Which of the following is an advantage of an indexed equity mutual fund relative to a managed equity fund?
A) Indexed funds generally have better stock pickers.
B) Indexed funds engage in more detailed research.
C) Indexed funds have lower operating costs because they engage in less stock trading.
D) Indexed funds earn a significantly higher rate of return than a broad portfolio that represents the entire stock market.

Question

Quizplus · Accepted Answer

Indexed funds typically have lower operating costs because they follow a passive investment strategy, which involves less frequent trading and lower management fees compared to actively managed funds.

Which of the Following Is an Advantage of an Indexed