Phyllis Payne is buying shares in a mutual fund that invests in companies with a long history of paying a dividend. What type of mutual fund is she buying?

Question

Quizplus · Accepted Answer

Phyllis Payne is buying an equity income fund, which is a type of mutual fund that invests in companies with a long history of paying a dividend. The focus of this type of fund is on generating income for investors through regular dividend payments, rather than on rapid growth or speculative investments. Aggressive growth funds, global funds, international funds, and regional funds may invest in companies with varying dividend histories, but they do not specifically seek out dividend-paying companies as the primary investment strategy.

Phyllis Payne Is Buying Shares in a Mutual Fund That