IFSE - CIFC - Unit 6 exam solved 100%

IFSE - CIFC - Unit 6 exam solved 100% Where and when was the first mutual fund created? -Correct Answer-Netherlands late 1700s After the Netherlands, to which countries did mutual funds spread? -Correct Answer-England, France, USA (1800s) When was the first open-end mutual fund created in the USA? -Correct Answer-1924 When was the first Canadian mutual fund established (CI Canadian Investment Fund)? -Correct Answer-1932 Which years in mutual fund history had huge economic downturns? -Correct Answer-2002 and 2008 Closed-end Mutual Fund -Correct Answer-Fund with a set number of shares to be issued until more units are authorized and produced. Organized through an IPO. Does NOT reflect underlying NAVPU as it is subject to market conditions of supply and demand. May be listed on the stock exchange Open-end Mutual Fund -Correct Answer-A fund for which the supply of shares is not fixed but can increase or decrease daily with purchases and redemptions of shares. Because these funds are bought and sold through the investment fund manager, price always reflects NAVPU The 5 benefits of mutual funds -Correct Answer-1. Liquidity 2. Professional management 3. Diversification 4. Low cost 5. Convenience 5 major types of mutual funds -Correct Answer-1. Money market funds 2. Fixed income funds (mortgage and bond) 3. Balanced funds 4. Equity fund