What is an advantage of a mutual fund?
What is an advantage of a mutual fund?
a You are in full control of your money.
b Affordable
c Guaranteed to make a profit
d Gain high interest
b Affordable
e Diversification - By investing in a mutual fund, you are able to spread your investment across a variety of assets, reducing the risk and increasing the potential for returns.
f Professional Management - Mutual funds are managed by experienced professionals who have expertise in selecting and managing investments, which can potentially lead to better investment performance.
g Liquidity - Unlike some other investment options such as real estate or fixed deposits, mutual funds offer high liquidity, allowing you to buy or sell your shares on any business day at the current Net Asset Value (NAV).
h Accessibility - Mutual funds are easily accessible to individual investors, with low minimum investment requirements, allowing individuals to start investing with smaller amounts of money.
i Transparency - Mutual funds are required to disclose their holdings and provide regular reports to investors, ensuring transparency and allowing investors to make informed decisions.