Brenda wants to invest in a fund that will outperform most others over many years. On average, she would be better off to invest in an index fund instead of a managed closed-end fund.

Question

Quizplus · Accepted Answer

Research has shown that over the long term, index funds generally outperform managed closed-end funds due to their lower fees and broader diversification. Managed funds often have higher fees and may have a limited number of stocks in their portfolio, which can increase risk. Therefore, Brenda would be better off investing in an index fund for long-term growth.

Brenda Wants to Invest in a Fund That Will Outperform