All Courses > Funds > 500
Funds 502: Fund Warning Signs

Test your knowledge

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

0%
Keep studying!
Review your answers below to learn more.
1.
A funds performance can be affected when new funds are added to the family it belongs to.
Choose wisely. There is only one correct answer.
True. Sometimes, a fund will lose its focus or change its role within the fund.
2.
Why might asset growth be a bad thing for some mutual funds?
Choose wisely. There is only one correct answer.
It can ultimately lower returns. Having a lot of assets can sometimes weigh down returns.
3.
A manager change at a fund is _______.
Choose wisely. There is only one correct answer.
A warning sign that change may be on the way. Manager changes can lead to a drop-off in performance or a change in strategy, so theyre certainly warning signs. However, some types of funds handle manager changes better than others. As a result, a manager change isnt an automatic sell signal.
4.
If a mutual fund starts out as a small-cap fund, it may eventually become a mid-cap or large-cap fund.
Choose wisely. There is only one correct answer.
True. Some funds change their focus years later.
5.
Which government source provides you with information on funds?
Choose wisely. There is only one correct answer.
Securities and Exchange Commission. The Securities and Exchange Commission provides the EDGAR database of information on funds.