20+ Crayon 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.

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).

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

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.

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

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

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

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.

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

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.