Which of the following is NOT an advantage of mutual funds? Diversification Deferred Taxes Easy to get started...

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Finance

Which of the following is NOT an advantage of mutual funds?
Diversification
Deferred Taxes
Easy to get started with small amounts of money
Professional Management
In order to be considered a diversified company under theInvestment Company Act of 1940, All of these must be true except_____________.
No more than 5% of the funds assets can be invested in a singlesecurity
The fund can’t own more than 10% of a securities votingstock
The fund must be at least 50% equity financed
At least 75% of the fund’s assets must be in cash orsecurities
Which statement is TRUE?
The fund has to pay taxes on thedividends, capital gains, and interest it receives
If you have owned shares in the fundfor a long time, then any capital gains distribution you receivewill be considered long term
Closed-end funds trade at its NetAsset Value
Either all of the above of none of theabove are true

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4.0 Ratings (638 Votes)

1 b Deffered tax Reason Deffered tax is not advantages of mutual funds Diversification is possible under mutual funds Mutual fund is manages by professional management can be started with small See Answer

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Which of the following is NOT an advantage of mutual funds?DiversificationDeferred TaxesEasy to get started with small amounts of moneyProfessional ManagementIn order to be considered a diversified company under theInvestment Company Act of 1940, All of these must be true except_____________.No more than 5% of the funds assets can be invested in a singlesecurityThe fund can’t own more than 10% of a securities votingstockThe fund must be at least 50% equity financedAt least 75% of the fund’s assets must be in cash orsecuritiesWhich statement is TRUE?The fund has to pay taxes on thedividends, capital gains, and interest it receivesIf you have owned shares in the fundfor a long time, then any capital gains distribution you receivewill be considered long termClosed-end funds trade at its NetAsset ValueEither all of the above of none of theabove are true