Verified Document

Active And Passive Mutual Funds Essay

Related Topics:

1. Which mutual fund or funds did you choose, and why? Please include a discussion about your choice of active or passive fundsThe mutual funds that I selected include Fidelity Total Bond, Vanguard Health Care, and Dodge & Cox Stock. These three mutual funds are suitable investment opportunities for generating strong returns for the investor. I selected the Vanguard Health Care Fund because it is an active fund that favors safer portfolio of stocks. In particular, the fund fundamentally invests in medium and large capitalization stocks within the international healthcare industry. In addition, the fees are specifically low despite the fact that it is actively managed. The fund purposes to maintain the fees and expenses to be considerably low, in spite of the fact that funds that are actively managed have greater operating costs as compared to passive funds. Most of all, in comparison to its peers, Vanguard Healthcare Fund is strong in terms of performance, low costs as well as efficacious management (Wathen, 2016).

Secondly, Dodge & Cox Stock was selected for the reason that it is an active fund that has a significant and strong performance for incessant and strong returns, low expenses and having a proficient management with great experience. In addition, the load fees are set at only 0.52 percent. The mutual fund is a great investment as it lays emphasis on high-quality stocks with large capitalization value, for instance,...

The key prospect of this mutual fund is that its inclinations to the financial sector implies that it will have a good performance in the prevailing, increasing interest rate setting. More so, the experienced management team appears to deliver in the long-term period as well (Thune, 2017). Fidelity Total Bond is the other selected mutual fund. One of the key reasons why this is a fitting investment opportunity is for the reason that trust has generated a mean yearly return of 5.15 percent, being able to outperform its benchmarks. In addition, the yearly expenses of the scheme are considerably sensible, with its prevailing expense ratio being 0.45 percent. Moreover, the scheme is positioning itself to endure market pressures by carrying out a barbell approach. This takes into account investing in bonds that have the shortest and longest maturities and evading those with mid-ranged securities.
2. How much did you spend, including transaction fees?

The total amount spent including the transaction fees is $99,036.82

Mutual Funds

Scheme

Symbol

Price

Quantity

Cost

Load Fees

Total Cost

Fidelity Total Bond

FTBFX

$10.67

1,100

$11,737.00

$434.27

$12,171.27

Cite this Document:
Copy Bibliography Citation

Related Documents

Investing Capital Mutual Fund Investing Is Important
Words: 2055 Length: 6 Document Type: Essay

Investing Capital Mutual fund Investing is important for it ensures that at the end of a certain period you can benefit out of your invested money. Investing can be done through investment funds. Investing funds are collective investment schemes that require investor to create a pool of capital and in return the investor enjoys wide diversification, professional management, and lower costs that would have been otherwise impossible using a small amount of

Active Performance Management Proposal: Case Study Evaluating
Words: 1989 Length: 6 Document Type: Case Study

Active Performance Management Proposal: Case Study Evaluating Active Performance Measurement in Beechwood The research examines the potential possibilities of active performance management in the modern workplace. It first examines the current literature as a way to set a foundation for the actual analytic portion of the project. Then, specific research questions are examined in order to provide a framework to test the actual efficiency of an active performance management style implemented

Choosing One Fund for Investment Purposes
Words: 1559 Length: 5 Document Type: Essay

1. Explain the importance of net asset value (NAV) for mutual fund investing Net asset value (NAV) is delineated as the value of assets of a mutual fund scheme less the value of liabilities for every unit. It is the price in which an investor can purchase the unit of a scheme and also at the same time can be price at which the investor can sell the unit, less any

Dimensional Fund Advisors Analysis Philosophy of Dfa
Words: 1703 Length: 5 Document Type: Essay

Dimensional Fund Advisors Analysis Philosophy of DFA Dimensional Fund Advisors (DFA) was an investment firm based in Santa Monica, California that was dedicated to the principle that the stock market was "efficient," therefore implying that while over any given period some investors by luck would outperform the market and others would underperform, no one had the ability to consistently pick stocks that would beat the market (Cohen 2002, pp.1). In addition to

Exchange Traded Funds
Words: 3535 Length: 10 Document Type: Essay

ETFs The first step is setting up an investment account is to understand the client. Everything flows from this. The client profile is developed through an extensive interview process, wherein the advisor seeks to gain an understanding of the client's personal circumstances, current and envisioned financial situation, risk tolerance and investment knowledge (Anthony, 2011). With this information, the financial advisor can then build a profile based on the portfolio objectives and

Portfolio Construction and Money Management
Words: 2916 Length: 10 Document Type: Essay

financial assets in order to recommend the appropriate investment vehicle for the client. Analysis of different investment vehicles shows that ETFs are the best investment option for our clients. The ETFs are the basket of securities that combine stocks, bonds, cash, commodities and other securities. The report diversifies our investment options choosing the stocks, bonds and cash from different industries. Based on the historical data, our average annual returns

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now