What is a potential advantage of investing in Dividend Yield Mutual Funds for investors with a low-risk tolerance? Option: They provide guaranteed returns, regardless of market fluctuations, They offer a relatively stable income stream compared to high-growth stocks, They offer the potential for rapid capital appreciation in a short period, They are exempt from taxation, making them a tax-efficient investment

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What is a potential advantage of investing in Dividend Yield Mutual Funds for investors with a low-risk tolerance?

They provide guaranteed returns, regardless of market fluctuations

They offer a relatively stable income stream compared to high-growth stocks

They offer the potential for rapid capital appreciation in a short period

They are exempt from taxation, making them a tax-efficient investment

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What is a key advantage of dividend mutual funds?

"They offer the potential for higher long-term returns"

"They are less risky than growth mutual funds"

"They are completely tax-free"

"They provide a regular income stream to investors"

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What is a potential drawback of investing in a Dividend Yield Mutual Fund?

The NAV (Net Asset Value) might not grow as rapidly as funds focused on growth stocks

They are subject to frequent trading halts and regulatory scrutiny

They are highly complex investments that require specialized financial knowledge

They are only available to accredited investors with a high net worth

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What is a common reason why investors choose to invest in Dividend Yield Mutual Funds?

To invest in companies developing artificial intelligence technologies

To speculate on short-term price movements in the stock market

To gain exposure to emerging markets and developing economies

To generate a regular stream of income from dividend payouts

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What are Dividend Yield Mutual Funds primarily focused on?

Investing in real estate properties for rental income

Investing in high-growth technology startups

Investing in companies with a history of high dividend payouts

Investing in bonds with varying maturity dates

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What is a key characteristic of companies that Dividend Yield Mutual Funds typically invest in?

They are companies involved in cryptocurrency mining and trading

They are primarily early-stage startups with high growth potential

They are often large, well-established companies with a history of stable earnings

They are companies focused on developing renewable energy sources