What is a key feature that distinguishes Equity Savings Funds from other hybrid funds? Option: "Their restriction to investments within a single industry", "The complete absence of debt investments", "Their exclusive focus on large-cap stocks", "Their utilization of arbitrage opportunities"

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What is a key feature that distinguishes Equity Savings Funds from other hybrid funds?

"Their restriction to investments within a single industry"

"The complete absence of debt investments"

"Their exclusive focus on large-cap stocks"

"Their utilization of arbitrage opportunities"

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What is the primary investment strategy of Equity Savings Funds?

"Investing in a mix of equities, debt, and arbitrage opportunities"

"Primarily investing in real estate and commodities"

"Investing solely in debt instruments"

"Focusing exclusively on high-risk, high-reward equities"

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What is a potential advantage of the arbitrage component in Equity Savings Funds?

"It shifts the fund's focus entirely to derivatives trading"

"It offers the possibility of low-risk returns"

"It guarantees high returns regardless of market conditions"

"It eliminates the need for any equity investments"

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How do Equity Savings Funds aim to mitigate volatility compared to aggressive hybrid funds?

"By concentrating investments in a single, stable sector"

"By investing solely in government bonds"

"By hedging a portion of their equity exposure"

"By completely avoiding equity investments"

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What is a key characteristic that distinguishes Arbitrage Funds from traditional investment approaches?

"They heavily rely on market sentiment analysis for investment decisions"

"They primarily focus on investing in fixed-income securities for stable returns"

"They prioritize long-term capital appreciation over short-term gains"

"They involve simultaneous buying and selling of the same security to profit from price differences"

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In the absence of suitable arbitrage opportunities, how do Arbitrage Funds typically manage their investments?

"They allocate funds towards short-term money market instruments and debt securities"

"They suspend trading activities until favorable arbitrage opportunities arise"

"They hold a significant portion of their assets in cash"

"They increase their exposure to high-risk, high-reward securities"