alleryStart learning →Which of the following is a limitation of investing through mutual funds?
AAccess to professional fund management
BAbility to buy units at low ticket sizes
CLack of portfolio customisation for the unit holder
DDaily NAV publication
Answer & Solution
Correct answer: C. Lack of portfolio customisation for the unit holder
1. A unit holder is one of thousands in a pooled scheme.
2. Once invested, the individual cannot dictate specific security selection.
3. This lack of customisation is a limitation compared with Portfolio Management Services.
4. The other options are benefits of investing through a mutual fund, not limitations.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.1.6_
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