Question

What is the main purpose of a mutual fund?

a.

To provide tax benefits to investors

b.

To act as a Special Purpose Vehicle (SPV)

c.

To pool resources by issuing units and investing in securities

d.

To form capital for organizations

Posted under IC 89 Management Accounting

Answer: (c).To pool resources by issuing units and investing in securities Explanation:A mutual fund is a mechanism for pooling resources by issuing units to investors and investing funds in securities.

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Q. What is the main purpose of a mutual fund?
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