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Unit 34 - Investment Opportunities and Financial Planning
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BTEC LEVEL 2 Unit 34 - Investment Opportunities and Financial Planning INCLUDES P3 P4 M2 D2, GRADED D*
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Unit 34: Investment Opportunities &Financial Planning ASSIGNMENT 2
, P3: Research the main features of a range of collective investment products.
Open ended investment
The open-ended investment company (OEIC), which is headquartered in the United Kingdom, is a form of
investment vehicle that invests in stocks in addition to other types of assets. The shares of the company are
listed on the London Stock Exchange (LSE), and the price of each share is mostly determined by the fund's
underlying assets. Consequently, the price of the shares varies significantly. These funds are able to
combine a wide variety of investing techniques, including profit and return, small and big cap, as well as
other strategies, and they may modify their investment criterion and fund size on a regular basis.
Unit trusts
A unit trust is established in conformity with the laws governing trusts. A trustee is responsible for
protecting the assets of the fund and ensuring that the fund management is operating in the best interests
of the beneficiaries. A fund manager is responsible for ensuring that the money is invested in accordance
with the objectives of the fund. In order to participate in the fund's distributions as a beneficiary, each
investor must first purchase at least one unit of the fund. An investor who decides they want to put their
money elsewhere can sell their units, and in most cases, they will be able to name a beneficiary who will
take ownership of their units after they pass away. The underlying value of the assets, also known as the
Net Asset Value (NAV), is used to determine the price of each unit. This value is derived on a daily basis
using an average. A unit trust lasts forever, in contrast to a traditional investment trust. The value of the
fund will go up and down depending on whether investors are purchasing or selling units. The trust is able
to generate income because its assets, which include corporate stock, bonds, real estate funds, and other
investments, yield a high rate of return on their respective investments. You usually have the option to
receive returns on a quarterly or semiannual basis as either revenue or growth, and you may choose how
the money is distributed to you. Keep in mind that gains are not guaranteed, and that you could end up
with a loss instead. If you decide to go with this option, the fund will give you with an ongoing income that
is derived from dividends.
Exchange trade funds
A fee structure is a graphic or list that illustrates the costs for various services or activities supplied by an
organisation. Examples of fee structures include membership dues and membership dues for special
events. Customers and clients are better prepared for interactions with a particular company when they are
informed about the pricing structure of the company. Prospective customers of a firm should always study
its price structure to see whether or not it satisfies their requirements before engaging in business with
that company. There are three different price systems, including the regular one, the flat one, and the free
one.
Fee structure
A fee structure is a graphic or list that illustrates the costs for various services or activities supplied by an
organisation. Examples of fee structures include membership dues and membership dues for special
events. Customers and clients are better prepared for interactions with a particular company when they are
informed about the pricing structure of the company. Prospective customers of a firm should always study
its price structure to see whether or not it satisfies their requirements before engaging in business with
that company. There are three different price systems, including the regular one, the flat one, and the free
one.
Exchange trade funds
Exchange-traded funds, often known as ETFs, are a type of financial vehicle that operates similarly to
mutual funds in that its assets are pooled. ETFs often follow a particular benchmark, market, resource, or
commodity; however, in contrast to mutual funds, ETFs may be bought and sold on a stock exchange in the
same way that regular stocks can be traded. This makes ETFs a more liquid investment option. An
exchange-traded fund, often known as an ETF, can be designed to follow the price of a particular
commodity, as well as the prices of a large and varied group of commodities. ETFs might potentially be
designed to follow particular investing strategies if the investor so chooses. Market-traded funds, or ETFs,
get their name from the fact that, similar to stocks, they may be bought and sold on a stock exchange. The
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