Multiple choice

The AMC of a mutual fund cannot

  1. undertake advisory services or financial consulting

  2. invest the funds in government paper

  3. indulge in an activity not related to financial services

  4. invest the funds in listed securities
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

AMCs can provide advisory services (A), invest in government paper (B), and invest in listed securities (D). They CANNOT indulge in activities unrelated to financial services - their mandate is restricted to financial activities.

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