Test Your Knowledge of Finances 1. Which is the most tax-efficient, profitable way to invest in Gold? In physical form, as Gold coins and bars Sovereign Gold bonds Gold investment schemes run by registered, reputed, jewelers In physical form, as ornamental jewelry Gold Exchange Traded Funds 2. Which investment among these do you suppose has consistently provided the highest long-term returns in India? Stocks and Equities Gold schemes run by reputed jewellers Apartments by reputed builders in Metro cities Independent Houses and plots 3. How often is it good to check how well your equity mutual fund investments are performing? First working day of every month Once a year, or once every couple of years Every Sunday evening before the markets open on Monday Twice a day; at market start and market close 4. Which statements from below are true? Debt and Equity Mutual funds are taxed similarly since 2018 A stock market index is a list of all the companies listed on the stock market Absolute return is the most efficient way to compare returns of two investments. Short term capital gains tax is typically higher than long term capital gains tax 5. 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? Almost 5 times the returns of Real estate. Around 95X. Around half of Real Estate returns, around 10X. Higher than real estate, around 20X. Due to 2008 market crash, 1 Lakh would've gotten reduced to 50,000. So, 0.5X. 6. 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? ULIPS & Endowment Life Insurance Policies Term Life Insurance Policies Equity agressive, or Hybrid Mutual Funds Exchange Traded Funds 7. Which from below is a good explanation of 'Market Cap'? 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 price Total shares issued by the company multiplied by its stock price 8. 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 a company which has gone up recently. Sell before price drops. Repeat with another such company. Identify one great company and only invest in it every year. Buy at low price, sell at high price. Repeat every day. Buy stocks of several good companies and wait for several years. 9. 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? A De-mat account from A fee-based financial advisor An online investing platform like Scripbox or Upwardly An AMC website 10. If you had to, which type of financial advisor would you hire? A commissions-based financial advisor A financial advisor who does not charge upfront fees A fee-only financial advisor A fee-based financial advisor Time is Up! Time's upRelated
