As per the reports in the leading newspapers. Securities and Exchange Board of India (SEBI) has asked the mutual fund industry to stop Misselling their schemes to investors. What is Misselling of products?begin{enumerate}item Misselling takes place when mutual funds are sold without telling the likely returns.item When agents sell the products without telling investors what are the risks involved in investing in mutual funds.item When agents invest somebodys money in mutual funds without their knowledge, it is called misselling.end{enumerate}Select the correct answer using the codes given below:

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As per the reports in the leading newspapers. Securities and Exchange Board of India (SEBI) has asked the mutual fund industry to stop ‘Misselling’ their schemes to investors. What is ‘Misselling’ of products?

A	Only 1
B	Only 2
C	Only 3
D	All of these

Explanation:

Detailed explanation-1: -The minimum mutual fund investment value in most of the schemes ranges between ₹500 to ₹5, 000. However, in a bid to attract investors who are looking to invest lower amounts, some domestic mutual funds even allow a minimum investment of ₹100 or even to start with ₹10 like a Navi Mutual Fund.

Detailed explanation-2: -Also, the regulator has mandated a minimum of 20 investors and a subscription amount of at least Rs 20 crore for each Collective Investment Scheme (CIS), according to a notification on Tuesday.

Detailed explanation-3: -Once you have completed the AMFI registration process and obtained your ARN number, you can start distributing mutual fund schemes to investors and earning commission. All that is left to do is entering into agreements with AMFI distributors and sell these funds.

Detailed explanation-4: -An equity fund is a mutual fund scheme that invests predominantly in equity stocks. In the Indian context, as per current SEBI Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65% of the scheme’s assets in equities and equity related instruments.

There is 1 question to complete.