Which of the following is a basket of shares brought for you by an asset management company?
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A. B. C. D.D
The correct answer is D. Mutual fund.
A mutual fund is a type of investment vehicle that pools money from multiple investors and invests it in a diversified portfolio of stocks, bonds, or other securities. The assets of the mutual fund are managed by a professional fund manager, who selects the investments based on the fund's investment objectives.
When an investor buys shares of a mutual fund, they are essentially buying a piece of the entire portfolio held by the fund. The value of the investor's shares will increase or decrease based on the performance of the underlying investments.
Mutual funds are offered by asset management companies, which are financial firms that specialize in managing and investing the assets of individual and institutional clients. These companies employ teams of analysts and portfolio managers who research and select the investments for the mutual funds they offer.
Managed funds (answer B) is a more generic term that can refer to any type of investment fund that is managed by a professional manager, including mutual funds. Hedge funds (answer A) are a type of investment fund that are typically only available to accredited investors and employ more aggressive investment strategies. Adaptation funds (answer C) are a type of fund established by the United Nations Framework Convention on Climate Change to help developing countries adapt to the impacts of climate change.