Choose wisely. There is only one correct answer to each question.
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1.
Essential funds for a simple portfolio will be those that focus on large- and small-cap stocks.
False. Your asset allocation ultimately drives what types of funds you should invest in. Large- and small-cap stocks might be inappropriate for you.
2.
Which type of bond fund would make the ideal choice for a simple portfolio?
An intermediate-term, high-quality bond fund. Those who want to keep bond investing simple might stick with funds that invest in highly rated intermediate-term credits. Longer-term and lower-quality choices take on too much risk and therefore complicate matters.
3.
With mutual funds, simplicity seekers should perhaps think in terms of _______.
Core holdings only. For many investors, core holdings are all they ever need.
4.
Which types of funds are essential for a simple portfolio will depend on your asset allocation.
True. Your asset allocation drives what types of funds you invest in.
5.
Which types of funds are essential for a simple portfolio?
It depends on your asset allocation. Your asset allocation drives what types of funds you invest in.
