Mutual funds that invest in smaller, lesser known companies that offer higher growth potential are referred to as dividend funds.

Question

Quizplus · Accepted Answer

The statement is incorrect. Mutual funds that invest in smaller, lesser known companies with higher growth potential are typically referred to as small-cap funds or growth funds. Dividend funds, on the other hand, focus on investing in companies that pay regular dividends to their shareholders.

Mutual Funds That Invest in Smaller, Lesser Known Companies That