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Questions and Answers
What is the primary purpose of a mutual fund?
What is the primary purpose of a mutual fund?
- To charge higher fees for actively managed funds
- To pool money from many investors to purchase securities (correct)
- To track the performance of stock market indices
- To invest in individual securities
Which type of fund seeks to outperform stock market indices and generally charges higher fees?
Which type of fund seeks to outperform stock market indices and generally charges higher fees?
- Open-end funds
- Money market funds
- Actively managed funds (correct)
- Index funds
What are the advantages of investing in mutual funds?
What are the advantages of investing in mutual funds?
- Economies of scale and diversification (correct)
- Lack of professional management
- Limited diversification
- Higher fees and expenses
In which countries are mutual funds typically referred to as SICAV and OEIC, respectively?
In which countries are mutual funds typically referred to as SICAV and OEIC, respectively?
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Which structure allows open-end funds to be traded directly with the issuer?
Which structure allows open-end funds to be traded directly with the issuer?
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