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1.
A funds asset growth can lead to many changes. Which of the following is often one of them?
All of the above. All of these are possible effects of asset growth.
2.
A manager change at a fund is _______.
A warning sign that change may be on the way. Manager changes can lead to a drop-off in performance or a change in strategy, so theyre certainly warning signs. However, some types of funds handle manager changes better than others. As a result, a manager change isnt an automatic sell signal.
3.
A funds asset growth can lead to many problems. Which of the following is not typically one of them?
Higher expenses. As assets grow, expenses may decline. But performance may stall, and the funds manager may have to change his or her strategy to accommodate all that money.
4.
A funds performance can be affected when new funds are added to the family it belongs to.
True. Sometimes, a fund will lose its focus or change its role within the fund.
5.
Why is it important to monitor your fund families?
Both of the above. Changes at fund families can mean changes at your fund if your manager takes on new responsibilities or is otherwise distracted from running the fund that you own.
