Mutual fund investment strategies

Mutual fund investment strategies

Mutual fund investment strategies

Finance

One way to diversify your portfolio is to invest in the mutual funds. A mutual fund
is a professionally managed type of collective investment that pools money from
many investors to buy stocks, bonds, short-term money market instruments, and/or
other securities.

Go surf the web and choose one to three mutual funds (stock funds only) to buy into
with some of your imaginary $894,000. You should invest at least $100,000 in mutual
funds. In order to get the necessary money to buy mutual funds you might want to
sell some of the securities in your portfolio. You must do so at the market price
at the closing day of your imaginary transactions.

1) Which mutual fund or funds did you choose, and why? Please include a discussion
about your choice of active or passive funds.

2) How much did you spend, including transaction fees?

3) Prepare and display a table showing the development of your initial $894,000
portfolio starting from Module 1 to its position at the end of Module 3.

4) Based on your analysis and findings, what would you recommend to other
investors? Would you recommend the mutual funds that you chose to other investors?
Why?