If Ryan wants to invest in an index mutual fund, he should not expect his fund to behave differently than the underlying index.

Question

Quizplus · Accepted Answer

Index mutual funds are designed to mirror the performance of the underlying index they track, so investors should expect similar returns and behavior as the index itself. This is the main advantage of index funds over actively managed funds, which can potentially deviate from the index's performance and incur higher fees.

If Ryan Wants to Invest in an Index Mutual Fund