Which of the following are advantages of saving your money in a mutual fund?
I. You have professional fund management.
II. Mutual funds have always outperformed the S&P 500.
III. People with smaller amounts of money can diversify risk.
A) I only
B) I and II only
C) I and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Advantage I is true, as a mutual fund provides professional fund management. However, Advantage II is not true as mutual funds have not always outperformed the S&P 500. Advantage III is also true, as mutual funds allow people with smaller amounts of money to diversify their risk. Therefore, the best choice is C, as it includes the two true advantages.

Which of the Following Are Advantages of Saving Your Money