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68.''Generally , Mutual Fund manager prefer to invest in equities .'' what are the various stocks wherein the Mutual Fund managers invest?
Ans: There are many different stocks where Mutual Fund managers invest . The simplest classification is based on value or growth .The 'growth manager' seeks stocks that appear to have good potential for earning growth. He suffer if the earnings fall or the price to book ratio of the company declines .The value manager', in contrast , invests in stocks that have a relatively low value of the price to book ratio. His expectation would be that the price to book ratio of the stocks would some day increase and thus their prices would increase.