A key advantage of a mutual fund over a Portfolio Management Service is

Question

Accepted Answer

A. {'text': 'Affordable portfolio diversification at low ticket sizes', 'label': 'A'}

1. Mutual fund investors pool capital, so even Rs. 500 can access a broad portfolio.
2. A PMS offers customisation but requires a much larger minimum investment.
3. Mutual fund unit holders do not influence specific security selection.
4. Diversification at low ticket size is unique to the pooled mutual fund model.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.1.5_

Answer

{'text': 'Higher minimum ticket size', 'label': 'B'}

Answer

{'text': 'Access to a customised portfolio for each investor', 'label': 'C'}

Answer

{'text': 'Ability to influence individual security selection', 'label': 'D'}