SIE practice questionmediumMutual Funds - Suitability
A mutual fund is MOST suitable for an investor seeking:
- ADirect ownership of specific securities
- BGuaranteed returns
- CIntraday trading at market price
- DDiversification and professional management✓ Correct answer
Explanation
Why D — Diversification and professional management
Mutual funds offer diversification and professional management. B is not guaranteed, C describes ETFs/closed-end funds, and D is incorrect because investors own fund shares, not underlying assets.
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