Value vs Growth Funds Investment Strategies

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What is the minimum percentage of total assets that an open-ended equity scheme predominantly investing in small-cap stocks must invest in equity and equity-related instruments of small-cap companies?

70%

75%

60%

65% (correct)

In a dividend yield fund, what is the primary investment focus of the scheme?

Low market capitalization stocks

Dividend yielding stocks (correct)

Growth stocks

Government bonds

What strategy does a value fund primarily follow?

Growth investing

Speculative trading

Value investment strategy (correct)

Day trading

Which type of fund might focus on investing in shares of companies related to infrastructure, construction, cement, steel, telecom, and power?

Thematic fund Signup and view all the answers

What is the maximum number of stocks a Focused Fund can invest in?

30 stocks Signup and view all the answers

In a Sectoral/Thematic fund, how is the investment focus different from a Focused Fund?

Invests in specific sectors or themes Signup and view all the answers

What is the primary strategy employed by a value fund?

Investing in fundamentally strong undervalued companies Signup and view all the answers

What differentiates growth funds from value funds?

Growth funds feature companies with expected earnings growth higher than average rate. Signup and view all the answers

What is a key characteristic of focused funds?

High selection risks due to lower diversification Signup and view all the answers

What is a distinctive feature of Equity Linked Savings Schemes (ELSS)?

Subject to lock-in period but can be redeemed, transferred, or pledged Signup and view all the answers

What is a common focus of thematic funds?

Investing based on specific themes or trends in the market Signup and view all the answers

What is a risk associated with sector funds?

Performance highly dependent on the performance of the specific sector Signup and view all the answers

What is the main objective of funds targeting long-term appreciation?

Aiming for gains in the value of the portfolio over time Signup and view all the answers

Which category of funds invests in a diverse mix of securities across sectors and market capitalizations?

20 Diversified equity fund Signup and view all the answers

What characterizes large-cap funds?

Invest in stable blue-chip companies Signup and view all the answers

Why are mid-cap companies more susceptible to economic downturns?

They may not be able to withstand slowdowns in revenues and profits Signup and view all the answers

In which type of funds is the risk of performance significantly being affected by a poor sector performance low?

20 Diversified equity fund Signup and view all the answers

What distinguishes market segment-based funds?

Investing in companies of a specific market size Signup and view all the answers