Funds Intermediate: Conservative Mutual Funds

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.
Conservative mutual funds invest in securities with _______.
Choose wisely. There is only one correct answer.
Low volatility. Low volatility is part of what makes a conservative fund conservative.
2.
If you are trying to conserve principal, a conservative mutual fund may help you reach your goals.
Choose wisely. There is only one correct answer.
True. Conservative mutual funds are made for just that purpose.
3.
A main objective of conservative mutual funds is to generate current income.
Choose wisely. There is only one correct answer.
True. The income objective is one of the defining characteristics of conservative funds.
4.
The main goal of a conservative mutual fund is to _______.
Choose wisely. There is only one correct answer.
Conserve principal. All other investment goals are secondary to this one.
5.
A mutual fund is conservative as long as its goal is to conserve principal.
Choose wisely. There is only one correct answer.
True. That is the defining characteristic of conservative funds.