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Mutual funds help investors diversify unsystematic risks by investing in a diversified portfolio of stocks across different sectors. While individual stocks have both unsystematic and systematic risks, mutual funds are only subject to systematic risk or market risk.
The share market is a platform where buyers and sellers come together to trade on publicly listed shares during specific hours of the day. People often use the terms 'share market' and 'stock market' interchangeably.
Insurance is a way to manage your risk. When you buy insurance, you purchase protection against unexpected financial losses. The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.Why insurance should be relationship based?