Funding Week’s Investment Company of the Year Awards purpose to recognise and reward excellence in shut-ended fund administration. Most funds do use sound judgment in diversifying their portfolios, and the criticism that the funds merely purchase the averages” is seen as invalid, since a survey by the author of twenty funds indicated that every had a median of but eight of the thirty extensively-known shares comprising the Dow-Jones Industrial Common.
Third, it is evident that the open-end funding firm cannot attain good success of all of the targets said beneath, but makes obtainable probably the most enough combination of services for the person investor; that’s, it affords the bundle with the best complete amount of management, diversification, income, liquidity, and greenback appreciation.
The Board famous that, usually, funding companies have multiple investors, nevertheless, through the comment course of stakeholders offered numerous examples of funds with one investor (i.e. authorities funding funds and funding funds wholly owned by pension plans); therefore, the Board concluded that prohibiting an entity from being an investment company because it only has one investor is too restrictive.
In offering to the investor a higher diploma of diversification and more skilled management than he might in any other case acquire, investment firms present all kinds of fund varieties with diversified aims, from which the investor may select.