BUSINESS ADMINISTRATION
BANKING AND INSURANCE
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Question
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investment strategy:in a prospectus, a summary of the types of securities that are purchased by the mutual fund in order to achieve its objective
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Explanation:
Detailed explanation-1: -A mutual fund prospectus is a document detailing the investment objectives and strategies of a particular fund or group of funds, as well as the finer points of the fund’s past performance, managers and financial information.
Detailed explanation-2: -An SEC-required prospectus provides important details about an investment offering to investors.
Detailed explanation-3: -The practice of spreading money among different investments to reduce risk is known as diversification. Diversification is a strategy that can be neatly summed up as “Don’t put all your eggs in one basket.” One way to diversify is to allocate your investments among different kinds of assets.
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