Question

What risk factor is associated with mutual funds and securities investments?

a.

Only liquidity risk

b.

Only market risks

c.

Only interest rate risks

d.

Both market risks and investment risks

Posted under IC 89 Management Accounting

Answer: (d).Both market risks and investment risks Explanation:All mutual funds and securities investments are subject to market risks, and there can be no assurance that the scheme's objective will be achieved. The Net Asset Value (NAV) of the scheme may go up or down depending upon the factors and forces affecting securities markets.

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Q. What risk factor is associated with mutual funds and securities investments?
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