Interview Questions.

Question 1. What Do You Mean By Securities Market?

Answer :

A bond, every now and then called a debenture, is a debt tool, which is a promise to pay off a debt. Stocks and bonds are traded on markets. A securities marketplace is a marketplace where securities are traded both on physical or digital exchanges. Securities markets are normally divided between inventory markets and bond markets.

Question 2. What Are Types Of Securities Market?

Answer :

Types of securities marketplace : 

Equity stocks, choice stocks, debentures and bonds are the long-term securities traded in the capital market.
The capital marketplace is the supply of lengthy-time period price range for commercial enterprise and enterprise. 8 Types of Financial Market
The financial marketplace may be categorized as primary market or secondary marketplace.
Financial Management Interview Questions
Question three. Are You Aware Of The Term ‘securities’ And ‘securities Markets’?

Answer :

Securities are financial instruments issued to raise funds. The number one feature of the securities markets is to allow to waft of capital from those that have it to those who want it.  Securities market help in switch of sources from people with idle assets to others who've a efficient need for them.

Securities markets offer channels for allocation of savings to investments and thereby decouple these two activities. As a result, the savers and traders aren't restrained by their character abilties, but by way of the financial system’s capabilities to make investments and shop respectively, which inevitably enhances financial savings and funding within the economy.

Question 4. Do You Know The Concept Of ‘risk’ And ‘go back’?

Answer :

Return refers back to the gain the investor will get hold of from making an investment in the protection. Risk refers to the possibility that the predicted returns may not materialise. For instance, a agency may additionally are trying to find capital from an investor with the aid of issuing a bond. A bond is a debt security, this means that it represents a borrowing of the employer.

The security could be issued for a selected period, on the stop of which the amount borrowed might be repaid to the investor.  The return can be within the form of interest, paid periodically to the investor, at a charge and frequency certain within the security.  The threat is that the organization may fall into horrific times and default on the fee of interest or go back of main.

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Question five. Explain The Structure Of Indian Securities Markets?

Answer :

The market wherein securities are issued, bought through investors, and in the end transferred amongst buyers is known as the securities marketplace. The securities marketplace has two interdependent and inseparable segments, viz., the primary marketplace and secondary marketplace. The primary marketplace, also known as the new trouble marketplace, is where issuers boost capital via issuing securities to traders.

The secondary marketplace also referred to as the stock exchange enables trade in already-issued securities, thereby permitting traders to go out from an investment. The threat in a security investment is transferred from one investor (seller) to some other (customer) within the secondary markets. The number one market creates financial property, and the secondary market makes them marketable.

Accounts and Finance for Managers Interview Questions
Question 6. Who Are The Issuers In Indian Securities Markets?

Answer :

Issuers are corporations that boost cash by issuing securities. They might also have brief-term and long-term want for capital, and that they issue securities based totally on their want, their ability to service the securities. Some of the commonplace issuers in the Indian Securities Markets are:

Companies trouble securities to elevate quick and long time capital for conducting their enterprise operations.

Central and nation governments trouble debt securities to fulfill their requirements for short and long time price range to meet their deficits. Deficit is the volume to which the rate of the authorities is not met by way of its profits from taxes and other sources.

Local governments and municipalities can also issue debt securities to satisfy their development desires. Government agencies do no longer issue equity securities.

Financial establishments and banks might also trouble fairness or debt securities for their capital wishes past their regular sources of investment from deposits and authorities presents.

Public zone groups that are owned with the aid of the government might also problem securities to public traders as part of the disinvestment software of the authorities, when the government comes to a decision to offer its retaining of these securities to public investors.

Mutual funds issue gadgets of a scheme to buyers to mobilise money and make investments them on behalf of buyers in securities.

Question 7. What Do Stock Brokers And Sub-agents Do In The Securities Markets?

Answer :

Stock agents are registered trading individuals of stock exchanges. They sell new issuance of securities to buyers. They positioned thru the buy and sell transactions of buyers on inventory exchanges.  All secondary market transactions on stock exchanges must be conducted through registered agents.

Sub-agents help in achieving the services of brokers to a larger quantity of traders.  Several brokers provide studies, evaluation and suggestions about securities to shop for and promote, to their traders.  Brokers may also allow display screen-primarily based digital buying and selling of securities for his or her investors, or support investor orders over phone. Brokers earn a commission for their services.

Accounts and Finance for Managers Tutorial Business Management for Financial Advisers Interview Questions
Question 8. What Is An Asset Management Company? What Is The Role Of Portfolio Managers?

Answer :

Asset management business enterprise and portfolio managers are investment specialists who offer their services in deciding on and managing a portfolio of securities. Asset management agencies are approved to offer securities (known as devices) that constitute participation in a pool of money, that's used to create the portfolio.  Portfolio managers do no longer provide any security and aren't authorized to pool the money gathered from investors.

They act on behalf of the investor in creating and dealing with a portfolio. Both asset managers and portfolio managers charge the investor a fee for his or her offerings, and may have interaction other security marketplace intermediaries which includes agents, registrars, and custodians in undertaking their features.

Question nine. What Role Do Merchant Bankers Perform In Securities Markets?

Answer :

Merchant bankers also known as as issue managers, funding bankers, or lead managers help an company access the safety marketplace with an issuance of securities. They examine the capital needs, shape an appropriate device, get worried in pricing the instrument, and control the entire difficulty system until the securities are issued and listed on a stock alternate. They interact other intermediaries such as registrars, brokers, bankers, underwriters and credit score score organizations in coping with the problem manner.

Market Planning Interview Questions
Question 10. What Is The Role Of Underwriters In The Securities Markets?

Answer :

Underwriters are number one market professionals who promise to choose up that portion of a suggestion of securities which may not be sold through investors.  They serve an crucial characteristic within the number one marketplace, imparting the company the comfort that if the securities being provided do now not elicit the favored demand, the underwriters will step in and purchase the securities.  The professional underwriters in the government bond marketplace are known as primary sellers.

Business Management for Financial Advisers Tutorial
Question 11. What Is The Role Of Credit Rating Agencies In The Securities Markets?

Answer :

Credit score businesses compare a debt protection to provide a expert opinion approximately the capability of the issuer to satisfy the duties for payment of interest and go back of essential as indicated in the safety. They use rating symbols to rank debt troubles, which permit buyers to evaluate the default danger in a safety.

Risk Management Interview Questions
Question 12. What Is The Role Of An Investment Adviser?

Answer :

Investment adviser paintings with investors to assist them make a choice of securities that they should purchase, based totally on an evaluation in their needs, time horizon go back expectation and capability to undergo threat. They may also be involved in growing monetary plans for buyers, wherein they define the desires for which investors want to keep cash and suggest suitable investment strategies to fulfill the described dreams.

Financial Management Interview Questions
Question thirteen. What Are The Various Regulators Of The Indian Securities Markets?

Answer :

Securities and Exchange Board of India (SEBI) : The Securities and Exchange Board of India (SEBI), a statutory body appointed by way of an Act of Parliament (SEBI Act, 1992), is the leader regulator of securities markets in India. SEBI features beneath the Ministry of Finance. The predominant objective of SEBI is to facilitate boom and development of the capital markets and to make certain that the interests of investors are protected. The Securities Contracts Regulation Act, 1956 is run by using SEBI.

SEBI has codified and notified rules that cowl all activities and intermediaries within the securities markets.

The Reserve Bank of India (RBI) : The Reserve Bank of India regulates the money market section of securities market. As the manager of the authorities’s borrowing software, RBI is the difficulty supervisor for the government. It controls and regulates the government securities market.  RBI is also the regulator of the Indian banking gadget and ensures that banks follow prudential norms of their operations. RBI additionally conducts the monetary, forex and credit policies, and its movements in these markets impacts the supply of money and credit score within the device, which in flip effect the interest costs and borrowing fees of banks, authorities and other issuers of debt securities.

Question 14. What Are The Indicators Used While Investing In Equity Markets?

Answer :

Price Earning Multiple: The charge-income ratio or the PE multiple is a valuation measure that shows how lots the marketplace values per rupee of earning of a business enterprise. It is computed as:

Market fee consistent with proportion/Earnings in line with share

Earnings in step with percentage are the earnings after taxes divided by means of the variety of shares. It indicates the amount of profit that agency has earned, for each share it has issued. PE is represented as a a couple of. When one refers to a inventory changed into buying and selling at 12x, it manner the stocks is buying and selling at twelve instances its income.

Price to Book Value (PBV): The PBV ratio compares the marketplace fee of the inventory with its ebook fee. It is computed as marketplace fee in line with percentage upon ebook value per proportion.

The e book fee is the accounting value according to percentage, inside the books of the organization. It represents the internet worth (capital plus reserves) in keeping with share. If the marketplace fee of the inventory were decrease than the e book cost and the PBV is much less than one, the inventory may be undervalued. In a bullish marketplace whilst charges pass up unexpectedly, the PBV might drop, indicating wealthy valuation inside the marketplace.

Dividend Yield: Dividend is asserted as a percent of the face price of the shares. A 40% dividend declared by agency will translate into a dividend of Rs.4 per proportion with a face price of Rs 10 (10*forty% =four). If the share turned into buying and selling within the stock market for a rate of Rs.200 in keeping with share, this means a dividend yield of 2%.

The dividend declared with the aid of a enterprise is a percent of the face cost of its stocks. When the dividend obtained by means of an investor is as compared to the marketplace rate of the proportion, it's miles called the dividend yield of the percentage. 

Question 15. Do You Know What Zero Coupon Bonds Are?

Answer :

A zero coupon bond does now not pay any coupons all through the term of the bond.  The bond is issued at a discount to the face price, and redeemed at face value. The effective interest earned is the distinction among face cost and the discounted issue price. A 0 coupon bond with an extended adulthood is issued at a completely massive cut price to the face price. Such bonds also are known as deep bargain bonds.

Capital Market Interview Questions
Question 16. Do You Know What Floating Rate Bonds Are?

Answer :

Floating rate bonds are devices in which the interest charge is not constant, but re-set periodically close to a pre-determined benchmark fee.  For example, a agency can difficulty a five-12 months floating rate bond, with the charges being reset semi-yearly at 50 basis points above the 1- yr yield on imperative authorities securities. Every six months, the 1-year benchmark rate on government securities is ascertained from the prevailing market costs. The coupon rate the business enterprise would pay for the next six months is calculated as this benchmark charge plus 50 foundation points.
Floating charge bonds also are known as variable fee bonds and adjustable charge bonds.

Question 17. Do You Know What Callable Bonds And Putable Bonds Are?

Answer :

Callable bonds allow the company to redeem the bonds previous to their unique adulthood date. Such bonds have a call option inside the bond agreement, which shall we the company regulate the tenor of the safety. For instance, a ten-12 months bond may be issued with name alternatives at the cease of the 5th 12 months together with within the SBI bond instance below. Such alternatives give issuers more flexibility in managing their debt capital. If interest rates decline, an provider can redeem a callable bond and re-problem sparkling bonds at a decrease hobby charge.

A Puttable bond gives the investor the proper to are searching for redemption from the provider before the authentic maturity date. For example, a 7-12 months bond may additionally have a positioned choice on the cease of the fifth yr. If hobby prices have risen, Puttable bonds deliver buyers the capability to go out from low-coupon bonds and re-spend money on higher coupon bonds.

Equity Dealing Interview Questions
Question 18. What Are Various Money Market Securities?

Answer :

Repos/opposite repos: A repo is a transaction wherein one player borrows money at a pre-determined price towards the collateral of eligible protection for a distinct time period. A opposite repo is a lending transaction; a repo in the books of the borrower is a opposite repo in the books of the lender. Eligible collateral for repos and reverse repos are important and state authorities securities and select corporate bonds.
Collateralized Borrowing and Lending Obligation (CBLO): A Collateralized Borrowing and Lending Obligation (CBLO) is an tool used to lend and borrow for brief periods, typically one to a few days. The debt is fully secured towards the collateral of presidency securities. CBLO is a standardized and traded repo.
Certificates of Deposits (CDs): Certificates of Deposits (CDs) are brief term tradable deposits issued by using banks to elevate price range. CDs are distinctive from regular bank deposits because they involve advent of securities. This makes the CD transferable before maturity. However, actual buying and selling in CDs is extraordinarily restricted with most investors who prefer to maintain them to adulthood.
Treasury Bills: The central authorities borrows significantly within the cash marketplace for its each day operations through the difficulty of short-term debt securities referred to as Treasury bills (T-payments). T-payments are issued for maturities of 91 days, 182 days and 364 days. They are issued through an auction system controlled by the RBI and listed soon after difficulty. Banks, mutual finances, insurance corporations, provident budget, number one dealers and FIs bid in those auctions.
Commercial Paper: Companies and institutions boost short-time period finances inside the cash marketplace thru the difficulty of industrial paper (CP). Though CPs are required to have a credit score, they are unsecured company loans with a restrained secondary market. They can be issued for numerous maturities of as much as 364 days, however the ninety-day CP is the most famous.
Accounts and Finance for Managers Interview Questions
Question 19. Explain About Time Value Of Money?

Answer :

A rupee in hand these days is more valuable than a rupee acquired in future. For instance, let us examine receiving Rs.One thousand nowadays, and receiving it after 2 years. If these days’s Rs.A thousand is placed in a 2 year financial institution deposit earning simple interest of 8%, then it will likely be worth Rs.1080 (main a thousand + interest eighty) at the stop of 2 years. This makes today’s Rs.A thousand more precious than the future Rs.1000. The fee of presently available budget over budget acquired in the future is because of the return that can be earned by way of making an investment modern-day finances. If cash flows that are receivable at one-of-a-kind factors in time need to be in comparison, the time cost of money has to be taken under consideration.

Question 20. How Are Bond Yields And Prices Related?

Answer :

The bond price is the existing cost of coins inflows from the bond, discounted by means of the marketplace yield. So bond charge, coupon rate and yield are all linked. Given any two, the 0.33 can be without problems calculated.

In the bond markets, it's far the fee of a bond that is recognized and quoted. Information on coupon price and redemption also are to be had. Given the bond fee and its coupon, the yield may be computed.

If the investor purchases the bond at a rate decrease than the face price, then he has acquired it at a charge inexpensive than the at the beginning issued charge. As a end result yield can be higher than the coupon rate. If the investor purchases the bond at a price better than the face cost, then he has obtained it at a better price than the original face value, so his yield can be lower than the coupon fee.

There is an inverse relationship among yield and rate of a bond.  As bond fee falls, the yield to the investor is going up. This is because because the discounting price (or yield) is accelerated, the final present fee (fee) reduces.

Mutual Fund Interview Questions
Question 21. What Is Yield To Maturity?

Answer :

The fee which equates the present fee of future coins flows from a bond with the contemporary rate of the bond is known as the Yield to Maturity (YTM) of the bond. As bond fee modifications, so does the YTM. Thus, YTM is the discount rate implied within the bond cost at a point in time. YTM is a popular and extensively used technique for computing the go back on a bond investment. Yield quotations inside the debt marketplace normally confer with YTM.

Question 22. Do You Know What An Initial Public Offer (ipo) Is?

Answer :

The first public provide of stocks made via a agency is called an Initial Public Offer (IPO). When a company makes an IPO the stocks of the organisation becomes widely held and there's a exchange within the shareholding sample. The shares which had been privately held by promoters are actually held by using retail buyers, institutions, promoters and so on. An IPO can either be a sparkling problem of stocks by means of the organisation or it can be a suggestion on the market to the general public by using any of the existing shareholders, including the promoters or monetary establishments.

Fresh Issue of Shares

New stocks are issued by using the organisation to public buyers.  The issued share capital of the company increases. The percent protecting of present shareholders will come down due to the issuance of new stocks.

Offer for Sale

Existing shareholders which includes promoters or economic institutions offer a part of their protecting to the public buyers. The percentage capital of the company does now not trade for the reason that business enterprise isn't making a new difficulty of shares. The proceeds from the IPO visit the prevailing shareholders who're promoting the shares and now not to the enterprise. The protecting of the present shareholders in the proportion capital of the organisation will reduce.

Question 23. Do You Know What A Follow-on Public Offer (fpo) Is?

Answer :

A follow-on public offer is made by an provider that has already made an IPO within the past and now makes a similarly difficulty of securities to the public. A employer can make a similarly issue of stocks if the mixture of the proposed trouble and all the other troubles made in a financial 12 months does now not exceed five instances the pre-problem internet worth.

When a company needs extra capital for boom or to redo its capital shape via retiring debt, it raises fairness capital via a sparkling trouble of capital in a follow-on public provide.

Market Research Analyst Interview Questions
Question 24. Do You Know What Rights Issue Of Shares Is?

Answer :

Whenever a company makes a sparkling trouble of stocks, it has an effect on the present shareholders due to the fact their proportionate keeping in the proportion capital of the organization receives diluted. For instance, a employer might also have 10 lakhs stocks of Rs.10 every, amounting to an issued and paid-up capital of Rs. 1 crore. If it issues any other 10 lakhs stocks, to growth its capital, the proportion held with the aid of existing shareholders will come down by way of 1/2, because the issued and paid up capital has doubled. This is called as dilution of holdings.

To prevent this, segment eighty one of the Company’s Act calls for that a agency which wants to improve greater capital via an trouble of shares have to first provide them to the prevailing shareholders. Such a proposal of shares is called a rights trouble.

Business Management for Financial Advisers Interview Questions
Question 25. What Do You Mean By The Term ‘green Shoe Option’?

Answer :

The Green Shoe Option (GSO) in a public provide is utilized by companies to offer balance to fee of the proportion within the secondary market without delay on listing. A employer, which opts for Green Shoe choice can allot extra stocks no longer exceeding 15% of the difficulty length, to most people who have subscribed in the problem. The proceeds from this extra allotment will be kept in a separate bank account and used to buy stocks inside the secondary markets as soon as the shares are indexed, in case the charge falls beneath the issue charge. This is anticipated to provide guide to the price of the stocks. This rate stabilization interest may be executed by way of an entity appointed for this reason.

Question 26. Do You Know What A Mutual Fund Is?

Answer :

Mutual fund is a car to mobilize moneys from traders, to put money into special markets and securities, in step with the funding targets agreed upon, between the mutual fund and the buyers. In other phrases, thru funding in a mutual fund, a small investor can avail of expert fund control offerings provided through an asset management organization.

Question 27. Are You Aware Of The Equity Mutual Funds?

Answer :

Equity budget put money into a portfolio of fairness shares and equity associated instruments. The return and chance of the fund could be much like making an investment in fairness. Investors in equity budget are searching for boom and capital appreciation because the primary objective and should preferably have a long funding horizon with a purpose to allow time for the funding to comprehend in cost and now not be laid low with brief-time period fluctuations.

Diversified equity price range invest across segments, sectors and sizes of organizations. An index fund is a passive diversified fairness fund, invested within the same stocks within the equal weighting as an fairness marketplace index. An actively managed diversified equity fund modifies the weights throughout sectors, and can additionally select non-index shares to outperform the index.

Large- cap fairness finances invest in shares of massive, liquid blue-chip groups with stable overall performance and returns. The performance of a massive inventory fund is compared with a slender index which includes the Sensex or Nifty, which the fund seeks to overcome.

Mid-cap funds spend money on mid-cap corporations that have the potential for greater growth and returns. However, the hazard within the funds is higher due to the fact the groups they invest in have a extra danger to their sales and earnings.

Small-cap funds spend money on businesses with small marketplace capitalisation with motive of benefitting from the better profits inside the price of shares of smaller groups they will gain from more recent enterprise opportunities. The risks are also better in small-cap budget.

Sector funds invest in corporations that belong to a particular sector which includes technology or banking. The hazard is higher in area finances due to lesser diversification considering such shares are by means of definition concentrated in a specific region.

Thematic price range spend money on stocks of corporations which can be defined by way of a unifying underlying subject matter. For example, infrastructure price range spend money on shares inside the infrastructure area, across creation, cement, banking and logistics. They are more diverse than quarter budget however greater focused than a diversified equity fund.

Equity price range may additionally characteristic unique investment strategies. Value finances invest in shares of right companies promoting at less expensive expenses; dividend yield funds invest in shares that pay a normal dividend; unique state of affairs budget put money into shares that show the promise of a turnaround.

Market Planning Interview Questions
Question 28. Are You Aware Of The Debt Mutual Funds?

Answer :

Debt price range invest in debt securities issued by the government, public sector devices, banks and private limited organizations. Debt securities may have exclusive functions. They may have credit danger or danger of default, quick-term or long-term period. Debt price range are supplied in 3 large classes:

Short time period funds:These funds recognition basically on accrual income and shorter adulthood, and feature a decrease risk and solid return.

Liquid finances can handiest invest in securities with no longer extra than 91 days to adulthood. This is a regulatory requirement. These funds often earn coupon earnings consistent with modern-day market prices

Ultra-quick term funds keep a portfolio just like liquid finances but with a barely higher adulthood to advantage from better coupon profits.

Short-time period Gilt budget spend money on brief-time period authorities securities which includes treasury payments of the government.

Short-Term Plan put money into a portfolio of brief-term debt securities mostly to earn coupon profits but may also preserve a few long term securities to gain from appreciation in fee.

Long time period price range:These funds attention on MTM profits and longer maturity, and feature a higher risk and better return.

Gilt price range put money into a portfolio of long-time period authorities securities. The coupon income earned is decrease than company bonds of comparable tenor since there's no credit score hazard in the securities. The MTM gains and losses can be high when you consider that those securities have lengthy tenors.

Income finances invest in a combination of company bonds and authorities securities. They earn a better coupon profits from the credit score threat in company bonds held. The gains or losses from MTM will depend upon the tenor of the securities held.

Dynamic budget: These price range shift their cognizance among brief and long time debt gadgets, depending on the expectation for hobby rate, and offer moderately better return than short time period price range, at a reasonably decrease threat than long time debt finances

Question 29. Do You Know What Are Fixed Maturity Plans?

Answer :

Fixed Maturity Plans (FMP) are closed-quit finances that invest in securities whose maturity fits the time period of the scheme.  The scheme and the securities that it holds mature collectively at the give up of the said tenor. The fund pays out the maturity proceeds of the portfolio on the remaining date. Investors who're capable of keep the scheme to adulthood may be able to enjoy the returns of the FMP that are locked in while the portfolio is created. There is not any risk of the cost of the securities being decrease at the time the fund matures (except there may be a default) since the instruments may also be redeemed at their face price on adulthood.

The time for which the investor is willing to invest must fit the term of the fund

The number one chance in FMPs is credit score hazard from a possible default by using the issuer.

As closed-end price range those schemes are indexed on stock exchanges wherein they may be traded at costs related to the NAV.

Question 30. Do You Know What Hybrid Funds Are?

Answer :

Hybrid finances preserve a portfolio of fairness and debt securities. The funding goal of the fund will determine the allocation of the portfolio among the 2 asset lessons. A hybrid fund is a debt and an fairness fund, rolled into one. The threat in a hybrid fund will more often than not depend on the allocation between fairness and debt, and the relative overall performance of those asset classes. The higher the fairness factor within the portfolio, the more could be the overall danger.

Equity-Oriented Hybrid Funds : Equity-orientated hybrid budget have a more exposure to equity in their portfolio in comparison to debt. Balanced budget are an instance of fairness-orientated funds. The coupon income from the debt component will stabilize the volatile returns from the fairness element. However the higher equity aspect within the portfolio method the fund’s standard returns will rely on the overall performance of the fairness markets and will also range greater.

Debt-Oriented Hybrid Funds : Debt-oriented hybrid funds have a higher percentage in their portfolio allotted to debt. Monthly Income Plans are such price range. The returns are in the main from the debt component and could rely upon the kind debt securities held: short or long time, low or high credit threat. The equity element augments the go back from debt so that the fund is capable of generate better returns than a pure debt fund.

Asset Allocation Funds : These price range put money into each equity and debt but with out a pre-specified allocation as inside the case of other hybrid funds. The fund supervisor takes a view on which type of investment is predicted to do well and could tilt the allocation closer to both asset elegance. Such funds may also keep a hundred% in fairness or debt. Examples of asset allocation fund encompass existence stage finances that invest throughout asset instructions appropriate to the age of the investor. Such price range can have a higher allocation to fairness inside the preliminary years and reduce equity exposure and increase debt publicity as the age advances.

Question 31. Do You Know What Equity Linked Savings Schemes (elss) Are?

Answer :

Equity Linked Savings Schemes (ELSS) are fairness budget that offer tax benefits inside the form of deductions under section 80 (c) for the quantity invested.
The restrict for claiming deduction is Rs. One lakh.
ELSS have to maintain as a minimum 80% of the investment portfolio in fairness securities
Investments are issue to a three-12 months lock-in at the investments made to get the tax benefit.
Question 32. Do You Know What Are Exchange Traded Funds?

Answer :

Exchange traded funds (ETF) are a form of mutual fund that mixes features of an open-ended fund and a stock.

Following are its functions:

Units are issued directly to buyers whilst the scheme is launched.
Post this period, units are listed on a stock alternate like a inventory and traded.
Units bought on the time of launch or bought from the inventory markets are credited to the demat account of the investor.
Transactions are executed through agents of the trade. Investors need a broking account and a demat account to invest in ETFs.
The costs of the ETF gadgets on the stock change may be related to the NAV of the fund, however prices are available on a actual-time foundation depending on trading extent on stock exchanges.
Question 33. Do You Know What Are Gold Exchange Traded Funds?

Answer :

Gold Exchange Traded Funds (ETFs) are ETFs with gold as the underlying asset. The following are the features:

It presents a manner to preserve gold in digital as opposed to in bodily shape
Typically each unit of ETF represents one gram of gold
The fund holds physical gold and gold receipts representing the gadgets issued
Price of the devices will flow in line with the rate of gold
Risk Management Interview Questions
Question 34. Do You Know What International Funds Are?

Answer :

International finances spend money on securities indexed on markets outside India. The form of securities that the fund can put money into is distinct by way of the regulator SEBI and includes fairness stocks and debt -indexed overseas, units of mutual price range and ETFs issued overseas and ADRs and GDRs of Indian corporations listed overseas. The funds can also invest part of the portfolio within the Indian markets.

Question 35. Do You Know What Are Fund Of Funds (fofs)?

Answer :

FoFs invests in other price range. The FoF selects funds that meets its funding goals and invests in them. Its portfolio is not made of securities, however is a portfolio of other price range. Most FoFs spend money on schemes of the identical mutual fund. Some FoFs don't forget schemes throughout fund homes which meets the FoFs funding goal for inclusion in the portfolio.