Which of the following is a limitation of investing through mutual fun…

Question

Which of the following is a limitation of investing through mutual funds?

Accepted Answer

C. {'text': 'Lack of portfolio customisation for the unit holder', 'label': 'C'}

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_

Answer

{'text': 'Access to professional fund management', 'label': 'A'}

Answer

{'text': 'Ability to buy units at low ticket sizes', 'label': 'B'}

Answer

{'text': 'Daily NAV publication', 'label': 'D'}