Investment in which the investor holds legal title to the property is called what?

• A. Indirect Investment
• B. Mutual Fund
• C. Direct Investment
• D. Annuity

Answer: (C)

Holding the deed and legal title to the asset means you have a direct investment. When you own directly, you control the asset, receive income from it, and bear the responsibilities for maintenance, taxes, and management. This contrasts with indirect investments, where your ownership is through a vehicle like a mutual fund or other entity, and you don’t hold the property deed or direct control over it. Even if a mutual fund buys real estate, you own shares of the fund, not the actual properties. Annuities involve a contract with an insurer for future payments, not ownership of a property. So, ownership with legal title to the asset is a direct investment.