Topic 6 - Managed Funds Flashcards
Why would you want to invest in managed funds?

What are the main advantages of investing in a managed fund?
What is an MIS?
What are the main characteristics of managed funds?

As a pooled investment structure a managed fund provides investors with the potential to benefit from:

What is ASICs role in the regulation of financial services?

How does the Australian Prudential Regulation Authority (APRA) and the Reserve Bank of Australia (RBA) regulate the financial services sector?

Explain this diagram.

PDS:
- rights
- responsibilities
- risks
- expected returns

What is the definition of a single responsible entity (RE)?

What must a managed investment scheme (MIS) include?

When is a PDS required?

Define unitholders.

What are the diversification advantages of investing in managed funds?

What are the main downsides of investing in a managed fund?

Comment on the market and security risk of investing in managed funds.

Comment on the currency and liquidity risk of investing in managed funds.

Comment on the gearing and taxation risk of investing in managed funds.

What types of fees may be charged under a MIS?

What is the indirect cost ratio (ICR)?

What is the management expense ratio (MER)?

What are some criteria for selecting a managed fund?

Name some characteristics of unlisted managed funds.

Describe this formula:


Differentiate between a listed investment company and a listed investment trust.

Differentiate between real estate investment trusts and exchange-traded funds.














