BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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mis-selling
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undertaking
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misappropriation of funds
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cross-selling
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Detailed explanation-1: -An investor may sign a Letter of Intent (LOI), which allows the investor to receive breakpoint discounts based upon a commitment to buy a specified number of mutual fund shares over a period of time, usually 13 months.
Detailed explanation-2: -The fund managers do the research for you. They select the securities and monitor the performance. Diversification or “Don’t put all your eggs in one basket.” Mutual funds typically invest in a range of companies and industries.
Detailed explanation-3: -Well, the short answer is through New Fund Offers (NFOs). In Mutual Fund Parlance, the process of introducing a new mutual fund scheme to investors is known as NFO launch.
Detailed explanation-4: -According to AMFI guidelines, investments made through third-party cheques are not to be processed by mutual funds. A cheque is-sued by and signed by any other person other than the first holder of the investment is a third-party cheque.