Which of the following statements is true?
A) Passively managed funds do not pay dividends.
B) Passively managed funds have only one asset in their portfolio.
C) Actively managed funds constantly buy or sell assets to generate better returns.
D) Actively managed funds adjust assets to match the performance of a particular index.

Question

Quizplus · Accepted Answer

Passively managed funds may pay dividends, but they are not actively seeking out the highest paying dividend stocks. Passively managed funds typically have a diversified portfolio of assets. Actively managed funds constantly buy or sell assets in order to generate higher returns than the market. Actively managed funds do not necessarily adjust assets to match a particular index, but instead aim to outperform it.

Which of the Following Statements Is True