MoneyKraft

1. Which is the best return representation for three-year returns from a debt fund?

Simple absolute return

Simple annualised return

Compounded annual growth rate

2. In a situation where daily values can fluctuate heavily, it is appropriate if we calculate the return as

Simple annualized return

Compounded annualized return

Simple absolute return

3. A fund manager is overweight banking sector. He will generate an alpha over his benchmark if

Banking stocks fall; benchmark index falls more

Banking stocks rise; benchmark rises equally

Banking stocks rise; benchmark index rises more

4. An increase in RBI repo rate is likely to impact

Most sectors across equity

No equity industry sector

Only specific rate sensitive sectors

5. A fund posts excess return compared to peer group averages. What is the number to look at, to check if such performance is consistent?

Average excess return

Median excess return

Standard deviation of excess return

Borrowing against your mf units

can you borrow against your mutual fund units?

You can borrow money against mutual fund units placed under lien with your lender. Watch this investor education video by Moneykraft.

AUTHOR(s):Shreeja Thirani

good video informative and clear one to understand