Let's see if you remember some key ideas from the chapter.

 

Answer the following with a true or false.

Unit Investment Trust Funds (UITFs) are baskets of investments managed by professionals in a bank.

• True
• False

Money market funds are usually invested in cash assets and time deposits.

• True
• False

Bond funds are invested in government securities and stocks.

• True
• False

Equity funds invest in stocks and are recommended for investors who are comfortable with a higher level of risk.

• True
• False

Balanced funds hold a mix of stocks and bonds.

• True
• False

The NAVPU (Net Asset Value Per Unit) is basically the price of one unit of the fund.

• True
• False

Knowing a fund’s NAVPU when you invest will help you track your money’s growth over time.

• True
• False

You should understand your goals for investing, the risk you’re willing to take, the amount of time you want to stay invested, and the money that you’ll put in.

• True
• False

An investment’s past performance guarantees your future returns.

• True
• False

You don’t need to choose a fund that matches your needs and situation.

• True
• False