Mutual Fund Analysis

Assignment Requirements

 

HDFS 238 Personal Finance

Mutual Fund Analysis

Assignment Due: June 9, 2014

Part One: Mutual Fund Chart

In this assignment you will create a mini retirement portfolio. Out of the 6 outlined mutual

funds listed below pick 3 funds that you would like to have in your retirement portfolio. With

the 3 funds you select you will complete the mutual fund comparison chart and gather the

appropriate data (see the sample chart on page 2 for data categories).

1. Vanguard 500 Index Fund Admiral Shares (VFIAX)

2. Vanguard Total World Stock Index Fund Investor Shares (VTWSX)

3. Fidelity Michigan Municipal Income Fund (FMHTX)

4. Fidelity Spartan Long-Term Treasury Bond Index Fund Investor Class (FLBIX)

5. American Funds Income Fund of America Class A (AMECX)

6. American Funds AMCAP A (AMCPX)

• You can collect the data for the chart from any source. However, the source of the data

must be documented.

o Options for documentation are: the prospectus of the mutual fund, Yahoo

Finance, Google Finance, Morningstar, etc. You must ATTACH a copy and/or a

link to the source of your documentation with the assignment.

• Your chart should follow the format of the sample chart.

• All applicable data should be present.

• You must choose 3 of the above funds for this assignment. Failure to follow these

guidelines will result in the loss of credit.

Part Two: Analysis & Reflection

After completing the mutual fund chart, respond to the following questions in 1-2 paragraphs

each:

1) What factors went in to your decision to pick these particular funds for your portfolio? Make

a case defending your choices. Specifically and clearly document the reasons why you made

those choices.

2) In bullet point form, list one strength and one weakness of each of the three funds you

researched. For each strength and weakness you identify, be sure to specifically explain your

reasoning to support WHY you think it is a strength or a weakness.

3) Explain, in your own words, the following: (a) the benefits of retirement planning, (b) the

importance of starting to invest early, and (c) utilizing mutual funds when investing for your

goals (short, intermediate, or long-term).

2

Sample Chart

Family

Name;

MutualFund

Name;

Symbol;

Data    Citation

Objective         of

the       Fund

NAV

(price)

What   Type    of

Fund?  (e.g.

income,            index,

growth,

international)

If         Index,  specify

the       specific

Index   it

follows?

Load    (if        Load

–          specifywhat

kind     and      at

what

percentage)

Expense

Ratio

Return(label

YTD,   3yr,      etc.)

SAMPLE

Fidelity;

Spartan            500

Index;

FUSEX;

Google

Finance

Provide

investment

results  that

correspond      to

the       total     return

performance    of

common

$41.92 Index;

80%     of         assets

are       stocks

included          in         the

S&P     500.

No       load     0.10% +3.84%YTD

SAMPLE

American

Funds;

Capital

World

Growth            and

Income            Fund;

CWGIX;

Yahoo

Finance

The      investment

seeks    longterm          growthof

capital  while

providing

current

$34.39 Growth/Income

Fund

5.75%  Front

End     Load

0.79%  11.21%YTD

SAMPLE

Vanguard;

Life     strategy

Income;

VASIX

vanguard.com

The      Income

Fund    is          the

most

conservative

and      seeks    to

provide

currentincome

and      some

capital

$14.41 Income           Fund    No      Load    0.13% 2.45%YTD

* The NAV (price) of the mutual fund and returns listed are for example only.

3

HDFS 238 Personal Finance

Rubric for Mutual Fund Analysis

DUE: June 9, 2014

Scoring Rubric: (Total Points Possible: 20 points)

Part One: Mutual Fund Chart

Requirement   Points Possible

Family Name, Mutual Fund Name, Symbol 3 points

Objective of the Fund 1 point

NAV (Price) 1 point

Type of Fund (e.g. index, income, growth) 1 point

If Index, specify the name of the specific

index

1 point (index fund only)

Load 1 point

Expense Ratio 1 point

Return 1 point

Cite the source of where you found the

fund information AND attach a copy

and/or link of the source to the assignment

1 point

Part Two: Analysis & Reflection

Requirement   Points Possible

What factors went in to your decision to

pick these particular funds for your

portfolio? Make a case defending your

choices. Specifically and clearly document

the reasons why you made those choices.

(3 points)

3 points

In bullet point form, list one strength and

one weakness of each of the three funds

you researched. For each strength and

weakness you identify, be sure to

specifically explain your reasoning to

support WHY you think it is a strength or a

weakness. (3 points)

3 points

Explain, in your own words, the following:

(a) the benefits of retirement planning, (b)

the importance of starting to invest early

and (c) utilizing mutual funds when

investing for your goals (short,

intermediate, or long-term). (1 point for

each question)

 

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