1. Capital Markets
Course 14

2. XIV. Investment Companies
Financial intermediaries that collect funds from individual investors and invest those funds in a potentially wide range of securities or other assets
Fund types, classified by investment policy:
Money market funds;
Equity funds;
Bond funds;
Balanced and income funds
Asset allocation funds
Index funds
Specialized sector funds

3. XIV. Investment Companies

4. XIV. Investment Companies
Types:
Unit investment trusts
Managed Investment Companies
- open end funds
- closed end funds
Commingled funds
Real Estate Investment Trusts (REITs)
Hedge funds
Mutual funds
Exchange-traded funds (ETFs)

5. XIV. Investment Companies

6. XIV. Investment Companies
Advantages:
Professional management
Record keeping and administration.
Diversification and divisibility
Lower transaction costs
Equal rights and obligations for investors
Continue issue and redemption for shares
Disadvantages:
Investors have no decision right for portfolio selection
Investment company managers can have a weak performance
Fees paid

7. Bibliografie
Anghelache G. (2004), Piaţa de capital. Caracteristici. Evoluţii. Tranzacţii, Editura Economică, Bucureşti
Bodie, Z., A. Kane, and A. J. Marcus (2007), Essentials of Investments, 6th edition, McGraw Hill International Edition