BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is an association of members of public
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These members want to invest in financial instrument
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They want to invest in financial instrument assets of business sector
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All the above
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Detailed explanation-1: -A. It is an association of members of public. These members want to invest in financial instrument. They want to invest in financial instrument assets of business sector.
Detailed explanation-2: -A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities.
Detailed explanation-3: -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-4: -Explanation: Statement 1 is correct: A mutual fund collects money from investors and invests on their behalf. Mutual funds are considered an ideal investment avenue for regular investors who are less aware of investing surplus funds.
Detailed explanation-5: -What types of mutual funds are there? Most mutual funds fall into one of four main categories – money market funds, bond funds, stock funds, and target date funds.