Abstract:
This project was performed to get a better understanding of how mutual funds work. The assignment was to select a mutual fund from three different firms. Find out information about the fund, their policies, and how much they cost. The funds' values were tracked and graphed from Monday, September 19, 2005, through Friday, November 11, 2005. The before tax rate of return must be determined for each of the funds including the costs of investments. $90,000 was divided between the three mutual funds. The three funds that were chosen were: The Vanguard 500 Index (symbol VFINX), Merrill Lynch Balanced Capital R (symbol MRBPX), and Schwab Technology Focus (symbol SWTFX). There was $30,037.75 invested in the Vanguard 500 Index fund, $30,004.80 invested in the Merrill Lynch Balanced Capital R, and $30,004.50 invested the Schwab Technology Focus. The rate of returns for all of the funds combined ended up positive.
Description of Purpose:
The purpose of the assignment is to get an understanding of engineering economy is used through a real life situation. This assignment shows how money that is invested in a mutual fund can fluctuate greatly or not fluctuate at all. This assignment helps in understanding rate of return analysis. This assignment also helps in understanding that one should make wise investments and be knowledgeable about what their money will be doing.
Statement of Process:
Three mutual funds were chosen from three different companies. Three mutual funds were chosen for their risk rating as well as their high rate of return rating on Yahoo! Finance, using Yahoo! Fund Screener and sorting the funds by highest ratings and then choo ...