Understanding Funds for Investment

What are the important fees or charges to be considered before investing?

• Initial fee / sales charges

• Annual management fee

• Trustee fee

• Switching fee

• Redemption fee

Answer explanation

All answers are correct.

What are the tools used to evaluate the fund performance?

• Historical performance data

• Sharpe Ratio – calculate the risk vs return                                                                                      

Answer explanation

All answers are correct.

What are the liquidity types to be considered before investing?

• Easy to sell

• Easy for switching

• Easy to top up

Answer explanation

All answers are correct.

Fund growths factors are...

• Fund risk profile

• Fund categories

• Investment strategies

• Asset allocation

• Fund exposures

Answer explanation

All answers are correct.

Before choosing the right fund, the time elements vs the fund risk profiles is important for consideration.

• Short term horizon - low risk fund

• Long term horizon - high risk fund

• Short term - low and high risk fund

• Long term - low risk fund

Answer explanation

Low risk fund is suitable for short term investors.

High risk fund is suitable for long term investors.

It is important to choose the right fund for different set of financial goals.

• Achieve Capital growth

• Achieve regular income

• Achieve both capital growth and regular income

• Achieve capital preservation

Answer explanation

All answers are correct.