Consider the following about mutual funds and select the correct statements 1 All the mutual funds a...........

Economic Affairs Financial Markets

Download Solution PDF

Consider the following about mutual funds and select the correct statements

1. All the mutual funds are registered with SEBI.

2. Mutual funds can invents in both equity and debt instruments

3. The biggest advantage of mutual fund is that it gives good investment options to small investors.

Choose the correct answer from the codes given below

1 only

1 and 2 only

3 only

All of the above

छोटे Courses बड़े Results

Master Financial Markets

Prepare through Micro-courses

Try Now

Explanation:

All the statements are correct.
A mutual fund is a professionally-managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities.
All the mutual funds are registered with SEBI. They function within the provisions of strict regulation created to protect the interests of the investor.
The biggest advantage of investing through a mutual fund is that it gives small investors access to professionally-managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.