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

Which of these is an advantage of Mutual Funds?

Practice question from Nism VA Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Portfolio Customization

  2. B

    Choice Overload

  3. C

    Control Over Costs

  4. Economies of scale

    Correct answer

Why this is the answer

Economies of scale arise due to the large corpus of mutual funds, allowing for reduced costs per investor. These include benefits like negotiating better terms with brokers and spreading costs across investors. Limitations include lack of portfolio customization, choice overload, and no control over costs.

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