Which of the following is not true regarding mutual funds?
A) They are a key financial intermediary.
B) They provide an important service to individual investors seeking to invest funds.
C) Most mutual funds use experienced portfolio managers, so investors do not have to manage the portfolio themselves.
D) They provide a way for individual investors to diversify, but most individual investors are unable to afford the purchase of mutual fund shares.

Question

Quizplus · Accepted Answer

This statement is not true as mutual funds are designed to provide individual investors with a way to diversify their investments without needing to purchase individual stocks or bonds. Mutual fund shares are typically affordable for most individual investors.

Which of the Following Is Not True Regarding Mutual Funds