HDB Financial Services Mutual Fund Advisor Interview Questions and Answers

AMC stands for Asset Management Company, which is a company that manages mutual funds by investing the pooled funds of investors.

• AMCs manage mutual funds by investing in various securities such as stocks, bonds, and money market instruments.

• They charge a fee for managing the funds, known as the expense ratio.

• Examples of AMCs include Vanguard, Fidelity, and BlackRock.

Large cap, mid cap, and small cap refer to the market capitalization of companies, with large cap being the largest and small cap being the smallest.

• Large cap companies have a market capitalization typically over $10 billion, such as Apple or Microsoft.

• Mid cap companies have a market capitalization between $2 billion and $10 billion, such as Chipotle or Etsy.

• Small cap companies have a market capitalization typically un...read more

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

• Types of mutual funds include equity funds, bond funds, and money market funds