Question

Which of the following is an advantage of investing in a mutual fund?

Answer 1

I think the answer is D coz for mutual fund investment company is the best choice

Answer 2

Answer:

The correct answer is option A.

Explanation:

A mutual fund is a tool in which savings of a number of people is pooled and then invested into stock and bonds. It is different from directly investing in stocks.

Though risk is reduced, mutual funds are still subjected to market risks. So, there is no guarantee of profits.

The investment is managed by assets managing companies. Though it helps in diversification, the control of portfolio goes in the hands of managers.