Page 26 - FINAL CFA I SLIDES JUNE 2019 DAY 11

Session Unit 12:
Types of mutual funds, p.106 39. Portfolio Management: An Overview

Money Bond mutual funds Stock mutual funds

market funds

Nature of • Short-term • Fixed income – • Equity/shares
securities debt differentiated by bond
maturities: (gov’t bods
funds, tax-exempt bond
funds, global bond
funds.
tanties
Examples of • Treasury • Gov’t bods funds, • Passively managed (Index) funds –

securities or bills, IOUs • tax-exempt bond funds, portfolio constructed to match a given
types • global bond funds. index, hence the name index funds.
• Actively managed funds –portfolio

constructed to exceed a given benchmark
index (higher management fees, higher
turnover of portfolio securities and
greater tax liabilities)

Type of • Interest • Interest + capital gains • Dividends + capital gains
income

Risk profile • Low risk • Medium risk • High risk