A(n)____ fund invests primarily in a portfolio of common stocks for the income they provide.

Question

Quizplus · Accepted Answer

An Equity-Income fund is designed to generate income primarily from the dividends paid by the common stocks in its portfolio. It typically invests in established companies with a history of paying generous and sustainable dividends. This type of fund is suitable for investors who want a steady stream of income from their investments, along with the potential for long-term growth. Choice A, B, C, and D are not the best choices because they do not prioritize income from common stocks as their primary investment objective.

A(n)____ Fund Invests Primarily in a Portfolio of Common Stocks