Which of the following statements is true of a mutual fund?

Question

Quizplus · Accepted Answer

It is generally easy to withdraw funds from a mutual fund as investors can redeem their shares at any time at the current net asset value (NAV) of the fund.

Option B is incorrect as investors in a mutual fund pay various fees including management fees, administrative fees, and sales charges.

Option C is also incorrect as mutual funds provide diversification at a relatively low cost compared to investing in individual securities.

Option D is incorrect as mutual funds are managed by professional fund managers who make investment decisions on behalf of investors.

Which of the Following Statements Is True of a Mutual