Question

Types of Mutual Funds include the followings except

Select one:

a. Open-end mutual funds

b. Closed-end mutual funds

c. Superannuation guarantee funds

d. Exchange-traded funds (ETFs)

e. Index funds

Answer 1

We can select the correct answer by evaluating all options

a) Open end mutual fund as the name suggests is a mutual fund which includes investments that offers unlimited number of shares of investment company.

b) Closed end mutual fund again as the name suggests is a mutual fund which includes investments that offers fixed or limited number of shares of investment company.

c) Superannuation guarantee funds is a type of investment in which funds are guaranteed after the employee retires from his work. The employer deducts a portion from the employee's salary and it adds up to form a superannuation fund which pays the employee after his retirement. This is not a type of mutual fund investment.

d) Exchange-traded funds are the type of mutual funds which are traded on the stock exchange like shares.

e) Index fund is a type of exchange traded fund which is again a mutual fund.

So, the correct answer is option (c) Superannuation guarantee funds

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