WorksheetsMutual Funds: 2025-26
Total questions: 12
Worksheet time: 6mins
What is a mutual fund?
A stock exchange platform
A type of savings account
A group of people pooling money to invest in various things
A loan given to a company or government
What does diversification in mutual funds mean?
Investing all money in one company
Spreading money across many different investments
Investing only in bonds
Avoiding investments in stocks
What is one advantage of mutual funds?
They guarantee high returns
They are managed by professionals
They are free of fees
They require no research
What is the first step to investing in mutual funds?
Opening a retirement account
Investing in stocks only
Figuring out how much money you can invest
Choosing mutual funds with high expense ratios
What is a retirement account used for?
Investing only in bonds
Managing mutual funds directly
Saving for retirement and gaining tax advantages
Avoiding all risks in investments
What is a sales load in mutual funds?
A fee for opening a retirement account
A tax on mutual fund earnings
A penalty for withdrawing money early
A commission paid when buying or selling shares
What are stocks in the context of mutual funds?
Loans to companies or governments
Fees charged by mutual funds
Types of retirement accounts
Pieces of ownership in companies
What are bonds in the context of mutual funds?
Fees charged by mutual funds
Types of retirement accounts
Pieces of ownership in companies
Loans to companies or governments
What is the main goal of investing in mutual funds?
To manage investments personally
To build wealth over the long term
To avoid all risks
To guarantee immediate returns
What should you do before choosing a mutual fund?
Research and match funds to your investment goals
Invest in the most popular fund
Avoid funds with low expense ratios
Choose funds with high sales loads
What is the role of professionals in mutual funds?
They guarantee returns
They manage investments and make decisions
They eliminate all risks
They charge no fees
What is the benefit of starting small when investing in mutual funds?
It avoids diversification
It minimizes risk and helps you learn gradually
It guarantees high returns
It eliminates the need for research
