October 23, 2018 by Vinod DesaiTest Your Knowledge of Finances The Moneyplanting Quiz1. Which investment among these do you suppose has consistently provided the highest long-term returns in India? Independent Houses and plots Gold schemes run by reputed jewellers Stocks and Equities Apartments by reputed builders in Metro cities2. Out of the Equity related strategies from below, which has been known to provide the highest long term returns, time and time again? Buy stocks of several good companies and wait for several years. Buy at low price, sell at high price. Repeat every day. Identify one great company and only invest in it every year. Buy stocks of a company which has gone up recently. Sell before price drops. Repeat with another such company.3. How often is it good to check how well your equity mutual fund investments are performing? First working day of every month Twice a day; at market start and market close Every Sunday evening before the markets open on Monday Once a year, or once every couple of years4. Financial middlemen(agents/distributors) often walk away with a large chunk of your investment as commissions. Which investment products from the ones below do you suppose have the highest percentage of middleman commissions? Term Life Insurance Policies ULIPS & Endowment Life Insurance Policies Equity agressive, or Hybrid Mutual Funds Exchange Traded Funds5. Which statements from below are true? Debt and Equity Mutual funds are taxed similarly since 2018 Absolute return is the most efficient way to compare returns of two investments. A stock market index is a list of all the companies listed on the stock market Short term capital gains tax is typically higher than long term capital gains tax6. Which is the best way to invest in Gold? In physical form, as ornamental jewelry Gold Exchange Traded Funds In physical form, as Gold coins and bars Gold investment schemes run by registered, reputed, jewelers Sovereign Gold bonds7. If you had to, which type of financial advisor would you hire? A fee-based financial advisor A commissions-based financial advisor A fee-only financial advisor A financial advisor who does not charge upfront fees8. Say you decide to invest in a mutual fund. Which channel from these below will allow you to generate better returns from the same mutual fund? An AMC website A fee-based financial advisor A De-mat account from An online investing platform like Scripbox or Upwardly9. Which from below is a good explanation of 'Market Cap'? Total shares issued by the company multiplied by its stock price Total shares issued by the company, multiplied by its profit per share Total size of the market, divided by market share of the company Total shares issued by the company, divided by its stock price10. An investment of 10 Lakhs in a good piece of Real Estate in India in 1998 would've grown to about 1.8 Crores by 2015. That's an 18X return over that 20 year period. If you were however unlucky enough to have put that 1 Lakh in an equity mutual fund, which had the poorest performance over the same period, how much do you suppose your return would have been? Around half of Real Estate returns, around 10X. Almost 5 times the returns of Real estate. Around 95X. Due to 2008 market crash, 1 Lakh would've gotten reduced to 50,000. So, 0.5X. Higher than real estate, around 20X. Related
