Reasons to invest in mutual fund include
I. a wide range of services such as 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

Mutual funds offer a range of services (I) and reduce the effort in selecting securities (II). They also allow participation in various retirement programs (IV). However, they do not guarantee rates of return that consistently beat market averages (III).

Reasons to Invest in Mutual Fund Include