What makes open-ended Mutual Funds highly liquid? Option: "Investors can redeem their units", "They are directly traded on the stock market", "They offer guaranteed returns", "Their investments are primarily in real estate"

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What makes open-ended Mutual Funds highly liquid?

"Investors can redeem their units"

"They are directly traded on the stock market"

"They offer guaranteed returns"

"Their investments are primarily in real estate"

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Which of the following is a significant advantage of open-ended mutual funds?

Guaranteed Returns

Low Volatility

High Liquidity

Fixed Maturity Period

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What does the term 'open-ended' mean in the context of mutual funds?

The fund is open to investments from a limited number of investors.

The fund's portfolio is transparent and accessible to all investors.

The fund has a fixed investment period.

Investors can buy and sell units of the fund at any time.

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Who acts as the liquidity provider for open-ended mutual funds?

"The fund manager"

"Market makers"

"The stock exchange"

"The fund itself"

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What is a distinguishing feature of open-ended mutual funds in terms of maturity period?

"They have a fixed maturity period"

"Maturity period depends on market conditions"

"They do not have a fixed maturity period"

"Maturity period is determined by the fund manager"

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What is a potential drawback of investing in closed-ended mutual funds compared to open-ended funds?

"No maturity period"

"Limited liquidity"

"Higher expense ratios"

"Lower potential returns"