uestion 21 t yet answered Thed out of 20.00 (a) According to the Hong Kong Investment Funds Association, the gross retail sales of mutual funds in Hong Kong reached US$6,094.94 million in November 2019 (an increase in 28.6% compared with that in November 2018). This indicates that Hong Kong investors are keen on investing in mutual funds Justify the reasons for investing in mutual funds even if there is a wide variety of investment products available in Hong Kong (9 marks) Flag question (b) The following table shows the asset, liability and outstanding units of a fund Total Asset Value tock holdings Bond holdings S/Units $140,000,000 $120,000,000 $5,000,000 Cash Total Liabilities $7,000,000 Outstanding fund units 50,000,000 units Calculate the net asset value (NAV) per unit of the fund. (4 marks) If the initial purchase charge of the fund is 3%, calculate the ask price of this fund based on the NAV found in (b)0 above (2 marks) () Wnich type of funds, bond fund or derivative fund, is more suitable for an investor with a low-risk tolerance? Discuss (5 marks) uestion 21 t yet answered Thed out of 20.00 (a) According to the Hong Kong Investment Funds Association, the gross retail sales of mutual funds in Hong Kong reached US$6,094.94 million in November 2019 (an increase in 28.6% compared with that in November 2018). This indicates that Hong Kong investors are keen on investing in mutual funds Justify the reasons for investing in mutual funds even if there is a wide variety of investment products available in Hong Kong (9 marks) Flag question (b) The following table shows the asset, liability and outstanding units of a fund Total Asset Value tock holdings Bond holdings S/Units $140,000,000 $120,000,000 $5,000,000 Cash Total Liabilities $7,000,000 Outstanding fund units 50,000,000 units Calculate the net asset value (NAV) per unit of the fund. (4 marks) If the initial purchase charge of the fund is 3%, calculate the ask price of this fund based on the NAV found in (b)0 above (2 marks) () Wnich type of funds, bond fund or derivative fund, is more suitable for an investor with a low-risk tolerance? Discuss