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a. Mutual funds

• restrict frequent buying and selling of assets in the fund.

• have an international agenda.

• pool investors' money and buy a collection of stocks orbonds.

• require a fee to join.

b. Passively managed mutual funds

• can be classified according to the type of asset or according tothe industry sector.

• vary according to a manager’s discretion.

• require a fee to join sector funds.

• include various types of government securities.

c. Mutual funds are popular because they

• require the investor to closely monitor the portfolio.

• diversify risk.

• can be risky.

• have idiosyncratic risk.