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a firm that invests customer funds pooled together, putting the cash to work through
various investments such as equities, bonds, real estate, master limited partnerships,
and others.
Does an investment company provide any economic function that individual investors
cannot provide for their own? Explain your answer.
Your answer
MEANING WALA PA
Advantages of open ended fund
High liquidity ; The open ended fund is highly liquid as the investor can sale and purchase the unit of mutual fund
any time during the market hour.The mutual are redeemed at the NAV reflected at the end of the day
Past performance ; The past performance information about the mutual fund are available on their official site
which helps the investor in determining the return generated by the mutual fund in past year.
Systematic Investment option ; The open ended fund offers the investor various types of investment option in the
open ended mutual like SIP , SWP ,STP which helps the investor in investing in the mutual fund in the
systematic ways.Like SIP help the investor in making investment in installment rather investing in lump sum
Disadvantages
Exit load ; The open ended fund levies exit load if the investor exits from the fund before the predefined time.
Different mutual funds have different exit load charges and periods; some mutual levies exit load if redeemed
within 1 month, some have 1 year period.
Sometimes high liquidity can lead to loss of money because the investor might invest more or redeem more in
the wrong time. So the investor having less knowledge about the market might not be able to generate profit from
open ended mutual funds.
volatile ; The open ended funds are very volatile .The NAV of the mutual fund varies with the market . so it might
only be more useful investment option for high risk takers
Discuss close-end funds. Include its advantages and disadvantages. *
https://budgeting.thenest.com/advantages-disadvantages-closedend-funds-27718.html
Your answer
Discuss Exchange Traded Funds in the Philippines. What are the advantages &
disadvantages of investing in ETF. (You may refer to www.pse.com for more info). *
Your answer
What are the advantages of an ETF funds relative to (a)open end and (b)closed end
investment companies *
Your answer
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Differentiate Defined Contribution Plan (DC) and Defined Benefit Plan (DB). *
Your answer
If you are working in an Asset Management firm, and a wealthy friend ask for a help
on where and how to invest his money, what will be your advise? Broaden your
explanation.
Your answer
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