Reasons to invest in mutual fund include
I. a wide range of services such automatic reinvestment and systematic withdrawal plans.
II. minimizing the time and effort spent choosing securities.
III. rates of return that consistently beat the market averages.
IV. participation in a variety of tax sheltered and tax deferred retirement programs.

Question

Quizplus · Accepted Answer

Investing in mutual funds allows for a wide range of services, such as automatic reinvestment and systematic withdrawal plans (I) and minimizes time and effort spent choosing securities (II). Mutual funds also provide participation in a variety of tax sheltered and tax deferred retirement programs (IV). However, there is no guarantee that the rates of return will consistently beat the market averages (III), so this option does not make the best choice.

Reasons to Invest in Mutual Fund Include