88 MULTIPLE CHOICE
When purchasing a mutual fund, what are you actually purchasing?
A
stocks
B
bonds
C
money market instruments
D
portfolio performance
Attempt 1 of 2
When you purchase a mutual fund, you are actually purchasing a combination of different securities like stocks, bonds, and/or money market instruments. This mix of investments is managed by professionals according to the fund's investment objective. The performance of a mutual fund is based on how well this combination of securities performs in the market. So, when you invest in a mutual fund, you're essentially buying a share of a diversified investment portfolio rather than individual securities like stocks or bonds.
