Question

what is the main advantage of a mutual fund for an investor?
○ its price doesnt change much
○ it offers diversity in investment.
○ it has a set maturity date.
○ it can be sold at a profit.

Explanation:

Mutual funds pool money from multiple investors to invest in a variety of assets (stocks, bonds, etc.), providing built-in diversification. This reduces risk compared to investing in individual assets, which is their key advantage. Other options are incorrect: prices fluctuate, there’s no set maturity date, and profit isn’t guaranteed.

Answer:

B. It offers diversity in investment.