5 Questions
Which of the following determines the maximum load that a mutual fund can charge?
SEBI
What is the amount required to buy 100 units of a scheme with an entry load of 1.5% and NAV of Rs.20?
Rs.1985
What does a gilt fund primarily invest in?
Government securities only
Which type of mutual fund carries the highest risk?
Equity Growth Funds
What does the NAV of a mutual fund do?
Fluctuates with market price movements
Study Notes
Mutual Funds
- The Securities and Exchange Board of India (SEBI) determines the maximum load that a mutual fund can charge.
- To buy 100 units of a scheme with an entry load of 1.5% and a Net Asset Value (NAV) of Rs.20, an amount of Rs.2025 is required (calculated as: 100 units x Rs.20 x (1 + 0.015)).
- A gilt fund primarily invests in government securities.
- An equity fund carries the highest risk among different types of mutual funds.
- The Net Asset Value (NAV) of a mutual fund reflects the fund's per-unit market value, which changes daily based on the fund's portfolio performance.
Test your knowledge of mutual funds with these practice questions for the AMFI Test. Explore concepts such as close-ended mutual funds, maximum load charges, and entry loads. Can you calculate the amount required to buy units of a scheme? Find out now!
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