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When you purchase a mutual fund, you

(A)
invest in a company, and the company invests in you
(B)
invest in a group of stocks and bonds that an expert selects
(C)
trade each of your stocks for a bond
(D)
can choose which stocks an expert will invest in

1 Answer

3 votes

When you purchase a mutual fund you:

(B)

invest in a group of stocks and bonds that an expert selects

Step-by-step explanation:

Investing in mutual fund is basically about investing money with an investor who will then put the money into the market such that there is less chance of loss to either parties and there is a sustained growth over a long period of time.

This is a more safe strategy for those who do not understand the market or are afraid of stocks that can be volatile.

Here the chances of loss are low because the investment is in a fund that will grow

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