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1.
Which of the following would make the best core holding for most investors?
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A large-blend fund. Large-blend funds own large companies with middle-of-the-road stock prices, which makes them boring but ideal core choices. Large-value funds and large-growth funds can both be more volatile than large-blend funds at times.
2.
Why might large-growth funds not be the best choice for a core mutual fund?
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They have big price swings. Their big swings mean that they could suffer big losses too.
3.
Which of the following would make a good core stock holding?
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A large-company thats financially strong and growing at a steady rate. This might be boring, but it would be reliable.
4.
Should a bond fund be a core holding for you?
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Maybe. It depends on your asset allocation. When it comes to bonds, theres no one-size-fits-all answer. It all depends on your asset allocation.
5.
All investors should have the same size core holding.
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False. Though different investors and experts will disagree, there is no one size for everyone.