Mutual Funds Overview
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Questions and Answers

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?

  • Open-end funds
  • Money market funds
  • Actively managed funds (correct)
  • Index 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?

    <p>Europe and India</p> Signup and view all the answers

    Which structure allows open-end funds to be traded directly with the issuer?

    <p>Open-end funds</p> Signup and view all the answers

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