Reference no: EM133002125
Explain the structure, roles and operation of managed funds and identify factors that have influenced their rapid growth.
• Managed funds are a significant and growing sector of the financial markets due, in part, to deregulation, ageing populations, a more affluent population and more highly educated investors.
• The main types of managed funds are cash management trusts, public unit trusts, superannuation funds, statutory funds of life offices, common funds and friendly societies.
• Managed funds may be categorized by their investment risk profile, being capital stable funds, balanced growth funds or managed or capital growth funds
Question:
Managed funds are often categorized by the type of investments purchased by the fund. These include capital stable funds, balanced growth funds and managed capital growth funds. For each of these funds, discuss the types of investments the fund might accumulate and explain the purpose of the investment strategies.