Which of the following is NOT true regarding mutual funds?
A)They are a key financial intermediary.
B)They provide an important service to individual investors seeking to invest funds.
C)Most mutual funds use experienced portfolio managers, so investors do not have to manage the portfolio themselves.
D)They provide a way for individual investors to diversify, but most individual investors are unable to afford the purchase of mutual fund shares.

Question

Quizplus · Accepted Answer

Mutual funds are designed to be accessible to a wide range of investors, including those with limited funds. They allow investors to pool their money together to invest in a diversified portfolio, making it more affordable for individual investors to achieve diversification compared to purchasing individual stocks or bonds on their own.

Which of the Following Is NOT True Regarding Mutual Funds