Which of the following is the primary advantage of mutual funds?
A)They usually make a return that "beats the market."
B)They allow people with small amounts of money to diversify.
C)They provide customers with a medium of exchange.
D)They allow investing in venture companies.

Question

Quizplus · Accepted Answer

The primary advantage of mutual funds is that they allow people with small amounts of money to diversify their investments. This means that investors can spread their money across a variety of different stocks, bonds, or other assets, which can help to reduce risk and potentially increase returns. While some mutual funds may outperform the broader market, this is not a guarantee, and investors should always carefully research and consider their options before investing in any fund. Mutual funds do not provide customers with a medium of exchange or allow investing in venture companies.

Which of the Following Is the Primary Advantage of Mutual