ADMS 4501 Lecture Notes - Lecture 4: Asset Management, Investment Strategy, Wealth Management

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pearimpala756

11 Feb 2013

School

York University

Department

Administrative Studies

Course

ADMS 4501

Professor

Lois King

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Document Summary

Private management and advisory firms : investment firms: clients pay fees for uniquely/ customised investment advice. Each person"s money is invested into unique accounts. Investment strategy: guided by firm"s overall investment strategy. Two types : asset management : institutional investors, wealth management :high network individuals. Investment ( fund ) companies : general solution. Each person"s money is pooled in to invest in a fund ( portfolio of securities) Two types: closed end :public companies , traded on the exchange at a discount ( due to liquidity, open end ( mutual funds) shares issued at nav. Front load funds: commissions are taken off in the beginning when you buy the fund. low load funds/ deferred sales charges : the commissions are taken off when the funds are sold. Your fund at the end = 920 x 1. 15 = 1058. No load fund : 1% redemption, earns 12% Your fund at the end = 1000 x 1. 12 = 1120.

Related Questions

Question 11

Advantages of mutual funds include

	A.	professional management.
	B.	all of these.
	C.	liquidity.
	D.	diversification.

Question 12

Which of the following types of investment companies operates much like an index fund?

	A.	exchange-traded fund
	B.	unit investment trust
	C.	closed-end fund
	D.	REIT

Question 13

A common stock fund that invests in only one industry is called a(n) ____ fund.

	A.	maximum capital gains
	B.	growth and income
	C.	index
	D.	sector

Question 14

Mutual funds that charge a load do so to compensate

	A.	fund managers.
	B.	brokers.
	C.	shareholders.
	D.	the SEC.

Question 15

Your first task in selecting a mutual fund is to

	A.	review your investment policy.
	B.	locate sources of comparative performance data.
	C.	eliminate funds inappropriate for your investment goals.
	D.	screen and compare funds that meet your investment criteria.

Question 16

Taxes on annual earnings from mutual funds can be avoided

	A.	while those amounts are kept in an IRS-qualified retirement account.
	B.	as long as the mutual shares are not sold.
	C.	while those amounts are kept in an IRS-qualified retirement account and if those earnings are interest from municipal bonds.
	D.	if those earnings are interest from municipal bonds.

Question 17

Mutual funds permit automatic income reinvestment of

	A.	ordinary income dividend distribution.
	B.	none of these.
	C.	both ordinary income dividend distributions and capital gains distributions.
	D.	capital gains distribution.

Question 18

The type of mutual fund that is not actively managed is called a(n) ____ fund.

	A.	emerging market
	B.	money market
	C.	index
	D.	sector

Question 19

A mutual fund that does not assess a sales charge at the time of the investment purchase is called a ____ fund.

	A.	back-end load
	B.	front-end load
	C.	low-load
	D.	no-load

Question 20

Open-end mutual funds

	A.	make up about 75 percent of all mutual funds.
	B.	are sold only through brokers.
	C.	are sold at their current net asset value.
	D.	are sold to other investors on a secondary market.

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ADMS 4501 Lecture Notes - Lecture 4: Asset Management, Investment Strategy, Wealth Management

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