Question 1

You are considering the purchase of shares in a mutual fund.Discuss three advantages and three disadvantages of mutual fund investing that you believe are important for potential investors to consider.

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Question 2

An investor is planning to systematically withdraw money from his open-end fund.He arranges to receive 40 percent of the $700 asset growth from this particular investment period.The amount he will receive is:

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Question 3

Explain the difference between a load fund and a no-load fund.From a performance standpoint,is there a significant difference between mutual funds that charge commissions and those that do not?

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Question 4

Describe either the purchase options or withdrawal options that can be used to invest in or withdraw money from the investment company that sponsors an open-end mutual fund.

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Question 5

Which of the following is not an advantage of investing in mutual funds?

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Question 6

Which of the following is not true of index funds?

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Question 7

Cindy and John Appleby just inherited $30,000 and would like to invest the money in a conservative mutual fund.Since they have never invested in mutual funds,they ask for your help.Describe the sources of information available for evaluating a mutual fund investment.

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Question 8

Which of the following is a source of detailed information for fund investments?

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Question 9

What are seven steps you can take to open an investment account and begin investing in mutual funds?

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Question 10

Why do investors purchase mutual funds instead of purchasing stocks,bonds,or other investments on their own?

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Question 11

Which of the following rates mutual funds from 1 to 5 stars on how well they have performed in comparison with similar funds?

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Quiz 16: Investing in Mutual Funds