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Which of the following is correct about an equity fund?

  1. A
    It gives fixed returns
  2. B
    It primarily invests in shares
  3. C
    It invests in both debt and shares
  4. D
    It guarantees capital appreciation

Solution & Step-by-step Explanation

An equity fund is a type of mutual fund that primarily invests in the stocks or shares of companies, making its returns subject to market risks rather than providing fixed guarantees.

Practice this question

Try it yourself before checking the explanation above.

Which of the following is correct about an equity fund?
A
It gives fixed returns
B
It primarily invests in shares
C
It invests in both debt and shares
D
It guarantees capital appreciation

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Financial MarketsMutual FundsInvestment

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