RSM230H1 Lecture Notes - Money Market Fund, Interest Rate Risk, Market Risk
Document Summary
Invests in near-cash securities or money market instruments (t-bills, bankers" acceptances, high-quality corporate paper and short-term bonds. Money market funds add liquidity to a portfolio and provide a moderate level of income and safety of principal. Risk is low, but subject to interest rate risk. Any income received is taxable as interest income. Designed to provide a steady stream of income rather than capital appreciation with the safety of principal. Canadian bond, canadian income trust, high-yield bond, canadian short-term bond and mortgage, foreign bond. Risks include interest rate risks, corporate bonds expose the fund to default risk. Invest in both stocks and bonds to provide a mix of income and capital growth, and offers diversification. The most popular type of fund, has most classifications: Canadian and us equity, canadian dividend, canadian and us small and mid-cap equity, international equity, european equity, emerging markets equity, asia/pacific rim equity, japanese equity.
