ECONOMICS (CBSE/UGC NET)

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: -Equity savings funds are hybrid mutual fund schemes suitable for investors with moderate risk appetites. Risk in these funds is lower than aggressive hybrid funds like Hybrid Equity Funds or Balanced Funds. The main advantage of equity savings funds are low volatility and income.

Detailed explanation-3: -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-4: -A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, as well as their fund counterparts.

Detailed explanation-5: -Mutual funds are a type of investment frequently used by retirement or long-term investors. Mutual funds allow investors to own a diversified selection of assets within a single investment.