A mutual fund that invests in stocks issued by companies with a long history of paying dividends is called a ____________ fund.

Question

Quizplus · Accepted Answer

A mutual fund that invests in stocks issued by companies with a long history of paying dividends is called an equity income fund. This type of fund generally provides a steady stream of income to investors through the dividends paid by the underlying companies, as well as potential capital appreciation over the long term. Balanced funds typically invest in a mix of stocks and bonds, industry funds invest in specific sectors, and sector funds focus on a particular industry or sector. Money market funds invest in short-term, low-risk debt securities.

A Mutual Fund That Invests in Stocks Issued by Companies