What is the primary benefit of investing in a mutual fund?
Options
ADiversification
BLiquidity
CCapital appreciation
DRegular income
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Mutual Funds & DerivativesMCQQuestion 5768 of 6
All Questions Correct Answer
✅ Option A — Diversification
All Options:
- ADiversification ✓
- BLiquidity
- CCapital appreciation
- DRegular income
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Detailed Solution & Explanation
Mutual funds offer several benefits to investors, including diversification, professional management, and liquidity. Diversification is the primary benefit as it reduces the risk of investing in a single asset or industry.
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