Final answer:
Mutual funds do not pay periodic interest payments but accumulate interest over time.
Step-by-step explanation:
The correct answer is C. Mutual funds.
Mutual funds are investment vehicles that pool money from many investors to invest in a diversified portfolio of securities, such as stocks, bonds, and other assets. Unlike the other options mentioned, mutual funds do not pay periodic interest payments. Instead, the interest earned on the securities held within the mutual fund is accumulated and reinvested, increasing the value of the investor's shares over time.
For example, let's say you invest in a mutual fund that holds various bonds. As the underlying bonds receive interest payments, those payments are reinvested within the mutual fund, increasing its overall value. When you eventually sell your shares, you can realize the accumulation of interest earned over the life of your investment.