Essays on Mutual Fund

INVESTING IN THE FUTURE

Question 1: Discuss the role of investing in personal financial planning. It has been gathered from the case that Sam Johnson is a hard working guy and he has defined some financial goals for himself. He is about forty years of age, enjoys a great job and ensures that he pays his bill on time. He plans to retire at the age of sixty and he wishes to have enough savings so that he could send his young kids to college when they grow up. In order to ensure that he has ample amount in his savings before retirement, ...

Virtual money of $100,000 was invested in diversified stocks during the stock trading simulation. The portfolio consisted of stocks from twelve companies all belonging to different industries. An overall profit of 0.41% was achieved in one month through the virtual simulation exercise. Stocks of all the companies are either listed on the New York Stock Exchange or the NASDAQ. One hundred shares of General Electric Company were purchased on 4th April when the stock price was $31.69. These shares were sold on 7th April when the stock price decreased to $30.64. The stock of General Electric was sold ...

Essay Question: How different investor types impacts Market Efficiency

Individual investors When individuals talk regarding marketing efficiency, they simply refer to the degree to which the aggregate decisions of all participants in financial markets are accurately reflecting the value of companies and their shares at any given time (Allen and Gale, 2000, pp. 236-255). Therefore, it requires the determination of the intrinsic value of the company while providing a constant update to valuations because new information is becoming familiar. Consequently, the more a financial market becomes accurate, it will be able to price securities and the more efficient it is said to be. Thus the principle of the ...

Wall Street Journal Essays

Three authors of The Wall Street Journal wrote on 11 December 2015 an article titled "Worried about Your High-Yield Bond Fund? Devise an Exit Strategy", that article is a warning to all individual and corporative investors that have important positions in Mutual Funds with previous performances over 10% in 2014 and 2015. Those mutual funds represent a risk for the current investors that have positions in those high-yield bonds. Those bonds have positions in China and other emerging markets that are slowing their growth for 2016 and affront problems in cash flow and currency depreciation (Maxey, Krouse, and Zweig). ...

Vanguard Actively Managed Common Stock Fund

As actively managed stock funds can either outperform or underperform an index, fund or portfolio managers use a strategy to combine extensive market research with their experience and forecasting activities. One of the actively managed stock funds Vanguard has in its mutual fund family is known as “Vanguard Dividend Growth Fund”. This fund tends to invest in all those high-quality companies that pay growing dividend payments while this fund attempts to outperform the stock market index. From 2007 to 2009, this fund lost only forty two percent while the overall stock market lost fifty five percent due to plunge ...

Abstract

Before making any decision on the choice of an investment plan, it is very important that the individual carries out an intensive evaluation on the available investment options. Real estate is a very significant part of investment portfolio due to its numerous advantages and the les associated risks as compared to other forms of investments. As a Personal Retirement Plan, I opt for real estate. In this work, I have thoroughly investigated the theories and literature on real estate as an investment plan, and examined the both the benefits and the risks associated with such kind of an investment. There are ...