A mutual fund's purpose is rapid investment growth, not to provide diversification for investors.

Name: A mutual fund's purpose is rapid investment growth, not to provide diversification for investors.
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Question

Quizplus · Accepted Answer

The purpose of a mutual fund is to provide diversification for investors by investing in a variety of assets, such as stocks, bonds, and other securities. While growth is a common objective, it is not the sole purpose of a mutual fund.

A Mutual Fund's Purpose Is Rapid Investment Growth, Not to Provide