One of the most prominent changes in mutual funds is greater use of derivatives, including financial futures, options and both credit and interest rate swap contracts.

Question

Quizplus · Accepted Answer

The use of derivatives in mutual funds has indeed become more prominent, as these financial instruments allow fund managers to hedge against risks, enhance returns, and manage the portfolio more effectively. Derivatives like futures, options, and swaps are used for various purposes including risk management and achieving investment objectives.

One of the Most Prominent Changes in Mutual Funds Is