26 Questions
What is the primary purpose of diversification in a portfolio?
To minimize the impact of any one security on overall portfolio performance
What is a key advantage of having a diversified portfolio?
It reduces the risk of the entire portfolio being affected by a single security
What is meant by 'not putting all your eggs in one basket' in the context of investment?
Diversifying across various asset classes
What is the main benefit of having a mix of asset classes in a portfolio?
It reduces the impact of a decline in any one security
What is the goal of diversification in portfolio management?
To minimize the risk of the portfolio
Why is diversification considered a key risk management technique?
Because it reduces the impact of any one security on overall portfolio performance
What is the primary objective of a Systematic Investment Plan (SIP)?
To invest a fixed amount of money at regular intervals
What is the main benefit of indexation in capital gains taxation?
It reduces the tax liability of the investor
What is the primary goal of diversification in a portfolio?
To reduce the risk of the portfolio
What is the name of the industry association for the Mutual Fund Industry?
AMFI
What is the main purpose of stress testing in asset management?
To identify potential risks in a portfolio
What is the primary feature of a Floating Rate Scheme?
It adjusts its interest rate in response to changes in the market
What is the main benefit of a Systematic Transfer Plan (STP)?
It allows investors to transfer funds from one scheme to another
What is the primary objective of a Gilt Fund?
To invest in government securities
What is the main purpose of portfolio churning in liquid funds?
To manage the cash flow of the portfolio
What is the primary benefit of a Debt Mutual Fund?
It offers a relatively low-risk investment option
What is the primary role of a stock exchange in a financial market?
To provide a platform for trading securities
What is the purpose of a prospectus in an initial public offer (IPO)?
To provide a detailed description of the company's financials
What is the role of a depository in the securities market?
To hold securities in electronic form
What is the purpose of ratio analysis in financial statement analysis?
To assess the company's profitability
What is the primary objective of diversification in investment portfolio management?
To minimize risk
What is the role of SEBI in the securities market?
To regulate the issue of securities
What is meant by the term 'Listing of Securities'?
The process of listing securities on a stock exchange
What is the primary objective of risk management in investment portfolio management?
To minimize risk
What is meant by the term 'Investment'?
The act of putting money into something with the expectation of earning a profit
What is the primary objective of portfolio management?
To optimize returns for a given level of risk
Test your knowledge of investment portfolios and diversification techniques. Learn about risk management strategies and how to minimize portfolio risk.
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