Time is an important factor when evaluating a managed mutual fund for which of the following?

Question

Quizplus · Accepted Answer

The length of time that the present fund manager has been managing the fund is an important factor when evaluating a managed mutual fund because it provides insights into the manager's track record and experience in managing the fund. The longer the manager has been managing the fund, the more data investors have on the manager's investment decisions and performance. Additionally, a manager with a longer tenure may have developed a better understanding of the fund's underlying companies and industries, which can lead to better performance over time.

The existence of the underlying index is important when evaluating an index fund, not a managed mutual fund. The life of the companies in the fund and the status of the economy may be factors to consider, but they are not specific to evaluating a managed mutual fund.

Time Is an Important Factor When Evaluating a Managed Mutual