Question
Subject:- MANAGEMENT OF FINANCIAL INSTITUTIONS (MGT604) Mutual fund industry has displayed the tremendous growth during last year in spite of all the challenges including COVID
Subject:- MANAGEMENT OF FINANCIAL INSTITUTIONS (MGT604)
Mutual fund industry has displayed the tremendous growth during last year in spite of all the challenges including COVID 19 pandemic. Mutual funds collect the resources of small investors and in return sell them shares of the fund. Through the collected funds mutual fund companies buy diversified portfolios of securities. Benefit for small investors are twofold; 1st low transaction cost and 2nd reduced risk because of diversified portfolios.
For an investor, it is necessary to conduct detailed analysis before selection of any mutual fund. NBP Money Market Fund and UBL Money Market Fund are two money market funds. You are required to analyze both mutual funds and draw a decision that in which fund you will prefer to invest. Your decision must be on the basis of directions given below.
Briefly describe the conditions of each mutual fund in the light of following points;
1.Draw your investment objective.
2.Rating for each fund
3.Annual return of the fund (in %) for each fund for financial year 2018-19 and 2019-20
4. Net asset value per unit for last two financial years (for each fund)
5. Fee and associated costs for each fund
Note:-Solve these question and please explain in detail in such a way that i will get 10/10 marks.
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