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Discuss the difference between balanced fund, growth funds and aggressive funds. Suport your answer with example
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- What are the advantages of evaluating fund performance based on Internal Rate of Return (IRR)? Why would an investor prefer to evaluate a fund based on a cash-on-cash return?Explain the concept of immunization within a portfolio management context. How can immunization be achieved for a fixed income strategy? What type of fund would typically employ immunization techniques? Further, can you employ immunization for asset only funds, and if so, how is this different to asset and liability types of funds? Carefully justify your answers.Define Money market fund
- Q3: What is the main objective of Balanced Unit Trust Fund? Q4: What is the main disadvantage of Index Fund?What's the difference between the two analysis approach used by a portfolio manager in determining the fund allocation for a client portfolio?Explain the following with one suitable example/scenario. 1) SINKING FUND 2) INDEXATION 3) ESCALATION