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Doctors Medicines MCQs Q&A

  1. Consistent Investment process
  2. Strong fund management
  3. Diversity in interest rates
  4. Differences from the benchmark
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1 Answers

Option 3 : Diversity in interest rates

The correct answer is Diversity in interest rates

 Mutual Funds:

  • A mutual fund is a corporation that collects money from multiple investors and invests it in stocks, bonds, and short-term loans.
  • The portfolio of a mutual fund is made up of all the fund's holdings. Mutual funds are purchased by investors.
  • Each share represents an investor's portion of the fund's ownership and revenue.

  • Mutual fund is a type of collective investment.
  • Groups of investors together invest in securities for short term or otherwise.
  • Mutual funds have a fund manager, who uses his investment management skills to invest this money in various financial instruments. 
  • It is an ongoing process, includes tight fund management, divergence from benchmarks, etc., while variations in interest rates are not included in it.
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