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Question 14.4: What are investment products? What advantages might they bri...

What are investment products? What advantages might they bring to an institution choosing to offer these services?

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Investment products include stocks, bonds, mutual funds and other nondeposit services. The two most popular investment products offered include mutual funds and annuities. The potential advantages include generating considerable fee income which may be less sensitive to interest rate movements than traditional services such as loans and deposits. In addition, it is possible that it might add prestige and may help position the institution well for the future as more and more individuals start planning for retirement.

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