Question

QUESTION 2

1. Which of the following is not an investment company?

   		a. Closed-end fund.
   		b. ETF.
   		c. UIT.
   		d. CMO.

Assets invested in mutual funds may be invested in equity, hybrid, fixed income, or money market funds. What percent of the total mutual fund assets is invested in equity mutual funds at the end of 2017?

		a. Between 20% and 40%.
		b. Between 40% and 60%.
		c. Between 60% and 80%.
		d. Over 80%.

Answer 1

Q2. a) Closed-end fund is an investment company whose shares are traded in the open market like a stock.Its basically a portfolio of pooled assets for raising capital through IPO.

b) ETF are Exchange traded investment product. They are listed on exchanges and ETF's share trade just like ordinary stock. Hence ETF is an investment company.

c) A UIT is also an investment company which offers a fixed portfolio as redeemable units to its buyers for a particular time period.

d) CMO or collateralized mortgage obligation is a type of Mortgage backed security (MBS) which generally contains a pool of mortgages bundled together and sold as an investment. CMO is not an investment company.

As per the statistics at the end of 2017, 20-40% of total mutual fund assets was invested in equity mutual funds.