Characteristics of mutual funds in india
What are the characteristics of mutual funds?
- Low Fees or Expenses. Mutual funds with relatively low expense ratios are generally always desirable, and low expenses do not mean low performance. …
- Consistently Good Performance. …
- Sticking to a Solid Strategy. …
- Trustworthy, With Solid Reputations. …
- Plenty of Assets, but Not Too Much Money.
Which is a characteristic of mutual funds and investment funds?
Here are some of the traditional and distinguishing characteristics of mutual funds: Mutual funds generally sell and purchase their shares on a continuous basis, although some funds will stop selling when, for example, they reach a certain level of assets under management.
What are the 4 four broad categories of mutual funds?
Types of Mutual Funds. There are several types of mutual funds available for investment, though most mutual funds fall into one of four main categories which include stock funds, money market funds, bond funds, and target-date funds.
What are 5 advantages of mutual funds?
Benefits Of Mutual Funds
- Diversification. When you invest in mutual funds, your fund manager will invest your money in different securities including equity, stocks, debt funds and other money market instruments. …
- Professional Management. …
- Liquidity. …
- Smaller, Disciplined Investments. …
- Convenience And Simplicity.
What are the functions of mutual funds?
The Purpose of mutual funds is to provide liquidity and higher returns with optimum degree of safety to investors at minimum risk. Based on these goals, various types of mutual fund schemes have evolved over a period of time.
What are the characteristics of investment?
Main features or characteristics of investment are as follows:
- Risk Factor. Every investment contains certain portion of risk. …
- Expectation Of Return. Return expectation is the main objective of investment. …
- Safety. Investors expect safety for their capital. …
- Liquidity. …
- Marketability. …
- Stability Of Income.
Which of the following are characteristics of money market investments?
Minimal price risk (low degree of risk) are considered characteristics of money market and money market securities.
Which of the following is not a characteristic of investments companies?
Solution(By Examveda Team)
Reduced expenses is not a characteristic of investments companies.
Which of the following is a characteristic of an index fund?
An index mutual fund is said to provide broad market exposure, low operating expenses, and low portfolio turnover. These funds follow their benchmark index regardless of the state of the markets.
Which of the following is a characteristic of stock?
Which of the following is a characteristic of common stock? Unlike preferred stockholders, common stockholders are not entitled to receive fixed dividends. Common stockholders have limited liability and their losses are limited to the original amount of the investment in their investment in the firm.
What is a characteristic of an ETF and not of a mutual fund?
ETFs – Retail investors can buy and sell ETF shares only in market transactions (i.e., on a national stock exchange). That is, unlike mutual funds, ETFs do not sell shares directly to, or redeem their shares directly from, retail investors.
Which of the following is not a characteristic of stock?
Answer and Explanation: Of the statements, (d.) They represent ownership of government-run enterprises only is NOT a characteristic of stocks sold at IPOs (initial public offerings).
What are the basic characteristics of bonds?
Some of the characteristics of bonds include their maturity, their coupon rate, their tax status, and their callability. Several types of risks associated with bonds include interest rate risk, credit/default risk, and prepayment risk. Most bonds come with ratings that describe their investment grade.
What is the most important characteristic of a stock?
Capability of Receiving Periodic Dividends – The dividend payment is the most important characteristics of a stock. The investors are largely attracted by the dividend payment capability of the company. Being a stockholder, the investors have the rights of receiving the dividend payment periodically.