Which one of the following is a true statement?
A) Professional management is an especially important factor for investors purchasing a mutual fund.
B) The only reason investors purchase mutual funds is interest rate risk.
C) With mutual funds may experience loss, your original investment is guaranteed.
D) Mutual funds are all designed to appeal to conservative investors with no investment goals.
E) Professional market timers will always choose the right mutual fund for a particular individual.

Question

Quizplus · Accepted Answer

Professional management is an important factor for investors purchasing mutual funds as the performance of the fund is heavily dependent on the expertise of the fund manager. This is why investors research the track record and experience of the fund manager before investing in a mutual fund. B, C, D, and E are all incorrect statements.

Which One of the Following Is a True Statement