Mutual Funds:

  1. can have both money and capital market investment
  2. are  open-ended funds
  3. can  have both debt and equity allocation

Which of the above is/are correct statements?

Answer: [D] 1, 2 & 3

Mutual funds are open ended funds. It means they generally create and sell new shares to accommodate new investors unlike closed end funds which sell a fixed number of shares at one time (in an initial public offering) that later trade on a secondary market.

This question is a part of GKToday's Integrated IAS General Studies Module