BFB1001 Lecture Notes - Lecture 6: Market Timing, Investment Fund
2 Aug 2018
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Document Summary
Loan: allows an individual to overcome equity constraints and bring forward future consumption to the present at a cost: financial intermediaries such as banks and credit unions are the main providers of such loans. To the lender, a loan is an asset. Managed funds: one of the most common and largest investment vehicles in australia. The investment decision making is handled by professional investment manager; allowing access to a more diverse range of assets and investment strategies. A low barrier to entry as the minimum capital required by many funds is easily affordable. Many are listed on the stock exchange, making them highly liquid where capital can be redeemed, quickly, easily and cheaply. Access to a wide range of investments. Fund managers may not be as competent as advertised. otherwise unavailable. Fund managers do not act in the best. Enhanced liquidity; particularly for public interest of their client. funds. Investors may incur high entry, exit fees.
