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Funds 210: Your First Fund

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1.
Which type of large-company fund generally makes the best first fund?
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Large blend. Blend funds own stocks with both value and growth characteristics and typically don't favor particular sectors over others. They therefore offer more diversification than most large-value or large-growth funds do.
2.
Big fund families generally offer a range of funds to choose from.
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True. Though it's not guaranteed, as a general rule big fund families do offer a range of funds.
3.
Which is not a reason for buying your first fund through one of the big fund families?
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Because their funds are always the best performers. Most of the big fund families are reliable and offer a wide range of solid funds--but they aren't always chart-toppers.
4.
Why might a concentrated fund not be a wise idea for a beginning investor's first fund?
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They tend to be more volatile than well-diversified funds. As a rule, beginning investors might find well-diversified funds more suitable because they are less volatile.
5.
Beginning investors might be well served by large-cap funds over smaller funds. Large-cap funds contain the stocks of _______.
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Large companies. The term "large-cap" refers to large companies.