Which of the following is true?
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 than managed funds due to their passive investment strategy, which involves simply tracking a specified index, without the need for active management or frequent trading. This means that they incur less expenses, which ultimately translates into lower fees for investors.

Which of the Following Is True