Mutual Funds: Primary Types
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Questions and Answers

What form can the return of a mutual fund take?

  • Fees deduction and taxes
  • Capital appreciation and distributions (correct)
  • Shares purchase and dividends
  • Bond interests and capital gains
  • In the example provided, what was the total value of distributions the investor received during the period?

  • Rs. 50 (correct)
  • Rs. 200
  • Rs. 150
  • Rs. 250
  • Which type of fund had the highest value in Sri Lanka's Unit Trust Industry data in October 2022?

  • Balanced Funds
  • Bond Funds
  • Money Market Funds (correct)
  • Growth Funds
  • What formula is used to calculate the return of a mutual fund?

    <p>[Ending NAV - beginning NAV] + distributions) / beginning NAV</p> Signup and view all the answers

    What type of fund has the smallest value according to the Unit Trust Industry data in Sri Lanka in October 2022?

    <p>Indexed Funds</p> Signup and view all the answers

    Which form of return occurs when the prices of shares in a mutual fund increase?

    <p>Capital appreciation</p> Signup and view all the answers

    What could significantly reduce the returns of a mutual fund according to the text?

    <p>Fees and taxes</p> Signup and view all the answers

    In the context provided, what do 'NAV' stand for?

    <p>Net Asset Value</p> Signup and view all the answers

    Which type of funds had the second-highest value according to the Unit Trust Industry data in Sri Lanka in October 2022?

    <p>Bond Funds</p> Signup and view all the answers

    What does a capital appreciation imply in the context of mutual funds?

    <p>An increase in the share prices of funds over time.</p> Signup and view all the answers

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