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. They do not guarantee returns, do not provide intraday exchange trading, and investors own fund shares rather than directly owning each underlying security.
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