Asset Managers which largely invest in non-listed companies:
Private Equity
Portfolio Managers
Mutual Funds
The size and capabilities of an asset management department can be measured using:
No of employees
Assets under Management
Years in business
Biggest difference between Asset Managers and Financial Advisors:
Managers look at entire market, Advisors do specific studies
Managers invest on client’s behalf, Advisors only give suggestions
Managers are more long term oriented than Advisors
Why would you invest in Debentures?
High returns
Fixed returns
Both High and Fixed returns
If a Rs. 100 stock is growing 10% every year, how much would it be after 2 years?
110
120
121
Benefits of investing in a Mutual Fund:
Reduced Risk
Longer time period as compared to other products
Both of the above
Highest risk and return is possible from:
Investing in a Mutual Fund
Having a Private Portfolio
Same for both
Beta of a stock indicates risk of a stock:
In relation to stocks in the same sector
As compared to market risks
In relation to economic situations
Wealth Management can be done by:
High Net-Worth Individuals only
High and medium Net-Worth both
Any individual interested in investments
An asset manager should revise the portfolio:
Monthly
Quarterly
As and when it is required
Unsystematic risk can be best reduced by:
Investing in limited number of sectors
Increasing the number of securities
It is based on market conditions and cannot be controlled
The best measure of Risk-free security is:
Private Bank Fixed Deposit
Government Bonds
Reliance Industries Limited’s Bonds
Investment in a US-based stock is most exposed to:
Liquidity Risk
Exchange-rate Risk
Political Risk
An asset manager constantly screening interest rate changes most likely comes from:
Mutual Fund
Commodities
An asset manager interacting with Entrepreneurs ideally works through:
Debentures
An portfolio manager decides the best asset mix based on:
Market trends and possible returns
Investor's risk taking abilities
Upcoming and promising investment avenues
The best example of inflation-adjusted returns in investing in:
Stocks
Bonds
Real Estate
Systematic risk can be reduced by:
Adding more securities
Investing in alternative products
In cannot be reduced
Reinvestment risk is linked to risk from reinvesting:
The interest received throughout the life of the security
The principal amount received at the end of the period
A fund paying out higher dividend is most likely included in:
Growth Scheme
Income Scheme
Balanced Scheme
