AAII

1. What does the investment strategy of the fund tell you?

The individual holdings of the fund

The type of securities the fund invests in

Who manages the fund

2. To tell if a fund is too risky for you, you should look at:

Swings from year-to-year in annual returns

Fund returns compared to the market

Both

3. A fund’s expense ratio excludes loads.

True

False

4. Knowing who is managing the portfolio is important for index funds.

True

False

5. A fund’s distributions are:

Always designated as long-term capital gains

Sent to the investor unless otherwise instructed

Taxable

Not taxable when reinvested

QUIZ: Choosing the Best Fund for You