What is the primary goal of an active mutual fund manager?

"To match the returns of a benchmark index." "To generate returns in line with the market average." "To outperform a benchmark index and deliver alpha." "To minimize investment risk and preserve capital."

What was a significant challenge faced by John C. Bogle during the launch of the first index fund?

"Lack of investor interest and difficulty raising sufficient funds." "Regulatory hurdles and restrictions imposed by the Securities and Exchange Commission." "Strong opposition from established financial institutions threatened by the concept of index funds." "Technological limitations in replicating the performance of a broad market index."

According to the provided text, what is a key reason why index funds are generally more cost-effective than actively managed funds?

"Index funds often invest in lower-cost, highly liquid assets like government bonds." "Index funds typically have lower marketing and distribution expenses compared to active funds." "Index funds do not require the same level of research, analysis, and active management as active funds." "Index funds benefit from tax advantages and government subsidies not available to active funds."

What is the central argument presented in the text regarding the concept of markets as a "zero-sum game" in the context of active fund management?

"For every successful active fund manager, there must be an unsuccessful one, resulting in a net-zero gain for all investors." "The gains made by active fund managers come at the expense of passive investors who track market indices." "The pursuit of outperformance by active managers leads to increased market volatility, ultimately harming all participants." "The high fees charged by active funds create a drag on overall market returns, making it difficult for any investor to achieve significant gains."

What is the primary reason cited in the text for the limited availability of debt index funds in India?

"Regulatory restrictions imposed by the Securities and Exchange Board of India (SEBI) on debt index fund offerings." "Lack of investor demand for debt index funds due to the perception of low returns in the bond market." "The relatively small size and illiquidity of the Indian debt market compared to the equity market." "The dominance of actively managed debt funds offered by established asset management companies (AMCs)."