Mutual Funds Overview
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Questions and Answers

What are the primary structures of mutual funds?

  • SICAV, OEIC, and mutual investment company
  • Stock or equity funds, bond or fixed income funds, and hybrid funds
  • Open-end funds, closed-end funds, and unit investment trusts (correct)
  • Exchange-traded funds, index funds, and money market funds
  • What is the main advantage of mutual funds?

  • Low fees and expenses
  • Direct control over individual securities
  • Economies of scale (correct)
  • High liquidity
  • What are index funds?

  • Funds that invest only in stocks
  • Funds that are only available in the UK
  • Actively managed funds with high fees
  • Passively managed funds that track the performance of an index (correct)
  • In which countries is the term 'mutual fund' typically used?

    <p>United States, Canada, and India</p> Signup and view all the answers

    What do actively managed funds seek to do?

    <p>Outperform stock market indices but generally charge higher fees</p> Signup and view all the answers

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