Which of the following is true of equity funds?
A) Managed equity funds generally outperform indexed equity mutual funds.
B) Managed equity funds merely hold stocks in the same proportion they are represented in a broad stock market index such as the Standard & Poor's 500.
C) Indexed equity funds generally have lower management and operating costs than managed funds.
D) Indexed equity funds generally engage in more stock trading than managed funds.

Question

Quizplus · Accepted Answer

Indexed equity funds generally have lower management and operating costs because they passively track a market index, unlike managed funds which require active management and research.

Which of the Following Is True of Equity Funds