Benefits of Mutual Funds | CFA® Level 1 Exam Preparation

Benefits of Mutual Funds

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Question

One of the major benefits of mutual funds is ________.

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A. B. C. D. E.

Explanation

One of the major benefits of mutual funds is that they provide instant diversification. They are not necessarily low-risk, as there are many aggressive, speculative funds. Not all funds have high liquidity.