Multiple choice

A mutual fund is not

  1. A company that manages investment portfolios of high net worth individuals

  2. A pool of funds used to purchase securities on behalf of investors

  3. A collective investment vehicle

  4. Owned jointly by all investors

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Mutual funds are collective investment vehicles that pool money from many investors (not just HNIs) to invest in securities. They are owned jointly by all investors in proportion to their holdings. Option A correctly identifies what a mutual fund is NOT.

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