinct investment portfolio launched by an AMC under a fund.
What is a Net Asset Value (NAV) in mutual funds?
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.
What is a sectoral fund in mutual funds?
A fund that invests exclusively in stocks of one specific sector.
What is the role of an Asset Management Company (AMC) in a mutual fund?
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.
What is a thematic fund in mutual funds?
A fund investing across sectors tied to one common investment theme.
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