Final answer:
Mutual funds do charge expenses and distribute remaining profits to shareholders when the fund is liquidated.
Step-by-step explanation:
Mutual funds do charge expenses, which are deducted from the assets of the fund. These expenses cover various costs associated with managing the fund, such as administrative fees, operating expenses, and investment advisory fees. The expenses are typically expressed as a percentage called the expense ratio.
When a mutual fund is liquidated, it means that the fund is sold or terminated. In this case, the expenses are deducted from the fund's assets, and any remaining profits are distributed to the shareholders. The fund company doesn't keep a portion of the profit for itself.
Therefore, the statement that mutual funds never charge expenses and instead always keep a portion of the profit when the fund is liquidated is False.