Question

TRUE/FALSE one of the attractive features of mutual funds is that they offer small investors a diversified portfolio and professional management.

Answer 1

The fact that mutual funds provide small investors with a diverse portfolio and experienced management is one of their appealing qualities.so statement is true.

What draws small investors to mutual funds?

Investors have access to a greater variety of investments through mutual funds than they could on their own. By pooling your funds, you may take advantage of economies of scale. The monthly contributions improve the investor's assets. Funds are more liquid because they are often less volatile.

The ability to diversify and thereby distribute risk over a number of investments is one of the reasons mutual funds are so well-liked by investors. People are drawn to mutual funds because they provide an opportunity for typical individuals to invest in professionally managed funds.

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