You are considering investing in a no-load mutual fund that focuses on growth stocks or in an index fund. The growth stock fund had a gross annual return of 15% and expenses of 2%. The index fund had a gross annual return of 12% and expenses of 1%. Assuming equal risk, you should buy

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The growth fund has a net annual return of 13% (15% gross return - 2% expenses), while the index fund has a net annual return of 11% (12% gross return - 1% expenses). Assuming equal risk, the growth fund offers a higher net return, making it the better choice.

You Are Considering Investing in a No-Load Mutual Fund That