Which one of the following is false regarding mutual fund investments?
A)Mutual funds invest in a variety of securities.
B)Diversification provided by a mutual fund reduces risk.
C)The goals of one mutual fund investor may differ from those of another.
D)Since mutual fund managers are professionals,there is no need for the investor to evaluate a mutual fund.
E)Mutual fund investments range from very conservative to extremely speculative investments.

Question

Quizplus · Accepted Answer

Mutual fund managers are professionals, but investors should still evaluate mutual funds based on their investment goals, risk tolerance, fees, and performance history. Relying solely on the expertise of fund managers without personal evaluation can lead to mismatched investment strategies and unexpected risks.

Which One of the Following Is False Regarding Mutual Fund