What is the primary purpose of a mutual fund fact sheet?

To promote the fund to potential investors. To provide detailed information about a specific fund or scheme. To track the historical performance of the fund. To compare the fund's performance to other funds in the market.

What does the term 'open-ended' mean in the context of mutual funds?

The fund has a fixed investment period. Investors can buy and sell units of the fund at any time. The fund is open to investments from a limited number of investors. The fund's portfolio is transparent and accessible to all investors.

What is the key difference between a 'regular plan' and a 'direct plan' in mutual funds?

Regular plans invest in large-cap companies, while direct plans focus on small-cap companies. Regular plans are managed by professional fund managers, while direct plans are self-managed by investors. Regular plans involve distributor commissions, while direct plans do not. Regular plans offer higher returns compared to direct plans.

What is the purpose of a 'riskometer' in mutual fund fact sheets?

To predict the future performance of the fund. To compare the risk level of different funds. To provide a standardized measure of the fund's risk based on its investment strategy. To guarantee the safety of the investor's capital.

What is the significance of the 'investment objective' in a mutual fund fact sheet?

It outlines the fund manager's personal investment goals. It dictates the specific securities the fund can invest in. It provides a general overview of the fund's target audience. It sets the minimum investment amount required to invest in the fund.