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The Ultimate Asset Allocation Funds Quiz
by Staff
There are many ways to invest your money and an asset allocation fund. Do you know enough about this investment opportunity to put your money on the line? Take our quiz before you hand over a check to your investment manager.

What is a basic strategy regarding investment in stocks or funds?

  • diversify holdings
  • buy low sell high
  • invest what you can afford to loose

What is one good way to protect your investment fund against huge losses while investing in the stock market?

  • Purchase stocks in diverse companies.
  • Purchase government bonds in addition to stocks.
  • Invest in an asset allocation fund.

What is an asset management fund?

  • An asset management fund is actually a private holding company that owns several diversified companies.
  • An asset management fund is a co-op of investors and all members share profits from stock trades.
  • An asset management fund is actually a mutual fund consisting of a company of investors.

What can you reasonably expect when you invest money in an asset management fund?

  • protection from large losses
  • a higher margin of return on investment
  • expert money management

What is the downside of using asset management funds as an investment vehicle?

  • Returns are typically lower than other investments.
  • Management fees can eat any gains.
  • They are a short-term investment.

Asset management funds generally make the most difference in a:

  • volatile economy
  • bear market
  • bull market

How many general types of asset management funds are there?

  • two
  • three
  • five

Before you invest in an asset fund, what do you need to consider?

  • your budget
  • the asset manager's performance
  • what type of investor you are

When judging which asset allocation fund to invest in, what is a crucial piece of information you will need?

  • You need to know how long the asset allocation fund has been in existence.
  • You need to know what kind of investments are in the specific portfolio.
  • You need to know what your investment window is.

What is one final piece of knowledge you need to posses before you run out and invest?

  • Asset allocation funds have several expenses and fees associated with their management.
  • No investment vehicle, regardless of how diversified the holdings, carries a guarantee.
  • Asset allocation funds sometimes do incur huge losses.