Which is the best reason for investing in mutual funds?

Question

Quizplus · Accepted Answer

Diversification is the best reason for investing in mutual funds. By investing in a mutual fund, investors can own a diversified portfolio of stocks or bonds, which helps to reduce individual security risk. This also enables the investor to access a wider range of investments than they may be able to on their own. It is important to note that A, B, and C are not the best reasons for investing in mutual funds. Management expense ratios, while important, should not be the primary reason for choosing a mutual fund. It is also not always the case that portfolio managers outperform the market, and sector investment goals may not be appropriate for all investors.

Which Is the Best Reason for Investing in Mutual Funds