ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
An Investment in which investors pool their money to buy stocks and bonds
A
Mutual Funds
B
Preferred Funds
C
Common Funds
D
Diverse Funds
Explanation: 

Detailed explanation-1: -A mutual fund is a collective investment vehicle that collects & pools money from a number of investors and invests the same in equities, bonds, government securities, money market instruments. The money collected in mutual fund scheme is invested by professional fund managers in stocks and bonds etc.

Detailed explanation-2: -Pooled funds are investment vehicles such as mutual funds, commingled funds, group trusts, real estate funds, limited partnership funds, and alternative investments. The distinguishing feature of a pooled fund is that a number of retirement boards or investors contribute money to the fund.

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. Investors buy shares in mutual funds.

Detailed explanation-4: -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.

Detailed explanation-5: -Balanced funds are mutual funds that invest money across asset classes, including a mix of low-to medium-risk stocks and bonds.

There is 1 question to complete.