Choosing the Right Fund - Essay Example

Only on StudentShare

Extract of sample
Choosing the Right Fund

Mr. B. is unwilling to take any large losses in his portfolio, so safety of principle will important. He needs a good return to provide monthly income and supplement his social security, and is willing to erode the principle somewhat over the next twelve years of his life expectancy. Accordingly, our fund search will focus on bond funds, as there is no need to consider higher risk investments in the international or growth stock sector. Since Mr. B. has neither the risk tolerance level nor the need to grow his portfolio, we will search for a managed bond fund that has low expenses. As for tax consideration, Mr. B. is currently in a low tax bracket and is looking for his money to provide the highest dependable return. Accordingly, he does not require a sophisticated tax strategy using municipal and other tax-advantaged investments.
The screening criteria are: High-yield bond, average manager tenure for the category, no-load funds only, category average fund expenses, four or five star rating from Morningstar, and a Morningstar risk level of below average (Morningstar, 1). ...Show more


Mr. B is a widowed, sixty-nine year old retired machinist. His primary source of income is his social security check and interest earned on the $ 200,000.00 he has saved over his lifetime; which is currently in a savings account at his local bank. He is looking for a good investment that will provide him with safety of principle (low-risk), a reasonable monthly income to supplement his government benefits (high-yield), and still have some money left to leave to his nephew when he dies…
Author : rboyle
Save Your Time for More Important Things
Let us write a custom essay on your topic
"Choosing the Right Fund"
with a personal 20% discount.
Find out more

Related Essays

Fed fund rate
The level of Fed fund rate is primarily influenced by the monetary policies put in place by the Federal Reserve from money-supply targeting to inflation targeting. Also, the periods of recent recession are much shorter than the previous ones. This is justified by the easier recovery of a service based economy than the manufacture oriented one.
2 pages (500 words) Essay
International Monetary Fund
Robert Olivier declared: "their major objective was to provide a world within which competitive market forces would operate freely, unhampered by government interference, for they supposed that market forces would produce optimum results for the entire world.
8 pages (2000 words) Essay
Choosing the Right Coach for Your Employees
Either way, the idea is to enhance the job skills of your employees so as to improve the company's bottom line. For this reason, it is vital that your coaching program succeeds. One of the ways of ensuring that you're the success of this program is to hire the right coach for the job.
3 pages (750 words) Article
Hedge Fund Careersc
These sorts of investments have gain considerable mileage within the financial sector as they have grown substantially. The name hedge comes form the fact that managers running a hedge account need to make additional trades in order to minimise the risks associated with their current portfolio.
9 pages (2250 words) Essay
Mutual Fund
As a result they used to have limited profit. While following the same pattern some innovative thoughts were put together along with the basic ingredients of the recipe of mutual funds to make it more reproductive. The consequences resulted in the body of open ended mutual funds.
12 pages (3000 words) Essay
Finance Investor constraints and mutual funds
tment that will provide him with safety of principle (low-risk), a reasonable monthly income to supplement his government benefits (high-yield), and still have some money left to leave to his nephew when he dies. Accordingly, we will recommend a no-load, low-expense mutual fund
2 pages (500 words) Essay
Proposal for Callingyou Inc.
The company provides 24 / 7 services and the staff rotates in terms of shifts supporting eight management offices. As there is no legacy data communication network, every stage defines the
7 pages (1750 words) Essay
third person resume summary
She has a creative nature that she reveals through her dresses. Although she wears gowns, but she slightly modifies every gown of her in such a way that her traditions and innovative ideas go side by side in
1 pages (250 words) Article
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email