Suitability Flashcards
Learn suitability
Short term investors who want liquidity and safety
Think
Cash equivalents
Money markets
Agressive investors only
Think
Emerging market securities
Emerging market funds
Investors willing to assume extra risks and who want to diversify outside the U.S. Market
Think flag
Non U.S. securities
Foreign funds
Investors willing to assume more risk in exchange for a higher potential return
Think special eyes
Securities in one industry or geographic area
Specialized or sector funds
Investors who want to pursue passive investment strategy and wants low fees
Think index finger
Securities selected to mirror a particular index
Index funds
Investors who want diversification among asset classes in a single fund
Think
Ass basket
Stocks, bonds, cash equivalents
Asset allocations
Investors who want to have something in all 3 classes of assets
Think tripod
Mix of stocks, bonds, cash equivalents
Money markets always have this feature
Balanced fund
Investors who want high income
Willing to accept a degree of high capital risk
Junk bonds
High yield funds
Investors who need income
Think
Corporate Jason
Investment grade Corporate Bonds
Corporate Bond Funds
People who want tax exempt income
Municiple securities
Municipal bond funds
People who want income with the highest safety
Think
Treasuries
U.S. government Bonds
Those primarily interested in current income
Debt Securities (fixed income)
Bond funds
People who want both capital appreciation and income
Stocks and dividend stocks
Growth and income
Investors who want income along with some small potential for capital appreciation
Common and preferred stock
Equity income
Long term investors seeking capital appreciation
Small and midcap stocks
Aggressive growth
