What is derivatives and its types? What is mutual fund?

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Accepted Answer

Derivatives are financial instruments whose value is derived from an underlying asset. Mutual funds are investment vehicles that pool money from multiple investors to invest in securities.

Derivatives are contracts between two parties that derive their value from an underlying asset such as stocks, bonds, commodities, or currencies.
Types of derivatives include options, futures, forwards, and swaps.
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.
Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.
Examples of mutual fund companies include Vanguard, Fidelity, and BlackRock.

What is derivatives and its types? What is mutual fund?

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