I am revising chapter 13 using flashcards, and I can't understand how are internal unit linked funds different from regular unit-linked funds? Can anyone please help? Thanks, Phani
Hello Phani For Subject ST2 we can assume that all unit funds are internal. So there isn't any difference between regular and internal unit-linked funds. In practice, an insurer may have several internal funds that it controls itself. It may also allow policyholders to invest in external funds that are managed by a different investment company. The insurer can then offer greater choice to the policyholder who can then choose a mixture of the insurer's own internal funds and external funds. Best wishes Mark
Thank you Mark for the quick and easy explanation! You should ask them to put *this* in the core reading