Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 6 of 18

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Q51.
What is the name of the instrument launched in late 2012 to attract retail investors toward equity investments and provide the option to save on taxes?

a.

ELSS (Equity Linked Savings Scheme)

b.

MFIP (Mutual Fund Investment Plan)

c.

RGESS (Rajiv Gandhi Equity Savings Scheme)

d.

SIP (Systematic Investment Plan)

Discuss
Answer: (c).RGESS (Rajiv Gandhi Equity Savings Scheme) Explanation:A new instrument launched in late 2012 to attract retail investors toward equity investments is called Rajiv Gandhi Equity Savings Scheme (RGESS).
Q52.
Under Section 80CCG of the IT Act, what is the maximum deduction available for investments made under the Rajiv Gandhi Equity Savings Scheme (RGESS)?

a.

30% of the invested amount

b.

40% of the invested amount

c.

50% of the invested amount

d.

60% of the invested amount

Discuss
Answer: (c).50% of the invested amount Explanation:Under Section 80CCG of the IT Act, investors in the Rajiv Gandhi Equity Savings Scheme (RGESS) are eligible for a 50% deduction of the invested amount, up to a maximum investment of Rs. 50,000.
Q53.
What are the conditions that need to be satisfied for an individual to be eligible for deductions under the Rajiv Gandhi Equity Savings Scheme (RGESS)?

a.

The individual must have a gross total income exceeding Rs. 10 lacs

b.

The individual must be a non-resident

c.

The individual must be a new retail investor as specified in the notified scheme

d.

The individual's investment is not required to be locked-in

Discuss
Answer: (c).The individual must be a new retail investor as specified in the notified scheme Explanation:There are some conditions for eligibility for deductions under RGESS, including being a new retail investor as specified in the notified scheme.
Q54.
What is the period of lock-in for investments made under the Rajiv Gandhi Equity Savings Scheme (RGESS)?

a.

1 year

b.

2 years

c.

3 years

d.

4 years

Discuss
Answer: (c).3 years Explanation:Investments made under RGESS are locked-in for a period of 3 years from the date of acquisition.
Q55.
For which Mutual Fund product do investors in higher tax brackets prefer longer-tenure plans for double-indexation benefits and better interest rates?

a.

Equity Funds

b.

ELSS (Equity Linked Savings Scheme)

c.

FMPs (Fixed Maturity Plans)

d.

Index Funds

Discuss
Answer: (c).FMPs (Fixed Maturity Plans) Explanation:Investors in higher tax brackets prefer longer-tenure Fixed Maturity Plans (FMPs) for double-indexation benefits and better interest rates.
Q56.
What is the definition of AIF (Alternative Investment Fund)?

a.

Any fund established in India in the form of a company

b.

Any fund established in India in the form of a trust, company, limited liability partnership, or a body corporate

c.

Any fund established outside India in the form of a trust

d.

Any fund regulated by SEBI (Mutual Funds) Regulations, 1996

Discuss
Answer: (b).Any fund established in India in the form of a trust, company, limited liability partnership, or a body corporate Explanation:AIF is defined as any fund established in India in the form of a trust, company, limited liability partnership, or a body corporate.
Q57.
What are the objectives of SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations)?

a.

To govern only regulated entities

b.

To create a level playing ground for existing mutual funds

c.

To govern unregulated entities, create a level playing ground for existing venture capital investors, and to regulate private pools of capital/AIFs

d.

To regulate only hedge funds

Discuss
Answer: (c).To govern unregulated entities, create a level playing ground for existing venture capital investors, and to regulate private pools of capital/AIFs Explanation:The objectives of SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations) are to govern unregulated entities, create a level playing ground for existing venture capital investors, and to regulate private pools of capital/AIFs.
Q58.
Which of the following is specifically excluded from the purview of the AIF Regulations?

a.

Mutual Funds

b.

Family Trusts

c.

Venture Capital Funds

d.

Employee Welfare Trusts

Discuss
Answer: (b).Family Trusts Explanation:Family Trusts excludes from the purview of the AIF Regulations.
Q59.
What is the primary investment focus of Infrastructure Funds?

a.

Equity and equity-linked instruments

b.

Debt and debt securities

c.

Social ventures

d.

Start-ups and emerging ventures

Discuss
Answer: (b).Debt and debt securities Explanation:Infrastructure Funds are primarily used for investment in unlisted securities/debt/debt securities of investee companies or SPV engaged for the purpose of operating/holding infrastructure projects.
Q60.
What type of funds are invested primarily in unlisted securities of start-ups, emerging, or early-stage venture capital undertakings?

a.

Debt Funds

b.

Hedge Funds

c.

Social Venture Funds

d.

Venture Capital Funds (VCFs)

Discuss
Answer: (d).Venture Capital Funds (VCFs) Explanation:Venture Capital Funds (VCFs) are meant for investment primarily in unlisted securities of start-ups, emerging, or early-stage venture capital undertakings mainly involved in new products, services, technology/intellectual property rights-based activities/a new business model.
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