Economics · Mutual Funds and ETFs
Assess the dynamics of Mutual Funds and Exchange Traded Funds (ETFs) in India: Statement 1: Mutual Funds are established as a Trust under the Indian Trusts Act, 1882. Statement 2: Open-ended funds allow entry and exit anytime based on NAV, while close-ended funds have a fixed maturity and are listed on stock exchanges. Statement 3: ETFs are traded on stock exchanges like individual stocks, and their prices fluctuate throughout the trading day. Statement 4: SEBI prescribes slabs for the Expense Ratio, ensuring larger funds have a lower ratio limit. Statement 5: Equity Linked Savings Scheme (ELSS) provides tax benefits under Section 80C with a mandatory lock-in period of 3 years. Statement 6: A Systematic Investment Plan (SIP) benefits investors through Rupee Cost Averaging. Statement 7: Debt Funds invest in fixed income securities and are classified by maturity profile or credit quality. Are the following statements true?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement 2 is incorrect because close-ended funds cannot be listed.
- 2All statements 1 to 7 are correct.✓
- 3All statements except Statement 4 are correct.
- 4Only Statements 1, 3, and 5 are correct.
Correct answer
All statements 1 to 7 are correct.
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