Long Term Funds

The most important index funds are sp 500 funds ii

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Unformatted text preview: index i. The most important index funds are S&P 500 funds ii. These funds are passively managed, trading only occurs to match the S&P 500 b. Social conscience funds-they invest only in companies whose products, policies, or politics are viewed as socially desirable i. The social objectives range from environmental issues to personnel policies ii. The Parnassus fund is a well known example, avoiding the alcoholic beverage, tobacco, gambling, weapons, and nuclear power industries c. Tax- managed funds- generally managed without regard for the tax liabilities of fund owners. Managers are rewarded on pretax returns 5. Taxable and Municipal Bond Funds- 5 characteristics distinguish bond funds: a. Maturity range- they can range from 2 years to 30 years b. Credit quality- some bonds are much safer than others c. Taxability-municipal bond funds buy only bonds that are free from federal income tax d. Type of bond- some fund specialize in particular types of fixed income instruments suc...
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This note was uploaded on 07/22/2013 for the course FIN 331 taught by Professor Pinto,k during the Fall '08 term at N. Arizona.

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