Page 71 - FINAL CFA SLIDES DECEMBER 2018 DAY 11
P. 71
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
tanties
funds.
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
