5. (a) Mutual funds are not a different category of investments. Instead, they are a way of holding investments such as stocks and bonds. They pool your money with that of other investors and invest it in stocks, bonds, and various short-term securities. Explain the motivation that attracts investors to invest in Mutual funds.

(16 marks)

(b) You purchased 1,000 units of Donut growth fund for RM12.20 per unit for a total investment of RM12,200. During the next 12 months, you received income dividends of RM0.20 per unit and a capital gain distribution of RM0.30. You sold your investment at the end of 12 months for RM13.30 per unit. You are required to calculate the total return in amount and percentage. (4 marks)