You are required to construct an appropriate portfolio from your own selection of funds and to explain why you have chosen them.

You are a mutual fund manager for a successful investment company. You have been approached by a retail investor to create an investment portfolio of six funds with an initial capital outlay of $500,000. The investor, although risk averse, is aiming for a minimum return of 3.5% per annum.

Answer rating: 100% (QA)

As a mutual fund manager I understand the importance of creating a welldiversified portfolio that meets the investors risk tolerance and return expectations Based on the investors risk averse profile ... View the full answer