Investment Scheme Characteristics Quiz
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Questions and Answers

What was the main modification in the way mutual funds present risk levels as mentioned in the text?

  • Replacing colour codes with a pictoral-meter named 'Riskometer' (correct)
  • Increasing the number of colours in the colour-coded risk levels
  • Adding more categories to the colour-coded risk levels
  • Introducing a new type of investment scheme
  • What is the significance of the 'Riskometer' in evaluating mutual fund schemes?

  • It simplifies the presentation of risk levels, but should not be the sole factor for making investment decisions (correct)
  • It provides personalized investment advice to each investor
  • It replaces the need for investors to research on their own
  • It guarantees high returns for all mutual fund schemes
  • How frequently should the risk-o-meter be evaluated for mutual fund schemes?

  • Monthly (correct)
  • Quarterly
  • Annually
  • Biannually
  • What is the risk score assigned to commodities with an annualized volatility of 20% as per SEBI's directive?

    <p>6 (Very High)</p> Signup and view all the answers

    What does an investor need to consider if they are unable to conduct thorough research on mutual fund schemes?

    <p>Seek guidance from a mutual fund distributor or registered investment adviser</p> Signup and view all the answers

    What change did SEBI make in April 2015 to the system of product labelling in mutual funds?

    <p>Increased the level of risk categories from three to five</p> Signup and view all the answers

    What does the colour 'Blue' represent in terms of risk level in mutual fund schemes?

    <p>Low risk</p> Signup and view all the answers

    What should investors do if they are unclear about the suitability of a product?

    <p>Consult their financial advisers</p> Signup and view all the answers

    In the context of mutual fund product labelling, what does the term 'Moderately High' indicate?

    <p>Moderately high risk</p> Signup and view all the answers

    What was the effective date of the circular mentioned that candidates are advised to read?

    <p>December 1, 2021</p> Signup and view all the answers

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