Financial Services _Çô Client Services RFC126 Chapter Notes - Chapter 6: Money Market Fund
30 Dec 2017
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Document Summary
Unit 6 types of mutual funds 11% Fixed number of units that is organized through an ipo . Remains set until more units are authorized or issued . No restrictions on number of units issued by investment fund manager . Benefits of mutual funds: liquidity (sold and converted to cash easily, professional management (trained professionals, diversification (reduced risk, low cost (shared expenses, convenience (easy access) Sets standards to classify mutual funds into specific categories . Mutual fund categories: money market funds, money market funds, fixed income funds. All mutual funds hold a portion of their portfolio in cash as a reserve to meet redemption requests or to buy additional securities . Income distributed by mutual funds: interest t-bills and bonds, dividends common and preferred shares, capital gains profit from the sale of securities. Mutual fund lowest to highest risk / return: cash, money market funds, fixed income funds, balanced funds, equity funds, specialty funds.
