Funds Intermediate: Fund Warning Signs

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1.
Which of the following is not a good way to find out if your fund is on the verge of change?
Choose wisely. There is only one correct answer.
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.
2.
As a mutual fund family grows, its funds will continue to perform their original roles.
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False. Sometimes a fund changes its focus, for example from small-cap to mid-cap.
3.
A funds asset growth can lead to many changes. Which of the following is often one of them?
Choose wisely. There is only one correct answer.
All of the above. All of these are possible effects of asset growth.
4.
Which type of fund is least likely to be affected by a change in management?
Choose wisely. There is only one correct answer.
An index fund. Index funds mimic indexes; no matter who is managing, the selection of stocks will be according to that benchmark.
5.
A funds asset growth can lead to many problems. Which of the following is not typically one of them?
Choose wisely. There is only one correct answer.
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.