Investment Fund Types

Front

What is the management style of mutual funds?

Back

Actively managed

Front

How do investors earn from mutual funds?

Back

Through dividends and interest

Front

What type of investments do mutual funds typically include?

Back

A mix of stocks, bonds, and other assets

Front

What is the holding period requirement for index funds?

Back

No required period

Front

What is a key feature of target-date funds (TDFs) regarding asset mix?

Back

Becomes more conservative over time

Front

Alex, a high school senior, has $200 to invest for future education. Which investment fund is the most suitable for a low-risk, long-term investment? Options: Mutual Fund, Index Fund, Exchange-Traded Funds, Target-Date Fund

Back

Index Fund

Front

David, a high school sophomore, wants to invest $800 for retirement and prefers a hands-off approach. He wants a professional to manage his investments. Which is the most suitable for him? Options: Mutual Fund, buy Bonds, buy Stocks

Back

Mutual Fund

Front

What is a characteristic of actively managed mutual funds?

Back

They aim to outperform the market

Front

What is a primary benefit of investing in index funds?

Back

Low management fees

Front

Which type of funds are composed of stocks that are expected to move in line with a specific index?

Back

Index funds