Loan funds_________:
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A. B. C. D.A
Loan funds are a type of mutual fund that uses leverage, or borrowed money, to increase the size of the fund's portfolio. This borrowing can come from a variety of sources, including banks, other financial institutions, or even other funds.
The answer choices provided in the question are not particularly relevant or accurate descriptions of loan funds. Let's examine each choice in turn:
A. Charge extra fees to buy or sell shares: While some mutual funds may charge additional fees or expenses for buying or selling shares, this is not specific to loan funds. The fees charged by a mutual fund depend on a variety of factors, such as the fund's investment strategy, the size of the fund, and the fees charged by the fund's service providers.
B. Don't perform as well as no load funds: This statement is also not accurate. The performance of a mutual fund, whether it is a load fund or no load fund, depends on many factors, such as the fund's investment strategy, the quality of its management team, and the overall market conditions.
C. Invest only in foreign securities: Loan funds are not restricted to investing only in foreign securities. Rather, loan funds can invest in a wide range of assets, including domestic and international stocks, bonds, and other types of securities.
D. Can't be bought through fund supermarkets: This statement is also not accurate. Loan funds, like other types of mutual funds, can be purchased through a variety of channels, including fund supermarkets, brokerage accounts, and financial advisors.
In summary, none of the answer choices provided in the question accurately describe loan funds. Loan funds are mutual funds that use leverage to increase the size of their portfolios, and can invest in a wide range of assets. The performance, fees, and availability of loan funds depend on a variety of factors, and should be evaluated on a case-by-case basis.