Answered

Which of the following statements about Mutual Funds is FALSE?
a. A majority of actively managed mutual funds "beat the market" and are worth the fees they chars
b. An advantage of investing in mutual funds is that you don't have to pick individual stocks and
bonds.
C. Mutual funds that are actively managed by a fund manager are trying to "beat the market"
averages.
d. Mutual fund managers typically charge fees of 1-2% on the assets they manage



Answer :

GinnyAnswer
The FALSE statement about Mutual Funds is: a. A majority of actively managed mutual funds "beat the market" and are worth the fees they charge. Explanation: 1. Actively managed mutual funds involve fund managers making decisions to try to outperform the market averages by selecting specific stocks and bonds. 2. In reality, it is widely known that a majority of actively managed mutual funds do not consistently outperform the market indices (like the S&P 500) over the long term. 3. Many studies have shown that most actively managed funds underperform the market averages after accounting for fees and expenses. 4. Therefore, the statement that a majority of actively managed mutual funds "beat the market" and are worth the fees they charge is FALSE.