Ch.2 · Advantages and Limitations of Mutual Funds · easy
Which of the following is an advantage of investing in mutual funds over direct equity investment for a retail investor?
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EXPLANATION
The key advantage of mutual funds over direct equity is access to professional management and a diversified portfolio without requiring large capital. A retail investor with ₹500/month cannot build a diversified equity portfolio directly but can do so through a mutual fund SIP.
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