Investment

Question 1

What are managed funds?

Answer 1

Try to make a profit by beating the market

Cost are often expensive

Question 2

What are tracker funds?

Answer 2

Normally done by computers following the price of ftse 100 etc
Cost are cheap

Question 3

What are open ended funds?

Answer 3

A unit trust
Open ended investment company (OEIC)
They cannot gear with debt

Question 4

What is a unit trust?

Answer 4

You buy a specific amount of units in the trust that are valued from the asset amounts.
When someone wants to sell their units the fund manager will need to buy and sell shares of the assets to pay client money back

Question 5

What are closed ended investments?

Answer 5

An investment company on the stock market
People buy and sell shares of them on the secondary market
Amount invested doesn’t change
Prices are continually available
Charges are low

Question 6

What are exchange traded funds?

Answer 6

Always passive funds
Will try and mimic an index like chocolate or emerging economies etc
Prices continually available
Charges are very low

Question 7

What asset classes are there?

Answer 7

Equities
Bonds
Cash
Property
Hedge funds
Wine, stamps etc