How are internal unit linked funds different from regular unit-linked funds?

Discussion in 'SP2' started by Phani Vasantarao, Aug 2, 2018.

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  1. Phani Vasantarao

    Phani Vasantarao Very Active Member

    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
     
    Phani Vasantarao, Aug 2, 2018
    #1
  2. Mark Willder

    Mark Willder ActEd Tutor Staff Member

    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
     
    Mark Willder, Aug 3, 2018
    #2
    Phani Vasantarao likes this.
  3. Phani Vasantarao

    Phani Vasantarao Very Active Member

    Thank you Mark for the quick and easy explanation! You should ask them to put *this* in the core reading :)
     
    Phani Vasantarao, Aug 4, 2018
    #3

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