1. Dr. Pizza de Vegetarian wishes to invest in the Targa Fund, which has performed well over five years. You arrange an appointment with them. Dr. Pizza is worried about the future risk and volatility of share returns in the fund. Assume that the fund requires a minimum investment of$1 000 and an ongoing fee of 3.1%. 
2. 
   
3. Given the below information, how would you advise DrPizza about this investment and what he should monitor if he were to invest in this fund?

 

Transcribed Image Text:

Fund Targa Fund S&P/ASX 200 Accumulation Index Top 10 Stocks BHP Billiton (BHP) Rio Tinto (RIO) ANZ Bank (ANZ) ASX Limited (ASX) 5.87 Commonwealth Bank (CBA) 5.15 QBE Insurance Group (QBE) 4.56 Wesfarmers (WES) 4.04 CSL (CSL) AGL (AGK) Telstra % 16.64 Financial services 10.30 Materials 3.78 1 Yr % p.a. 3 Yr % p.a. 5 Yr % p.a. 39.0 32.6 31.2 23.7 23.4 21.3 6.57 Industrials 3.59 Sectors the Fund is invested in % 31 3.35 Healthcare Consumer discretionary Consumer staples Cash Energy IT Telecommunications 28 9 9 7 LO 5 4 3 2 2 Fund Targa Fund S&P/ASX 200 Accumulation Index Top 10 Stocks BHP Billiton (BHP) Rio Tinto (RIO) ANZ Bank (ANZ) ASX Limited (ASX) 5.87 Commonwealth Bank (CBA) 5.15 QBE Insurance Group (QBE) 4.56 Wesfarmers (WES) 4.04 CSL (CSL) AGL (AGK) Telstra % 16.64 Financial services 10.30 Materials 3.78 1 Yr % p.a. 3 Yr % p.a. 5 Yr % p.a. 39.0 32.6 31.2 23.7 23.4 21.3 6.57 Industrials 3.59 Sectors the Fund is invested in % 31 3.35 Healthcare Consumer discretionary Consumer staples Cash Energy IT Telecommunications 28 9 9 7 LO 5 4 3 2 2

Answer rating: 100% (QA)

I understand that you are interested in investing in the Targa Fund I have reviewed the information ... View the full answer