BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds.

Detailed explanation-2: -A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a portfolio.

Detailed explanation-3: -Why would a mutual fund, a collection of stocks, bonds, and other securities, have less risk than investing in stocks alone? Stocks are higher risk than most other securities in a mutual fund, but when averaged with the risk of the other securities, mutual fund risk is not as high as stock risk.

Detailed explanation-4: -Summary. When an investor buys a stock, part ownership in the form of a share is bought. Bonds are a type of investment designed to aid governments and corporations to raise money. In a mutual fund, money collected from various investors is taken together to buy a large variety of securities.