What is a key characteristic of mutual funds? Option: "They are only accessible to high-net-worth individuals., "They pool money from multiple investors to invest in a diversified portfolio of assets.", "They always guarantee a specific return on investment.", "They are primarily focused on real estate investments."

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What is a key characteristic of mutual funds?

"They are only accessible to high-net-worth individuals.

"They pool money from multiple investors to invest in a diversified portfolio of assets."

"They always guarantee a specific return on investment."

"They are primarily focused on real estate investments."

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

"Eliminating all investment risks"

"Achieving desired investment returns regardless of financial goals"

"Guaranteeing high returns in a short period"

"Predicting future market fluctuations"

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What is the primary function of Mutual Funds?

To provide short-term loans to businesses

To insure against market risks

To pool funds from investors and invest in various assets

To facilitate currency exchange

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

"Diversification and risk distribution"

"High short-term returns"

"Low investment threshold"

"Guaranteed profits"

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What is the primary function of a mutual fund?

To facilitate direct stock trading for individual investors

To provide loans to small businesses

To offer high-interest savings accounts

To pool money from investors and invest it in various financial instruments

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What is the key benefit of investing in Mutual Funds?

"Tax-free income

"Diversification of risk"

"Guaranteed high returns"

"Ownership in a specific company"