What can you infer from a debt fund's YTM (Yield to Maturity) being significantly higher than the category average? Option: "The fund is taking on additional risk to chase yield", "The fund is a safe and conservative investment", "The fund is generating higher returns", "The fund manager is skilled at selecting bonds"

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What can you infer from a debt fund's YTM (Yield to Maturity) being significantly higher than the category average?

"The fund is taking on additional risk to chase yield"

"The fund is a safe and conservative investment"

"The fund is generating higher returns"

"The fund manager is skilled at selecting bonds"

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What does YTM (Yield to Maturity) represent in the context of Dynamic Bond Funds?

"The current market price of the bond"

"The total projected return if the bond is held until maturity"

"The fund's expense ratio"

"The fund's turnover rate"

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What is a key advantage of debt mutual funds?

Unlimited potential for capital appreciation

Exposure to high-growth technology companies

Direct ownership of real estate assets

Higher returns compared to standard savings schemes

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What is one of the key benefits of investing in debt funds over a regular savings bank account?

"Tax-free interest income"

"Guaranteed principal protection"

"Lower risk of inflation"

"Higher potential returns"

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What are the potential risks associated with investing in debt funds?

"Fixed interest rates unaffected by market conditions"

"Investing in high-risk corporate bonds"

"Guaranteed returns regardless of economic climate"

"Higher returns than equity funds"

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What is a potential advantage of TMFs compared to other bond funds?

"They have a shorter lock-in period, providing greater liquidity"

"They provide indexation benefits for long-term capital gains tax"

"They offer guaranteed returns, eliminating market risk"

"They allow investors to actively trade bonds within the fund"