Which of the following is True about mutual funds?

Question

Quizplus · Accepted Answer

Dividends, interest, and capital gains earned from the mutual fund's investments are distributed to the unit holders. A mutual fund is a type of investment that pools money from various investors to invest in a diverse portfolio of stocks, bonds, or other securities to achieve a specific investment goal. The dividends received from the fund's investments are reinvested, and the expenses incurred are deducted from the fund's net asset value (NAV). Therefore, D is the correct choice. A is not true for all mutual funds, B is false, and C is incorrect, as the expenses are deducted from the NAV of the fund, and not from the dividends.

Which of the Following Is True About Mutual Funds