Retail Investors MCQs September 11, 2025 by u930973931_answers 50 Score: 0 Attempted: 0/50 Subscribe 1. Who is considered a retail investor? (A) Large institutional investor (B) Government agency (C) Individual investing with personal funds (D) Hedge fund manager 2. Which of the following is NOT a retail investor? (A) A salaried employee buying mutual funds (B) A student investing in stocks (C) A pension fund (D) An individual trading bonds 3. Retail investors typically invest through: (A) Personal savings (B) Large institutional pools (C) Sovereign wealth funds (D) Hedge funds only 4. Which market participant usually has less bargaining power? (A) Institutional investor (B) Retail investor (C) Venture capitalist (D) Merchant banker 5. Which of the following is a common investment avenue for retail investors? (A) Mutual funds (B) Sovereign wealth funds (C) Large corporate bonds only (D) Central bank reserves 6. Retail investors generally have: (A) Smaller portfolios (B) Larger portfolios (C) No financial goals (D) Unlimited resources 7. The protection of retail investors is a key role of: (A) SEBI (B) IMF (C) World Bank (D) WTO 8. Which of the following is considered a risk for retail investors? (A) Lack of diversification (B) Low capital (C) Market volatility (D) All of the above 9. Retail investors usually prefer: (A) Long-term stable returns (B) Short-term speculative gains only (C) Large institutional deals (D) Venture capital investments 10. Which of the following platforms are commonly used by retail investors? (A) Stockbrokers (B) Online trading apps (C) Mutual fund distributors (D) All of the above 11. Retail investors can directly buy: (A) Shares (B) Bonds (C) ETFs (D) All of the above 12. Which of the following is an advantage for retail investors? (A) Flexibility in choosing investments (B) Access to government bonds easily (C) Smaller entry amounts required (D) All of the above 13. Retail investors are often advised to diversify because: (A) It reduces risk (B) It increases speculation (C) It eliminates all losses (D) It guarantees profits 14. Which investor is more vulnerable to market manipulation? (A) Institutional investor (B) Retail investor (C) Mutual fund house (D) Venture capitalist 15. Which of the following is a regulatory protection tool for retail investors? (A) Investor education programs (B) Investor grievance redressal (C) Disclosure norms for companies (D) All of the above 16. The minimum ticket size for most retail investments is: (A) Very high (B) Moderate (C) Low (D) Unlimited 17. Retail investors often rely on: (A) Financial advisors (B) Self-research (C) Market news (D) All of the above 18. Retail investors differ from institutional investors mainly in: (A) Size of investment (B) Resources for research (C) Bargaining power (D) All of the above 19. Which of the following is a disadvantage for retail investors? (A) Limited access to large IPO allocations (B) Less information resources (C) Higher brokerage charges (D) All of the above 20. SIP (Systematic Investment Plan) is mainly designed for: (A) Institutional investors (B) Retail investors (C) Government investors (D) Corporate investors 21. Retail investors can participate in IPOs through: (A) ASBA facility (B) Private placement (C) Institutional quota only (D) Venture capital 22. Which sector is most preferred by retail investors in India? (A) Banking and IT (B) Agriculture (C) Heavy industries (D) Defense 23. Retail investors commonly avoid: (A) High-risk derivatives (B) Day trading in large volumes (C) Complex hedge strategies (D) All of the above 24. The government promotes retail investment in bonds through: (A) Sovereign Gold Bonds (B) Retail Direct Scheme (C) RBI Bonds (D) All of the above 25. Retail investors are usually categorized under: (A) Non-professional investors (B) Professional traders (C) Institutional group (D) Foreign investors 26. Which of the following investment vehicles are popular among retail investors? (A) Public Provident Fund (PPF) (B) Fixed Deposits (C) Mutual Funds (D) All of the above 27. Retail investors often face the problem of: (A) Lack of financial literacy (B) Emotional decision-making (C) Limited diversification (D) All of the above 28. Retail investors benefit from SEBI’s mandate of: (A) Compulsory disclosures by companies (B) Transparency in IPOs (C) Fair trading practices (D) All of the above 29. Which of the following is a recent trend among retail investors? (A) Increased use of online apps (B) Participation in global markets (C) Interest in cryptocurrencies (D) All of the above 30. Retail investors’ main source of funds is: (A) Government borrowing (B) Personal income and savings (C) Institutional loans (D) Corporate reserves 31. Which of the following retail investment options gives tax benefits? (A) ELSS mutual funds (B) PPF (C) NPS (D) All of the above 32. Retail investors are often influenced by: (A) Market rumors (B) Media news (C) Peer recommendations (D) All of the above 33. The retail investor quota in Indian IPOs is generally: (A) 10% (B) 35% (C) 50% (D) 75% 34. Which group needs maximum financial education initiatives? (A) Institutional investors (B) Retail investors (C) Hedge funds (D) Regulators 35. Retail investors usually prefer which type of stocks? (A) Blue-chip stocks (B) Penny stocks only (C) Illiquid stocks (D) None of the above 36. Which of the following is a behavioral bias affecting retail investors? (A) Herd mentality (B) Overconfidence (C) Panic selling (D) All of the above 37. Retail investors often enter the market during: (A) Bull runs (B) Bear runs (C) Both equally (D) None of the above 38. Retail investors’ participation in Indian equity markets has: (A) Increased in recent years (B) Declined sharply (C) Remained unchanged (D) Disappeared 39. Which of the following schemes allows retail investors to buy government securities directly? (A) RBI Retail Direct Scheme (B) NPS (C) SIP (D) PPF 40. Retail investors are more likely to: (A) Follow short-term market trends (B) Depend on tips and suggestions (C) Panic during volatility (D) All of the above 41. In comparison to institutional investors, retail investors have: (A) Lower transaction costs per unit (B) Higher transaction costs per unit (C) Equal transaction costs (D) No costs 42. Retail investors can invest in international stocks through: (A) Global ETFs (B) Mutual funds with foreign exposure (C) Online trading platforms (D) All of the above 43. Retail investors are encouraged to follow: (A) Asset allocation strategy (B) Risk management (C) Long-term investing (D) All of the above 44. Which government initiative promotes retail participation in equity markets? (A) Investor awareness campaigns (B) Reduction in transaction charges (C) Tax benefits for certain funds (D) All of the above 45. Retail investors contribute to the market by: (A) Providing liquidity (B) Widening investor base (C) Encouraging savings to investments (D) All of the above 46. Retail investors are less likely to invest in: (A) Private equity (B) Hedge funds (C) Venture capital (D) All of the above 47. Which of the following is a government-backed retail investment scheme in India? (A) Sukanya Samriddhi Yojana (B) PPF (C) Senior Citizens Savings Scheme (D) All of the above 48. The entry of retail investors has increased in India due to: (A) Online trading apps (B) Demat accounts (C) Awareness programs (D) All of the above 49. Retail investors often invest for: (A) Retirement (B) Children’s education (C) Wealth creation (D) All of the above 50. Which of the following is the biggest challenge for retail investors? (A) Limited knowledge (B) Market volatility (C) Emotional decisions (D) All of the above