ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -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-2: -Stock refers to a company’s initial offering of shares. A mutual fund is a small piece of ownership in a company. The NASDAQ is a small piece of ownership in a company. IPO refers to a company’s initial offering of shares.
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.
Detailed explanation-4: -Through an MF, you are investing in equities or debt as what you actually buy are equity and debt scrips of listed and unlisted companies. Many investors consider MFs as an asset class.