Invetment bearing securities their role
Investment securities examples
The TER includes the annual management fees that have been charged both the fee at benchmark and any performance component charged , VAT and other expenses like audit and trustee fees. Unit trusts are traded at ruling prices and can engage in borrowing and scrip lending. As suggested above, this should include not only looking at the fund returns but also the risk profile of the fund. Consequently, investors are advised to scratch deeper and interrogate the assets in such portfolios as these instruments may not be in the spirit of and may not be suited to most investors of money market funds. In addition, it should also be noted that these instruments are generally unlisted products and, as such, have different naming conventions between funds - which may be misleading and cause further confusion for investors. This is the risk that the fund is unable to meet its short-term financial demands due to an extremely large and unforeseen cash outflow, for example and is forced to sell an asset at a price that is less than its fair value. By definition, fixed-income securities are required to repay the original amount of the investment, known as the principal balance , in full at a specific date in the future or in increments spread out over the duration of the investment. Actual investor performance may differ as a result of the investment date, the date of reinvestment and dividend withholding tax. Since falling interest rates naturally reduce the yield on money market funds, whilst simultaneously putting upward pressure on inflation, investors are cautioned to be mindful of where the country is in the interest rate cycle and the effect that this would have on their investments. Unit trust prices are calculated on a net asset value basis, which is the total market value of all assets in the unit trust including any income accruals and less any permissible deductions from the unit trust, divided by the number of units in issue. Unit trusts may be closed to new investments at any time in order for them to be managed according to their mandates. Ten years passes quickly.
Consequently, instruments of a subordinate type offer a much higher return as a reward for the higher risk being taken. The TER includes the annual management fees that have been charged both the fee at benchmark and any performance component chargedVAT and other expenses like audit and trustee fees.
Since Fund returns are quoted after the deduction of these expenses, the TER and transaction costs should not be deducted again from published returns.
In addition, when making important investment decisions, investors are encouraged to consult with their investment advisors, who may be better equipped to help strike a balance between their financial needs and their risk appetite. By Melissa Horton Updated Sep 5, Fixed-income securities are commonly used to diversify an investor's portfolio, as they reduce the overall risk of an asset allocation or investment strategy weighted heavily in the stock market.
The Management Company does not provide any guarantee regarding the capital or the performance of its unit trusts.
Read more Fund Objective The investment objective of the Investment Solutions Superior Yield Unit Trust is to provide a return in excess of Money Market funds while maintaining a high degree of liquidity and capital preservation.
Note: There may be slight discrepancies in the totals due to rounding. However, we are not allowed to make recommendations.
based on 1 review