Question 4 of 8
When investing through mutual funds, who is responsible for managing some of the investment risks?
A
Only the investor
B
The fund manager manages some part of the risks
C
The regulator (SEBI)
D
The distributor
Correct Option:
B
Explanation
The fund manager is responsible for managing certain investment risks by selecting securities, diversifying the portfolio, and making investment decisions in line with the scheme's objectives. However, market risk cannot be eliminated, and investors continue to bear the investment risk.
