For your investment program, you have occasionally been holding a few stocks that you purchased from various brokers. Based on this, which advantages of mutual funds would be appealing to you?

Question

Quizplus · Accepted Answer

Mutual funds offer diversification, professional management, and avoidance of bad brokers. By investing in funds, your investment is managed by professionals who work to minimize risk and maximize returns. Mutual funds also offer diversification, which helps reduce the risks of individual stock. Additionally, mutual funds enable you to avoid potential fraudulent activities by brokers as the investment is managed by the mutual fund company, not by a particular broker.

For Your Investment Program, You Have Occasionally Been Holding a Few