Various investment vehicles are available to assist in reaching financial goals such as retirement or saving...
Various investment vehicles are available to assist in reaching
financial goals such as retirement or saving for a child’s
education.
For many investors,mutual funds have become the investment of
choice.
- Describe why investors purchase mutual funds.
Homework Answers
Investors purchase mutual funds because :
- Investors without investment expertise can have their funds managed by professional fund managers.
- Passive investing can be done by purchasing mutual funds which track specific indices
- Mutual funds diversify their investments, and therefore have low company-specific risk.
- Mutual funds are available across almost all asset classes and risk/return profiles, such as Government bonds, corporate bonds, junk bonds, large cap equities, mid- and small-cap equities, emerging market equities, etc.
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