#5

What are some different types of mutual funds? Mutual funds are categorized based on certain criteria such as investment policies, investment objective and the risk and return profile of the investment assets. In the following table, select the type of fund that matches each of the given descriptions Description of Fund Type Targets stocks that are undiscovered and thus priced below their true value Composed of high-yield, high-grade common stocks, along with some convertible securities and preferred stockt Balances current income and capital gains with an emphasis on capital gains Invests solely in foreign securities Fund Type Value fund Equity income fund One of the most important aspects of Investing is diversification and deciding on which assets the investments will be allocated. To address this need of asset allocation, the mutual fund Industry also offers asset allocation funds, Which of the following feature about asset allocation funds is true? The managers of these funds establish a desired allocation mix, but never change the mix based on the market conditions, The managers of these funds establish a desired allocation mix, and as market conditions change over time, the asset allocation mix also changes