11. Answer the following questions based on Text b:

1. How are funds collected?

2. What advantages do mutual funds offer to investors?

3. How can contributors to mutual funds benefit from the diverse nature of the portfolio built-up and from the expertise of the manager?

4. Does the financial section of a paper provide exhaustive infor­mation of mutual fund performance?

5. What accounts for the choice of the fund?

6. What does a careful study of the fund performance suggest?

12. Match the information in column a with the correspondent information in column b.

A	B
1. The best-known type of mutual fund is probably the money market fund, where	a. that happens to have performed best in the previous year.
2. Another of the advantages of a mutual fund	b. to pay for the highest quality management.
3. You can invest in some mutual funds with as little as $250 and your investment	c. have taken substantial risks to do so.
4. But don't rush to invest in the fund	d. over most pe­riods is quite wide.
5. A fund that leads the pack for a single year may	e. regular surveys of mutual fund performance.
6. You will note that the range of fund performance	f. participates fully in any growth in value of the fund and in any dividends paid out.
7. On the newsstands, Money magazine publishes	g. is diversification.
8. The size of the pool makes it possible	h. the pool is invested for complete safety in the shortest-term income-producing investments.

13. Make up sentences of your own using the following expressions from text b.

The diffi­culty of selecting, to be involved in, to manage effectively, common stock funds, to look promising, to maintain portfolio, to narrow one’s choice, recent financial reports, to cover both up and down periods, plentiful performance statistics, dividends reinvested automatically, annual mutual fund survey issue, to pool the money of many investors.

14. Say what is true and what is false. Correct the false sen­tences.

1. The brokerage account is the only way to invest money and it has no disadvantages.

2. A mutual fund accumulates money of many investors and man­ages it efficiently as a single large unit.

3. Professional management is one of the disadvantages of mutual funds.

4. Diversification means distributing the investments over many different securities.

5. The fund "redeems" shares when it buys those sold previously.

6. "No-load" funds are bought through a broker who not only helps you with your selection, but also charges a commission.

7. You can see mutual funds prices listed in special tables in the financial section of different newspapers once a year.

8. "Money", "Barron's", "Forbes" are magazines which published regular surveys of mutual funds performance.

9. If you want to evaluate the activity of the funds for your future investment you'd better study its performance for the last five or ten years.

10. NAV stands for new asset variant per share of the fund.