What is the minimum percentage of a banking and PSU debt fund's corpus that must be invested in debt instruments issued by banking institutions and public sector companies?

60% 70% 80% 90%

According to SEBI's amendment in December 2017, what new type of debt security can be included in the portfolio of a banking and PSU fund?

Corporate Bonds Government Securities Municipal Bonds Foreign Currency Bonds

What type of companies do fund managers typically target when building a portfolio for a banking and PSU debt fund?

Small-cap companies Mid-cap companies Large-cap companies Start-up companies

What is the primary reason why banking and PSU debt funds are considered a relatively safe investment option?

They invest in highly volatile stocks. They are backed by the Government of India. They offer guaranteed returns. They are not subject to market fluctuations.

What is a potential drawback of investing in a banking and PSU debt fund?

High risk of capital loss Limited potential for substantial market gains Frequent changes in NAV Lack of government regulation

What type of investor would typically find a banking and PSU debt fund most suitable?

Investors seeking high-risk, high-reward investments Investors with a long-term investment horizon Risk-averse investors looking for a secure investment option Investors seeking to maximize capital appreciation

How are capital gains from the resale of NAV units of banking and PSU funds after three years taxed?

Short-term capital gains Long-term capital gains Tax-free Capital gains are not applicable to these funds