n NISM Certifications
NSM General NISM
Medium

Why do investors often earn lower returns than the funds they invest in?

Practice question from I-B4 Session 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Because of poor fund performance

  2. B

    Because of high expense ratios

  3. Because of emotional decision-making and timing errors

    Correct answer

  4. D

    Because of lack of diversification

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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