Which type of equity fund is generally considered to carry a higher risk? Option: "Multi-cap equity funds", "Risk levels are determined by individual fund managers, not fund type", "Focused equity funds", "Both carry equal risk"

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Which type of equity fund is generally considered to carry a higher risk?

"Multi-cap equity funds"

"Risk levels are determined by individual fund managers, not fund type"

"Focused equity funds"

"Both carry equal risk"

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What is a key difference between multi-cap and focused equity funds regarding investment strategy?

"Multi-cap funds are restricted to large-cap companies, while focused funds can invest in any market cap size."

"Multi-cap funds are managed passively, while focused funds are actively managed."

"Multi-cap funds prioritize diversification, while focused funds concentrate investments in a smaller number of stocks."

"Multi-cap funds are only available to institutional investors, while focused funds are open to all investors."

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Which type of mutual fund is known for potentially higher returns but also higher risk?

"Debt funds"

"Equity funds"

"Hybrid funds"

"Fund of funds"

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What is a key characteristic of equity funds?

"They are suitable for short-term investment goals.

"They offer the lowest risk among mutual fund categories."

"They primarily invest in debt instruments for stable returns."

"They carry a higher risk but offer potential for significant growth."

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Which type of mutual fund is generally considered to have the highest risk profile?

Small-cap funds

Large-cap funds

Index funds

Mid-cap funds

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What is a defining characteristic of multi-cap equity funds?

"They invest in a limited number of stocks, similar to focused equity funds."

"They invest solely in large-cap companies."

"They invest in companies across all market capitalization sizes."

"They are restricted to investing in a single sector."