Dan has $6,000 that he would like to invest. He wants to diversify his investment, but feels that $6,000 isn't enough to buy many different securities. Besides, he doesn't know much about picking stock and doesn't want the hassle of trying to make investment decisions. Dan is likely to find mutual funds an attractive way to invest his $6,000.

Question

Quizplus · Accepted Answer

Mutual funds allow investors to diversify their investments in a single purchase, and are managed by investment professionals, eliminating the need for individual stock picking. This makes them a good option for someone like Dan who wants a diversified portfolio but does not have the knowledge or interest in selecting individual stocks.

Dan Has $6,000 That He Would Like to Invest