The type of investment that combines and invests the funds of many individual investors under the guidance of professional managers is called a(n)
A) NOW account.
B) securities exchange.
C) prospectus.
D) mutual fund.
E) option fund.

Question

Quizplus · Accepted Answer

A mutual fund combines the funds of many individual investors and invests them in a diversified portfolio of stocks, bonds, or other securities under the guidance of professional managers. Mutual funds offer investors a convenient way to diversify their investments and manage risk. Option fund, NOW account, securities exchange, and prospectus are not specific types of investment that fit the description given in the question.

The Type of Investment That Combines and Invests the Funds