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Canadian Securities Course (CSC) Practice Exam · Question

A mutual fund that invests only in preferred shares is categorized as which type of fund?

Preferred shares are a type of equity security. Therefore, a fund investing primarily in preferred shares is considered an equity fund.

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Question: A mutual fund that invests only in preferred shares is categorized as which type of fund?

Answer options: ✅ Equity fund

  • Money market fund
  • Bond fund
  • Balanced fund

Correct answer: Equity fund

Explanation: Preferred shares are a type of equity security. Therefore, a fund investing primarily in preferred shares is considered an equity fund.

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