A managed mutual fund:

a) Invests in a published list of stocks like the S&P 500

b) Has a higher expense ratio than an index fund

c) Can only invest in 1 asset class

d) All the above

Question

Business

Kiera Brady

27 February, 22:08

A managed mutual fund:

a) Invests in a published list of stocks like the S&P 500

b) Has a higher expense ratio than an index fund

c) Can only invest in 1 asset class

d) All the above

+2

Answers (1)

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Jessica Goodwin · Answer 1

b) Has a higher expense ratio than an index fund

Explanation:

A mutual fund is a diversified investment tool. The fund is a collection of different types of stocks that form a single investment asset. It is a basket of stock trading as a single asset. Purchasing one unit of a mutual fund is equivalent to purchasing several portions of each stock that make up the mutual fund.

A professional manager manages the mutual fund. He or she carefully selects the stocks that go into the basket forming the mutual fund. The manager charges a professional fee, which is usually a percentage of the investment. Due to this fee, a mutual fund is relatively expensive as compared to an index fund that does not require the input of a manager.

A managed mutual fund:a) Invests in a published list of stocks like the S&P 500b) Has a higher expense ratio than an index fundc) Can only invest in 1 asset classd) All the above

A managed mutual fund:

a) Invests in a published list of stocks like the S&P 500

b) Has a higher expense ratio than an index fund

c) Can only invest in 1 asset class

d) All the above