Slide MGT312 Slide11
Investment on Mutual
Funds
Chapter 15
Net Asset Value
Gains
• Dividend gains
• Capital gains
Advantages
• Diversification.
• Affordability.
• Professional management.
• Liquidity.
• Low transaction costs.
• Uncomplicated investment choices.
Unique Services
• Convenience.
• Ease of buying and selling.
• Automatic reinvestment of gains.
• Automatic investment.
• Beneficiary designation.
• Multiple mechanism on withdrawing income.
Income Objective
• Money market funds.
• Bond funds.
▫ Short-term corporate bond funds (1 to 5 years).
▫ Short-term US Government bonds (1 to 5 years).
▫ Intermediate corporate bond funds (5 to 10
years).
▫ Intermediate US Government bond funds (5 to 10
years).
Funds
Chapter 15
Net Asset Value
Gains
• Dividend gains
• Capital gains
Advantages
• Diversification.
• Affordability.
• Professional management.
• Liquidity.
• Low transaction costs.
• Uncomplicated investment choices.
Unique Services
• Convenience.
• Ease of buying and selling.
• Automatic reinvestment of gains.
• Automatic investment.
• Beneficiary designation.
• Multiple mechanism on withdrawing income.
Income Objective
• Money market funds.
• Bond funds.
▫ Short-term corporate bond funds (1 to 5 years).
▫ Short-term US Government bonds (1 to 5 years).
▫ Intermediate corporate bond funds (5 to 10
years).
▫ Intermediate US Government bond funds (5 to 10
years).