ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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10
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3
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7
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5
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Detailed explanation-1: -There is only one way in which you can double your money in 5 years and that is through mutual funds. Despite the market risks, mutual funds can earn significant returns in 5 to 6 years. This is because mutual funds offer higher returns than any other investment option and higher risk.
Detailed explanation-2: -Why 1-year returns for some funds are higher than its 3 or 5-year returns? Mutual funds return on an investment is reported on an annualized basis. And mutual fund returns fluctuate across years. This is the reason why 1-year returns may appear higher than 3 years returns.
Detailed explanation-3: -HDFC Short Term Debt Fund. This is a short duration fund, moderately low-risk debt mutual fund. Aditya Birla Sun Life Savings Fund. SBI Magnum Medium Duration Fund. Nippon India Low Duration Fund. L&T Low Duration Fund.