What are the design flaws of a mutual fund?

What will be an ideal response?

One design flawis that trades for mutual funds cannot always be made at intraday prices, but only at closing prices. Another flaw is that there can be unfavorable tax consequences arising from the redemption of shares.There is also the flaw that redemption of shares can force managers to sell securities if the cash position is not sufficient to fund the redemptions. An additionalflaw is that historically mutual fund have high expenses ratios. An exception to the latter high expense involves wealthy investors who can circumvent the high overall fees by not paying upfront costs.

Business

You might also like to view...

Megan Price is learning how to operate a new computer system as part of her job. The new system requires extensive data input, which is a problem for Megan, who does not know how to type

The introduction of the computer system will MOST LIKELY produce stress for Megan because she ________. A) has the traits of an extravert B) scores high on openness to experience C) ranks low on negative affectivity D) lacks the abilities needed

Business

Define design objects (classes)

What will be an ideal response?

Business