Class 10 IFM Unit 7: Mutual Funds Important MCQ
In this article you will get Class 10 IFM Unit 7: Mutual Funds Important MCQ.
30 MCQs – Unit 7: Mutual Funds (with Answers)
1. A Mutual Fund is:
a) A bank account
b) A pool of money collected from many investors
c) A type of loan
d) A trading software
Answer: b
2. NAV stands for:
a) New Asset Value
b) Net Annual Value
c) Net Asset Value
d) National Asset Volume
Answer: c
3. NAV is calculated as:
a) Total assets ÷ Total liabilities
b) (Total assets – total liabilities) ÷ number of units
c) Market price × units
d) Profit ÷ units
Answer: b
4. Mutual Funds are managed by:
a) Brokers
b) Portfolio managers
c) Bank cashiers
d) Insurance agents
Answer: b
5. NFO stands for:
a) New Fund Offer
b) National Finance Option
c) Net Fund Output
d) New Finance Organization
Answer: a
6. In an NFO, the mutual fund:
a) Closes permanently
b) Offers new units to investors
c) Distributes dividends
d) Announces bankruptcy
Answer: b
7. Mutual funds invest in:
a) Shares
b) Bonds
c) Money market instruments
d) All of the above
Answer: d
8. Which of the following is a benefit of Mutual Funds?
a) Professional management
b) Diversification
c) Liquidity
d) All of the above
Answer: d
9. Diversification reduces:
a) Risk
b) Returns
c) Units
d) NAV
Answer: a
10. A Passive Fund:
a) Tries to beat the market
b) Tracks an index like Nifty 50
c) Invests only in gold
d) Invests only in FDs
Answer: b
11. An Active Fund:
a) Copies index composition
b) Is managed by professional fund managers to outperform the market
c) Has no fees
d) Is risk-free
Answer: b
12. The person who manages a mutual fund portfolio is:
a) Depository Participant
b) Portfolio Manager
c) Regulator
d) Clearing Member
Answer: b
13. Which one is a type of Mutual Fund scheme?
a) Equity Fund
b) Debt Fund
c) Hybrid Fund
d) All of these
Answer: d
14. Equity mutual funds invest mainly in:
a) Real estate
b) Stocks/shares
c) Loans
d) Commodities
Answer: b
15. Debt funds mainly invest in:
a) Equities
b) Fixed income securities
c) Gold
d) Cryptocurrencies
Answer: b
16. A Hybrid Fund:
a) Invests only in equity
b) Invests only in debt
c) Combines equity and debt
d) Only accepts foreign money
Answer: c
17. Mutual fund returns depend on:
a) Market performance
b) Fund management
c) Asset allocation
d) All of the above
Answer: d
18. Systematic Investment Plan (SIP) means:
a) Investing a lump sum at once
b) Investing fixed amounts at regular intervals
c) Investing only in debt
d) Buying gold
Answer: b
19. Mutual funds are regulated by:
a) RBI
b) SEBI
c) IRDA
d) NSE
Answer: b
20. Which fund is best for low-risk investors?
a) Equity funds
b) Debt funds
c) Sector funds
d) Small-cap equity funds
Answer: b
21. A fund that invests in government securities is:
a) Sector Fund
b) Gilt Fund
c) Liquid Fund
d) Gold ETF
Answer: b
22. Risk in mutual funds is:
a) Zero
b) Moderate to high depending on scheme
c) Fixed
d) Guaranteed
Answer: b
23. Liquid Funds invest in:
a) Long-term equity
b) Short-term money market instruments
c) Real estate
d) Commodities
Answer: b
24. Expense Ratio represents:
a) Total sales
b) Annual fund management cost
c) Minimum investment amount
d) NAV limit
Answer: b
25. A sector fund invests in:
a) Many sectors
b) Only one specific sector
c) Government projects
d) International markets only
Answer: b
26. Which mutual fund is suitable for long-term wealth creation?
a) Equity funds
b) Liquid funds
c) Overnight funds
d) Commodity funds
Answer: a
27. Which mutual fund provides tax benefits?
a) ELSS
b) Liquid Fund
c) Gilt Fund
d) Sector Fund
Answer: a
28. Mutual fund units are held in:
a) Savings account
b) Demat account (in many cases)
c) Locker
d) Trading terminal
Answer: b
29. SIP helps investors by:
a) Forcing irregular investments
b) Encouraging disciplined, periodic investing
c) Eliminating risk completely
d) Avoiding mutual fund fees
Answer: b
30. Redemption means:
a) Buying new units
b) Selling/withdrawing mutual fund units
c) Changing fund manager
d) Increasing NAV
Answer: b
