Funds Intermediate: Conservative Mutual Funds

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1.
Conservative mutual funds invest in securities with _______.
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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.
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True. Conservative mutual funds are made for just that purpose.
3.
A main objective of conservative mutual funds is to generate current income.
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True. The income objective is one of the defining characteristics of conservative funds.
4.
Conservative mutual funds are generally suited for investors with a long time horizon.
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False. Conservative mutual funds are generally suited for investors with a short time horizon.
5.
A mutual fund is conservative as long as its goal is to conserve principal.
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True. That is the defining characteristic of conservative funds.