20+ Ocimum International School Interview Questions and Answers

Mutual funds offer diversification, professional management, and convenience to investors.

• Mutual funds provide diversification by investing in a variety of securities.

• Professional management ensures that the fund is managed by experienced professionals.

• Convenience of investing in mutual funds through SIPs and easy redemption options.

• Lower risk as compared to direct equity investment.

• Mutual funds offer different types of funds to suit different investment goals and risk profil...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities.

• Mutual funds are managed by professional fund managers.

• Investors can buy units of mutual funds, which represent their share in the fund's holdings.

• Mutual funds offer diversification, as they invest in a variety of assets like stocks, bonds, and commodities.

• They provide access to professional investment management and are suitable for both small and l...read more

Market capitalisation is the total value of a company's outstanding shares. Top 3 market cap companies are Apple, Microsoft, and Amazon.

• Market capitalisation is calculated by multiplying the total number of outstanding shares by the current market price per share.

• It is an important metric used to determine the size and value of a company.

• Apple, Microsoft, and Amazon are currently the top 3 companies in terms of market capitalisation.

• As of August 2021, Apple's market cap was o...read more

I will highlight the benefits of investing in mutual funds and provide data to support my claims.

• Explain the potential for higher returns compared to traditional savings accounts

• Highlight the diversification of investments and reduced risk

• Provide data on the historical performance of mutual funds

• Address any concerns or objections the person may have

• Offer personalized investment advice based on their financial goals and risk tolerance

The GDP of India recently is not available.

• The recent GDP data for India is not yet released.

• The COVID-19 pandemic has caused delays in the release of economic data.

• The government and statistical agencies are working on compiling and analyzing the data.

• Once the data is available, it will provide insights into the country's economic performance.

Sensex and Nifty are stock market indices in India.

• Sensex is the benchmark index of the Bombay Stock Exchange (BSE) and consists of 30 well-established companies.

• Nifty is the benchmark index of the National Stock Exchange (NSE) and consists of 50 well-established companies.

• Both indices are used to measure the performance of the Indian stock market and provide a snapshot of the overall market sentiment.

• Investors use these indices to track the performance of their investments a...read more

Short term funds are investments that have a maturity period of less than one year.

• Short term funds are ideal for investors who want to park their money for a short period of time.

• These funds offer higher liquidity and lower risk compared to long term investments.

• Examples of short term funds include money market funds, short term bond funds, and certificate of deposits (CDs).

Flexi cap funds invest across market caps, while multi cap funds maintain a balance among large, mid, and small caps.

• Flexi cap funds can invest in any market capitalization, allowing for greater flexibility.

• Multi cap funds are required to invest in a mix of large, mid, and small cap stocks.

• Example of a flexi cap fund: Kotak Flexi Cap Fund.

• Example of a multi cap fund: Parag Parikh Long Term Equity Fund.

• Flexi cap funds may shift allocations based on market conditions, while mul...read more

Curd oil prices influence inflation, agricultural costs, and consumer spending in the Indian economy.

• Curd oil is used in various food products, affecting food inflation.

• Higher curd oil prices increase production costs for dairy farmers.

• Increased prices can lead to reduced consumer spending on non-essential items.

• Curd oil is a key ingredient in traditional Indian cooking, impacting dietary choices.

The settlement period for redemption in a debt fund is the time taken to process and complete a redemption request.

• Typically, the settlement period ranges from 1 to 3 business days.

• For example, if a redemption request is made on a Monday, the funds may be available by Wednesday or Friday.

• The exact period can vary based on the fund's policies and the type of debt instruments held.

• Some funds may offer same-day settlement for certain types of investments.

Transmission of units involves systematic steps to ensure accurate and efficient transfer of information or materials.

• Identify the units to be transmitted, such as equipment or data.

• Prepare the necessary documentation, including transfer forms and inventory lists.

• Ensure proper packaging and labeling for physical units to prevent damage.

• Coordinate with relevant departments for approval and scheduling of the transmission.

• Utilize appropriate transportation methods, whether physi...read more

FATCA is a U.S. law aimed at combating tax evasion by requiring foreign financial institutions to report U.S. account holders.

• FATCA was enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act.

• It requires foreign financial institutions (FFIs) to report information about financial accounts held by U.S. taxpayers.

• FFIs that do not comply with FATCA may face a 30% withholding tax on certain U.S. source payments.

• For example, a bank in Switzerland must repo...read more

AMFI is the regulatory body for mutual funds in India, promoting transparency and investor education.

• Established in 1995 to promote mutual funds in India.

• Acts as a self-regulatory organization for mutual fund companies.

• Ensures adherence to regulations set by SEBI (Securities and Exchange Board of India).

• Provides a platform for mutual fund distributors and investors.

• Conducts investor education programs to enhance awareness about mutual funds.

A bond is a debt security that represents a loan made by an investor to a borrower.

• Bonds are issued by governments, municipalities, and corporations to raise capital.

• They have a fixed interest rate and a maturity date when the principal is repaid.

• Bonds are generally considered less risky than stocks but offer lower potential returns.

• Investors can buy and sell bonds on the secondary market.

• Examples of bonds include U.S. Treasury bonds, municipal bonds, and corporate bonds.

NAV applicability in liquid funds determines the price at which units are bought or sold, impacting investor returns.

• NAV (Net Asset Value) is calculated at the end of each trading day for liquid funds.

• Investors can buy or redeem units at the NAV applicable on the same day if the transaction is made before the cut-off time.

• For example, if the cut-off time is 2 PM and an investor redeems units at 1:30 PM, they receive the NAV of that day.

• If the transaction occurs after the cut-...read more

A swap is a financial derivative where two parties exchange cash flows based on different financial instruments.

• Swaps are commonly used to manage interest rate risk, currency risk, or commodity price risk.

• In an interest rate swap, one party pays a fixed interest rate while receiving a variable rate, and vice versa.

• For example, Company A pays a fixed rate of 5% on a loan, while Company B pays a variable rate based on LIBOR.

• Currency swaps involve exchanging principal and intere...read more

Devanture is not a commonly used term. It may refer to a misspelling of 'debenture', which is a type of bond.

• A debenture is a type of bond that is not secured by physical assets or collateral.

• Debentures are typically issued by corporations or governments to raise capital.

• Debentures pay a fixed rate of interest and have a set maturity date.

• Investors who purchase debentures are essentially lending money to the issuer.

• Debentures can be traded on the secondary market, but their v...read more

Mutual fund industry involves pooling money from multiple investors to invest in a diversified portfolio of securities.

• Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.

• Investors can choose from different types of mutual funds such as equity funds, debt funds, and hybrid funds.

• Mutual funds offer diversification, liquidity, and professional management to investors.

• Net Asset Value (NAV) is used to calculate the value...read more

Mutual fund companies earn money through management fees, sales charges, and performance fees.

• Management fees are charged as a percentage of assets under management (AUM) and are typically around 0.5% to 2% annually.

• Sales charges, also known as loads, are fees paid when buying or selling mutual fund shares. These can be front-end loads, back-end loads, or level loads.

• Performance fees are charged based on the fund's performance relative to a benchmark. If the fund outperforms,...read more

Mutual fund is a pool of funds collected from multiple investors to invest in securities. SWP, STP, SIP are different investment strategies in mutual funds.

• Mutual fund is a type of investment where funds from multiple investors are pooled together to invest in a diversified portfolio of securities.

• SWP (Systematic Withdrawal Plan) allows investors to withdraw a fixed amount regularly from their mutual fund investments.

• STP (Systematic Transfer Plan) allows investors to transfer...read more

Qualitative data of a company refers to non-numerical information that provides insights into customer preferences, employee satisfaction, and market trends.

• Includes customer feedback and reviews

• Employee opinions and satisfaction surveys

• Market research findings

• Focus group discussions

• Interview transcripts

• Social media sentiment analysis

SIP involves investing a fixed amount regularly, while lump-sum involves investing a large amount at once.

• SIP stands for Systematic Investment Plan, where investors invest a fixed amount at regular intervals.

• Lump-sum involves investing a large amount of money at once.

• SIP helps in rupee cost averaging and reduces the impact of market volatility.

• Lump-sum investments are more suitable for investors with a lump sum amount available for investment.

• SIP allows investors to benefit f...read more

Equity funds invest in stocks, while debt funds invest in fixed income securities like bonds.

• Equity funds provide ownership in a company, while debt funds provide loans to companies or governments.

• Equity funds have higher potential returns but also higher risk, while debt funds offer more stability and lower returns.

• Equity funds are more suitable for long-term investors seeking growth, while debt funds are better for conservative investors seeking income.

• Examples of equity fu...read more

The latest GDP rate of India is 4.2% for the fiscal year 2019-2020.

• The GDP growth rate for India in the fiscal year 2019-2020 was 4.2%.

• This rate represents a slowdown in economic growth compared to previous years.

• Factors such as demonetization, GST implementation, and global economic conditions have influenced India's GDP rate.

• The government has implemented various measures to boost economic growth and investment in the country.

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling.

• Inflation is measured by the Consumer Price Index (CPI) which tracks the prices of a basket of goods and services over time.

• Causes of inflation include increased demand, cost-push factors like rising wages or production costs, and monetary factors like printing more money.

• Types of inflation include demand-pull inflation, co...read more

I believe the equity market is a dynamic and essential component of the financial system.

• The equity market provides a platform for companies to raise capital by selling shares to investors.

• Investors can buy and sell shares of publicly traded companies on stock exchanges.

• Market fluctuations can be influenced by various factors such as economic indicators, company performance, and geopolitical events.

A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, managed by a professional fund manager.

• Mutual funds pool money from multiple investors to invest in a diversified portfolio of securities.

• Investors buy shares of the mutual fund, which represent a portion of the holdings of the fund.

• Mutual funds are managed by professional portfolio managers who make investment decisions on behalf of the investors.

• They offer diversif...read more