The potential lower returns on mutual funds versus the potential returns on individual stocks is due to poor performance by the fund managers.

Question

Quizplus · Accepted Answer

The potential lower returns on mutual funds versus the potential returns on individual stocks is not necessarily due to poor performance by the fund managers. It could be due to a variety of factors such as the fees associated with the mutual fund, the diversification of the fund's portfolio, and market conditions. Some mutual funds are actively managed and have skilled fund managers who may be able to outperform the market, but this is not always the case. It ultimately depends on the specific mutual fund and its investment strategy.

The Potential Lower Returns on Mutual Funds Versus the Potential