Investment Funds Quiz

What is a mutual fund?

• A collection of stocks and/or bonds combined into one fund, actively managed by an expert.

• A type of investment fund that rebalances its asset mix over time.

• A collection of stocks and/or bonds that are traded on securities exchanges.

• An investment portfolio of stocks chosen to track a stock market index.

How is an index fund typically managed?

• Actively managed by an expert.

• Passively managed to mimic a stock market index.

• Traded throughout the day like an individual stock.

• Rebalances its asset mix over time.

Which type of fund is typically chosen and managed by an expert in exchange for a fee?

• Mutual fund

• Index fund

• Exchange-Traded Fund (ETF)

• Target-Date Fund

What is a key feature of exchange-traded funds compared to mutual funds?

• Actively managed

• Traded throughout the day

• Rebalances over time

• Passively managed

What is the primary goal of a target-date fund?

• To actively manage stocks and bonds

• To mimic a stock market index

• To adjust its asset mix over time for retirement

• To trade throughout the day

What is a common feature of index funds?

• High management fees

• Actively managed

• Broad diversification

• Traded throughout the day

What is the minimum amount to invest in Exchange-Traded Funds (ETFs)?

• $100

• $50

• $1

• $10

What is a potential cost of purchasing Actively Managed Mutual Funds through a financial advisor?

• No cost

• Expense ratio + sales loads

• Flat fee

• Subscription fee

What type of account is described as having a passive management style?

• Actively Managed Mutual Funds

• Passively Managed Index Funds

• Exchange-Traded Funds (ETFs)

• Target Date Funds (TDFs)

Which type of fund is a type of mutual fund?

• Actively Managed Mutual Funds

• Passively Managed Index Funds

• Exchange-Traded Funds (ETFs)

• Target Date Funds (TDFs)