What is the primary investment objective of a Mutual Fund?

"To generate superior returns by pooling investments from multiple individuals and investing in a diversified portfolio of financial instruments." "To provide a fixed rate of return, similar to a savings account, with a guaranteed return on investment." "To offer tax benefits to investors while providing a moderate rate of interest." "To primarily invest in government securities to ensure capital preservation and low risk."

Which of the following is a key characteristic of Public Provident Fund (PPF) in India?

"It offers high liquidity, allowing investors to withdraw funds at any time without penalty." "Returns are market-linked and fluctuate based on the performance of underlying assets." "It is a long-term savings scheme with a fixed tenure of 15 years, operated and guaranteed by the Central Government." "It is primarily designed for short-term investment goals, such as funding a vacation or making a down payment on a car."

How are returns on investments in Mutual Funds typically characterized?

"Fixed and guaranteed by the government, ensuring capital preservation." "Determined on a quarterly basis and subject to change based on government policies." "Market-linked, meaning they fluctuate based on the performance of the underlying assets in the fund's portfolio." "Tax-exempt, making them a suitable option for investors seeking to minimize their tax liability."

What is a significant advantage of investing in Mutual Funds in terms of diversification?

"Mutual Funds primarily invest in fixed-income products, offering stability and low risk." "They allow investors to spread their investments across various asset classes, including equities, debt, and money market securities." "Mutual Funds are solely focused on investing in government securities, ensuring capital protection." "They offer a fixed rate of return, similar to a savings account, with a guaranteed return on investment."

What is the lock-in period associated with Public Provident Fund (PPF) investments in India?

"There is no lock-in period, and investors can withdraw funds at any time." "3 years, similar to Equity Linked Savings Schemes (ELSS)." "15 years, with the option to renew in batches of 5 years thereafter." "It varies depending on the specific PPF scheme chosen by the investor."