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weqwewe [10]
3 years ago
9

Which of the following statements is TRUE?

Business
1 answer:
statuscvo [17]3 years ago
6 0

Answer:

B. Mutual funds are actively managed while index funds are passively managed.

Explanation:

Mutual funds are defined as funds that are invested by a person who has limited funds in order to gain a market return on their shares. Mutual funds are actively managed investments. Mutual funds are invested within a short period of time. Examples of mutual funds includes bonds, shares, treasury bills e.t.c

For mutual funds, you don't need to have a large amount of knowledge to do it. Mutual funds are also called or known as open ended funds. They are sold publicly.

Exchange-traded funds are also known as index funds. They are passively managed investment funds that can be invested by a person for a long period of time. They are also referred to as closed ended funds that can be traded on the stock exchange market like normal stocks and shares.

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