1. Comment on this statement: “A great time to invest is during times of economic turmoil when assets are undervalued.”
2. Review the three objectives of mutual funds. Based on your investment philosophy, which one type of fund would be of most interest to you if you were saving to buy a home several years from now? Give reasons why.
3. Two Funds. Assume you graduated from college a few years ago, have a job paying $75,000 annually, and want to invest $300 per month in mutual funds for retirement. Which combination of two or more mutual funds, would you think appropriate? Give reasons for each of your selections.
4. Assume that your uncle gave you $50,000 to invest solely in mutual funds. Based on your point in the life cycle and your investment philosophy, identify your investment goals and explain how you would spread your money among different funds.
5. Identify the types of mutual funds that would be good choices to meet the following four investment objectives: emergency fund, house down payment, college fund for 2-year-old child, and retirement fund for a 25-year-old. Give two reasons why each one of your recommendations would be appropriate.
6. Which is a better choice for you, load or no-load mutual funds? Give some reasons.
7. Review Table on the “Advantages of Investing in Mutual Funds” on page 457, and select two that would be important to you as an investor. Explain why.

  • CreatedNovember 26, 2014
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