A typical mutual fund doesn't generally:
Click on the arrows to vote for the correct answer
A. B. C. D.D
Mutual funds are investment vehicles that pool money from multiple investors to invest in a portfolio of securities such as stocks, bonds, and other assets. Mutual funds are managed by professional portfolio managers who invest the pooled money according to the fund's investment objective and strategy.
Out of the given options, the answer is A. Invest in commercial papers.
Commercial papers are short-term debt securities issued by companies to raise funds for their short-term working capital needs. While some mutual funds may invest in commercial papers, it is not a typical investment for a mutual fund.
Mutual funds typically invest in a diversified portfolio of stocks, bonds, and other assets based on their investment objective and strategy. They may invest in small growth companies (B) or large growth companies (C), as well as stocks (D) of different types, such as blue-chip stocks, value stocks, or dividend-paying stocks, depending on the fund's investment style.
Overall, mutual funds are designed to provide investors with diversification, professional management, and easy access to a broad range of investment opportunities, which can help investors achieve their financial goals over the long term.