Understanding Unit Trust Investment

Which of the following is not a party in unit trust business

• Unit trust management company

• Investor/Unit Holder

• Agent

• Trustee

Which of the following is the return of investment from unit trust?

• Dividend

• Interest

• Capital appreciation

• All of the above

Unit Trust Management Company (UTMC) is responsible in running day to day operation for the fund

• True

• False

Which of the following is NOT disadvantages of investing in unit trust?

• Loss of control

• Diversification

• Hidden charges

• Opportunity costs

The major portion of its assets are generally held in common and preferred stock. This statement refers to which types of unit trust fund?

• Fixed Income Fund

• Money Market Fund

• Balanced Fund

• Equity Fund

Investment in low risk money market instruments such as short term deposits (loan) to bank and short term government securities. This type of fund is called

• Balanced Fund

• Money Market Fund

• Equity Fund

• Real Estate Investment Trust

Which of the following is the method of investing in unit trust?

• Lump-sum purchase

• Regular savings

• Borrowing

• All of the above

The price of unit trust is

• Net Book Value

• Net Asset Value

• Net Annual Value

• Present value

One of the advantages of investing in unit trust is the unit holder can enjoy diversification of various investment portfolio.

• True

• False

What are three types of fee charged by the unit trust management company to the investor?

• Annual charges

• Exit fees

• Initial service charge

• All of the above