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GPSC shixan seva Class 2 Old Question paper paper solution year 2008

GPSC shixan seva Class 2 Old Question paper paper solution year 2008

this paper solution Prepared By Team knowledge power.

A mutual fund is a way to pool money in a variety of underlying securities to pool money from investors for investment. In ratio to their investment amount, a mutual fund house issues unit of mutual funds to unitholders. The investment objectives of a mutual fund are revealed in the offer document. Profits or losses are proportionately distributed to the unitholders. Before it can collect funds from the public, mutual funds in India must be registered with the Securities and Exchange Board of India (SEBI).

Types of Mutual Funds in India

Mutual funds are categorised into several types based on their maturity period and investment objective. In India, mutual funds are categorised on basis on the type of underlying asset.

Equity schemes: These mutual funds provide capital appreciation for individuals who focus on medium- and long-term investment horizon. According to the Security and Exchange Board of India, equity mutual fund schemes should invest at least 65 per cent of the scheme’s assets in equities and equity-related instruments. These mutual funds are usually considered high-risk, as most of the investments are focused on equity products. These mutual fund schemes are best suited for those who are open to taking a market risk, and those looking for good returns over a long-term investment horizon.

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