You are considering investing in a no-load mutual fund that focuses on growth stocks or in an index fund based on the TSX.The growth stocks fund had a five year average annual return of 11 percent with MER of 2.6 percent.The index fund had a five year average annual return of 11 percent with MER of 1.1 percent.Assuming equal risk,you should buy
A) the index fund because it has a lower MER.
B) the growth fund because its portfolio performed better.
C) some of both,for diversification,as they performed equally.
D) neither,because the expenses are too high for funds of this type.
Correct Answer:
Verified
Q22: A family of mutual funds is
A)where all
Q23: Which of the following characteristics is true
Q24: Which of the following is true about
Q25: A fund with a favourable historical track
Q26: Exchange-traded funds (ETFs)are similar to index mutual
Q28: Which of the following is true about
Q29: For mutual funds,the net asset value (NAV)is
Q30: The tracking error on an index mutual
Q31: Both segregated funds and mutual funds generally
Q32: Regarding load and no-load mutual funds
A)load funds
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