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Options
-
Economies of scale
Correct answer
- B
Portfolio customization
- C
Choice overload
- D
All of the above
Why this is the answer
Economies of scale result from the large investment corpus of a mutual fund. These economies help reduce the cost of investment research, transactions, and other services. However, mutual funds typically lack portfolio customization as individual investors cannot influence the specific securities chosen by the fund manager, and choice overload can occur due to the many available schemes.
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