Unit Trust

What is a unit trust?

• A pooled investment managed by professionals for diversification

• An investment scheme that requires high minimum investment

• A government bond that guarantees returns

• A type of savings account with fixed interest rates

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

"Unit trusts are very cheap and the cost is low". This statement refers to the advantages of unit trust. Which of the advantage that this statement refers to?

• Diversification

• Liquidity

• Affordability

• Professional fund manager

Unit trusts provide possibility to diversify the money around to many asset classes at the same time. This statement refers to advantage of unit trust that are

• Wholesale investment cost

• The comfort of regulations

• Investment exposure

• Professional fund management

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

Number of units outstanding in Closed Ended unit trust fund is limited

• True

• False

Which of the following is NOT the elements in Open-Ended Fund?

• Number of units outstanding is unlimited

• The units is not traded in stock exchange

• The value is based on Net Asset Value

• The units is publicly traded in stock exchange