What are the two main investment benefits highlighted for equity mutual funds? Option: Professional management and low cost, High liquidity and tax benefits, Diversification and capital appreciation, Short-term growth and long-term growth

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What are the two main investment benefits highlighted for equity mutual funds?

Professional management and low cost

High liquidity and tax benefits

Diversification and capital appreciation

Short-term growth and long-term growth

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According to the text, what is a key benefit of diversifying into mutual funds?

"Fixed interest rates higher than traditional savings accounts"

"Guaranteed returns regardless of market conditions"

"Elimination of all investment risks"

"Access to both debt and equity investments"

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What is one of the primary reasons for the increasing popularity of mutual funds?

"Diversification and risk distribution"

"Guaranteed profits"

"Low investment threshold"

"High short-term returns"

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What is the key benefit of investing in Mutual Funds?

"Diversification of risk"

"Ownership in a specific company"

"Tax-free income

"Guaranteed high returns"

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What is a significant advantage of investing in Mutual Funds in terms of diversification?

"They allow investors to spread their investments across various asset classes, including equities, debt, and money market securities."

"Mutual Funds are solely focused on investing in government securities, ensuring capital protection."

"They offer a fixed rate of return, similar to a savings account, with a guaranteed return on investment."

"Mutual Funds primarily invest in fixed-income products, offering stability and low risk."

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What is the primary advantage of investing in equity mutual funds compared to debt mutual funds?

Shorter investment horizon

Potential for higher returns

Lower risk involvement

Guaranteed fixed returns