A fund that tracks a stock index without trying to beat it is which kind?
AActively managed fund
BClosed-end hedge fund
CPassive index fund
DLeveraged inverse fund
Answer & Solution
Correct answer: C. Passive index fund
Index funds are passively managed and simply replicate the performance of the index they follow.
Keep practising Mutual Funds
Browse all Mutual Funds questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
What risk can arise when an ETF tracks assets using futures and swaps?Replication in an index ETF means doing what?An ETF arbitrage mechanism keeps which two values close?Who creates and redeems ETF shares directly with the issuer in large blocks?How does an ETF share differ from an open-end mutual fund unit?What is mismarking in securities valuation?How often are a fund's investments valued for NAV?How many units does a $50,000 investment buy in a no-load fund at NAV of $25?