3.6 EXIT TICKET- Investing in Funds Exit Ticket

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1. When talking about investing, what does it mean when someone refers to a fund?

• A type of savings account that you can use for emergency expenses
• A pool of money from shareholders that is used to invest in a collection of assets like stocks and bonds
• A way to crowdsource money from people online to help pay for an expense
• An amount someone has in their checking account

2. The goal of an actively managed fund is to outperform the market. What does this mean?

• The fund is guaranteed to provide a rate of return that is lower than the overall market
• The fund will match the overall return of the market
• The fund is managed by a fund manager, who tries to beat the overall market’s rate of return
• If the actively managed fund does not beat the market, the fund manager will pay you the difference

3. All of the following are true about a passively managed fund EXCEPT…

• Fees for a passively managed fund are typically lower than those for an actively managed fund
• Passively managed funds are generally seen as low risk investments
• A passively managed fund seeks to match the average return of the securities it includes
• Passively managed funds are managed by a fund manager