Funds Intermediate: Conservative Mutual Funds

Test your knowledge

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

Keep studying!

Review your answers below to learn more.

The main goal of a conservative mutual fund is to _______.

Choose wisely. There is only one correct answer.

Grow quickly

Reduce taxes

Conserve principal

Conserve principal. All other investment goals are secondary to this one.

Conservative mutual funds actively trade their investments.

Choose wisely. There is only one correct answer.

True

False

False. Conservative mutual funds rarely trade their investments.

Conservative stock funds invest in _______.

Choose wisely. There is only one correct answer.

Companies with low dividend payments

Companies with high dividend payments

Emerging-growth stocks

Companies with high dividend payments. The stocks of many of these companies have low volatility.

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

False

True. Conservative mutual funds are made for just that purpose.

Conservative mutual funds are best suited for investors with high risk tolerance.

Choose wisely. There is only one correct answer.

True

False

False. Conservative mutual funds are best suited for investors who are risk-averse.

© Copyright 2024 Precision Information, publisher of the Financial Fitness Group family of products. The trade name Financial Fitness Group and the trademarks Financial Fitness CENTER™, Financial Fitness CHECKUP™ and Financial Fitness ACADEMY™ are exclusive marks of Precision Information, LLC. All rights reserved.