Choose wisely. There is only one correct answer to each question.
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1.
As a mutual fund family grows, its funds will continue to perform their original roles.
False. Sometimes a fund changes its focus, for example from small-cap to mid-cap.
2.
Which type of fund is least likely to be affected by a change in management?
An index fund. Index funds mimic indexes; no matter who is managing, the selection of stocks will be according to that benchmark.
3.
Which of the following is not a good way to find out if your fund is on the verge of change?
Keep an eye on your funds performance only. Fund performance isnt everything; it wont reflect a manager change, for example, or clue you in to changes that may be on the horizon.
4.
Why might asset growth be a bad thing for some mutual funds?
It can ultimately lower returns. Having a lot of assets can sometimes weigh down returns.
5.
Which government source provides you with information on funds?
Securities and Exchange Commission. The Securities and Exchange Commission provides the EDGAR database of information on funds.
