Question

Which of the following statements is FALSE? A. Individual investors should be involved in choosing a mutual fund because they know how the objectives of a mutual fund match their own investment objectives. B. Professional fund managers do make mistakes. C. Although investing in mutual funds provides professional management, individual investors should continually evaluate their mutual fund investments. D. There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds.

Answer 1

The statement in option D is FALSE. An investor must understand the kind of investment he want to put his money on. Individuals should be actively involved in choosing a mutual fund because they know their own reasons for investing in the first place.