Derivatives/Options: Underlying Asset
Underlying asset are the financial assets upon which a derivative’s price is based. Options are an example of a derivative. A derivative is a financial instrument with a price that is based on a different asset.
What six types of investments can a mutual fund hold?
7 common types of mutual funds
- Money market funds. These funds invest in short-term fixed income securities such as government bonds, treasury bills, bankers’ acceptances, commercial paper and certificates of deposit. …
- Fixed income funds. …
- Equity funds. …
- Balanced funds. …
- Index funds. …
- Specialty funds. …
- Fund-of-funds.
What are the 3 types of mutual funds?
The 4 Types of Mutual Funds
- Equity Funds. Stock funds are also called “equity funds.” They’re the most volatile, and their value can rise and fall sharply over a short time. …
- Fixed Income Funds. Bond funds are also known as fixed income funds. …
- Money Market Funds. …
- Hybrid Funds.
What NFO means?
new fund offer
Definition: A new fund offer (NFO) is the first time subscription offer for a new scheme launched by the asset management companies (AMCs). A new fund offer is launched in the market to raise capital from the public in order to buy securities like shares, govt.