What are the objectives of mutual fund?

What are the objectives of mutual fund?

The objective of these schemes is to ensure liquidity, capital protection, and reasonable income in the short-term. Most of the pooled fund is invested in short-term safe instruments like government securities, treasury bills, certificates of deposit, commercial paper, and inter-bank call money.

What are fund objectives?

Each mutual fund has an investment objective—a goal or financial result it wants to realize. Most fund objectives fit into one of several broad categories, such as growth in value, current income, or a combination of growth and income.

What are the objectives of mutual funds in India?

Mutual funds that have a growth investment objective provide investors with a good hedge against inflation and primarily invest in common stocks and sometimes preferred shares. They are commonly known as Equity funds. A fund manager’s investment style tends to differ from equity fund to equity fund.

What are the three broad objectives of mutual funds?

Mutual funds are broadly classified according to three types of investment objectives: growth of capital, stability of capital, or current income. Most funds are geared toward one or two of these objectives.

What are the most important three investment objectives?

Safety, income, and capital gains are the big three objectives of investing.

What are the three broad classes of investment?

The Three Broad Investment Classes

  • Common Stocks.
  • Bonds.
  • Money Market Instruments.

    What are the 2 major issues that affects investment objectives?

    An investor’s risk tolerance and time horizon are two main parts of determining an investment objective.

    What investment objectives would you have?

    What Are Investment Objectives and Why Do I Have to Choose One?

    • Income. Preservation of capital with a primary consideration on current income.
    • Balanced.
    • Growth & Income.
    • Long Term Growth with Safety.
    • Long Term Growth with Greater Risk.
    • Speculation.

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