Q. With reference to Mutual Funds, consider the following statements:
1.It is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds and other assets.
2.They are operated by a group of people selected by the investors..
Select the correct statements using the codes given below:
Answer: A
Notes:
Explanation –
Statement 1 is correct. Mutual Funds is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds and other assets.
Statement 2 is incorrect. Mutual Funds are operated by professional money managers, who allocate the fund’s assets and attempt to produce income for the fund’s investors.
Source: ForumIAS
