Multiple choice

An investor should not invest in a mutual fund if

  1. he expects a customized portfolio

  2. he is able to carry out detailed investment research and monitor the stock market

  3. both the above

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

A mutual fund offers a ready-made diversified portfolio managed by professionals, making it unsuitable for investors who want customized portfolios or have the skills and time to manage their own investments. Option A describes customization needs, and Option B describes self-sufficiency in research - both are valid reasons to avoid mutual funds.

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