question archive Which of the following statement regarding the unlisted managed funds is correct? Select one: a
Which of the following statement regarding the unlisted managed funds is correct? Select one: a
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Which of the following statement regarding the unlisted managed funds is correct?
Select one:
a. There can be a large discrepancy between the net asset value and the redemption price of the unit.
b. Units can be bought and sold directly between investors on stock exchanges.
c. A large number of redemptions occurring at the same time could lead managers of those funds to liquidate fund investments in a fire sale.
d. These funds are particularly suitable for investments that require long-term capital commitment.
e. All the statements are correct.
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Unlisted Managed Funds:
1. Less Liquidity
2. Low Volatility
3. Difference between the NAV and redemption value due to the reason that, we have to submit a request for redemption and it may takes time and NAV changes.
4. More suitable for long term investors.
5. Can be bought and sold directly between investors.
So the answer is e. All the statements are correct.
