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Test your IQ

June 30, 2008

Investment Quotient

Say TRUE or FALSE

1. A person below 18 can invest in stocks or mutual funds through a guardian?
True
False

2. Credit cards are easy sources of instant money; so one need not think twice before using them
True
False

3. Mutual funds invest all their money in equities
True
False

4. . It is always advisable to be a long-term investor in the stockmarket
True
False

5. Between mutual funds and post office deposits, mutual funds give fixed returns
True
False

6. If inflation is 8%, return is 12%, the real rate of return is 4%
True
False

7. The riskier an investment, the higher the potential returns
True

8. A blue-chip is the stock of a well-established company with stable earnings
True
False

9. In a Systematic Investment Plan (SIP), you need to invest fixed amounts regularly
True
False

10. The NAV of a fund is the sum total of the market value of all the units held in the portfolio
True
False

Answers

Image: A child plays in an inflatable toy | Photograph: Manpreet Romana/AFP/Getty Images


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