Test Your Knowledge of Finances Vinod Desai 6 years ago 1. Which from below is a good explanation of 'Market Cap'? Total shares issued by the company, divided by its stock price Total shares issued by the company, multiplied by its profit per share Total shares issued by the company multiplied by its stock price Total size of the market, divided by market share of the company None 2. Which is the most tax-efficient, profitable way to invest in Gold? Sovereign Gold bonds In physical form, as ornamental jewelry Gold investment schemes run by registered, reputed, jewelers In physical form, as Gold coins and bars Gold Exchange Traded Funds None 3. Which statements from below are true? 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 Debt and Equity Mutual funds are taxed similarly since 2018 Short term capital gains tax is typically higher than long term capital gains tax None 4. 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-based financial advisor A fee-only financial advisor None 5. Out of the Equity related strategies from below, which has been known to provide the highest long term returns, time and time again? Buy at low price, sell at high price. Repeat every day. Buy stocks of a company which has gone up recently. Sell before price drops. Repeat with another such company. Buy stocks of several good companies and wait for several years. Identify one great company and only invest in it every year. None 6. Which investment among these do you suppose has consistently provided the highest long-term returns in India? Apartments by reputed builders in Metro cities Independent Houses and plots Gold schemes run by reputed jewellers Stocks and Equities None 7. 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 Equity agressive, or Hybrid Mutual Funds Exchange Traded Funds ULIPS & Endowment Life Insurance Policies None 8. How often is it good to check how well your equity mutual fund investments are performing? Every Sunday evening before the markets open on Monday Once a year, or once every couple of years Twice a day; at market start and market close First working day of every month None 9. 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. Higher than real estate, around 20X. 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. None 10. 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 None {{#message}}{{{message}}}{{/message}}{{^message}}Your submission failed. The server responded with {{status_text}} (code {{status_code}}). Please contact the developer of this form processor to improve this message. Learn More{{/message}}{{#message}}{{{message}}}{{/message}}{{^message}}It appears your submission was successful. Even though the server responded OK, it is possible the submission was not processed. Please contact the developer of this form processor to improve this message. Learn More{{/message}}Submitting… Time's up Mutual Fund QuizDateDecember 27, 2019In relation toSimilar postFinancial Wellness QuizDateJanuary 14, 2020In relation toSimilar postInsurance Trivia QuizDateJune 15, 2020In relation toSimilar post
