All Courses
Get the App Signup / Login
Sign in Open App
B Com Exam  >  B Com Tests  >  Test: Mutual Funds - B Com MCQ

Test: Mutual Funds - B Com MCQ


Test Description

10 Questions MCQ Test - Test: Mutual Funds

Test: Mutual Funds for B Com 2024 is part of B Com preparation. The Test: Mutual Funds questions and answers have been prepared according to the B Com exam syllabus.The Test: Mutual Funds MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Mutual Funds below.
Solutions of Test: Mutual Funds questions in English are available as part of our course for B Com & Test: Mutual Funds solutions in Hindi for B Com course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: Mutual Funds | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study for B Com Exam | Download free PDF with solutions
Test: Mutual Funds - Question 1
Save

What is the purpose of a mutual fund?

Detailed Solution for Test: Mutual Funds - Question 1
A mutual fund is an investment vehicle that collects funds from many investors and invests them in assets and securities such as stocks, bonds, or money market instruments. The purpose of a mutual fund is to produce capital gains and income for the fund investors by professionally managing the portfolio of investments.
Test: Mutual Funds - Question 2
Save

What is the role of an asset management company (AMC) in a mutual fund?

Detailed Solution for Test: Mutual Funds - Question 2
An asset management company (AMC) is responsible for managing a mutual fund. The AMC hires a professional money manager who buys and sells securities in line with the fund's stated objective. The AMC's role is to manage the fund's capital and investments, ensuring that they align with the fund's investment objectives.
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Mutual Funds - Question 3
Save

What is the meaning of a mutual fund's expense ratio?

Detailed Solution for Test: Mutual Funds - Question 3
A mutual fund's expense ratio is the summation of its advisory fee or management fee and its administrative costs. This ratio represents the percentage of the fund's assets that are used to cover the fund's operating expenses. It includes fees such as management fees, administrative costs, and other expenses incurred by the fund.
Test: Mutual Funds - Question 4
Save
What is the advantage of investing in a mutual fund?
Detailed Solution for Test: Mutual Funds - Question 4
One of the advantages of investing in a mutual fund is diversification and professional management. Mutual funds invest in a diversified portfolio of securities across different industries and asset classes. This helps to spread the risk and minimize the impact of any individual investment. Additionally, mutual funds are managed by professionals who have expertise and experience in selecting and managing investments, which can potentially lead to better returns.
Test: Mutual Funds - Question 5
Save
What is the purpose of categorizing mutual funds into different types?
Detailed Solution for Test: Mutual Funds - Question 5
The purpose of categorizing mutual funds into different types is to provide a wide variety of investment options for investors. Different investors have different investment objectives and risk appetites. By categorizing mutual funds into different types, investors can choose the funds that align with their investment goals and preferences. This allows investors to have more control over their investment decisions and tailor their portfolios according to their needs.
Test: Mutual Funds - Question 6
Save
What is the difference between a front-end load and a back-end load in a mutual fund?
Detailed Solution for Test: Mutual Funds - Question 6
A front-end load is a fee assessed at the time of the initial purchase of mutual fund shares. It is deducted from the investor's investment amount. On the other hand, a back-end load is a fee assessed when selling mutual fund shares. It is deducted from the sale proceeds. The main difference is the timing of when the fee is assessed.
Test: Mutual Funds - Question 7
Save
What is the meaning of an equity mutual fund?
Detailed Solution for Test: Mutual Funds - Question 7
An equity mutual fund is a fund that invests primarily in stocks. These funds aim to provide capital appreciation over the medium to long term. The fund manager selects stocks of companies that are expected to grow in value, with the objective of generating higher returns for investors. Equity mutual funds carry a higher level of risk compared to other types of funds but also have the potential for higher returns.
Test: Mutual Funds - Question 8
Save
What is the purpose of a debt mutual fund?
Detailed Solution for Test: Mutual Funds - Question 8
The purpose of a debt mutual fund is to invest in fixed income securities such as bonds, government securities, and corporate debentures. These funds aim to provide a stable income to investors with low risk. Debt mutual funds are suitable for investors who prioritize income generation and capital preservation. While they may offer lower returns compared to equity funds, they also carry lower risk.
Test: Mutual Funds - Question 9
Save
What is the meaning of a balanced fund?
Detailed Solution for Test: Mutual Funds - Question 9
A balanced fund is a type of mutual fund that invests in a mix of equities and fixed income securities. The equity portion provides growth potential, while the fixed income portion provides stability in returns. The objective of a balanced fund is to provide investors with current income and the potential for long-term growth. This type of fund offers a balanced approach to investing, suitable for investors who want a combination of income and capital appreciation.
Test: Mutual Funds - Question 10
Save
What is the meaning of an index fund?
Detailed Solution for Test: Mutual Funds - Question 10
An index fund is a type of mutual fund that attempts to reproduce the performance of a specific index, such as the BSE Sensex or the NSE 50. The portfolio of an index fund consists of the same stocks that constitute the index, in the same proportion. The goal of an index fund is to match the returns of the index it tracks. This type of fund is passively managed and typically has lower expenses compared to actively managed funds.
Information about Test: Mutual Funds Page
In this test you can find the Exam questions for Test: Mutual Funds solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Mutual Funds, EduRev gives you an ample number of Online tests for practice
Download as PDF

Important Questions for Mutual Funds

Find all the important questions for Mutual Funds at EduRev.Get fully prepared for Mutual Funds with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Mutual Funds syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Mutual Funds resources.

Mutual Funds MCQs with Answers

Prepare for the Mutual Funds within the B Com exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Mutual Funds

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Mutual Funds with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup