Wednesday, 23 August 2017

TET-2 Exam 2017 Language Question Paper And Solution

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A mutual fund's portfolio is structured and maintained to match the investment.No matter what type of investor you are, there is bound to be a mutual fund that fits your taste.

It's important to understand that each mutual fund has different risk and reward profiles. In general, the higher the potential return, the higher the risk of potential loss. 

Although some funds are less risky than others, all funds have some level of risk – it's never possible to diversify away all risk – even with so-called money market funds. This is a fact for all investments. 

Each mutual fund has a predetermined investment objective that tailors the fund's assets, regions of investments and investment strategies.At the most basic level, 

there are three flavors of mutual funds: those that invest in stocks (equity funds), those that invest in bonds (fixed-income funds), those that invest in both stocks and bonds (balanced funds), and those that seek the risk-free rate (money market funds). 

Most mutual funds are variations on the theme of these three asset classes.Let's go over some of the many different flavors of funds. We'll start with the safest and then work through to the more risky.

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