Which of the following is not a benefit to an individual purchasing a mutual fund?
A) reduced risk
B) lower transactions costs
C) free-riding
D) diversification

Question

Quizplus · Accepted Answer

Free-riding is not a benefit to an individual purchasing a mutual fund. It is a practice where an investor takes advantage of the research and analysis conducted by others (such as fund managers) without contributing to the cost of the research. The other options (A, B, and D) are all benefits of investing in a mutual fund, including reduced risk, lower transaction costs, and diversification.

Which of the Following Is Not a Benefit to an Individual