Which of the following factors is NOT crucial when creating an investment plan before choosing an ETF? Option: "Financial goals", "Past performance of specific ETFs", "Composition of existing investment portfolio", "Risk tolerance"

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Which of the following factors is NOT crucial when creating an investment plan before choosing an ETF?

"Financial goals"

"Past performance of specific ETFs"

"Composition of existing investment portfolio"

"Risk tolerance"

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Why is it generally advisable to consider ETFs that have been in existence for a few years?

"Historical data allows for performance analysis and assessment"

"Older ETFs have lower expense ratios"

"Older ETFs always outperform newer ETFs"

"New ETFs carry higher risk due to lack of track record"

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What factor should an investor primarily consider when determining if index funds align with their financial goals?

"Their knowledge of specific companies' performance"

"Their investment timeline and risk tolerance"

"Their understanding of complex financial jargon"

"Their ability to predict short-term market fluctuations"

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Which of the following factors is NOT mentioned as important to consider when deciding whether to retain stocks or mutual funds in a portfolio?

Studying their fundamentals

Understanding the use case of these investments

Doing thorough research

Observing seasonal trends

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What is the most important factor to prioritize when researching mutual funds?

"The fund manager's personal investment strategy"

"Guaranteed returns promised by the fund"

"Long-term performance consistency"

"Short-term market fluctuations"

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What should investors primarily consider when choosing a mutual fund to invest in?

The fund's NAV

The fund's expense ratio

The fund manager's reputation

The fund's historical performance and returns