Sayed inherited a large sum of money and wants to spread his investmen

QUESTION

Sayed inherited a large sum of money and wants to spread his investment risk. He wants to focus on healthcare companies because it’s a high growth industry.

He also prefers to have management fees deducted from his account rather than pay commissions on every purchase. What does Sayed invest in?
A) an income load mutual fund
B) a sector load mutual fund
C) an index no-load mutual fund
D) a sector no-load mutual fund
E) a growth load mutual fund

ANSWER

Answer: D
Explanation: D) A sector fund invests in securities from a specific industry, in this case healthcare. A no-load fund will have no commissions on purchases but will deduct a small management fee from Sayed’s earnings on the fund account.