A mutual fund pools money from many customers and invests the money in many firms. The fees charged by fund managers are:
A) lower in bond funds.
B) higher in passive funds.
C) lower in passive funds.
D) higher in bond funds.

Question

Quizplus · Accepted Answer

Passive funds are designed to track a specific index, so they require less active management and therefore have lower fees compared to actively managed funds. Bond funds may require more active management, leading to higher fees compared to other types of funds.

A Mutual Fund Pools Money from Many Customers and Invests