Companies that collects funds from companies and individuals and invest in portfolios of assets are classified as

A. activity funds

B. mutual funds

C. penalty funds

D. financing funds

Answer: Option B

Solution(By Examveda Team)

Companies that collects funds from companies and individuals and invest in portfolios of assets are classified as mutual funds. A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets.