What is the primary factor that distinguishes different types of mutual funds?

"Investment strategy" "Fund manager's experience" "Investment structure" "Risk tolerance"

What is the term for the period when a mutual fund scheme is initially offered to investors?

"Initial Public Offering (IPO)" "New Fund Offer (NFO)" "Seed Funding Round" "Venture Capital Round"

What characteristic defines open-ended mutual funds in terms of the number of units they can issue?

"Limited to a fixed number of units" "No limit on the number of units" "Units are issued only during the NFO period" "Units are issued based on market demand"

How is the Net Asset Value (NAV) of an open-ended mutual fund determined?

"Fixed at the time of the NFO" "Determined by the fund manager's discretion" "Calculated based on the fund's underlying securities and market movements" "Set by the stock exchange where the fund is listed"

What is a key feature of closed-ended mutual funds that makes them similar to exchange-traded funds (ETFs)?

"They are actively managed by fund managers" "They are traded on stock exchanges" "They have unlimited issue size" "They offer daily liquidity"

How does the trading price of a closed-ended mutual fund relate to its Net Asset Value (NAV)?

"Always equal to the NAV" "Can trade at a premium or discount to the NAV" "Always trades at a premium to the NAV" "Always trades at a discount to the NAV"

What is a potential drawback of investing in closed-ended mutual funds compared to open-ended funds?

"Higher expense ratios" "Limited liquidity" "No maturity period" "Lower potential returns"

Which type of mutual fund typically offers the option of systematic investment plans (SIPs)?

"Open-ended funds" "Closed-ended funds" "Both open-ended and closed-ended funds" "Neither open-ended nor closed-ended funds"

What is a distinguishing feature of open-ended mutual funds in terms of maturity period?

"They have a fixed maturity period" "They do not have a fixed maturity period" "Maturity period is determined by the fund manager" "Maturity period depends on market conditions"

Who acts as the liquidity provider for open-ended mutual funds?

"The stock exchange" "The fund manager" "The fund itself" "Market makers"