Mutual Funds Review

What is the role of investors in a mutual fund?

• They manage the fund.

• They pool their money.

• They invest in individual stocks.

• They generate returns.

Who is responsible for investing in securities in a mutual fund?

• Investors

• Fund Manager

• Stock Broker

• Financial Advisor

What is a mutual fund?

• A type of investment where investors pool money to purchase securities

• A type of savings account with a fixed interest rate

• A government bond with a guaranteed return

• A personal loan from a bank

Who manages a mutual fund?

• The investors themselves

• A fund manager

• A bank teller

• A government official

What does NAV stand for in the context of mutual funds?

• Net Annual Value

• Net Asset Value

• National Asset Value

• Nominal Annual Value

How is the NAV per share calculated?

• Assets + Liabilities / Total number of outstanding shares

• Assets - Liabilities / Total number of outstanding shares

• Assets * Liabilities / Total number of outstanding shares

• Assets / Liabilities / Total number of outstanding shares

Tags

CCSS.7.NS.A.3

What is a distribution in the context of mutual funds?

• A type of mutual fund

• A payment made to investors after calculating capital gains and fees

• A tax exemption for mutual funds

• A method of investing in stocks

What determines how much you pay in taxes on mutual fund gains?

• The type of mutual fund

• The amount of dividends received

• Your income bracket

• The number of shares you own

Tags

CCSS.HSA.SSE.A.1

How does the length of time you hold a security affect your capital gains taxes?

• The longer you hold, the more you pay

• The longer you hold, the less you pay

• It does not affect the taxes

• It increases the dividends

Which type of mutual funds might not pay taxes?

• Funds set up for retirement or college savings

• Funds with high dividends

• Funds with short-term gains

• Funds with high fees