Question

Nathan Fuller is buying shares in a mutual fund that invests in the same companies as those found in the Standard & Poor’s 500. What type of mutual fund is he buying?

Answer 1

The correct answer to the following question is Index fund.

Step-by-step explanation:

Nathan fuller here is investing in index fund. Index fund is that type of mutual fund in which portfolio are constructed in such a way that it can track or even match the components of financial market index , like S & P 500 ( Standard and poor's 500 ). These types of mutual fund helps in providing a more wide market exposure, with less operating expenses and portfolio turnover.