Module 1 Why Invest?

Chapter 1 Savings vs. invest

1) False
2) True
3) True

Chapter 2 Impact of inflation

1) Erodes
2) More
3) Rise
4) Both 1 and 3

Chapter 3 Beating inflation

1) False
2) True
3) True

Chapter 4 Time value of money

1) Better
2) May or may not be better
3) True
4) Depends on TVM

Chapter 5 Power of compounding

1) Albert Einstein
2) Both 1 and 2

Chapter 6 Importance of starting early

1) False
2) False
3) True
4) False

Chapter 7 Importance of Investing regularly

1) Instils discipline
2) Eliminate losses
3) In a recurring deposit
4) Instils discipline

Module 2 Why mutual funds

Chapter 1 What are mutual funds?

1) The funds house gets returns
2) NAV is updated throughout a day
3) Select frequency for lumpsum investing
4) KYC is done
5) Consider only recent performance

Chapter 2 Mutual funds plans and options

1) False
2) False
3) True
4) False
5) True
6) False
7)True

Chapter 3 Why mutual funds?

1) Diversification, Affordability, Professional fund management
2) Guaranteed returns

Chapter 4 How MFs offer diversification

1) False
2) True

Chapter 5 Proffessional fund management

1) False
2) True
3) False

Chapter 6 Types of mutual funds

1) Open ended funds
2) Either of the these options
3) Capital appreciation
4) Balance between growth and stable growth

Chapter 7 Direct equity investing vs investing in MF

1) All of these
2) All of these
3) Long term: short term
4) 5-10 years
5) Both 1 and 2

Module 3 How to invest through mutual funds?

Chapter 1 How to select a mutual fund?

1) Identify career goals
2)Understand tax implications
3) All of these
4) Both options 1 and 2
5) minimizing losses
6) balancing risk and returns
7) Both options 1 and 2
8) Sharpe ratio
9) Both options 1 and 2
10) Expense ratio

Chapter 2 Tracking mutual funds

1) All of these
2) Comparison with other categories
3) All of these
4) Scheme information document
5) Transaction in the previous month

Chapter 3 Steps to build a MF portfolio

1) More than 5 years
2) Your disposable income
3) Planning for retirement
4) Concentration risk
5) Time horizon of goals

Chapter 4 Importance of reviewing your portfolio

1) Does not become
2) Consistently over time
3) Consider
4) True

5) True
6) Oscillating market

Chapter 5 SIP Basics

1) A fixed amount regularly, At a predetermined frequency, In mutual fund schemes
2) Make a monthly budget, Do your KYC, Submit application forms, Determine investment
amounts

Chapter 6 Understanding SWP

1) May vary
2) Spending
3) Get regular income
Chapter 7 Understanding STP
1) Fixed stp – a fixed amount is transferred
Capital appreciation – only profits is transferred
Flex stp – A variance amount is transferred

2) Accumulation phase – SIP

Consolidation phase – STP
Distribution Phase – SWP

3) SIP – Investments in 1 scheme

SWP – Withdrawls from 1 scheme
STP – Transfer from 1 scheme

Chapter 8 Understanding ETFs

1) True
2) Lower
3) Concentration
4) Throughout
5) Higher
6) 1 unit

Chapter 9 Investing in FMPs

1) During NFO period
2) Close ended
3) Low to medium
4) Not assured
5) Lower

Chapter 10 Know your Customer(KYC)

1) Central kyc registry
2) AMC/ distributor
3) Aadhar number
4) A Certain limit
5) Multiple schemes

Module 4 Goal Based investing

Chapter 1 Goal based financial planning

1) Equity funds
2) A mix of all 3
3) Shorter duration funds
4) Long term goal
5) Start anstp to a debut fund
6) Investment risk
Chapter 2 Financial planning for contingencies
1) True
2) I don’t need it
3) 6 months
4) Easy liquidity
5) Money market instruments

Chapter 3 Managing surplus cash

1) Both option 1 and 2
2) ALL OF THESE
3) All of these

Chapter 4 child education planning

1) True
2) False
3) False

Chapter 5 Retirement planning

1) Worry about financial security
2) Higher life expectancy

Chapter 6 Building retirement corpous

1) Inflation, Life expectancy, Emergency fund
2) Unexpected medical expenditure, unplanned household expectance, emergency financial
assistance
3) Consult a trusted advisor, decide on regular investment amount, Determine investment time
period, Choose appropriates investments

Module 5 How to save tax

Chapter 1 understanding ELS

1) Deduction up to Rs. 1.5 lakhs u/s80c
2) 3 years
3) Yes
4) Invested only in lump sum amounts

Chapter 2 Tax advantages of equity funds

1) Tax deductible upto Rs. 1.5 lakhs
2) Tax deductible upto Rs. 1.5 lakhs
3) Long term capital gain is
4) Returns are tax free

Chapter 3 Tax advantages of debt funds

1) Indexation benefit, Less volatile than equity funds
 2) There is no mark to market risk, Not as liquid as mutual funds, Fds pay fixed interest
3) Purchase price, Sell price, Cost inflation index
4) Equity mutual funds, PPF, FDs, Life insurance

Chapter 4 Tax implications of investments

1) PPF – 15years
Regular FD – No lock in period
Tax saver – 5 years

2) Regular FD – No tax
Tax saver fd – Only investments
PPF -Returns are tax free

3) Elss – 3 YEARS
ULIP – 5 YEARS
Sukanya saridhiyojnna– 21 YEARS
PPF – 15 YEARS

Module 6 Understanding Risk

Chapter 1 Understanding risk tolerance and apetite
1) Risk tolerance
2) Younger
3) True
4) Go hand in hand
5) Conservative investor
6) Blue chip companies

Chapter 2 Risk return trade off

1) May or may not imply
2) Low but stable returns
3) Aggressive risk profiles
4) Risk profile

Chapter 3 Investments risks

1) False
2) False
3) True
4) True
5) False

Chapter 4 – Types of investments risks

1) False
2) True
3) True
4) Changes in laws
 5) Credit risk

6) Credit risk – default in interest payments

Inflation rate – Rise in cost
Currency risk – Exchange rate fluctuations
Regulatory risk – changes in laws
Socio political risk – Political decisions
7) Liquidity risk – Real estate investments
Interest rate – Debt investments
Currency risk – Foreign currency linked investments
Credit risk – Companies with excessive debt
8) Business risk – Stock specific risk
Systematic risk – Market risk
Credit risk – Default risk
Unsystematic risk - Diversifiable risk

Module 7 Investments concepts

Chapter 1 Diversification
1) Stocks, Bonds, Mutual funds, Real estate
2) Market caps, Fund houses, Sectors
3) Provide income, Provide capital appreciation, Provide automatic diversification, Invest in
multiple asset classes

Chapter 2 understanding asset classes

1) Mutual fund
2) Both option 1 and 2
3) Company shares
4) Interest
5) Corporate bonds

Chapter 3 Understanding asset allocation

1) Diversify investments
2) Debt
3) Can impact
4) True

Chapter 4 Understanding various asset allocation strategies

1) Conservative asset allocation
2) Strategic asset allocation
3) Maintain original asset mix

Chapter 5 Understanding the dangers of native diversification

1) Mutual fund schemes
2) Mutual fund schemes
3) 8
 4) Remove
5) One rest of funds
6) Similar
7) To be over cautious

Chapter 6 Common investment terms

1) Net account value
2) True
3) SEBI
4) Investors
5) Size of the scheme
6) True
7) False
8) NAV of a scheme

Chapter 7 Important ratios for investing

1) Minimum
2) MIBOR
3) Standard deviation
4) 100%
5) Higher volatility
6) <1
7) 1

8) Outperformed
9) Higher
10) Standard deviation
11) True

Chapter 8 Advanced investments metrics

1) Higher
2) Higher
3) Lower
4) Benchmark index return
5) High
6) Alpha

7) Inversely
8) More
9) 5%
10) Higher
11) Debt market

Chapter 9 Understanding futures

1) Price difference
 2) Place of delivery
3) Futures
4) Strike price
5) Call option
6) Losses

Chapter 10 Monetary Policy and its

1) Incoming distribution
2) Short term liquidity
3) Mean tolerance limit
4) Cost of borrowing increases
5) Interbank liquidity dried up
6) Sell, open market operation

Chapter 11 ReITs and InvITs

1) Through securities
2) SEBI
3) Half-yearly
4) Commercial properties
5) Rent

Module 8 Smart investing

Chapter 1 Key to investing wisely

1) Making a monthly budget, Starting investing early, Investigating regularly
2) Buying a house, planning for child’s marriage, monthly budgeting, planning a vacation
3) Discuss with an expert, determine investment horizon, identify financial goals, understand
risk apetite

4) True
5) Short term
6) Asset classes
7) A balanced portfolio
8) Risky

Chapter 2 Common investment traps

1) False
2) False
3) True
4) False

Chapter 3 Comparing different investment avenues

1) 4 times
2) 18 times
Chapter 4 How does your financial personality matter
1) Trend to trade frequently
Trend to buy high and sell low,
Action oriented,
Trades instinctively
2) Invest for lifetime goals,
balance spending and investigating
Analyse spending patterns
3) Prefer keeping money idle and safe,
Dislike market linked products,
Prefer low risks investments

4) Blissful ignorant – Avoid making financial decisions

Micro managers – prefer absolute control on finances
Smart investors – plan finances as per goals
Impatient investors – Trade frequently and instinctively

5) Risk avoiders – Asses risk appetite

Micro managers – Let go of some control
Blissful ignorants – understand your financial status
Smart investors – be updated financially

Chapter 5 Understanding Behaviouralbiases in investing

1) Confirmation bias – Only seek out supporting opinions
Overconfidence – Overstimate investing abilities
Loss Aversion – Hold on to unprofitable
Attention bias – Invest in popular products

2) Familiarity bias – Invest in well known

Herd mentality – Follow market trends blindly
Optimism bias – Overly positive about finances
Recency Bias – Invest in recent performers

Chapter 6 Investment tenure and choice of investments

1. upto 1 year
2. Equity funds

Chapter 7 Coping with volatility

1. Do lump sum investments
2. To benefit from rupee cost averaging
3. 100%
4. 0%
5. Invest with a long term perspective

Chapter 8 Investment pitfalls to avoid

 1. Both options 1 and 2
2. All of these
3. All of these
4. Both options 1 and 3
5. Taking too little risk

Chapter 9 Myths in mutual fund investigating

1. Incorrect
2. Small amount
3. In both equity and debt
4. False
5. Unnecessary
6. Demat account
7. Not necessarily better

Module 9 Videos

Chapter Power of compounding video

1. All of the above
2. Accelerated growth
3. Withdrawing regularity
4. Postponing investigating