Mutual Funds Quiz: Test Your Financial IQ with 10 Smart Questions

Mutual funds are popular investment instruments where investors pool money to invest in assets like equities, bonds, and money market securities, managed professionally by Asset Management Companies (AMCs). In India, mutual funds come in various types such as equity, debt, hybrid, index, sectoral, tax-saving (ELSS), liquid, gilt, gold, and money market funds, with investment options like lump sum and SIP. Investors are subject to capital gains tax based on the holding period, as per the latest tax rules announced in the Union Budget 2024. If you are an investor or preparing for finance-related exams, this quick 10-question Mutual Funds Quiz will help you assess your understanding of mutual fund basics, history, key terms, and taxation in India.

Q1. What is a mutual fund?
A. Fixed deposit scheme
B. Insurance product
C. Pool of money invested in securities
D. Government bond
✅ Answer: C

Q2. Who manages a mutual fund in India?
A. RBI
B. SEBI
C. Asset Management Company (AMC)
D. Finance Ministry
✅ Answer: C

Q3. Which authority regulates mutual funds in India?
A. RBI
B. SEBI
C. IRDAI
D. NABARD
✅ Answer: B

Q4. NAV of a mutual fund is calculated on which basis?
A. Weekly
B. Monthly
C. Daily
D. Yearly
✅ Answer: C

Q5. What does NAV stand for?
A. Net Asset Value
B. New Asset Value
C. Net Annual Value
D. National Asset Value
✅ Answer: A

Q6. Equity mutual funds mainly invest in?
A. Bonds
B. Shares
C. Gold
D. Real estate
✅ Answer: B

Q7. Which mutual fund is best for low risk investors?
A. Equity fund
B. Sector fund
C. Debt fund
D. Small cap fund
✅ Answer: C

Q8. SIP stands for?
A. Systematic Investment Plan
B. Special Investment Policy
C. Scheduled Income Plan
D. System Income Process
✅ Answer: A

Q9. ELSS mutual funds offer benefits under which section?
A. 24
B. 54
C. 80C
D. 10
✅ Answer: C

Q10. Minimum lock-in period of ELSS is?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
✅ Answer: C

Q11. Which fund tracks a market index?
A. Hybrid fund
B. Index fund
C. Debt fund
D. Liquid fund
✅ Answer: B

Q12. Which fund invests in government securities?
A. Gilt fund
B. Equity fund
C. Sector fund
D. Balanced fund
✅ Answer: A

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Q13. Short-term capital gains tax on equity funds applies if sold within?
A. 6 months
B. 9 months
C. 12 months
D. 24 months
✅ Answer: C

Q14. Long-term capital gains on equity apply after?
A. 6 months
B. 12 months
C. 24 months
D. 36 months
✅ Answer: B

Q15. Which mutual fund is suitable for parking surplus cash?
A. Equity fund
B. Sector fund
C. Liquid fund
D. ELSS
✅ Answer: C

Q16. Expense ratio refers to?
A. Profit earned
B. Fund tax
C. Fund management cost
D. Entry load
✅ Answer: C

Q17. Entry load on mutual funds is currently?
A. 1%
B. 2%
C. 5%
D. Nil
✅ Answer: D

Q18. Which fund combines equity and debt?
A. Index fund
B. Hybrid fund
C. Gilt fund
D. Overnight fund
✅ Answer: B

Q19. Money market funds invest in?
A. Shares
B. Long-term bonds
C. Short-term instruments
D. Gold
✅ Answer: C

Q20. Which risk is highest among mutual funds?
A. Liquid fund
B. Debt fund
C. Equity fund
D. Gilt fund
✅ Answer: C

Q21. Who is a fund manager?
A. Investor
B. Broker
C. Professional managing investments
D. Auditor
✅ Answer: C

Q22. Which document contains fund details?
A. Balance sheet
B. Offer document
C. PAN card
D. Passbook
✅ Answer: B

Q23. Thematic funds invest based on?
A. Company size
B. Government rules
C. Specific theme
D. Fixed income
✅ Answer: C

Q24. Overnight funds invest for how long?
A. 1 day
B. 1 month
C. 3 months
D. 1 year
✅ Answer: A

Q25. Mutual fund returns are?
A. Guaranteed
B. Fixed
C. Market-linked
D. Tax-free
✅ Answer: C