Background
Types
A & D
Comparison
100
What are Mutual Funds?
Mutual funds is a “Pool” of money that is invested by a professional into the Stock Market on behalf of a large group of people.
100
How many types of mutual funds are there that we listed?
7
100
How many advantages were listed?
5
100
What was the topic compared with in this presentation. (Full Name)
ETFs (Exchange Trade Funds)
200
What allows a group of investors to have more purchasing power compared to doing it alone?
Mutual Funds
200
Name 3 of the mutual funds listed
Money-market and treasury-bill funds Fixed income funds Equity funds Balanced funds Special equity funds Dividend funds Global and international funds
200
What are the 3 disadvantages revolved around mutual funds?
Fluctuating Returns Using Past Performance Results # of Risks
200
How many points used to compare both ETFs and Mutual Funds
5
300
What is in exchange for the profit made from an investment?
A fee
300
What is the most traditional and commonly bought type of fund and the reason why?
Money-market and treasury-bill funds, reason being that they are extremely safe compared to the rest of the mutual funds.
300
What are the risks revolved around mutual funds and how many are there?
Credit Risk Inflation Risk Interest rate Risk Market Risk Total of 4
300
What is the similarity ETFS and Mutual Funds?
Both are considered investments.
400
What is the best thing to do before investing?
Research the investment so that you have a general idea of how the investment will play out.
400
Which of the following funds invest in Canadian cooperations?
Dividend Funds
400
Breifly explain each of the following risks.
The possibility that the company holding your money will not pay the interest or dividend due, or the principal amount when it matures. The risk that the dollar you get when you sell will buy less than the dollar you originally invested.
400
Name 3 differences.
Trade Expenses Investment Minimums Tax Sale Loads
500
How many companies did we list that provide mutual funds?
15
500
What is a special equality fund?
What is a special equality fund? They invest in areas such as real estate, resources, and precious metals. Due to the specialized nature of these funds, returns tend to be dramatic, both positive and negative. The experienced investor will have, at most, only a small percentage of his or her portfolio invested in these funds.
500
Name the advantages revolved around mutual funds and breifly explain each one.
Diversification It is the mix of investments within a portfolio and is used to manage risk. Economies of Scale You can buy large quantity of mutual funds for less money than just buying one type of investment. Divisibility If you don’t have the exact sums of money, you can purchase mutual funds in smaller denominations. Liquidity Another advantage of mutual funds is the ability to get in and out with relative ease. Professional Management You have a professional money manager who does research on every investment before you decide to buy or sell.
500
Explain one of the differences in detail.
ETF’s are traded throughout the day like stocks while mutual funds are only traded at the end of the day at the net asset value price ETFs track to particular index so have lower operating expenses than mostly used invested mutual funds ETFs have greater tax efficiency due to a structure that allows ETFs to substantially avoid gains distributed altogether Greatest difference is the frequency with which they are priced and traded.
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