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33 Cards in this Set
- Front
- Back
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It is run by professionals |
Mutual Funds |
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They can help you determine the types of funds that are most appropriate for you based on your current financial circumstances, investment goals time horizon and attitude towards risk |
Financial Advisor |
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Mutual funds offer a number of convenient features including: |
1. Liquidity 2. Exchange Privileges 3. Automatic Investment Plans |
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4 reasons to own mutual funds |
1. Growth potential 2. Diversification 3. Professional money management 4. Convenience and Flexibility |
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As market prices go up and down, your regular investment will buy some shares at a lower price and some at a higher price. |
Automatic Investment Plans |
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3 Questions to establish your Financial Goals |
1. What are my financial goals 2. When will i need the money? 3. How much can i afford to invest? |
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Basic types of mutual funds |
1. Stock or Equity Funds 2. Bond Funds 3. Balanced Funds 4. Money market funds |
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Mutual funds may earn money through? |
1. Appreciation 2. Capital gains distribution 3. Dividends |
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Buying and selling mutual funds shares is as easy as picking up the phone or going online. |
Liquidity |
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This is called peso-cost averaging |
Automatic investment plans |
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Your fund shares increases in value or appreciate when securities the fund owns increase in total value |
Appreciation |
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Mutual funds are typically headed by a portfolio manager who is supported by a team of experienced investment professionals. |
Professional money management |
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_______ pool money from you and other investors to buy securities stocks bonds and other investment vehicles that are publicly traded in financial markets around the world. |
Mutual fund |
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It may help protect you from market highs and lows because you are not too heavily invested in one company or industry. |
Diversification |
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It is when fund managers sell securities owned by the fund at a profit |
Capital gain distributions |
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Shareholders may receive ______ when companies the fund receives other investment income |
Dividends |
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Within a fund company, you can generally move portions of your investment into other funds with different objectives as your financial situation changes with no additional sales charge. |
Exchange privileges |
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It refers to higher returns on investment (potentially higher risk) |
Aggressive Funds |
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2 types of fund investment objectives |
Conservative Funds Aggressive Funds |
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Invest in securities such as treasury bills and certificates of deposits that mature in about one year or less. |
Money market funds |
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Invest primarily in shares of philippine or foreign company stocks and some even focus on companies within a specific industry or sector. |
Stock or equity funds |
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Spreading your mutual fund investments across different asset classes such as stocks bonds and money market funds. |
Asset allocation |
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T or F Your financial advisor cannot help you decide how much or how little risk is appropriate for your situation |
F |
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T or F Professional money management may help protect you from market highs and lows because you are not too heavily invested in one company or industry |
F |
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T or F Your money is readily accessible because mutual funds are a non liquid assets |
F |
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T or F All mutual funds carry a certain amount of risk including the possible loss of your investment |
T |
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They are typically designed to protect principle and provide income through regular dividend payments |
Bond funds |
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They are considered to have minimal risk and their returns are typically just a little bit higher than those of savings accounts. |
Money market funds |
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T or F Generally, the longer it is until you need your money the more risk you can afford to take. |
T |
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T of F Investment in money market funds are not insured or guaranteed by the philippine deposit insurance corporation or any other government agency. |
T |
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This is strategy is an important part of investing because it helps balance the risk and return of your portfolio to meet your financial goals. |
Asset allocation |
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T or F An experienced advisor can keep you focused on the long-term |
T |
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T or F It is only human for investors to become distracted by short-term events or market trends |
T |
