ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Viaticals
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Mutual funds
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Futures
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Gold
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Detailed explanation-1: -Are mutual funds safe? All investments carry some risk, but mutual funds are typically considered a safer investment than purchasing individual stocks. Since they hold many company stocks within one investment, they offer more diversification than owning one or two individual stocks.
Detailed explanation-2: -There are four types of MF schemes, corresponding to four basic asset types. The four asset types are equities, fixed income, commodities, or a combination of the three. Equities schemes invest in equities. For fixed-income schemes, the investment target is bonds.
Detailed explanation-3: -Mutual funds and exchange-traded funds are two affordable ways to diversify and invest in bundles of stocks or bonds. Government and corporate bonds can provide a source of income and cushion stock market volatility. High-yield savings accounts, CDs and money market funds offer ways to offset the effects of inflation.