What is a key advantage of Low Duration Funds compared to Liquid Funds? Option: Higher liquidity, Lower risk, Potentially higher returns, Longer maturity periods

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What is a key advantage of Low Duration Funds compared to Liquid Funds?

Higher liquidity

Lower risk

Potentially higher returns

Longer maturity periods

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What is a potential benefit of Low Duration Funds compared to Ultra-Short Duration Funds?

Bigger capital gains due to longer-maturity bonds

Higher liquidity

Greater diversification

Lower fees

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What is the primary reason investors choose liquid funds over savings accounts?

Tax benefits

Zero risk

Potentially higher returns

Higher liquidity

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What is the main risk associated with Low Duration Funds?

Market risk

Credit risk

Inflation risk

Interest rate risk

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Which type of debt fund is generally considered to have the lowest risk?

Credit risk funds

Gilt funds

Liquid funds

Long duration funds

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What is a potential drawback of Credit Risk Funds?

They are not subject to market risks

They have more liquidity risks

They offer lower returns than risk-free debt investments

They are not suitable for long-term investments