Investment Funds Flashcard

Front

What is the primary focus of a fund?

Back

To grow wealth through investments

Front

How do funds provide instant diversification?

Back

By reducing risk through combining several investment options

Front

What are index funds?

Back

Collections of securities that try to match the performance of a specific index.

Front

What is the role of fund managers?

Back

To manage portfolios for a fee

Front

What is a benefit of having a low initial investment in funds?

Back

It makes funds accessible to more investors

Front

What is the main advantage of liquidity in funds?

Back

Shares can be sold easily at any time

Front

Which of the following is an example of a commodity that might be included in a fund? Real Estate, Gold, Corporate Bonds, Personal Loans

Back

Gold

Front

What is the main advantage of passive investing?

Back

Lower costs and fees

Front

What type of funds can be either active or passive?

Back

All funds

Front

What are most ETFs classified as?

Back

Index funds