BANKING AFFAIRS

Detailed explanation-1: -A fund of funds (FOF)-also known as a multi-manager investment-is a pooled investment fund that invests in other types of funds. In other words, its portfolio contains different underlying portfolios of other funds. These holdings replace any investing directly in bonds, stocks, and other types of securities.

Detailed explanation-2: -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.

Detailed explanation-3: -These include ETFs (exchange-traded funds), hedge funds (free investment funds), funds of funds and real estate funds.

Detailed explanation-4: -Portfolio diversification is the process of selecting a variety of investments within each asset class, which can help those looking for how to minimize their investment risk. Diversification across asset classes may also help lessen the impact of major market swings on your portfolio.