In: Finance

- mutual funds and choose a fund in which you might like to invest.
- Identify this fund and explain why you are interested.
- Be sure to address such issues as
**past returns**,**expected future returns**, the amount of**fees and expenses**, and why its**investment objectives**are attractive to you.

Mirae Asset India Equity is one of the schemes which has met investors’ expectations consistently. The scheme is a good investment option because it invests in companies after careful consideration to financial performance, management bandwidth, corporate governance and return ratios. Its fund managers, Neelesh Surana and Harshad Borawake, have refrained from investing in companies which are momentum or short-term in nature. A few factors are borne in mind before selecting investments in companies. Companies should generate high cashflows, have pricing power in their sectors and their balance sheet should be relatively lighter than peers. This focus has paid off. In the past three- and fiveyear periods, the scheme has given 17% and 19% returns, while its benchmark index, S&P BSE200 TRI, has given 15% and 14% returns in the same period, respectively.

Period | CAGR Return (%) | SIP CAGR RETURN (%) | EQUITY MULTICAP AVG CAGR RETURN(%) |

1 | -2.62 | -1.50 | -7.93 |

3 | 17.33 | 15.90 | 13.21 |

5 | 18.92 | 14.74 | 15.76 |

This scheme has high exposure to large-sized companies. Multi-cap funds are suited for investors in volatile markets.To deal with volatility, investors must consider investing in multi-cap funds. The fund has been one of the finest performers in its category beating its benchmark index and peers consistently both in bearish and bullish phases

multi-cap funds are diversified equity funds that invest in stocks of companies with different market capitalizations. The investments are done in varying proportions to meet the investment objective of the fund. In the long run, multi-cap funds are usually better wealth creators than other categories of funds as they can take advantage of investment opportunities across the market. Further, returns from the multi-cap category are comparable to mid-cap category over the long term which comes with lesser volatility. If you have an exposure to multi-cap fund, you will have exposure to companies of different sizes and you will be reasonably diversified with simplicity.

You have $15,000 to invest in a mutual fund. You choose a fund
with a 3.5% front load, a 1.75% management fee, and a 0.5% 12b-1
fee. Assume that the management and 12b-1 fees are charged on
year-end assets for simplicity. The gross annual return on the
fund's shares was 12.50%. What was your net annual rate of return
to the nearest basis point?

You have found a mutual fund that you would like to invest in
that will earn 5% annually. If you invest $1000 each year for the
next 10 years, how much will you have at the end of those 10 years,
approximately?
$18,753
$10,000
$12,578
$1,628

You invest $1000 in a mutual fund. You expect that the fund will
earn a 8% return annually before expenses (~this is how much the
fund's assets go up). You have a choice between purchasing class A
mutual fund shares with a front-end load of 4% and no expenses or
class C mutual fund shares with no loads but a 1% 12b-1 fee. What
is your investment horizon if you are indifferent between these
two? (Round to the nearest whole...

Evaluate which fund structure (alternative mutual fund or hedge
fund) you would choose for FIM. Your answer should briefly describe
the advantages and disadvantages of each structure.

1. You are trying to make decisions on which mutual fund you
should invest in based on the past performance of two fund
managers. Manger A averaged a 17% return with a portfolio beta of
1.5, and manager B averaged a 15% return with a portfolio beta of
1.2. If the T-bill rate was 5% and the market return during the
period was 13%, which fund manager was the better stock picker?
A. Advisor A
was better because he generated a...

As a portfolio manager, you are considering three mutual funds:
a stock fund, a bond fund, and a money market bond that yields a
sure rate of
2.45 %.
Below is the information concerning the two risky funds: (Total 50
points)
Expected return
Standard deviation
Stock fund
0.22
0.56
Bond fund
0.06
0.25
The correlation between fund returns is
0.26 .
Find the weights of the minimum-variance
portfolio and calculate its expected return and its standard
deviation....

As a portfolio manager, you are considering three mutual funds:
a stock fund, a bond fund, and a money market bond that yields a
sure rate of
2.45 %.
Below is the information concerning the two risky funds: (Total 50
points)
Expected return
Standard deviation
Stock fund
0.22
0.56
Bond fund
0.06
0.25
The correlation between fund returns is
0.26 .
Find the weights of the minimum-variance
portfolio and calculate its expected return and its standard
deviation....

As a portfolio manager, you are considering three mutual funds:
a stock fund, a bond fund, and a money market bond that yields a
sure rate of
2.75 %. Below is the information
concerning the two risky funds: (Total 50 points)
Expected return
Standard deviation
Stock fund
0.28
0.43
Bond fund
0.06
0.11
The correlation between fund returns is
0.08 .
Find the weights of the minimum-variance
portfolio and calculate its expected return and its standard
deviation. Show...

Suppose that you invest $5,000 in a mutual fund at the end of
each year for the next 30 years. This period of time is your
planned holding period. You intend to leave these contributions and
any fund distributions earned in the account until the end of your
holding period. Your forecast rate of return on this mutual fund is
9% per year, compounded annually.What is the forecast value of your account at the end of your
holding period?Round your...

You do not need a lot of money to invest in a mutual fund.
However, if you decide to put some money into an investment, you
are usually advised to leave it in for (at least) several years.
Why? Because good years tend to cancel out bad years, giving you a
better overall return with less risk. To see what we mean, let's
use a 3-year moving average on the Calvert Social Balanced
Fund (a socially responsible fund).
Year
1...

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