Summit Securities Interview Questions and Answers

A bluechip fund is a type of mutual fund that invests in well-established, financially stable, and large-cap companies.

• Bluechip funds focus on investing in companies with a proven track record of consistent growth and profitability.

• These funds typically invest in companies that are leaders in their respective industries.

• Bluechip funds are considered less risky compared to other types of mutual funds due to the stabilit...read more

Value discovery fund is a type of mutual fund that invests in undervalued stocks with potential for growth.

• Invests in undervalued stocks

• Seeks to identify stocks with potential for growth

• Long-term investment strategy

• May have higher risk but potential for higher returns

• Example: Tata Equity P/E Fund

A factsheet is a document that provides information about a mutual fund's performance, holdings, fees, and other important details.

• Factsheets are typically updated on a monthly or quarterly basis.

• They include information on the fund's investment strategy and objectives.

• Factsheets also provide a breakdown of the fund's holdings by asset class, sector, and geographic region.

• They disclose the fund's fees and expenses, inc...read more

The past returns of the funds vary depending on the fund and the time period.

• Past returns can be found in the fund's prospectus or on financial websites.

• Returns can vary greatly depending on the type of fund and the market conditions.

• It's important to consider past returns when making investment decisions, but they are not a guarantee of future performance.

I should be hired because of my strong skills and passion for the job.

• I have a proven track record of successfully handling similar responsibilities.

• I possess the necessary skills and qualifications required for this role.

• I am highly motivated and dedicated to delivering high-quality work.

• I have a genuine interest in the job and the industry it belongs to.

• I am a quick learner and adapt well to new processes and technol...read more

The primary market is where new securities are issued and sold for the first time.

• It is the market where companies raise capital by issuing new stocks or bonds.

• Investors can purchase these securities directly from the issuing company.

• Examples include initial public offerings (IPOs) and corporate bond offerings.

The secondary market refers to the financial market where previously issued securities are bought and sold.

• It is a market where investors can trade securities that have already been issued.

• It provides liquidity to investors by allowing them to buy and sell securities after their initial issuance.

• The secondary market includes stock exchanges, bond markets, and other platforms where securities are traded.

• Investors can bu...read more

Futures and options are financial derivatives that allow investors to speculate on the future price movements of an underlying asset.

• Futures contracts are agreements to buy or sell an asset at a predetermined price on a specified future date.

• Options contracts give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified period.

• Both futures and options are commonl...read more

The derivative is a mathematical concept that represents the rate of change of a function at a particular point.

• The derivative measures how a function changes as its input changes

• It is defined as the slope of the tangent line to the graph of the function at a given point

• The derivative can be used to find the maximum and minimum values of a function

• It is commonly used in calculus to solve problems involving rates of cha...read more

There are several types of trade, including international trade, domestic trade, wholesale trade, and retail trade.

• International trade involves the exchange of goods and services between countries.

• Domestic trade refers to the buying and selling of goods and services within a country.

• Wholesale trade involves the sale of goods in large quantities to retailers or other businesses.

• Retail trade involves the sale of goods to...read more

Capital market deals with long-term securities while money market deals with short-term securities.

• Capital market is a market for long-term securities such as stocks, bonds, and debentures.

• Money market is a market for short-term securities such as treasury bills, commercial papers, and certificates of deposit.

• Capital market is used for raising long-term funds for investment in fixed assets.

• Money market is used for shor...read more

Changes in share purchasing and selling

• Introduction of online trading platforms

• Implementation of circuit breakers to prevent extreme price fluctuations

• Introduction of transaction taxes in some countries

• Increased use of algorithmic trading

• Regulatory changes to increase transparency and prevent insider trading

Calculation of brokerage is based on the percentage of the transaction value.

• Brokerage is calculated as a percentage of the transaction value

• The percentage may vary depending on the type of security being traded

• For example, the brokerage for equity shares may be different from that of mutual funds

• Brokerage may also be subject to a minimum and maximum limit

• The brokerage amount is deducted from the investor's account

• The ...read more