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 (B)</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 (B)</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 (D)</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 (A)</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 (A)</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 (D)</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 (B)</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 (B)</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 (A)</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 (B)</p> Signup and view all the answers

What is CAGR unable to provide to investors?

<p>Adequate information about the amount of risk (B)</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 (A)</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 (D)</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 (C)</p> Signup and view all the answers

When was SBI Mutual Fund established?

<p>1987 (C)</p> Signup and view all the answers

How many branches does SBI Mutual Fund have?

<p>Over 270 (A)</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 (D)</p> Signup and view all the answers

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

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

What award did SBI Mutual Fund win in 2020?

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

When was ICICI Prudential Mutual Fund established?

<p>1993 (B)</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 (A)</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 (D)</p> Signup and view all the answers

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

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

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

<p>Every business day (B)</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 (C)</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 (D)</p> Signup and view all the answers

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