Asset And Wealth Management Flashcards
What is Asset Management?
Asset Management involves institutional investors.
What is Wealth Management?
Wealth Management focuses on individuals.
What is Active Investing?
Active Investing involves a fund manager picking assets and typically has higher fees.
What is Passive Investing?
Passive Investing tracks an index, has lower fees, and offers broader diversification.
What factors are considered in Client Needs Analysis?
Factors include age, budget, goals, knowledge, and risk tolerance.
What is an Ethical Fund?
An Ethical Fund excludes ‘bad’ companies.
What is a Balanced Fund?
A Balanced Fund typically has a 60/40 allocation of stocks to bonds.
What is an Equity Fund?
An Equity Fund focuses on stocks.
What is an Income Fund?
An Income Fund generates regular income.
What is a Money Market Fund?
A Money Market Fund is short-term and low-risk.
What is a Sovereign Wealth Fund?
A Sovereign Wealth Fund is government-owned and aims for long-term growth.
What are VCTs?
VCTs invest in high-risk startups and offer tax benefits.
What are Index Funds?
Index Funds track an index and are low cost.
What are Unit Trusts and OEICs?
Unit Trusts and OEICs are UK fund structures.
What are Investment Trusts?
Investment Trusts are closed-end funds that can borrow.
What are Insurance Bonds?
Insurance Bonds offer tax advantages but have restricted access.
What is the difference between Defined Benefit and Defined Contribution pensions?
Defined Benefit pensions provide guaranteed payouts, while Defined Contribution pensions depend on contributions and investment performance.
What types of pension schemes exist?
Types include SIPP, Stakeholder, and Employer schemes.
What are the benefits of pensions?
Pensions offer tax-free contributions, growth, and inheritance planning.
What are the retirement options?
Retirement options include Drawdown, which is flexible but carries market risk, and Annuity, which provides fixed income but is less flexible.
What services are offered in investment management?
Services include investment advice, portfolio management, and discretionary service.
What tax tools are available?
Tax tools include ISAs, trusts, and VCTs.
