Ms. Dubois is interested in investing in a fund that provides broad market exposure at a low cost, without active management attempting to outperform the market. She wants her investment to simply mirror the performance of a specific equity benchmark, such as the S&P/TSX Composite Index. Which type of mutual fund would be most appropriate for her?

Question: Ms. Dubois is interested in investing in a fund that provides broad market exposure at a low cost, without active management attempting to outperform the market. She wants her investment to simply mirror the performance of a specific equity benchmark, such as the S&P/TSX Composite Index. Which type of mutual fund would be most appropriate for her?

Answer options:

• Actively Managed Growth Fund
• Fixed Income Fund with Active Duration Management ✅ Index Fund
• Hedge Fund

Correct answer: Index Fund

Explanation: Index Funds are passively managed funds designed to replicate the performance and composition of a specific market index, offering broad exposure and typically lower costs, which aligns with Ms. Dubois's objectives.