Q. Mutual funds in India are:
  1. regulated and monitored by the Securities and Exchange Board of India
  2. invested in equity as well as in debt market
Which of the above statements is/are correct?

Answer: Both 1 & 2
Notes: Both of the above statements are correct.
  1. Mutual funds in India are regulated and monitored by the Securities and Exchange Board of India (SEBI). SEBI is the regulatory authority that oversees and regulates the functioning of mutual funds to protect the interests of investors and ensure transparency and fairness in the mutual fund industry.
  2. Mutual funds in India invest in various financial instruments, including equity (stocks) as well as debt market instruments (such as bonds, government securities, etc.). The allocation between equity and debt varies based on the type of mutual fund, such as equity funds, debt funds, balanced funds, etc.
So, both statements are accurate.

This question is part of UPSC Daily 20 MCQ Series Course on GKToday Android app.