Mutual Funds and 401k's

What are mutual funds?

• Accounts offered by banks to save money with fixed interest rates.

• Funds managed by professional fund managers to invest pooled money from investors.

• Government-issued bonds to support public funding.

• Private investment opportunities for accredited investors only.

By buying a mutual fund, what are you contributing to?

• A personal retirement account.

• A private equity fund.

• The money pool that fund managers use to invest.

• A government savings scheme.

What should you read to learn about what's in a mutual fund?

• The fund's history

• The fund's portfolio

• The fund's stock prices

• The fund's shareholder letters

Tags

CCSS.RI. 9-10.2

CCSS.RI.11-12.2

CCSS.RL.11-12.2

CCSS.RL.8.2

CCSS.RL.9-10.2

What is the prospectus of a mutual fund compared to?

• The fund manager's resume

• The fund manager's "I will..." report

• The fund's financial statements

• The fund's marketing brochure

To understand the goals of a mutual fund, what document should you read?

• The annual report

• The financial summary

• The prospectus

• The investment policy

Who typically does the investing when you invest in a mutual fund?

• You need to select stocks yourself.

• A professional investor.

• A government agency.

• An automated computer program.

Why might mutual funds be a good option for someone who does not want to do extensive research on stocks?

• They require a lot of research.

• They are only for experienced investors.

• They are managed by a professional investor.

• They do not involve stocks.

What is one of the benefits of your investments being diversified in a mutual fund?

• All investments are in a single stock.

• Investments are spread across various sectors.

• Investments are limited to one sector.

• Diversification is not a benefit of mutual funds.

What is a Roth IRA?

• A tax-disadvantaged investment account for education.

• A tax-advantaged investment account for retirement.

• A checking account with high-interest rates for young adults.

• A credit account used for purchasing real estate.

When can you withdraw from a Roth IRA?

• During your working years.

• After purchasing a home.

• During retirement.

• At any time without restrictions.