Mutual Fund Project
1. Personal Investment Processing:
1). Starting point:
I have decided investing $100,000 in a mutual fund on my own. I will check many different mutual funds performance and risk to select the best four funds. On the other hands, I will consider risk of every mutual fund to estimate income and potential income growth.
I invest mutual funds for my new house and college education.
3). Investment Horizon:
My investment belongs to Medium– Term because I plan buying a new house and college education in ten years.
4). Risk Tolerance:
My risk tolerance belongs to moderate. Firstly, I am not a veteran in investment and I need learning more knowledge about investment. Therefore I do not doing aggressive behavior in investment. Besides, I have optimistic mindset and I will not sad and angry if the investment result is not earning my expected return even lose money. On the other hand, I will not be conservative because this money comes from my distant relative who won the lottery and I don’t care about the losing in investment, and I will use them creating more money if possible, which means I will not be risk aversion.
5). Understand the assets I select:
I select four mutual funds in two different mutual fund company: one is T. Rowe Price, founded in 1937. It manages $614 billion in asset. Serving individuals, financial intermediaries and institutions and offering a full range of investment strategies. The other one is Vanguard which manage $1.6 trillion and offer kinds of mutual funds, ETFS, Stocks, Bonds & CDs.
6). Understand the role of different assets type：
I selected four funds include two domestic funds in T. Rowe Price, and one ETF and one Intermediate-Term Bond in Vanguard.
7). Return of principal trumps return on principal
I have optimistic mindset to face any difficult and failure in future’s investment, and I know that the best way to achieve or maintain wealth through investing is to lose as little...