Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
A manager change at a fund is _______.
A warning sign that change may be on the way. Manager changes can lead to a drop-off in performance or a change in strategy, so theyre certainly warning signs. However, some types of funds handle manager changes better than others. As a result, a manager change isnt an automatic sell signal.
2.
If a mutual fund starts out as a small-cap fund, it may eventually become a mid-cap or large-cap fund.
True. Some funds change their focus years later.
3.
A funds asset growth can lead to many problems. Which of the following is not typically one of them?
Higher expenses. As assets grow, expenses may decline. But performance may stall, and the funds manager may have to change his or her strategy to accommodate all that money.
4.
Which government source provides you with information on funds?
Securities and Exchange Commission. The Securities and Exchange Commission provides the EDGAR database of information on funds.
5.
Which of the following is not a good way to find out if your fund is on the verge of change?
Keep an eye on your funds performance only. Fund performance isnt everything; it wont reflect a manager change, for example, or clue you in to changes that may be on the horizon.