Which of the following is the main advantage of a mutual fund?

Question

a. Allows savers to avoid paying sales taxes.
b. Allows companies to avoid paying taxes.
c. Allows the government the ability to increase tax revenue.
d. Allows savers to diversify their assets.

Answer 1

d. Allows savers to diversify their assets.

The main advantage of a mutual fund is that it enables investors to pool their money together to invest in a diversified portfolio of assets, reducing individual risk.