Answering these questions

1. Discuss the advantages and disadvantages of owning mutual funds and examine the cost considerations when buying mutual funds.

2. How to assess and select funds that are compatible with the investment needs of the individual?

3. How to measure mutual fund performance?

Solution Preview

A mutual fund is an investment that is funded from many investors for the purpose of investing in stock, bond, and other investments.

The advantages of investing in mutual funds are that due to the high capital the mutual funds are likely to make huge profits for its investors. The mutual funds can invest in many investments which result in security of money invested. When one investment fails there is the guarantee of company continuity.

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