In selecting mutual funds for the 401(k)plan,it is prudent to limit your investment to one fund,particularly if the fund had an outstanding return in the previous year.

Question

Quizplus · Accepted Answer

It is not prudent to limit your investment to one fund, even if it had an outstanding return in the previous year. Diversification is important in investing, and it is recommended to invest in a mix of funds to spread out risk and increase potential returns.

In Selecting Mutual Funds for the 401(k)plan,it Is Prudent to Limit