Question

Which statement is true? 

Investors must pay higher fees to fund managers to gain access to more lucrative investment opportunities 

The SEC regulates fees, and all mutual funds must charge the same amount per transaction 

There is a significant and positive correlation between the fees charged by mutual funds and the realized returns. 

Higher fees charged by mutual funds do not usually result in higher returns for the investor

Answer 1

A investor may invest more to get higher return in mutual fund, but always they doesn’t get higher return, because there is a risk associated with it, => the correct option is “D” that is “higher fees charged by mutual funds do not usually result in higher return for the investor”.