Investing in Funds

Definition: professionally managed investment products that pool together the assets of various investors

• Mutual Funds and ETFs

• Stocks

• Stocks and Bonds

• Bonds

Investors nearing retirement will typically shift their investment portfolios to include ________ risk investments.

• lower

• moderate

• higher

• None of the above

Investing in funds is suggested for those who

• need a quick return on their investment

• tend to have aggressive philosophies toward investing

• want to reduce investment risk

• hat to pay high fees for services

The primary advantage of fund investing is:

• Profits for investors

• Diversification

• Buy many shares at the lowest price

• Sell as many shares at the highest price

The share price of a traditional mutual fund is

• calculated and updated once every two days

• calculated and updated when the market closes at 4pm ET

• change throughout the trading day

• calculated and updated after the market closes and no later than 6pm ET

Why is investing in a mutual fund or ETF less risky than investing in a particular company’s stock?

• Mutual funds only invest in blue-chip stocks.

• Investments in mutual funds are more liquid.

• Investments in mutual funds offer a higher rate of return.

• Mutual funds hold a diversified portfolio of stocks.

This type of fund typically has assets that are not traded or turned over frequently and low expenses, an example of the this type of fund is an Index Fund.

• Specialty Fund

• Actively Managed Fund

• Passively Managed Fund

• International Fund

The Fidelity S&P 500 Fund is an example of a/an.....

• Sector Fund

• Specialty Fund

• Index Fund

• International Fund

ETF stands for

• Exchange Traded funds

• Electronic Transfer Funds

• Equity Traded Funds

• Exchange Transfer Funds

ETFs are:

• Traded on an intraday basis

• Priced and exchangeable only at the end of each trading day

• Traded over the counter