Costs associated with investing in mutual funds include
1) management fees
2) taxes on unrealized profits
3) brokerage commissions when the investor sells the shares
4) load charges

Question

Costs associated with investing in mutual funds include​
1) management fees
2) taxes on unrealized profits
3) brokerage commissions when the investor sells the shares
4) load charges

Quizplus · Accepted Answer

Management fees and load charges are both costs that investors have to pay when investing in mutual funds. Management fees are charged by the mutual fund company for managing the fund, while load charges are fees that are paid when buying or selling shares in the fund. Taxes on unrealized profits are not a direct cost associated with mutual funds, but rather a tax implication that investors may face. Brokerage commissions are also not a direct cost associated with mutual funds, but rather a cost that investors may face when buying or selling shares through a broker. Therefore, the best choice is B as it includes both the management fees and load charges.

Costs Associated with Investing in Mutual Funds Include​

Costs Associated with Investing in Mutual Funds Include