What is the primary function of a Mutual Fund?

"Collecting money from investors to invest in various financial instruments" "Providing insurance against market fluctuations" "Offering high-interest savings accounts" "Facilitating peer-to-peer lending"

Which of the following is a key advantage of investing in Mutual Funds compared to managing your own portfolio?

"Guaranteed high returns" "Elimination of market risk" "Diversification of investments" "Access to insider trading information"

What makes open-ended Mutual Funds highly liquid?

"Their investments are primarily in real estate" "Investors can redeem their units" "They are directly traded on the stock market" "They offer guaranteed returns"

What is the difference between Lumpsum and SIP investments in Mutual Funds?

"Lumpsum is for short-term gains, while SIP is for long-term growth" "Lumpsum involves a single large investment, while SIP involves regular smaller investments" "Lumpsum is managed by professionals, while SIP is self-managed" "Lumpsum is for debt funds, while SIP is for equity funds"

How do Mutual Funds ensure transparency for investors?

"By offering guaranteed returns on investments" "By publishing daily updates on individual stock holdings" "By providing monthly fund fact sheets and disclosing Net Asset Values (NAVs)" "By allowing investors to directly manage their portfolio"

What tax advantage does investing in an ELSS Fund offer?

"Exemption from capital gains tax" "Tax-free dividends" "Reduction in taxable income up to a certain limit" "Tax refund on investment amount"

Why are Mutual Funds considered cost-effective?

"They are exempt from government regulations" "They operate with minimal overhead costs" "They benefit from economies of scale, reducing transaction costs per unit" "They offer higher returns compared to other investment options"

What is a significant advantage of Mutual Funds for investors with limited financial expertise?

"Guaranteed profits regardless of market conditions" "Access to high-risk, high-reward investments" "Professional management by experienced fund managers" "Elimination of the need for diversification"