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IIA-CFSA · Question #496

All of these are disadvantages of mutual funds EXCEPT:

The correct answer is B. Lack of control. Investors typically cannot ascertain the exact makeup of a fund's portfolio at any given time, nor can they directly influence which securities the fund manager buys and sells or the timing of those trades. This is because of _______ in mutual funds.

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Question

All of these are disadvantages of mutual funds EXCEPT:

Options

  • APrice uncertainty
  • BLack of control
  • CCosts despite negative returns
  • DAll of these

How the community answered

(52 responses)
  • A
    12% (6)
  • B
    81% (42)
  • C
    2% (1)
  • D
    6% (3)

Explanation

Investors typically cannot ascertain the exact makeup of a fund's portfolio at any given time, nor can they directly influence which securities the fund manager buys and sells or the timing of those trades. This is because of _______ in mutual funds.

Topics

#mutual funds#investment disadvantages#financial analysis

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