What is a Mutual Fund?

"A type of savings account with guaranteed returns" "A platform for direct stock trading" "A collection of investments managed by professionals" "A high-risk, high-reward individual stock option"

How does a Systematic Investment Plan (SIP) work?

"It invests a large sum of money at once for maximum returns" "It allows investors to buy and sell stocks rapidly based on market fluctuations" "It invests small amounts regularly in a chosen mutual fund" "It guarantees a fixed interest rate regardless of market performance"

What is a key advantage of investing in mutual funds?

"They guarantee high returns regardless of market conditions" "They eliminate all investment risks" "They offer higher interest rates than traditional savings accounts" "They provide diversification and professional management, reducing risk"

What is the power of compounding in SIP investments?

"Earning interest only on the initial investment" "Investing in multiple funds simultaneously" "Minimizing investment fees and charges" "Earning interest on both the principal and accumulated interest over time"

What is a major difference between Mutual Funds and SIPs?

"Mutual Funds are managed by professionals, while SIPs are self-managed" "Mutual Funds involve lump-sum investments, while SIPs use recurring smaller amounts" "Mutual Funds focus on bonds, while SIPs focus on stocks" "Mutual Funds are high risk, while SIPs are low risk"