1. Assume you are an investment advisor. Your client is unsure what the main benefits and reasons for investing in a Mutual Fund or an ETFs are
o Explain the main differences and similarities between each other o Explain what the main advantage and disadvantage of investing in mutual funds or ETFs are
o Explain the main difference between active and passive management
2. Go to o What information does the Morningstar Style Box provide?
o Morningstar assigns a Rating to each Mutual Fund. What are the criteria they use to assign this rating?
o Use the information provided above (style box and ratings) to choose 5 different mutual funds/ETFs (5 funds/ETFs per each portfolio) to prepare 3 portfolios for 3 different types of investors:
1. Aggressive
2. Moderate
3. Conservative
o In half a page for each portfolio, explain:
1. The rationale behind choosing the given funds/ETFs per each
portfolio
2. The criteria chosen to build each portfolio
3. Follow up the prices for all 3 portfolios for a week. Calculate the return for each portfolio at the end of the week.
Explain your results.
Format
This activity must meet the following formatting requirements:
Main document please uploaded in pdf format.
It is mandatory to submit an EXCEL file where you explain the different calculations you made.
To that effect, please find 2 tabs in Turnitin submission point.
Calculation results HAVE TO be explained and the calculation steps displayed.
Font size 12
Double-spaced
Harvard Referencing System
Due date
Date: 7th May 2021 at 14.00h CEST
Weight towards final grade
This activity has a weight of 60% towards the final grade. 6
The aim is that the student understands the advantages of mutual funds and how they can be tailored to meet the investors risks profile.
Assessment
criteria
See the rubric on the next page.
