Funds Intermediate: Conservative Mutual Funds

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1.
The main goal of a conservative mutual fund is to _______.
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Conserve principal. All other investment goals are secondary to this one.
2.
A balanced mutual fund is highly diverse.
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True. To be balanced, such a fund must choose a wide variety of investments.
3.
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.
4.
Large portions of a conservative mutual funds investments are likely to be in growth stocks.
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False. Large portions of a conservative funds investments are likely to be in bonds.
5.
Conservative mutual funds invest in securities with _______.
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Low volatility. Low volatility is part of what makes a conservative fund conservative.