Investment Activities

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Financial Activities

Activity: True or False

  1. In risk return trade-off, when risk goes up the return goes down. False
  2. The biggest difference between saving and investing is the amount of interest you earn from your money. True
  3. Investment does not come with risk and/or profit. False
  4. Savings can change its value over time if placed in a bank time deposit or equity investment. True
  5. Investments can make people suffer if not guided and done properly. True

Real Estate Assets

Real estate assets may include the following except for:

  • A. Land
  • B. House
  • C. Car
  • D. Lot

Investment Facts

Which is not true about investments?

  • A. It can make your money grow.
  • B. Investments generate positive or negative income.
  • C. It turns money to real property.
  • D. Investments always give you good returns.

Fixed Income and Equities (Stocks)

Which among the following is an advantage of the fixed income and equities called stocks?

  • A. Riskiest of all assets that has a possibility of losing more than 50% of their money in one day.
  • B. Lower interest income
  • C. No guaranteed returns
  • D. Unlimited upside

Bank Deposits

This includes savings account, current accounts, and others that took place in banks.

  • A. Bank Deposits
  • B. Creditors
  • C. Bonds
  • D. UITF

Currencies

Which is true about currencies?

  • A. Generally Accepted form of money.
  • B. Includes coins, paper notes.
  • C. May include USD, PHP, and other.
  • D. All of the above

Activity: Mutual Funds and UITF

Mutual Funds give small investors access to professionally managed, diversified portfolios of equities, bonds, and other securities, which would be quite difficult to create with a small amount of capital.

Management Fees are required in mutual funds. These are the amount that clients pay to the professionals who manage their mutual funds, normally a certain percentage of portfolio value.

Those who are investing in mutual funds also receive dividends from the company every year. Dividends are income given to the shareholders from the company.

Unit Investment Trust Fund (UITF) is similar to mutual funds, except it is controlled by banks. Clients or investors can choose their preferred bank to open a trust fund account.

Additionally, there is no management fee when opening a UITF account. Unlike mutual funds, UITF holders do not receive dividends as there are no shareholder rights.

Additional Activities

  1. Circulated globally and is the most liquid among other assets:
    • A. cryptocurrencies
    • B. currencies
    • C. real estate
    • D. commodities
  2. Includes land improvements and other real properties:
    • A. commodities
    • B. currencies
    • C. insurance
    • D. real estate

Quick Definitions

  • Crypto currencies - Powered by blockchain technology.
  • Mutual funds - Dividends are given to holders at the end of the year.
  • Bonds - Units of corporate debts.
  • Commodities - Includes gold, oil, and other base metals.
  • Real Estates - Includes land improvements and other real properties.
  • Insurance - On some traditional plans, no sickness/death until a certain age may mean not getting any benefits at all.
  • Currencies - Circulated globally and is the most liquid among other assets.
  • Stocks - Signifies ownership in a corporation.
  • Bank deposits - Money placed into a banking institution for safekeeping.
  • UITF - Offered by banks.

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