Bajaj Capital Mutual Fund Advisor Interview Questions and Answers

A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities.

• Mutual funds are managed by professional fund managers

• Investors pool their money to invest in a diversified portfolio of securities

• Mutual funds offer diversification, liquidity, and professional management

• Examples include Vanguard Total Stock Market Index Fund, Fidelity Magellan Fund

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

• Derivatives can be used for hedging, speculation, or arbitrage.

• Common types of derivatives include options, futures, forwards, and swaps.

• Derivatives allow investors to take on leverage and potentially amplify returns.

• They can be used to manage risk by providing insurance against adverse price movements.

• Derivatives a...read more