Consider the following statements:1.Indexation means adjusting the cost of funds without taking inflation into consideration.2.Indexation is offered to debt fund investors if the investment is redeemed after 36 months.3.70% of the investment in debt funds flows from institutional investors in India.Which of the statements given above are correct?

Q. Consider the following statements::
1.Indexation means adjusting the cost of funds without taking inflation into consideration.
2.Indexation is offered to debt fund investors if the investment is redeemed after 36 months.
3.70% of the investment in debt funds flows from institutional investors in India.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: B

Notes:

Explanation –

Statement 1 is incorrect. Indexation means adjusting the cost of funds by taking inflation into consideration.

Statement 2 and 3 are correct. Indexation is offered to debt fund investors if the investment is redeemed after 36 months. According to a report by Crisil, 70% of the investment in debt funds flows from institutional investors in India.

Source: ForumIAS

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS