n NISM Certifications
V-A NISM Series V-A
Medium

Identify which of these is NOT a benefit of investing in mutual funds?

Practice question from NISM Series V A - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Choice Overload

    Correct answer

  2. B

    Economies of scale

  3. C

    Diversification of portfolio

  4. D

    All of the above

Why this is the answer

Choice overload refers to the difficulty an investor faces due to the vast array of options available in mutual funds, which can sometimes be overwhelming. Economies of scale and diversification are clear benefits of mutual fund investing.

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