The major advantage of investment funds is that
A) they allow people with limited funds to diversify their investment.
B) they encourage households to spend their money on current consumption.
C) fund managers are replaced by household administrators.
D) they always use index funds to limit investor risk.

Question

Quizplus · Accepted Answer

Investment funds allow people with limited funds to invest in a diversified portfolio of assets, which in turn can help to reduce the risk of losses. By pooling together funds from many investors, investment funds can access a broader range of investment opportunities than most individuals could on their own. This means that investors can potentially benefit from the expertise of professional fund managers and achieve better investment returns.

The Major Advantage of Investment Funds Is That