Harriette has $6000 that she would like to invest. She wants to diversify her investment, but she feels that $6000 isn't enough to buy many different securities. Besides, she doesn't know much about picking good stocks and doesn't want the hassle of trying to make investment decisions. Harriette is likely to find mutual funds an attractive way to invest her $6000.

Question

Quizplus · Accepted Answer

Mutual funds allow for diversification by pooling the funds of multiple investors to invest in a variety of securities. Additionally, mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors. This can be an attractive option for individuals like Harriette who may not have the time or expertise to make investment decisions on their own.

Harriette Has $6000 That She Would Like to Invest