What is the primary factor to consider when deciding to invest in a mutual fund?

"The fund's past performance" "The fund manager's reputation" "Alignment with your portfolio's objectives" "The fund's expense ratio"

Why is investing in an equity fund not suitable for building an emergency corpus?

"Equity funds are too risky for short-term goals" "Equity funds have high expense ratios" "Equity funds are not diversified enough" "Equity funds are not liquid enough"

What are the major risks associated with debt mutual funds?

"Credit risk, interest rate risk, market risk" "Inflation risk, currency risk, political risk" "Liquidity risk, counterparty risk, systemic risk" "Operational risk, legal risk, reputational risk"

What does 'modified duration' indicate in the context of debt mutual funds?

"The average maturity of the bonds in the portfolio" "The sensitivity of bond prices to interest rate changes" "The creditworthiness of the bond issuers" "The fund manager's skill in managing interest rate risk"

Why is it crucial to consider the investment tenure when investing in a debt mutual fund?

"To maximize returns" "To minimize expenses" "To align with the fund's average maturity and manage risk" "To time the market effectively"

What is a potential red flag when analyzing the portfolio of a debt mutual fund?

"High allocation to sovereign bonds" "Diversification across multiple sectors" "High exposure to a single corporate entity" "Low expense ratio"

What can you infer from a debt fund's YTM (Yield to Maturity) being significantly higher than the category average?

"The fund is generating higher returns" "The fund manager is skilled at selecting bonds" "The fund is taking on additional risk to chase yield" "The fund is a safe and conservative investment"

Why is it advisable to avoid investing in debt mutual funds with very large or very small AUMs?

"Large funds have high expense ratios, while small funds have limited diversification" "Large funds face liquidity issues during redemptions, while small funds struggle to negotiate favorable rates" "Large funds are too risky, while small funds offer low returns" "Large funds are not transparent, while small funds are not well-regulated"

What is the primary objective of investing in debt mutual funds?

"To generate high returns" "To achieve long-term capital growth" "To preserve capital and provide moderate returns" "To speculate on interest rate movements"

Why should investors be cautious of credit risk funds?

"They invest in bonds with low credit ratings to generate higher returns, increasing the risk of default" "They have high expense ratios, reducing overall returns" "They are not well-diversified, increasing the impact of any single default" "They are subject to frequent changes in interest rates, leading to volatility"