what are mutual funds?



what are mutual funds?..

Answer / rohit jain

when a person invests in the market he has to counter the
risk of the market by diversifying his portfoilo that is he
has has to brought the shares from different industries so
that if the share of one industry goes down then the shares
of other industry might goes up and he doesnt looses all
his money. this process of selecting the shares is known as
risk diversification. For this he has to purchase many
shares that requires a lot of money. But what to do when
you have not enough amount of money to diversify the risk?
the answer is Invest in mutual funds. Many small investors
invest a small amount of money in a particular mutual fund
via mutual fund houses. Small amount of money from many
investors results into a chunk of money ready for
investment in market and also with risk diversification.
This money is invested under the guidance of market expert
known as Fund Manager. The total amount of money for a
particular fund is known as Net assets and the value goes
to crores of Rupees. Thus the mutual funds are the route
for small investors to play in the share market by
diversifying the risk.

Is This Answer Correct ?    22 Yes 4 No

Post New Answer

More POs Interview Questions

hi... can any body tell me when can i expect the list of shortlisted candidates of syndicate bank PO 2009.we had filled up the applications in feb2009. thanks in advance.their website says they will publish them in 2months which is already over in may.do share if anybody got any info...

0 Answers  


plz send me karnataka bank syllubus pattern for officers post

0 Answers   SSC,


how much cut off marks generally they consider for any PO exams in each section like Apti,Reasoning,English,current affairs?? So those who have all ready cleared any PO writtens can give there suggestions like how much questions they have attempted how to prepare etc.,

16 Answers  


How should I prepare for GD/PI for SBI bank -Po exam

265 Answers   PDF, State Bank Of India SBI,


i have passed ibps po exam & get the score card ?what will be the further process ? is there any GD ?or direct interview?

5 Answers   Banking, Union Bank,






Please send me sample papers of Bank Probationary Officers exams of any bank at jaya.1704@rediffmail.com

0 Answers  


What is Global warming??

1 Answers   Indian Overseas Bank,


please............... mail bank po quetion papers with solution and trick to crack the bank po exam emailid deepika22589@yahoo.in

0 Answers  


hai iam completed MCA with 71%,i have applied syndicatebank po's plz send me the full details of the seletion process and cut off marks also,which type of question they asked

0 Answers  


I have cleared IOB PO written exam.. Can anybody suggest me, what to do to prepare for the interviews?? and Please send me the questions, that they can ask in the interviews Please reply me at my mail ID nikhil5bajaj@yahoo.com..My contact No. is 09313461901...Thank You...

4 Answers  


Hi! This is Manas Nandi. I am going to appear UCO Bank's IT Officer JMGS - I Recruitment Written Exam 2009. I am unaware of the aforesaid written exam's syllabus, question type, last 5-10 years question patterns. Please send me above mentioned details as soon as possible. My email address is manas_be@yahoo.co.in. Thanks in advance!

0 Answers   UCO Bank,


I have given SBI PO Exam on 12 oct 2008.Pls tell me when results will come? And how to prepare for main exam (objective & descriptive).?

5 Answers   State Bank Of India SBI,


Categories