What is the primary factor that influences an investor's risk tolerance?

Age and financial responsibilities Investment goals Market volatility Expense ratio of the fund

Which type of mutual fund offers tax advantages under Section 80C of the Income Tax Act in India?

Equity Linked Saving Scheme (ELSS) Growth funds Income funds Capital preservation funds

What does a high turnover ratio in a mutual fund indicate?

Frequent trading activity by the fund manager Long-term investment strategy Low expense ratio Tax efficiency

What is the key factor to consider when evaluating the track record of a mutual fund manager?

Long-term performance consistency Short-term market fluctuations Personal investment style Number of funds managed

What is the expense ratio in mutual fund investing?

The cost of managing the fund, including fees and expenses The return generated by the fund The risk associated with the investment The tax liability on fund distributions

According to the article, what is a common mistake investors make when choosing mutual funds?

Not aligning investments with their financial goals Focusing solely on short-term returns Overlooking the importance of diversification Failing to consider the expense ratio