What is Dezerv?

Dezerv is a wealth management startup founded in 2021 by a team that has previously
managed Rs. 50,000+ crore. We enable you to invest in customized investment solutions
that help you create wealth and achieve your financial goals.

What investment services are offered by Dezerv?

Dezerv Investments Pvt. Ltd. (the holding Company) offers Portfolio Management Services
(PMS) and also is the Investment Manager to Category 1- Angel Fund.
We also offer mutual fund portfolios under the flagship program named IPA (Integrated
Portfolio Approach) through Dezerv Distribution Services Pvt. Ltd. (subsidary Company)
which is registered with Association of Mutual Funds of India (AMFI) with Registration No.
(ARN) -248439.

How do I invest with Dezerv?

Invest in Dezerv’s customized mutual funds portfolios using our Dezerv app. Download our
app here: Android app | iOS app. To explore our Portfolio Management Service, please
schedule a call with an investment expert by clicking here.

What is the minimum amount required to invest with Dezerv?

Dezerv offers various products, each with a different minimum investment requirement.
1. Customized mutual fund portfolios through IPA (Integrated Portfolio Approach):
₹50,000
2. Dezerv Portfolio Management Service (PMS): ₹50 Lakhs

What is the Dezerv Wealth Monitor?

Wealth Monitor is a free portfolio review tool developed by Dezerv’s team to help you
identify red flags in your mutual fund portfolio. The app analyzes your portfolio’s risk level,
diversification, underperforming funds and your investing discipline. Download the
app: Android | iOS

Who are the founders, what has been their journey?

Dezerv is founded by Sandeep Jethwani, Vaibhav Porwal, Sahil Contractor who have held
senior management positions at companies like IIFL Wealth, Anand Rathi Wealth
Management and Kotak Wealth Management. Previously, the founders have managed Rs.
50,000+ crores.

Why should I trust Dezerv with my money?

If you choose to invest with Dezerv, your money will be managed by experts who have 20+
years of experience in the investment industry and have previously managed over Rs. 50,000
crores. So, you can trust Dezerv to manage your money well.

Is it safe to invest money with Dezerv?

Yes, it is safe to invest with Dezerv. We are a regulated Intermediary and ISO 27001 certified
company. Additionally for Portfolio Management Services, the Portfolio Managers holds all
clients funds in a dedicated Bank account with ICICI Bank as a Custodian. Thus your money
and investments are held with a third party custodian and you are always the rightful owner
of the investments.
What is the process for completing full KYC on Dezerv?
The KYC process on the Dezerv app is quick and easy. You have to upload PAN and Bank
Account details in the app to complete the KYC process. You can reach out to the member
partner team ([email protected]) in case a partial or e-KYC is detected by the system. If full
KYC is not completed, then we will show a pop-up explaining the next steps on Dezerv web
& app.

What types of portfolios does Dezerv offer?

Our IPA and PMS offerings offer customized mutual fund portfolios that can match your risk
profile and investment goals. Our Alternative investment fund (Category 1- Angel Fund),
offers deal-based investment opportunities in high growth startups.

What is the company name of Dezerv?

Dezerv Investments Private Limited is the holding company of Dezerv Group.

Where is Dezerv located?

We have offices in Mumbai, Bangalore and Delhi, and you are welcome to visit our offices in
these cities.

How much does Dezerv charge for its services?

For IPA, we don‘t charge anything. We earn our revenue from mutual fund companies (1.1%)
of the portfolio.
For PMS, we charge a 0% fixed management fee and a 10% profit sharing.

What happens to my money if Dezerv goes bankrupt/out-of-business?

Dezerv helps you invest your money in the right way. The money is either invested in mutual
funds under your name or kept with a third party custodian. In case of Dezerv’s bankruptcy,
your money is not affected and you can manage it or withdraw it from websites of mutual
fund companies or the third party custodian.

What are the risks involved in investing?

Investing involves various risks like, but not limited to, market risk, credit risk, liquidity risk
and loss of capital risk. However, investing with the right risk management helps minimize
these risks. Investors are urged to read the risk factors in the respective offer documents
before investing.

IPA - Integrated Portfolio Approach

Is there a limit to the number of portfolios I can have with Dezerv?

Yes, to keep your portfolio manageable, you can invest in only one customized mutual fund
portfolio on our app.

How can I track the performance of my investments with Dezerv?

Dezerv’s app (Android app | iOS app) can help you track your investments on your mobile.
Alternatively, you can login using your mobile or laptop here.

PMS - Portfolio Management Services

What is a PMS, what are the companies which have a PMS service in the industry?
A Portfolio Management Service (PMS) is a wealth management offering that provides
professional management of investments to create wealth over the long term. A PMS
typically offers customized investment solutions tailored to high-net-worth individuals (HNIs)
who want to invest in stocks, fixed income, and other individual securities. It offers a more
personalized approach compared to mutual funds, as portfolios are customized according to
an investor’s specific risk profile, financial goals, and investment preferences. PMS providers
manage assets actively, meaning they buy and sell securities on behalf of the client, aiming
for superior returns.
In India, several financial firms and asset management companies (AMCs) offer PMS,
including:
 Motilal Oswal PMS: Known for its quality investment research and sectoral expertise,
especially in the mid- and small-cap space.
 Kotak PMS: Offers a range of portfolios with various risk-return profiles, such as
concentrated equity and diversified equity portfolios.
 HDFC PMS: Focuses on a disciplined investment strategy targeting long-term growth.
 ICICI Prudential PMS: Provides tailored portfolios based on in-depth market research
and analysis.
 ASK Wealth Advisors: Offers highly reputed and focused strategies for wealth
creation.
 IIFL PMS: Known for its strong research-driven approach to stock selection.
 Aditya Birla Sun Life PMS: Offers diversified strategies with a strong focus on both
risk management and growth.

How is Dezerv different from the Industry?

Dezerv is a new-age wealth management firm that aims to make portfolio management
more accessible to a broader audience beyond traditional HNIs. Unlike conventional PMS
providers, Dezerv often has lower minimum investment requirements, making high-quality
portfolio management more inclusive. It also differentiates itself by offering a tech-driven
platform, which provides more transparency, personalized insights, and user-friendly
interfaces for investors. Additionally, Dezerv emphasizes using data-driven approaches and
diversified strategies, including both active and passive investments, to balance risk and
reward effectively. This appeals to a younger generation of investors looking for
sophisticated wealth management but with lower initial capital.

What does a wealth manager do?

A wealth manager is a financial professional responsible for helping clients grow, preserve,
and transfer wealth efficiently. Their services include:
 Financial Planning: Developing long-term strategies to achieve financial goals, such as
retirement, education funding, or estate planning.
 Investment Management: Creating and managing a diversified investment portfolio
tailored to the client’s risk tolerance, time horizon, and objectives.
 Tax Planning: Advising on tax-efficient investment strategies to minimize the client’s
tax burden.
 Risk Management: Recommending insurance, hedging, and asset allocation
strategies to protect the client’s assets.
  Estate Planning: Helping clients ensure wealth is transferred to beneficiaries
according to their wishes.
 Regular Monitoring and Reporting: Providing periodic updates and rebalancing
portfolios to adapt to changing market conditions and client circumstances.

Can I meet the Dezerv investment team before investing my money?

We understand that you want to meet the investment team when you are investing 50L INR
or more in Portfolio Management Services offering of Dezerv. We have offices in Mumbai,
Bangalore and Delhi, and you are welcome to visit our offices in these cities

Who are the portfolio managers at Dezerv?

Vaibhav Porwal, one of the co-founders, is the principal officer of Dezerv PMS. Pratik
Bagaria is the fund manager. Additionally, we have investment specialists experienced with
different asset classes. Hardik Shah looks after unlisted equity investing. Our core investment
team is supported by more than a dozen investment specialists and our co-founders.

How often is my portfolio reviewed by the portfolio managers?

Our portfolio managers are working to optimize your portfolio 24x7. Our active monitoring
ensures that we are proactive in making changes to your portfolio as and when our
investment thesis and market outlook change.

Dezerv Select Program

What is the Dezerv Select program?

The Dezerv Select program is a unique program that aims for Dezerv’s most valuable
investors. Dezerv Select members get free quarterly financial reviews. We plan to offer many
more services and experiences to Dezerv Select members in the future.

How can I become a Dezerv Select member?

A prerequisite to becoming a Dezerv Select member is to invest a minimum of Rs. 20 Lakh in
one of our IPA portfolios or a minimum of Rs. 50 Lakh in our Portfolio Management Service.
You can connect with our team

Aptitude Test

A stock with a market price of Rs. 150 pays an annual dividend of Rs. 6 per share. What is
the Dividend Yield? a. 4% b. 25% c. 8% d. 20%
The Dividend Yield is calculated as:
Dividend Yield=(Dividend per share/Market Price per share)×100
Substitute the values:
Dividend Yield=(6/150)×100=4%
So, the answer is a. 4%.

What is the purpose of a Systematic Withdrawal Plan (SWP) in mutual funds? To invest a
lump sum amount b. To redeem a fixed sum regularly c. To switch between different funds
d. To increase the fund's NAV
The purpose of a Systematic Withdrawal Plan (SWP) in mutual funds is: b. To redeem a fixed
sum regularly

How does adding uncorrelated assets to a mutual fund portfolio affect its overall risk? a.
Increases b. Decreases c. Remains the same d. Cannot be determined
Adding uncorrelated assets to a mutual fund portfolio generally: b. Decreases the overall
risk.

Which type of chart is suitable for displaying the parts of a whole? a. Line chart b. Scatter
plot c. Radar chart d. Pie chart
The type of chart suitable for displaying the parts of a whole is: d. Pie chart

What does PMS stand for in the context of financial services? Personal Management
System b. Portfolio Management Services c. Profit Maximization Strategy d. Public Market
Solutions
In the context of financial services, PMS stands for: b. Portfolio Management Services

What is the purpose of a sovereign bond in the fixed income market? Issued by
corporations to raise capital b. Issued by the government to raise funds c. Convertible into
equity shares d. Traded on the secondary market only
The purpose of a sovereign bond in the fixed income market is: b. Issued by the government
to raise funds.

ABC Ltd paid dividends of Rs. 60,000 and had net income of Rs. 150,000. Calculate the
Dividend Payout Ratio. a. 40% b. 60% c. 25% d. 80%
The Dividend Payout Ratio is calculated as:
Dividend Payout Ratio=(Dividends Paid/Net Income)×100
Substitute the values:
Dividend Payout Ratio=(60,000/150,000)×100=40%. So, the answer is a. 40%.

An investor holds a bond with a modified duration of 5 years. If interest rates increase by
1%, calculate the approximate percentage change in the bond's price. +7% +5% -5% Can
not be determined
The approximate percentage change in a bond's price can be calculated using the modified
duration:
Percentage Change in Price≈−(Modified Duration)×(Change in Interest Rate)
Given:
 Modified Duration = 5 years
 Change in Interest Rate = +1%
Percentage Change in Price≈−(5)×(1%)=−5%. So, the answer is -5%.

In technical analysis, what do support and resistance levels indicate? a. Future earnings
potential b. Price levels where buying or selling interest is concentrated c. Company's debt
levels d. Market capitalization trends
b. Price levels where buying or selling interest is concentrated
What does the Data Validation feature in Excel allow you to do? a. Validate email
addresses b. Restrict input to a specific range or type c. Validate website URLs d.
Automatically validate formulas
b. Restrict input to a specific range or type

Arbitrage opportunities can exist between: a. Spot and futures prices b. Two futures prices
c. Futeres and options prices d. All of the above
d. All of the above

What is the primary purpose for investing in a bond? Capital appreciation b. Providing a
fixed income stream c. Equity ownership d. Speculative trading
b. Providing a fixed income stream

What is the purpose of a credit default swap (CDS) in the fixed income market? a. To
insure against interest rate risk b. To insure against credit risk c. To convert a bond into
equity shares d. To increase the coupon rate
b. To insure against credit risk

In the fixed income market, what is the purpose of a Zero-coupon bond? . Pays no interest
during its term b. Pays interest only at maturity c. Pays a fixed interest rate d. Can be
converted into equity shares
a. Pays no interest during its term

Which company is known as the largest player in the Indian pharmaceuticals sector and is
included in the NIFTY 50 Dr. Reddy's Laboratories Sun Pharmaceutical Industries Cipla
Lupin
Sun Pharmaceutical Industries

XYZ Corporation has an annual net sales of Rs. 1,000,000 and average working capital of
Rs. 200,000. Calculate the Working Capital Turnover. a. 5 b. 0.25 c. 0.20 d. 6
The Working Capital Turnover is calculated as:
Working Capital Turnover=Net Sales/Average Working Capital
Substitute the values:
Working Capital Turnover=1,000,000/200,000=5. So, the answer is a. 5.

Which of these funds have the highest risk? a. Large cap fund b. Multi-cap fund c. Flexi cap
fund d. Sectoral fund
d. Sectoral fund

What is the role of a Distributor in the mutual fund industry? a. Managing the fund's
investments b. Safeguarding and holding the fund's securities c. Distributing units of the
fund to investors d. Setting the Net Asset Value (NAV) of the fund
c. Distributing units of the fund to investors

An investor is considering two corporate bonds with the same maturity and coupon rate.
Bond A has a yield of 5%, and Bond B has a yield of 7%. Calculate the credit spread for
each bond. Yield of Comparable Government Bond for both is 3% Bond A has higher credit
spread Bond B has higher credit spread Bond A and B has same credit spread Can not be
determined
The credit spread is calculated as the difference between the yield of a corporate bond and
the yield of a comparable government bond.
For Bond A:
Credit Spread of Bond A=5%−3%=2%
For Bond B:
Credit Spread of Bond B=7%−3%=4%
So, Bond B has a higher credit spread.
The correct answer is: Bond B has higher credit spread.

Which of the following statistical measures is more appropriate for measuring the risk of a
mutual fund portfolio compared to other. a. Beta b. Standard Deviation c. Alpha d. Sharpe
Ratio
b. Standard Deviation

Mr. Verma invested Rs. 1,00,000 in a mutual fund scheme at the beginning of the year. At
the end of the year, the NAV has increased to Rs. 110, and he received a dividend of Rs. 5
per unit. If the total units held by Mr. Verma are 1,000, what is the absolute return on his
investment? a. 10% b. 15% C. 11% d. 16%
To calculate the absolute return, we need to consider both the increase in NAV and the
dividend received.
1. Initial Investment = Rs. 1,00,000
2. Units held = 1,000
3. Initial NAV = Rs. 1,00,000 ÷ 1,000 = Rs. 100
4. Final NAV = Rs. 110
5. Dividend per unit = Rs. 5
Now, calculate the total value at the end of the year:
 Total NAV appreciation = (Final NAV - Initial NAV) × Units held
=(110−100)×1,000=10×1,000=10,000
 Total dividend received = Dividend per unit × Units held
=5×1,000=5,000
So, the total return = NAV appreciation + Dividend = 10,000 + 5,000 = Rs. 15,000.
Finally, calculate the absolute return:
Absolute Return=(Total Return/Initial Investment)×100=(15,000/1,00,000)×100=15%. The
correct answer is b. 15%.

XYZ Corporation has total debt of Rs. 500,000 and equity of Rs. 700,000. Calculate the
Debt to Equity Ratio when XYZ corporation has a PE ratio of 8.5 a. 0.71 b. 0.5 c. 1.4 d. 0.8
a. 0.71

Which type of mutual fund invests in stocks with the objective of providing regular incom
to investors? a. Equity Fund b. Debt Fund c. Hybrid Fund d. Index Fund
b. Debt Fund
In the non-equity-oriented funds, with equity in the range of 35 to 65 percent of portfolio,
the rate of long-term capital gains tax is: a. 10 percent with indexation b. 10 percent
without indexation c. 20 percent with indexation d. 20 percent without indexation
c. 20 percent with indexation
How does reducing government spending contribute to inflation control? a. It stimulates
economic growth b. It increases aggregate demand c. It decreases the money supply d. It
reduces the budget deficit
d. It reduces the budget deficit

With which agency are the mutual fund distributors registered? a. Securities and Exchange
Board of India b. Fund Accounting Team c. Depositories d. Association of Mutual Funds in
India
a. Securities and Exchange Board of India

The yield curve represents the relationship between: a. Bond prices and maturity b. Bond
yields and credit ratings c. Bond maturities and coupon rates d. Bond prices and face
values
a. Bond prices and maturity

In case of mutual fund schemes, dividends can be paid only out of: a. Premium reserve
account b. Unit capital c. Distributable surplus generated by the scheme d. Mark-to-
market profits
c. Distributable surplus generated by the scheme

A trade that is squared-off during the day: . Does not require delivery of shares b. Is not
guaranteed by the exchange c. Is cancelled by the exchange d. Is not considered in
calculating trading volumes
a. Does not require delivery of shares

Which type of bond pays periodic interest and returns the principal at maturity? a. Zero-
coupon bond b. Callable bond c. Convertible bond d. Plain vanilla bond
d. Plain vanilla bond

A company has operating profit of Rs. 400,000 and operating expenses of Rs. 200,000.
What is the Operating Profit Margin? a. 50% b. 25% c. 100% d. 75%
a. 50%

What does the term "Net Redemption Yield" represent in mutual funds? a. The yield after
counting for exit loads b. The yield before accounting for exit loads c. The yield after
accounting for entry loads d. The yield before accounting for entry loads
a. The yield after counting for exit loads

Commission received from business forms part of income from __--- a. Business and
profession b. Capital Gains c. Salary d. All of the above
a. Business and profession
If a central bank wants to stimulate economic growth, it is likely to: a. Increase the interest
rates b. Decrease the money supply c. Increase the money supply d. Implement
contractionary monetary policy
c. Increase the money supply
What financial statement provides a snapshot of a company's financial position at a
specific point in time? a. Income Statement b. Statement of Cash Flows c. Balance Sheet d.
Statement of Retainec Earnings
c. Balance Sheet

Which of the following type of analysis tracks the price and volume data related to trading
in the security? a. Quantitative analysis b. Fundamental analysis c. Technical analysis d.
Situation analysis
c. Technical analysis

ABC Ltd has a net income of Rs. 400,000 and shareholders' equity of Rs. 2,000,000.
Calculate the Return on Equity (ROE) a. 15% b. 10% c. 20% d. 25%
b. 20%
The Return on Equity (ROE) is calculated as:
ROE=Net Income/Shareholders’ Equity×100
ROE=400,000/2,000,000×100=20%

What is the primary purpose of the Net Asset Value (NAV) in a mutual fund? a. Tracking
market trends b. Calculating fund expenses c. Evaluating the fund's performance d.
Determining the func manager's salary
c. Evaluating the fund's performance

Company M invested Rs. 1,000,000 in a project and generated a net profit of Rs. 200,000.
Calculate the Return on Investment (ROl). a. 20% b. 10% c. 25% d. 15%
a. 20%

Which of the following investment options provides tax benefits under Section 80C of the
Income Tax Act? a. ELSS Mutual Funds b. Debt Mutual Funds c. Public Provident Fund (PPF)
d. Both A & C
d. Both A & C

Who manages the investments of a mutual fund? a. Trustees b. Distributors c. Custodians

d. Fund Manager
d. Fund Manager

What is the purpose of a sinking fund provision in a bond agreement? o retire a portion of
debt before maturity b. To increase the coupon rate c. To convert the bond into equity
shares d. To extend the maturiti period of the bond
a. retire a portion of debt before maturity

In the fixed income market, what is the term for the additional interest offered to attract
investors to a bond? a. Coupon rate b. Call premium c. Yield spread d. Credit rating
c. Yield spread
What is the purpose of a Dividend Reinvestment Plan (DRIP) in mutual funds? 1.
Distributing profits to investors b. Reinvesting dividends to purchase more units c.
Withdrawing dividends as cash d. Calculating the Net Asset Value
b. Reinvesting dividends to purchase more units

In the context of mutual funds, what is meant by "Load-free" funds? a. Funds with no
entry load b. Funds with no exit load c. Funds with no annual expenses d. Funds with no
fund manager
a. Funds with no entry load

Which bond is considered to have the highest credit risk? AAA-rated Corporate Bond b.
Treasury Bond c. BBB-rated Corporate Bond d. Municipal Bond
c. BBB-rated Corporate Bond

In a mutual fund, the entry load and exit load refer to: 1. Taxes levied on profits b. Charges
applied when buying and selling units c. Management fees d. Annual expenses
b. Charges applied when buying and selling units

How are capital gains of Sovereign Gold Bonds taxed when redemption is done after
maturity? a. Exempt from tax b. Taxed at a flat rate c. As per the individual's income tax
slab d. Taxed only if the gains exceed a certain threshold
a. Exempt from tax

A company has current assets of Rs. 300,000, of which Rs. 150,000 is inventory. If current
liabilities are Rs. 100,000, what is the Quick Ratio? a. 2 b. 1.5 c. 1 d. 0.5
The Quick Ratio is calculated using the formula:
Quick Ratio=Current Assets−Inventory/Current Liabilities
Given:
 Current Assets = Rs. 300,000
 Inventory = Rs. 150,000
 Current Liabilities = Rs. 100,000
Quick Ratio=300,000−150,000/100,000=150,000/100,000=1.5
So, the answer is: b. 1.5

How does the presence of a call provision in a bond agreement affect its yield to maturity?
a. Increases b. Decreases c. Remains the same d. Cannot be determined
a. Increases

Which of the following statements is 'True' with respect to celebrity endorsement for
mutual funds? a. SEBI has permitted elebrity endorsement at he industry level for the
purpose of increasing he awareness of mutual funds b. SEBI has permitted celebrity
endorsements for the promotion of individual mutual fund schemes c. Celebrities can
endorse only NFOs d. Celebrities can endorse only ongoing mutual fund schemes
a. SEBI has permitted elebrity endorsement at he industry level for the purpose of increasing
he awareness of mutual funds
Which of the following is a characteristic of a monopolistic competition market structure?
a. Many sellers, identical products b. Many sellers, differentiated products c. Few sellers,
identical products d. Few sellers, differentiated products
b. Many sellers, differentiated products
A mutual fund that aims to replicate the performance of a specific market index is called a.
Sector Fund b. Index Fund c. Balanced Fund d. Growth Fund
The correct answer is: b. Index Fund

In a mutual fund, what does the term "Benchmark Index" represent? a. The fund
manager's performance b. The average return of all mutual funds c. A standard for
measuring the fund's performance d. The highest performing stock in th portfolio
The correct answer is: c. A standard for measuring the fund's performance

What is the minimum investment amount required to start an SIP (Systematic Investment
Plan)? a. Rs. 500 b. Rs. 5,000 c. Rs. 1,000 d. Rs. 25,000
The correct answer is: a. Rs. 500

How does indexation impact the calculation of long-term capital gains tax on debt mutual
funds? a. Increases the tax liability b. Decreases the tax liability c. Has no impact on tax
liability d. Exempts the gains from tax
The correct answer is:
b. Decreases the tax liability

What is the primary advantage of Systematic Investment Plans (SIPs) in mutual funds? a.
Higher returns b. Flexibility in withdrawal c. Rupee cost averaging d. Tax benefits
The correct answer is: c. Rupee cost averaging

What is the primary risk associated with investing in equity mutual funds? a. Interest rate
risk b. Market risk c. Credit risk d. Inflation risk
The correct answer is: b. Market risk

What is the primary risk associated with investing in high-yield or junk bonds? a. Interest
rate risk b. Credit risk c. Inflation risk d. Liquidity risk
The correct answer is: b. Credit risk

What does the term "Asset Under Management" (AUM) represent in the context of
mutual funds? a. Total number of units issued b. Total market capitalization of the fund c.
Total value of assets managed by the fund d. Total annual returns of the fund
The correct answer is: c. Total value of assets managed by the fund

Why is it essential for investors to consider both yield and credit rating when assessing
bonds? Yield alone is sufficient to evaluate risk b. Credit rating alone is sufficient to
evaluate risk c. Both factors provide a comprehensive risk assessment d. Neither yield nor
credit rating impacts risk assessment
The correct answer is: c. Both factors provide a comprehensive risk assessment
What is the tax on long-term capital gains on listed equity shares and equity mutual
funds? a. 5% b. 10% c. 12.5% d. 12%
The correct answer is: b. 10%

The market value of the bond What is the face value of a bond? b. The value of the bond
at maturity c. The principal amount on which interest is paid d. The current market price of
the bond
The correct answer is: c. The principal amount on which interest is paid

If the yield curve is inverted, what does it typically suggest about the market sentiment? a.
Bullish b. Neutral c. Bearish d. Uncertain
The correct answer is: c. Bearish

For an investor to get a quick sense of the level of risk involved in a mutual fund scheme,
SEBI suggested a simplified framework known as: a. Risk-o-meter b. Risk factors c. Fact
sheet d. Investor's risk profile
The correct answer is: a. Risk-o-meter

How do leaders build trust among team members, and why is trust important in
leadership? a. Trust is built through micromanagement and close supervision. b. Leaders
build trust by being transparent, reliable, and supportive. c. Trust is irrelevant in
leadership. d. Leaders build trust by keeping information and decision-making centralized.
The correct answer is:
b. Leaders build trust by being transparent, reliable, and supportive.

What does the term "Callable Bond" mean in the context of fixed income securities? a.
The bond cannot be traded b. The issuer has the right to redeem the bond before maturity
c. The bond pays no interest d. The bond can only be purchased by calling the issuer
The correct answer is:
b. The issuer has the right to redeem the bond before maturity

What does the term "Liquidity Risk" refer to in the context of fixed income securities? a.
The risk of default by the issuer b. The risk of changes in interest rates c. The risk of the
bond being difficult to sell at a reasonable price d. The risk of inflation eroding the bond's
value
The correct answer is:
c. The risk of the bond being difficult to sell at a reasonable price

Future value of the investment is influenced by: a. Time period b. Rate of return c. Both a
& b d. None of the above
The correct answer is: c. Both a & b

What is the lock-in period for tax-saving ELSS (Equity Linked Savings Scheme) mutua
funds? a. 1 year b. 3 years c. 5 years d. 7 years
The correct answer is: b. 3 years
Tax-saving ELSS (Equity Linked Savings Scheme) mutual funds have a lock-in period of 3
years.
Which type of mutual fund invests in a mix of equity and debt instruments? a. Equity Fund
b. Debt Fund c. Hybrid Fund d. Liquid Fund
The correct answer is: c. Hybrid Fund
How does a laissez-faire leadership style differ from an autocratic leadership style? a.
Laissez-faire leaders give employees total reedom, while autocratic leaders make decisions
without input. b. Laissez-faire leaders are highly controlling, while autocratic leaders provide
guidance. c. Laissez-faire leaders avoid decision-making, while autocratic leaders encourage
employee participation. d. Laissez-faire leaders prioritize team collaboration, while
autocratic leaders focus on individual contributions.
The correct answer is:
a. Laissez-faire leaders give employees total freedom, while autocratic leaders make
decisions without input.

What does the term "Yield to Maturity (YTM)" represent for a bond? a. The annual
interest income b. The total return anticipated on a bond if held until it matures c. The
current market price of the bond d. The coupon rate
The correct answer is: b. The total return anticipated on a bond if held until it matures

If a company has current assets of Rs. 800,000 and current liabilities of Rs. 400,000, what
is the Current Ratio when EPS is 42? a. 2 b. 1.5 c. 1 d. 0.5
The Current Ratio is calculated as:
Current Ratio=Current Assets/Current Liabilities
Given:
 Current Assets = Rs. 800,000
 Current Liabilities = Rs. 400,000
Now, calculating:
Current Ratio=800,000400,000=2
The Current Ratio is 2.
So, the correct answer is: a. 2

A bond with a face value of Rs. 1,000 has an annual coupon payment of Rs. 80 and is
currently trading at Rs. 1,050. Calculate the current yield. 7.6% 8% 7.8% 7%
The current yield of a bond is calculated using the following formula:
Current Yield=(Annual Coupon Payment/Current Market Price)×100
Given:
 Face Value = Rs. 1,000
 Annual Coupon Payment = Rs. 80
 Current Market Price = Rs. 1,050
Now, calculate the current yield:
Current Yield=(80/1050)×100≈7.62%
So, the current yield is approximately 7.6%.
Answer: 7.6%

If the market price per share of XYZ Ltd is Rs. 200 and the EPS is Rs. 25, what is the Price to
Earnings (P/E) ratio? a. 8 b. 12.5 c. 5 d. 15
The Price to Earnings (P/E) ratio is calculated using the formula:
P/E Ratio=Market Price per ShareEarnings per Share (EPS)P/E Ratio=Earnings per Share (EPS)
Market Price per Share
Given:
 Market Price per Share = Rs. 200
 Earnings per Share (EPS) = Rs. 25
Now, calculate the P/E ratio:
P/E Ratio=200/25=8
Answer: a. 8

Which of the following is a type of debt instrument commonly held by debt mutual funds?
a. Equity Shares b. Corporate Bonds c. Index Funds d. Mutual Fund Units
The correct answer is: b. Corporate Bonds
Debt mutual funds typically invest in debt instruments such as corporate bonds, government
securities, treasury bills, and other fixed-income securities. Equity shares and mutual fund
units are associated with equity and other types of funds, not debt funds.

Under the recent amendments, what is the holding period required for immovable
property to be considered a long-term capital asset, attracting concessional tax rates? a. 1
year b. 2 years c. 3 years d. 5 years
b. 2 years

If a company's net operating profit after taxes (NOPAT) is Rs. 300,000 and its capital charge
is Rs. 150,000, calculate the Economic Value Added (EVA). a. Rs. 150,000 b. Rs. 450,000 c.
Rs. 300,000 d. Rs. 600,000
Economic Value Added (EVA) is calculated using the formula:
EVA=NOPAT−Capital Charge
Given:
 NOPAT = Rs. 300,000
 Capital Charge = Rs. 150,000
EVA=300,000−150,000=150,000
So, the correct answer is: a. Rs. 150,000

What is the role of a custodian in the mutual fund industry? a. Managing the fund's
investments b. Safeguarding the holding the fund's securities c. Distributing dividends to
investors d. Setting the NAV of the fund
The role of a custodian in the mutual fund industry is: b. Safeguarding and holding the fund's
securities.