Question
d) Help Aunt Nelly understand the typical investment income received by various mutual fund types. Insert an X in the table where investment income applies.
d) Help Aunt Nelly understand the typical investment income received by various mutual fund types. Insert an X in the table where investment income applies. (2.75 marks) Typical income received by various mutual fund types Interest Canadian Dividends Capital gains Foreign income or other income Canadian money market mutual fund Canadian equities mutual fund U.S. equities mutual fund International equities mutual fund Balanced mutual fund e) Provide Aunt Nelly with five (5) advantages of investing in mutual funds. (1.25 marks) 1.___________________________________________________________________________2.___________________________________________________________________________3.___________________________________________________________________________ 4.___________________________________________________________________________ 5.___________________________________________________________________________ f) Provide Aunt Nelly with five (5) disadvantages of investing in mutual funds. (1.25 marks) 1.___________________________________________________________________________2.___________________________________________________________________________3.___________________________________________________________________________ 4.___________________________________________________________________________ 5.___________________________________________________________________________ g) Aunt Nelly has heard of Ethical funds but does not know what this is. Explain Ethical funds to Aunt Nelly. (.25 marks) __________________________________________________________________________________________________________________________________________________________ h) Explain to Aunt Nelly what Exchange-Traded Funds (ETFs) are. (.25 marks) __________________________________________________________________________________________________________________________________________________________ i) Provide Aunt Nelly with three (3) benefits that ETFs have that are similar to mutual funds? (.75 marks) 1.___________________________________________________________________________ 2.___________________________________________________________________________ 3.___________________________________________________________________________ j) Provide Aunt Nelly with three (3) differences between ETFs and mutual funds? (.75 marks) 1.___________________________________________________________________________ 2.___________________________________________________________________________ 3.___________________________________________________________________________ k) Explain to Aunt Nelly what Segregated Funds are. (.25 marks) __________________________________________________________________________________________________________________________________________________________ l) Provide Aunt Nelly with two (2) benefits of Segregated Funds. (.5 marks) 1.___________________________________________________________________________ 2._______________________________________________
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