What is a key benefit of investing in Commodity Mutual Funds? Option: "They provide fixed returns.", "They eliminate market risk.", "They are suitable for all investors.", "They offer portfolio diversification."

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What is a key benefit of investing in Commodity Mutual Funds?

"They provide fixed returns."

"They eliminate market risk."

"They are suitable for all investors."

"They offer portfolio diversification."

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When considering commodities as an investment, what key benefit do they offer within a portfolio context?

Favorable tax treatment for investment gains

Relative stability compared to other asset classes

Hedge against the eroding effects of inflation

Consistent and predictable cash flow generation

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What is the key benefit of investing in Mutual Funds?

"Ownership in a specific company"

"Diversification of risk"

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

"Guaranteed returns regardless of market conditions"

"Elimination of all investment risks"

"Access to both debt and equity investments"

"Fixed interest rates higher than traditional savings accounts"

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What is a key benefit of including mutual funds in an investment portfolio?

"Predicting future market fluctuations"

"Guaranteeing high returns in a short period"

"Achieving desired investment returns regardless of financial goals"

"Eliminating all investment risks"