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WorksheetsUNIT TRUSTS
Total questions: 20
Worksheet time: 10mins
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
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 objectives related to the Exchange Traded Fund (ETF)
To maximize the return from class of equities
To achieve the same return as a particular market index
To provides alternative that satisfies Syariah requirements
To maximize investment returns from real estate industry
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
The price determination for the units in this fund is based on demand and supply in the market. This statement refers to which type of unit trusts fund?
Open Ended Fund
Closed Ended Fund
Which of the following is the method of investing in unit trust?
Lump-sum purchase
Regular savings
Borrowing
All of the above
Which type of investor is suitable in doing investment in unit trust?
Risk averse
Risk neutral/moderate
Risk taker
Which of the following is not the characteristics of unit trust?
Pooling money from investor that has same objectives
Invested capital will be diversified in various portfolio
All return received from the investment is fixed
The fund is manage by unit trust professional manager
The price of unit trust is
Net Book Value
Net Asset Value
Net Annual Value
Present value
How is the return on unit trust investment is decided?
By apportioning the return to the capital invested
By dividing the whole profit to the total distribution of the units available
By giving bonus to the investor
Each units gets different return
One of the advantages of investing in unit trust is the unit holder can enjoy diversification of various investment portfolio.
True
False
Which of the following is the distinguished features of unit trusts compared to other financial securities such as bond and stock
All return is fixed
There is no guaranteed return for the investment
It has maturity period
Management of fund is done by professional fund manager
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
