Which of the following statements regarding the expense ratio of mutual fund is not true ?
The claim that actively managed funds typically have lower expense ratios than passively managed funds is false. Active management generally requires more research and…
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Which of the following statements regarding the expense ratio of mutual fund is not true ?
Answer and explanation
Correct answer C
The claim that actively managed funds typically have lower expense ratios than passively managed funds is false. Active management generally requires more research and portfolio-management activity, making its operating expenses higher; the expense ratio is distinct from a sales load.
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Madhya Pradesh SET (MP SET)