Answered: onclusion

Business

Finance

onclusion

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter15: Mutual And Exchange Traded Funds

Section: Chapter Questions

Problem 4LTAI

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Concept explainers

Emergency Fund

The emergency fund is an amount that is kept aside to meet financial emergencies such as medical expenses and debt settlements. Emergency funds reduce the burden on people during their hardships. People save small portions of their earnings or paychecks as emergency funds to meet financial emergencies. Emergency funds should be saved or invested in such a way that they must be easily liquidated during emergencies. The main purpose of an emergency fund is its availability when required.

Question

Situation: I want to invest my 5 million pesos in Mutual funds.

Discuss the following:
A. Security of Money
B. Returns on investment
C. Risks involved
D. Impact to government and society

Conclusion of Letter A. to D.

Formula Formula ROI (%) = Net Income Principal Amount × 100

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