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what is one of the most common ways mutual funds generate revenue? charging expenses for managing funds and trading fees b. underwriting stock offerings c. creating exotice derivative products d. earning interest spread from paying short term depositors and charging interest to long term borrowers

Sagot :

AnjaliP102

The correct answer is option D.

The mutual fund raises funds by selling its very own shares to investors, who pool their funds to buy a portfolio of stocks, bonds, and short-term money market instruments.

What is mutual funds?

  • A mutual fund is a collection of money that is professionally managed by a Fund Manager. It refers to a trust that generates revenue from a group of investors with similar investment goals and invests it in stocks, bonds, money market instruments, and/or other securities.
  • A mutual fund is a type of investment vehicle which facilities money from investors who share a common investment goal. Depending on the scheme's objectives, it then invests the funds in various asset classes such as equities and bonds.
  • These investments are made on behalf of the investors by an asset management company (AMC).
  • Mutual funds make money primarily through sales charges that function similarly to commissions and therefore by charging investors a proportion of the assets under management (AUM). A fund is required by the Securities and Exchange Commission (SEC).

To learn more about mutual funds refer to :

https://brainly.com/question/4521829

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