30 Questions
What type of funds are designed to mirror a specific index and not perform better than the market?
ETFs
In passive funds tracking a specific index, who determines the portfolio composition?
Underlying index
What characteristic distinguishes Exchange Traded Funds (ETFs) from actively managed funds?
Real-time trading on stock exchanges
What play a significant role in determining the weightage of each share in a passive fund's portfolio?
Composition of the underlying index
What is the main advantage of passive funds over actively managed funds in terms of running costs?
Lower running costs due to less active management
Which type of scheme might have an investment portfolio primarily focused on equity shares and equity-related investments?
Equity schemes
What is the minimum percentage of total assets that an index fund must invest in securities of a specific index?
95 percent
According to SEBI regulations, what percentage of the Real Estate Mutual Fund scheme's portfolio must be held in physical assets?
35 percent
In Real Estate Mutual Fund Schemes, what types of assets can at least 75 percent of the net assets be invested in?
Real estate assets, mortgage-backed securities, equity shares, or debentures of real estate companies
How often are the assets held by Real Estate Mutual Fund Schemes valued by accredited valuers?
Every 90 days
What is the criterion for listing Real Estate Mutual Fund Schemes on a stock exchange?
Being closed-end funds
In a Fund of Funds scheme, what is the minimum percentage of total assets that must be invested in the underlying fund?
95 percent
What is the minimum value of assets owned or proposed to be owned by a REIT coming out with an initial offer?
Rs. 500 crore
In an initial offer from a REIT, what is the minimum subscription amount?
Rs. 2 lakh
What is the minimum size of the units a person can subscribe to in an InvIT initial offer?
Rs. 10 lakh
When did significant spurts in the size of the mutual fund industry in India occur?
Late 80s and mid-90s
In which sector do Infrastructure Investment Trusts (InvIT) invest?
Infrastructure sector
What is the minimum offer size for a REIT initial offer?
Rs.250 crore
What is the primary source of return for investors in equity investments?
Appreciation in investment value
Which asset class is described as an income-oriented asset in the text?
Debt
What determines the conditions such as coupon interest payable on debt?
Terms of issue
In what type of funds do investors find investment in both debt and equity?
Hybrid funds
What is the characteristic of Solution-Oriented Schemes mentioned in the text?
Investing for retirement or children's future
What type of instruments do equity funds primarily invest in?
Equity instruments issued by companies
What is the purpose of an in-person verification (IPV) performed by the intermediary in the KYC process?
To assign a 14 digit KYC Identification Number (KIN)
Which entity in the mutual fund industry facilitates payment processing in the online market place?
Payment Aggregators
What is the main advantage of using payment aggregators for mutual fund houses?
Facilitate payment via credit cards and bank transfers without setting up merchant accounts
What is the role of a Custodian in the mutual fund industry?
Hold the assets of the mutual fund
Why are most investor service centres usually offices of Trustees?
To oversee the compliance and service aspects of the funds
Why is it not necessary for mutual funds to set up merchant accounts when using payment aggregators for transactions?
Because aggregators handle payment processing without the need for separate merchant accounts
Learn about passive investment funds and index schemes that track specific market indexes, such as the S&P BSE Sensex. Understand how these funds replicate the composition and performance of the index, without aiming to outperform the market. Explore the concept of index schemes and their role in passive investing.
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