Question 3 The second-largest kind of intermediaries in the financial systems after banks are funds, sometimes referred to as investment companies or the asset management industry. (a) Distinguish and describe briefly five (5) types of funds. (5 marks) Consider five different types of investors: 1. 2. 3. An accredited investor looking to beat the market returns without prescribed constraints. A pension fund planning to hedge its long-term liabilities with safe fixed- income assets. A corporate placing its excess cash for 2 months at better rates than a bank account. A young investor with long-term return objectives and comfortable to take some risk. A fund looking to diversify from traditional assets and get exposure to tech start- ups. 4. 5. SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 4 of 5 FIN306 Tutor-Marked Assignment (b) Discuss an adequate mutual fund investment style for each of the above investors. (10 marks) Question 3 The second-largest kind of intermediaries in the financial systems after banks are funds, sometimes referred to as investment companies or the asset management industry. (a) Distinguish and describe briefly five (5) types of funds. (5 marks) Consider five different types of investors: 1. 2. 3. An accredited investor looking to beat the market returns without prescribed constraints. A pension fund planning to hedge its long-term liabilities with safe fixed- income assets. A corporate placing its excess cash for 2 months at better rates than a bank account. A young investor with long-term return objectives and comfortable to take some risk. A fund looking to diversify from traditional assets and get exposure to tech start- ups. 4. 5. SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 4 of 5 FIN306 Tutor-Marked Assignment (b) Discuss an adequate mutual fund investment style for each of the above investors. (10 marks)