Question

Which of the following is definitely an advantage of investments into mutual funds?

• A. They generate incremental returns over the benchamark they track
• B. They are eligible for tax rebate under Section 80C
• C. They are managed by professionals
• D. There is no management fees charged by fund manager

Answer 1

The correct option is C They are managed by professionals

Mutual funds may or may not generate excess returns over their benchmark. Moreover, the investors can avail the services of fund managers (who are professionals in the domain) for a management fess. Also, only Equity linked Savings Scheme qualify for rebate under Section 80 C of the Income Tax Act.