Question

Time is an important factor when evaluating a managed mutual fund for which of the following?

Answer 1

Time is an important factor when evaluating a managed mutual fund for the length of time the current fund manager has already been managing the fund.

Option A

Explanation:

Another kind of 'directed investment fund' is a managed fund. Your capital is combined with other shareholders in a managed fund. A shareholder will then purchase on your behalf shares or any other assets. Earnings or 'distributions' are generally paid on a regular basis.

A fund that is actively managed is a fund where a manager or executive team decides how to invest that money. In comparison, The Fund is actively managed simply follows a stock index.

Annual fees (called cost ratios) are paid in mutual funds and, in certain cases, commissions that may impact their overall return. The great majority of the money in retirement plans funded by companies goes to mutual funds.