Economics · Financial Markets
Which of the following statements best explains the primary role and function of a Mutual Fund in the financial system?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To mobilize savings from a large number of investors and invest them professionally into diversified securities like stocks and bonds✓
- 2To act as a stockbroker, executing buy and sell orders on behalf of individual clients for a fixed commission
- 3To provide personal loans and overdraft facilities to individual investors at subsidized rates
- 4To act as a guarantor for bank loans taken by corporate entities
Correct answer
To mobilize savings from a large number of investors and invest them professionally into diversified securities like stocks and bonds
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