Mutual funds accommodate financing needs of corporations, the Treasury, and municipal governments by purchasing newly issued stocks and bonds in the primary market. They also frequently purchase securities in the secondary market. They enable individual investors to diversify their investments with a limited amount of funds.
Please respond
- As between systematic and unsystematic risk, which one has more impact on your portfolio? Why?
- There are a variety of categories of stock funds and bond funds. Of these, which would you prefer to invest in and why?
• In your opinion, should mutual funds be subject to more regulation? Explain your answer.