Question

Define the following categories and/or types of funds available to investors. Also, identify the investment objective the type of fund would satisfy (i.e.; long-term, income, price appreciation, aggressive, etc.). Index Funds A. B. Company Size-Large-Cap, Mid-Cap ,Small-Cap, Micro-Cap Investment Strategy-Value, Growth, Blend International Funds-World, Foreign, Country Specific, Emerging Market Sector Funds C. D. E. Bond Funds-Term, Municipal, Government, High Yield Money Market Funds F. G.

Answer 1

A. Index fund= index funds are those funds in which value of investment is decided by market index of that particular country .

B. Large cap means a corporate entity that have high market capitalization in terms of securities value.

Mid cap means securities of a company that provide average returns to investors with average risk.

Small cap means companies that provide low returns at the level of low risk.

C. Value= the term value refer the market value of securities of a particular company on the basis of market capitalization.

Growth means percentage increase in the value of a firm in terms of every segment of the industry.

D. Worlds funds are the funds which is transformed all over the world.

Foreign funds means raised from off shore in other currency.

Country specific funds means currency of that particular country.

emerging market means newly developed market.

E. sector funds means funds which is raised through specific route such as equity, FCCB, ADR, GDR, ECB,

G. money market funds are short term investment option that provide higher return at minimum level of risk in a short duration of time.