Multiple choice

Change in NAV as a measure of fund performance is more suitable for

  1. growth funds

  2. income funds

  3. funds with withdrawal plans

  4. None of the above

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Growth funds primarily focus on capital appreciation rather than regular dividend distribution. Since NAV change directly measures price appreciation, it's more appropriate for growth funds. Income funds, which prioritize regular dividends, require total return measures that capture dividend income.