When you own shares in a mutual fund you make money in which of the following ways?
A) As the value of all of the securities held by the mutual fund increase, the value of each mutual fund share also increases.
B) If a fund receives interest or dividends from its holdings this income is passed on to share holders.
C) If the fund sells a security for more than it originally paid for it, the shareholders receive this in the form of capital gains.
D) You receive a portion of the commissions that the fund manager charges for trades.
E) Only A, B and C are correct.
Answer: E
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