Question

1.6 Read the scenario below and answer the questions that follow:

Pearl inherited hudred thousand rands from her late uncle. She choose an investment which is managed by a fund manager who buys shares on the stock exchange/JSE

1.6.1 Name the form of investment chosen by Pearl.
1.6.2 Discuss the disadvantages of the form of investment mentioned in QUESTION 1.6.1​

Answer 1

Answer:

1.6.1 unit trusts

1.6.2 -share price may fluctuate

-unit trusts are not allowed to borrow,

therefore reducing potential returns

-not good for people who want to invest for

a short period.

-Not good for people who want avoid risks at

all costs