Question

True or False A benefit of mutual funds is that you don’t have to worry about...

True or False

A benefit of mutual funds is that you don’t have to worry about being stopped out.

Smart beta funds are actively managed funds that focus on fundamental factors.

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Answer #1

A benefit of mutual funds is that you don’t have to worry about being stopped out - False

Mutual funds are managed by portfolio managers and if the fund incurs loss over a long period of time, then the portfolio manager can stop the fund and return the money to the investors.

Smart-beta funds are actively managed funds that focus on fundamental factors - True

Smart Beta funds are a mix of active and passive. They follow an Index but also emphasizes on fundamental factors for decision making. They increase the beta where they feel that the return will be more.

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