ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Created when a company combines the funds of many different investors and then invests that money in a diversified portfolio of investments
A
mutual fund
B
maturity date
C
bond
D
stock
Explanation: 

Detailed explanation-1: -A “fund of funds” (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment.

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: -A mutual fund is a type of investment vehicle where the money collected from various investors is pooled together to invest in different assets including bonds, stocks, and/or money market investments.

Detailed explanation-4: -A mutual fund is an investment company that pools money from many investors and invests the combined holdings in a single portfolio of securities that may include stocks, bonds, other securities and cash and cash alternatives, such as Treasury Bills, certificates of deposit (CDs) and money market funds.

There is 1 question to complete.