Multiple choice

Which of the following is not an advantage of a mutual fund?

  1. Professional management at lower costs

  2. Diversification of portfolio

  3. Liquidity

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All listed options (A, B, C) are actual advantages of mutual funds: professional management provides expertise at scale, diversification spreads risk, and liquidity allows easy redemption. Since the question asks what is NOT an advantage, and none of these qualify as disadvantages, 'None of the above' is correct.

Keep practicing — related questions