Question
Which among the following funds of the mutual fund
invests primarily in other schemes of the same mutual fund or other mutual funds?Solution
Fund of Funds scheme of the mutual fund invests primarily in other schemes of the same mutual fund or other mutual funds. Index funds replicate the portfolio of a particular index such as the BSE sensitive index, Nifty, etc. Balance fund schemes of the mutual fund are used to provide both growth and regular income and therefore invest in both equity and debt instruments. Gilt Fund of the mutual fund invests exclusively in government securities
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