Chapter 7: 1.4 Flashcards
1
Q
What is the Investment Association (IA)?
A
Trade body for UK authorised open-ended funds.
2
Q
What is the role of the Investment Association (IA)?
A
Maintains a system for classifying funds.
3
Q
What is an Open-ended fund?
A
Type of investment, e.g. OEICs or unit trusts, that can expand without limit.
4
Q
What’s an Investment trust?
A
A company that invests in a diversified range of investments.
5
Q
What role does the Association of Investment Companies (AIC) have?
A
Maintains a system for classifying investment trusts.
6
Q
How does the IA categorise funds?
A
Splits them into a number of sectors that group similar funds and ETFs together.
7
Q
What 2 headings are these sectors split into?
A
- Growth
- Income
8
Q
Which headings do funds fall into if they don’t easily fall under these headings?
A
- Capital protection
- Specialist funds
- Volatility-managed
- Absolute/target return
- Unclassified
