Mutual Fund Assignment
Mutual Fund Assignment
Mutual Fund Assignment Bring to Class to Discuss
Build a portfolio of 4 different mutual funds for yourself based on your individual risk tolerance profile Get and record your risk profile step 1.
Create an Investment policy statement for yourself based on your risk profile with a target rate of return step 2
Design an appropriate asset allocation (assets and weights) for your mutual fund portfolio Step 3
Choose appropriate mutual funds for your portfolio step 4; 2 tools that you can use: Morningstar (sign up for a free trial account) go to http://www.morningstar.com/ Another great tool is Portfolio Visualizer – a great site Use the Asset Analytics fund screener tool https://www.portfoliovisualizer.com/fund-screener. You can also back test your portfolio and run a Monte Carlo simulation – which will be required for your final project retirement plan. Make sure to consider fees and expense ratio as part of the assignment – breakdown and list the total annual cost of your portfolio.
Research your funds using the web and sites like Morningstar or Yahoo Finance. step 5
Go to the fund’s website and review the fund’s objective, fee schedule and other relevant information from the prospectus.What are the total fees. What is a No Load?
As part of your assignment, after determining your funds. Read the fund managers’ most recent letters to shareholders or commentary to get an understanding of their strategy and outlook for the market. How has COVID 19 affected the funds and manager outlooks? What worked in the quarter for them and what are their market views for the near term. You will be expected to report back to the class. Example – Check out Oakmark funds Bill Nygen – Bill is one of my favorite value oriented mutual fund managers.
What criteria did you use to determine your funds?
Using Portfolio Analyzer – back test your portfolio for 5 and 10 years and compare your performance to the S & P 500
Using Portfolio Analyzer Perform a Monte Carlo Simulation to determine the likelihood of reaching your retirement goals (For your Final Projects) Not now
Go to Holdings to determine the current sector weightings and top 10 holdings. What are their top 10 Holdings (list) and % of total portfolio. Determine what changes the fund has made recently (additions to positions, new positions, sales or liquidations, etc)?
The goal of this assignment is to get a basic understanding of how to find and select mutual funds for investment purposes. And also, to expose you to an excellent resource for formulating your views on the investment markets plus give you some exposure to one place where you might get investment ideas for your stock portfolios and our game. Please come prepared with homework completed and prepared to discuss your assignment and what you have learned. This assignment will weigh heavily in determining part of your class participation grade.