1. Define or discuss mutual funds and describe the various schemes that can be offered by it.

In order to invest in securities such as stocks, bonds, money market instruments, and other assets, mutual funds
aggregate the funds from shareholders. Professional money managers run mutual funds, allocating the assets
and attempting to generate capital gains or income for the fund's investors. A mutual fund’s portfolio is set up and
kept up to date in accordance with the specified investment goals in the prospectus.

Bond Funds

A mutual fund that generates a minimum return is part of the fixed income category. A fixed-income mutual fund
focuses on investments that pay a set rate of return, such as government bonds, corporate bonds, or other debt
instruments. The fund portfolio generates interest income, which is passed on to the shareholders.

Stock Funds

As the name implies, this fund invests principally in equity or stocks. Within this group are various subcategories.
Some equity funds are named for the size of the companies they invest in: small-, mid-, or large-cap. Others
are named by their investment approach: aggressive growth, income-oriented, value, and others. Equity funds
are also categorized by whether they invest in domestic (U.S.) stocks or foreign equities. To understand the
universe of equity funds is to use a style box, an example of which is below.

Income Funds

Income funds are named for their purpose: to provide current income on a steady basis. These funds invest
primarily in government and high-quality corporate debt, holding these bonds until maturity to provide interest
streams. While fund holdings may appreciate, the primary objective of these funds is to provide steady cash
flow to investors. As such, the audience for these funds consists of conservative investors and retirees.

2. “Mutual funds provide stability to share prices, safety to investors and resources to prospective
entrepreneurs”. Discuss or comment on the statement.

In order to invest in securities such as stocks, bonds, money market instruments, and other assets, mutual funds
aggregate the funds from shareholders. Professional money managers run mutual funds, allocating the assets and
attempting to generate capital gains or income for the fund's investors. A mutual fund’s portfolio is set up and kept up
to date in accordance with the specified investment goals in the prospectus.

It's simple to invest in mutual funds. These funds are expertly managed by knowledgeable fund managers with years
of management expertise. As a result, with the aid of experienced managers, even beginners with no prior knowledge
of the market can participate in such funds. Since all operations involving these funds are overseen by qualified
professionals, you can rest easy knowing that your money is being put into secure investments. In addition, a full team
of professionals will manage your investments, create your portfolio, execute your strategies, and assist you at every
stage of the investment process.

3. Explain or discuss the factors that one should consider while analyzing global stocks?

Risk is a significant factor that investors should consider in order to obtain the appropriate rate of return from a new
project or any company. Investors should consider the inflation rate before investing. He should consider investing if
the market is experiencing inflation. Calculating the liquidity of an investment is crucial for achieving the required rate
of return.

These all have an effect on the decision-making process because they cause significant changes in the business and
investment criteria.

4. Explain the merits and demerits of technical analysis as a tool of security analysis.

By examining statistical trends gleaned from trading activity, such as price movement and volume, technical analysis
is a trading discipline used to assess investments and spot trading opportunities. Technical analysis focuses on the
analysis of price and volume as opposed to fundamental analysis, which seeks to determine a security's worth based
on financial metrics like sales and earnings.

Technical analysis methods are used to examine how changes in a security's price, volume, and implied volatility will
be impacted by supply and demand. It operates under the presumption that, when combined with suitable investing or
trading rules, historical trading activity and price changes of security can serve as valuable predictors of the security's
future price movements.

It can help improve the assessment of a security's strengths or weaknesses compared to the overall market or one of
its sectors. It is frequently used to generate short-term trading signals using different charting tools. Analysts can refine
their overall valuation estimate by using this information.

5. “When someone refers to efficient capital markets, they mean that security prices fully reflect all available
information.” Discuss or explain this statement.

The degree to which market prices accurately reflect all available, pertinent information is referred to as market
efficiency. There is no way to "beat" the market if markets are efficient since there are no assets that are undervalued
or overvalued because all information is already factored into prices. Market efficiency refers to how well current prices
reflect all available, relevant information about the actual value of the underlying assets.

Three levels of market efficiency exist. Because it is impossible to accurately estimate future prices based on historical
price changes, market efficiency is weak. If current prices take into account all relevant information that is currently
known, then all knowledge that can be learned from past prices is already taken into account by current prices. Future
price changes can only result from the availability of fresh information, therefore.

6. Discuss the meaning of portfolio management. Explain its types.

Portfolio management’s meaning can be explained as the process of managing individuals’ investments so that they
maximize their earnings within a given time horizon. Furthermore, such practices ensure that the capital invested by
individuals is not exposed to too much market risk.

Portfolio management is the act of deciding which investing tools will provide an investor with the lowest risk and
highest attainable profits. An individual's investments must be managed with skill if he wants to maximize returns
throughout the course of the intended investment horizon. Another meaning of portfolio management is the practice of
managing an individual's investments under the direction of knowledgeable portfolio managers.

7. Why portfolio is considered to be better than an individual investment? Explain.

There is no one right answer to this question, despite the appearance that many sources have an opinion on the "right"
number of stocks to own in a portfolio.
Investors diversify their resources among a variety of investment vehicles primarily to reduce risk exposure. Particularly,
diversity enables investors to lessen their exposure to unsystematic risk, which is defined as the risk connected to a
specific business or industry.

8. Discuss the factors that are to be considered while creating a portfolio.

Because risk and reward are, in essence, two sides of the same coin, one's tolerance of the former tends to influence
or even dictate the latter. Generally, there are two ways to mitigate investment risk and still trump the prevailing inflation
rate. The first is carefully selecting securities, as some are riskier than others. While an investor may hit a home run by
purchasing a favorite penny stock, there's always the possibility they'll strike out.

While creating a portfolio the following should be considered:

- Return on investment is a critical factor in deciding whether to buy a stock or not.

- Risk rises with the amount a stock returns, so choosing stocks that meet your risk tolerance is essential.
- Diversification works to reduce losses during fluctuations, but too much can reduce your profitability.
- It's best to avoid a portfolio full of stocks with expectations of high returns, often called the lottery effect.

9. Discuss short-term capital assets and long-term capital gain.

A capital gain occurs when you sell a capital asset for more money than you paid for it at first. Stocks, bonds,
precious metals, jewelry, and real estate are examples of capital assets. Depending on how long you had the asset
before selling it, you'll either pay tax on the capital gain or not. Long-term and short-term capital gains are
categorized and taxed differently. When selling an asset, especially if you day trade online, you should always keep
capital gains taxes.

Short-term capital gains are taxed as ordinary income; long-term capital gains are subject to a tax of 0%, 15%, or
20% (depending on your income).

A short-term capital gain results from the sale of an asset owned for one year or less. While long-term capital gains
are generally taxed at a more favorable rate than salary or wages, short-term gains do not benefit from any special
tax rates. They are subject to taxation as ordinary income.

10. How will you distinguish between Capital Gain and Income? Why is it important to make this distinction?

Both capital gains and dividend income are sources of profit for shareholders and create potential tax liabilities for
investors. Here's a look at the differences and what they mean in terms of investments and taxes paid. Capital is the
initial sum invested. So, a capital gain is a profit that occurs when an investment is sold for a higher price than the
original purchase price. Investors do not make capital gains until they sell investments and take profits. Dividend income
is paid out of the profits of a corporation to the stockholders. It is considered income for that tax year rather than a
capital gain.
Capital gains are profits that occur when an investment is sold at a higher price than the original purchase price.
Dividend income is paid out of the profits of a corporation to the stockholders.