The Ultimate Asset Allocation Funds Quiz

By: Staff

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

A basic investment strategy is to learn the ropes so that you can buy low and sell high. The key to successful investing is to know when to buy and exactly when to sell.

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

Investing in an asset management fund can be a good hedge against suffering huge losses on your investments. These funds spread your investment dollars into many different investment vehicles.

What is an asset management fund?

An asset management fund is actually a type of mutual fund. A mutual fund is a company that pools investor's money to make multiple investments in what is commonly referred to as a portfolio.

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

One of the most attractive benefits of an asset management fund is protection from large losses of money. With diversified investments, the performance of other investments can cushion the effect of poor performers.

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

Asset management funds will typically generate a modest return on investment. For anyone who loves a challenge and wants to make a quick buck, an asset management fund is not an ideal choice.

Asset management funds generally make the most difference in a:

Asset management funds generally make the best of a bear market. When investment prices fall and the market is pessimistic the diversity of an asset management fund is good protection from heavy losses.

How many general types of asset management funds are there?

Asset management funds can have many different definitions and classes, but in general there are only two major types: the less risky conservative or moderate funds that hold fewer stocks and aggressive growth funds that usually have higher rates of return and carry higher risks.

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

It is important to know what your budget is and to check out the performance of a given asset manager, but the most important consideration is what type of investor you are. Decide exactly what your individual risk comfort level is.

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

You must know what your investment window is. Decide if you need to withdraw assets from the fund in five, 10, 15 or more years.

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

Investing always carries an associated risk. It is true that many people make a lot of money investing, then again, some people have lost almost everything.

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About This Quiz

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.

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