n NISM Certifications
VII NISM Series VII
Medium

Which company pools money from many investors who wish to invest according to similar investment objectives?

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    A Joint Stock Company

  2. A Mutual Fund Company

    Correct answer

  3. C

    An IT Company

  4. D

    A Manufacturing Company

Why this is the answer

A mutual fund pools money from many investors and invests it in stocks, bonds, money-market instruments, or other assets according to the fund’s objectives.

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