Type Of Fund Consolidation Flashcards
What is a fund of fund
An investment fund for allocate capital by investing in other investment funds rather than directly in individual securities or assets
What is an income fund
A type of mutual fund or ETF designed primarily to generate study income for investors often through dividends interest payments or other income yielding assets
What is a tracker (index) fund
Aims to replicate the performance of a specific index like the S&P 500 by holding similar assets
What is a balanced fund
Invest in a mix of stocks and bonds to balance risk and reward
What is a money market fund
Invest in short-term high-quality debt securities for liquidity and safety
What is a equity fund
Primarily invest in stocks for capital appreciation
What is an international/ global fund
Invest in assets outside the investors home country all worldwide
What is an ethical fund
Invest according to specific ethical social or environmental criteria
What is a venture capital trust
Invest in small early stage companies typically UK based with tax advantages
What is a pension fund
An investment pool that provides retirement income for employees or individuals
What is a sovereign wealth fund
A state owned investment fund made up of assets like stocks, bonds, or real estate
What is a benefit of fund of funds
- Diversification
- Professional management
- Convenience
Benefits of an income fund
- Regular income
- Lower volatility
- Potential tax advantages
Benefits of an index tracker fund
- Lower fees
- Diversification
- Consistent return returns
Benefits of a balanced fund
- Diversification
- Reduced volatility
- Income and growth
Benefit of a money market fund
- Low risk
- Easy to Convert into cash
- Regular income
Benefit of equity fund
- High growth potential
- Wide range of sectors sizes and regions
- Liquidity
Benefit of international/global fund
- Diversification
- Good, growth potential
- Hedge against domestic downturns
Benefit of an ethical fund
- Aligns with values
- Positive impact
- Growing popularity
Benefit of venture capital trust
- Tax benefits
- High growth potential
- Portfolio diversification
Benefit of a pension fund
- Stable retirement income
- Tax benefits
- Professionally managed
Benefit of a sovereign wealth fund
- National investments
- Long-term growth
- Economic development
