📚 CBSE Grade-10 Study Guide Open in the Study Guide single page app →
HomeFinancial Market Management

Financial Market Management — CBSE Class 10 board question

Q1. [1]
Investment decisions in a mutual fund are made by fund managers who have the expertise, information and knowledge to make better decisions than what a typical individual investor may be able to make. Identify the advantage of investing in mutual fund in this statement.
  1. (A) Diversification
  2. (B) Liquidity
  3. (C) Flexibility
  4. (D) Professional Management
Previously asked in CBSE board exam
2025 92 Q2 (vi)
Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer

(D) Professional Management

The statement describes fund managers using their expertise, information, and knowledge to make investment decisions — this is the advantage of Professional Management.

Explanation

The passage under "Professional Fund Management" directly states that professionals with expertise and resources manage the fund and analyse markets to pick good investments. The other options — Diversification, Liquidity, and Flexibility — relate to different benefits not described in the statement.

If a question refers to an image, map, graph or diagram that is not shown here, open the Study Guide single page app, go to Library and find the actual CBSE question paper. The original papers are also available on the CBSE website: cbse.gov.in.
Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.