MFL206- 2

________ are a type of index fund that track a basket of securities.

• Mutual Funds

• Exchange Traded Funds

Mutual funds can be redeemed during the regular hours like stocks.

• True

• False

ETFs do not involve actual ownership of securities.

• True

• False

ETFs can be easily redeemed for cash.

• True

• False

ETFs is a pool of several investments whereas, mutual funds have individual shares.

• True

• False

ETFs are riskier than Mutual Funds.

• True

• False

ETFs are professionally managed whereas, mutual funds are personally managed.

• True

• False

Alen wanted his funds to be managed by a professional since he is investing for the first time. Which one he should opt?

• ETFs

• Mutual funds