ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Unlike a stock that has a limited number of shares on the market and can be bought and sold anytime, mutual funds are broken down into closed-end funds and open-end funds. Closed-end funds are a type of fund that has a set number of shares available to the public through an initial public offering.

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: -Mutual funds let you pool your money with other investors to “mutually” buy stocks, bonds, and other investments. They’re run by professional money managers who decide which securities to buy (stocks, bonds, etc.) and when to sell them. You get exposure to all the investments in the fund and any income they generate.

Detailed explanation-4: -Balanced funds are mutual funds that invest money across asset classes, including a mix of low-to medium-risk stocks and bonds.