All Courses > Funds > 100
Funds 105: How to Purchase a Mutual Fund

Find out what you learned

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Buying mutual funds from a single, large fund family will always provide you a diverse range of offerings to choose from.
Choose wisely. There is only one correct answer.
False. Some families, despite being large, specialize in a narrow range of funds.
2.
Which of the following is not a way financial advisors are compensated?
Choose wisely. There is only one correct answer.
A part of the fund manager's fee. Advisors can charge you a fee or get a commission from products, such as mutual funds, that they sell. They can also charge a combination of fees and commissions. They cannot, however, take a portion of the fund manager's fee.
3.
Investing with one of the more diverse fund families or a fund supermarket _______.
Choose wisely. There is only one correct answer.
Limits your paperwork. Investing all in one place makes recordkeeping easier and makes moving to and from funds a snap, too. And as long as you stick with one of the largest fund families, you'll have plenty of diversification options, too.
4.
When you buy a load fund through an advisor, where does the load that you pay go?
Choose wisely. There is only one correct answer.
To your advisor. Loads are commissions that are paid to advisors. Fund managers receive a portion of the fund's management fee.
5.
Buying several mutual funds from one fund family limits your paperwork (account statements, tax statements, etc.)
Choose wisely. There is only one correct answer.
True. There is more consolidation of paperwork when you stick with one fund family.
DONE