Multiple choice

Directions: Choose the correct option for the given question.

Which of the following is not correct?

  1. Mutual Fund ensures its participants a professional management of portfolio selection.

  2. Mutual Fund schemes can be open-ended or close-ended.

  3. Balanced Mutual Fund aims at earning current income and capital appreciation.

  4. Mutual Fund is an investment company and a merchant banker.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mutual funds are investment vehicles that pool money from investors, not investment companies or merchant bankers. While they offer professional portfolio management and can be open-ended or close-ended, they are not classified as investment companies or merchant bankers. This is a fundamental distinction in financial markets.

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