FREE CIFC Types of Investment Funds Questions and Answers

0%

Which type of investment fund focuses on achieving long-term growth by investing primarily in stocks?

Correct! Wrong!

Equity funds aim for capital growth by investing in stocks, making them ideal for investors with a higher risk tolerance and a long-term focus.

What is the primary purpose of a Money Market Fund?

Correct! Wrong!

Money market funds invest in short-term, high-quality debt instruments to offer low-risk income and stability.

Which type of fund offers a mix of equity and fixed-income investments to balance risk and return?

Correct! Wrong!

Balanced funds combine stocks, bonds, and other securities to offer a moderate risk level while aiming for growth and income.

What is the main characteristic of an Index Fund?

Correct! Wrong!

Index funds replicate the performance of a specific market index and are known for their low fees and passive management.

Which type of fund is tailored for investors who prioritize ESG factors?

Correct! Wrong!

Sustainable or Ethical funds invest in companies that align with environmental, social, and governance (ESG) criteria.

What is the primary benefit of Bond Funds?

Correct! Wrong!

Bond funds provide steady income and stability by investing in government and corporate bonds, making them ideal for risk-averse investors.