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.
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.
2.
A balanced mutual fund is highly diverse.
Choose wisely. There is only one correct answer.
True. To be balanced, such a fund must choose a wide variety of investments.
3.
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.
4.
Large portions of a conservative mutual funds investments are likely to be in growth stocks.
Choose wisely. There is only one correct answer.
False. Large portions of a conservative funds investments are likely to be in bonds.
5.
Conservative mutual funds actively trade their investments.
Choose wisely. There is only one correct answer.
False. Conservative mutual funds rarely trade their investments.