Quiz on Managed Funds and ETFs

What is the primary objective of active investing in mutual funds?

• Beat market return

• Track an index

• Invest in bonds

• Minimize costs

Which of the following is a type of Exchange-Traded Fund (ETF)?

• Commodity ETFs

• Private Equity ETFs

• Real Estate ETFs

• Hedge Fund ETFs

What is a key advantage of mutual funds?

• Diversification of risk

• No professional management

• High fees

• Limited investment options

What is a disadvantage of ETFs?

• High expense ratios

• Tracking error

• Limited trading options

• High minimum investment

What is a common risk associated with mutual funds?

• No management fees

• High liquidity

• Dilution

• Guaranteed returns

Which brokerage firm is mentioned as a provider for ETF investments?

• Charles Schwab

• Goldman Sachs

• UOB Kay Hian

• Morgan Stanley

What is the minimum investment amount for regular investments in SG ETFs?

• SGD 200

• SGD 100

• SGD 500

• SGD 50

What is the main belief behind passive investing?

• The market is inefficient

• Investors should trade frequently

• Active management is essential

• The market is perfectly efficient