Question

Which of the following are advantages of investing in mutual funds? low initial investment requirement. ability...

Which of the following are advantages of investing in mutual funds?

low initial investment requirement.

ability to manage all the individual securities held within the mutual fund

the ability to purchase a fund at a premium to NAV

none of the above
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

For those investors who just started investments and no experience in securities and its movement, mutual fund investment is best choice. Fund manager will take care of the returns on the mutual fund. Mutual fund manager is highly skilled and knowledgeable on the securities market.

There are many advantages in mutual fund investments which include low initial investment requirement also. Therefore, option low initial investment requirement is the right option.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which benefit of investing in mutual funds pertains to the ability to sell your shares at...
Which benefit of investing in mutual funds pertains to the ability to sell your shares at market price due to a large demand for mutual fund assets? Liquidity Withdrawal option Dividend reinvestment Diversification
The advantages of exchange-traded Funds (ETFs) over mutual funds include: A. ETF sponsors (issuers) save the...
The advantages of exchange-traded Funds (ETFs) over mutual funds include: A. ETF sponsors (issuers) save the cost of marketing itself directly to small investors. B. ETFs allow investors to trade index portfolios just as they do shares of stock. C. ETFs allow investors to manage investors' tax obligation as investors see fit. D. All of the above E. None of the above
Mutual Funds offer the small investor all of the following, EXCEPT: a) Diversification b) Access to...
Mutual Funds offer the small investor all of the following, EXCEPT: a) Diversification b) Access to Mass Markets c) Ability to Choose Individual Securities d) Professional Management
1) An investment advisor is comparing performance of two mutual funds each of which is designed...
1) An investment advisor is comparing performance of two mutual funds each of which is designed to outperform the S&P 500. The Freedelity Fund returned 19% The JPStanley Fund returned 16%. Based on the information above, which is the better fund in terms of the manager’s ability to select stocks? A. Freedelity Fund has better stock selection B. JP Stanley Fund has better stock selection C. S&P 500 Index Fund has better stock selection D. Freedelity & JP Stanley Funds...
1.         When banks encounter liquidity issues experiencing deposit withdrawal or even bank run, which alternative is...
1.         When banks encounter liquidity issues experiencing deposit withdrawal or even bank run, which alternative is more appropriate to deal with the situation? ____ A)        Increasing overnight funds borrowed B)        Contacting an investment banker to find new corporate deposits C)        Issuance of a negotiable certificate of deposit D)        Selling the bank’s holdings of T-bills 2.         Focus on exploiting the tendency of the equities of companies in a time of change to drop in price. Such an approach belongs to which...
Question 3: You are comparing the direct costs of investing in two different mutual funds. The...
Question 3: You are comparing the direct costs of investing in two different mutual funds. The share price (NAV) of fund A is $25.00 per share, the share price of fund B is $30.00. In this case, A)  Fund A has lower direct costs of investing B) Fund B has lower direct costs of investing. C) Fund A and B have the same direct costs. D) Fund A and B have very different costs. E) Answer cannot be determined based on...
. A mutual fund is owned by the investment advisory firm which manages the fund. A)...
. A mutual fund is owned by the investment advisory firm which manages the fund. A) True B) False 2. A contingent deferred sales charge is a backend load which is imposed when shares of some mutual funds are sold. A) True B) False Mutual funds are only permitted to invest in U.S. securities. A) True B) False 4. Each prospective investor in a mutual fund must be supplied with a(n): A) trust certificate. B) stock certificate. C) tax report....
1. What are examples of investment companies? Check all that apply: Closed-end funds Mutual funds Exchange-traded...
1. What are examples of investment companies? Check all that apply: Closed-end funds Mutual funds Exchange-traded funds Investment banks 2. Which functions do investment companies perform for their investors? Check all that apply: Investment advice Lower transaction costs Asset management Record keeping Diversification and divisibility 3. A back-end load is _____. a redemption or "exit" fee incurred when you sell your shares a commission or sales charge paid when you purchase the shares the cost incurred by the mutual fund...
You consider investing in two mutual funds with the following parameters: Fund 1 Fund 2 Beta...
You consider investing in two mutual funds with the following parameters: Fund 1 Fund 2 Beta 0.8 1.2 Standard Deviation 20% 32% The funds are valued in a market where investors can borrow and lend, using T-bills, at the risk free rate of 5% and require a risk premium above this risk free rate of 8% for holding the market portfolio. Suppose you can borrow and lend at the risk free rate of interest. Which of the two funds do...
Which of the following is not an economic function of mutual funds? a)Exploit economies of scale...
Which of the following is not an economic function of mutual funds? a)Exploit economies of scale in trading and transaction costs b) Provide the individual investor with the professional expertise necessary to earn abnormal returns through successful analysis of securities c) Beat the market on every occasion d) Provide the individual investor the opportunity to diversify e) Provide an barrier between the individual investor and the abrupt changes of the marketplace
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT