← Mutual Funds and SIP

Quick quiz: Mutual Funds and SIP

5 questions. No time limit. See how much you have understood; your answers are explained at the end.

1. What is NAV? The price of one unit of a mutual fund A type of bank account A fixed interest rate An insurance premium

2. What is a SIP? Investing a fixed amount regularly in a mutual fund A one-time insurance premium A loan A guaranteed return scheme

3. Which statement is correct? Mutual funds are subject to market risks; returns are not guaranteed Equity funds never fall All funds give 15% every year Debt funds are completely risk-free

4. For a goal 10 years away, which may be suitable (if you can handle ups and downs)? Equity mutual funds Keeping cash at home A 7-day deposit only Lottery tickets

5. Why does starting a SIP early help? Compounding has more time to work Early investors get a fixed bonus It avoids all risk NAV is always lower

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