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Ch.2 · Advantages and Limitations of Mutual Funds · easy

Which of the following is NOT a benefit of investing through a mutual fund?

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EXPLANATION

Mutual funds do not offer guaranteed returns — returns depend on market performance of underlying securities. Key benefits include professional management, diversification, liquidity, affordability, and SEBI regulatory oversight.

A.Professional fund management

B.Diversification of portfolio

C.Guaranteed returns on investment [✓ Correct]

D.Affordability through small investment amounts

EXPLANATION

Mutual funds do not offer guaranteed returns — returns depend on market performance of underlying securities. Key benefits include professional management, diversification, liquidity, affordability, and SEBI regulatory oversight.

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