Question

Which of the following is not an advantage of mutual fund​ investing? A. professional management B....

Which of the following is not an advantage of mutual fund​ investing? A. professional management B. diversification C. guaranteed return D. liquidity

Homework Answers

Answer #1

MUTUAL FUND INVESTMENT DOES NOT PROVIDE GUARANTEED RETURN AS THEY ARE SUBJECT TO MARKET.

IF MARKET FALLS, RETURN MAY BE EVEN NEGATIVE.

OTHER OPTIONS ARE ALL THE ADVANTAGES:

MUTUAL FUND IS HANDLED BY PROFESSIONAL PEOPLE. THEY HAVE KNOWLEDGE OF THEIR FIELD.

MUTUAL FUNDS PROVIDE DIVERSIFICATION SO THAT RISK CAN BE LOWERED AND RETURN CAN BE MAXIMIZED. MUTUAL FUNDS CAN BE SOLD IN OPEN MARKET, SO ENOUGH LIQUIDITY IS THERE.  

ANSWER : C : GUARANTEED RETURN. (Thumbs up please)

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