Phases of Mutual Fund Development in India
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Questions and Answers

During which phase did SEBI introduce standardization and set uniform rules and regulations for all funds?

  • Phase 4
  • Phase 1
  • Phase 3
  • Phase 5 (correct)
  • What was the approximate value of Assets Under Management (AUM) of Indian Mutual Fund Industry as on March 31, 2022?

  • ₹50,00,000 crore
  • ₹37,56,683 crore (correct)
  • ₹40,00,000 crore
  • ₹30,00,000 crore
  • During which phase did the mutual fund industry witness immense growth and globalization?

  • Phase 3
  • Phase 6 (correct)
  • Phase 5
  • Phase 4
  • What was the approximate value of asset under management during Phase 5?

    <p>₹1,50,000 crores</p> Signup and view all the answers

    What was launched by SEBI and AMFI during Phase 5?

    <p>An awareness scheme for investors of mutual funds</p> Signup and view all the answers

    What was the approximate value of Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the month of March 2022?

    <p>₹37,70,296 crore</p> Signup and view all the answers

    What is a potential drawback of diversification in a mutual fund?

    <p>Increased operating cost and dilution of advantages</p> Signup and view all the answers

    What does the net asset value (NAV) of a mutual fund provide to investors?

    <p>The value of a fund's portfolio</p> Signup and view all the answers

    What should an investor analyze when evaluating a mutual fund?

    <p>The investment philosophy, transparency, ethics, compliance, and overall performance of the fund</p> Signup and view all the answers

    What is a limitation of ratings and advertisements issued by mutual fund companies?

    <p>They are only an indicator of past performance</p> Signup and view all the answers

    What is a key difference between investing in a mutual fund and buying stocks or securities directly?

    <p>The fees and expenses involved in the fund</p> Signup and view all the answers

    What is a potential risk associated with investing in a mutual fund?

    <p>The value of the fund may fluctuate depending on the market conditions</p> Signup and view all the answers

    What is the additional cost an investor may have to pay when exiting a mutual fund?

    <p>Exit cost</p> Signup and view all the answers

    What is CAGR unable to provide to investors?

    <p>Adequate information about the amount of risk</p> Signup and view all the answers

    What should an investor focus on instead of the 'star fund manager'?

    <p>The processes followed by a fund house</p> Signup and view all the answers

    What is one limitation of relying on 'star fund managers'?

    <p>They cannot dramatically change the performance of a fund</p> Signup and view all the answers

    Who is the joint venture partner of SBI in SBI Mutual Fund?

    <p>Amundi, a leading French asset management company</p> Signup and view all the answers

    When was SBI Mutual Fund established?

    <p>1987</p> Signup and view all the answers

    How many branches does SBI Mutual Fund have?

    <p>Over 270</p> Signup and view all the answers

    What is one of the popular mutual fund schemes offered by SBI Mutual Fund?

    <p>SBI Bluechip Fund</p> Signup and view all the answers

    What is the focus of SBI Mutual Fund apart from investing?

    <p>Investor education</p> Signup and view all the answers

    What award did SBI Mutual Fund win in 2020?

    <p>Best Fund House (Large)</p> Signup and view all the answers

    When was ICICI Prudential Mutual Fund established?

    <p>1993</p> Signup and view all the answers

    What is the investment philosophy of ICICI Prudential Mutual Fund based on?

    <p>Risk management and wealth creation</p> Signup and view all the answers

    What is the primary purpose of calculating the percentage increase or decrease in a mutual fund's NAV?

    <p>To calculate the increase or decrease in its value over time</p> Signup and view all the answers

    Who is responsible for calculating a mutual fund's NAV?

    <p>The fund accounting firm</p> Signup and view all the answers

    How often must mutual funds update their NAV on the AMC & AMFI website?

    <p>Every business day</p> Signup and view all the answers

    What is the formula to calculate the Net Asset Value (NAV) of a mutual fund?

    <p>(Fund Assets – Fund Liabilities) / Total number of Outstanding Shares</p> Signup and view all the answers

    What is the Net Asset Value (NAV) of the mutual fund in the given example?

    <p>Rs. 22</p> Signup and view all the answers

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