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QUESTION 3 (20 MARKS) Alex is 25 years old and just graduated 2 years ago with Bachelor in Finance. He eagers to save his money

QUESTION 3 (20 MARKS)

Alex is 25 years old and just graduated 2 years ago with Bachelor in Finance. He eagers to save his money now and will invest in few securities for short-term and long-term. You as a Unit Trust agent in Publicly Mutual for 10 years which you have extensive and wide experiences in Unit Trust.

Required:

  1. Explain to Alex what is unit trust and what are the benefits he will gain if he invested in Unit Trust.

(12 marks)

  1. You have to make a comparison between the investment in the stock market and invest in unit trust in terms of risk, diversifications, capital etc.

(8 marks)

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