Question

When you buy a mutual fund, you purchase a share of a collection of investments. True False

Answer 1

The statement is true.

Step-by-step explanation:

An investment fund or mutual fund is a collective investment institution that collects money in the form of contributions to invest together.

It pursues a very simple objective: to achieve greater profitability than to invest separately.

The operation of an investment fund can be understood as follows. The savings of each person goes to the fund, creating a great common heritage. Given the size of this heritage, savers reach a bargaining power that would be impossible to obtain if they invested each on their own.

Answer 2

Answer: The answer is True.

Explanation:

A mutual fund refer to investment strategy which allow an individual to pool money together with other investors to purchase a collection of securities such as stocks, bonds, money market instruments and other securities. Its portfolio is organised and preserved or maintained to match the investment objectives stated or listed in its prospectus.