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Which among the following is correct about an Equity Fund?

  1. A
    It gives fixed returns.
  2. B
    It invests primarily in shares.
  3. C
    It invests in both debt and shares.
  4. D
    It assures growth in value.

Solution & Step-by-step Explanation

An equity fund is a type of mutual fund that allocates its principal capital primarily into trading shares or stocks of publicly listed corporate companies. Unlike debt instruments, they do not assure fixed returns or guaranteed value growth.

Practice this question

Try it yourself before checking the explanation above.

Which among the following is correct about an Equity Fund?
A
It gives fixed returns.
B
It invests primarily in shares.
C
It invests in both debt and shares.
D
It assures growth in value.

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