Once the money is pooled from the investors, the fund defines the investment objective and strategy of the scheme.

The NAV of the existing investors in an open‐ended scheme comes down when an investor redeems units.

Closed‐end funds may be listed on the stock exchange to provide liquidity to investors.

A mutual fund requires the approval of the trustees only before the scheme is offered to the public.

The format of the KIM is decided by each fund.

Liquid funds have stable NAVs because they invest in very ________ paper.

Income funds have higher interest rate risk because they invest in non‐government securities too.

FMPs are low risk funds for all investors.

Mid and small cap funds invest in the shares of middle and small sized companies for the future growth potential.

Sector funds are highly diversified funds.