What is the primary reason people invest in mutual funds?

To get rich quickly To avoid market risks entirely To participate in a diversified investment pool with a common goal To directly control individual stock selections

How are returns distributed among investors in a mutual fund?

Based on the initial investment amount Equally among all investors regardless of investment size Preferentially to larger investors Randomly, based on market fluctuations

What is the role of a fund manager in a mutual fund?

To guarantee high returns to all investors To provide personalized investment advice to each investor To select and manage the fund's investments according to its objectives To distribute profits directly to investors

What does NAV stand for in the context of mutual funds?

Net Asset Value Notional Asset Valuation National Average Value New Asset Volume

How is the NAV of a mutual fund calculated?

By adding the value of all assets and dividing by the number of shares By subtracting expenses from the value of assets and dividing by the number of shares By multiplying the initial share price by the fund's return By averaging the daily stock prices of the fund's holdings