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Evaluating Mutual Fund Investment Information: Source Source Source Criteria Evaluation 1 2 3

The document provides guidance on evaluating mutual fund investment information sources and a specific mutual fund. It includes criteria for evaluating sources and questions to consider when assessing a potential mutual fund investment. The document suggests checking funds' expenses, performance history, diversification, and top holdings. It cautions that no checklist can replace all relevant due diligence, but can help start the evaluation process.

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Joel Christian Mascariña
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167 views2 pages

Evaluating Mutual Fund Investment Information: Source Source Source Criteria Evaluation 1 2 3

The document provides guidance on evaluating mutual fund investment information sources and a specific mutual fund. It includes criteria for evaluating sources and questions to consider when assessing a potential mutual fund investment. The document suggests checking funds' expenses, performance history, diversification, and top holdings. It cautions that no checklist can replace all relevant due diligence, but can help start the evaluation process.

Uploaded by

Joel Christian Mascariña
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Name: Sample Student Date: March 7, 2021

Evaluating Mutual Fund Investment Information


Purpose: To identify and assess the value of various mutual fund investment information sources. 40
Instructions: Obtain samples of several items of information that you might consider to guide you in your investment decisions.
Suggested Web sites: morningstar.com/Cover/Funds.aspx kiplinger.com/guides/mutualfunds/index.html?si=1
lipperleaders.com mfea.com money.cnn.com/data/funds/?iid=H_INV_QL

Source Source Source


Criteria Evaluation 1 2 3
Information source,
organization

Address

Your Personal Financial Plan


Phone number

Web site

Overview of information
provided (main features)

Cost, if any

Ease of access

Evaluation
* Reliability
* Clarity
* Value of
information compared
to cost

What's Next for Your Personal Financial Plan?


* Talk with friends and relatives to determine what sources of information they use to evaluate mutual funds.
* Choose one source of information and describe how the information could help you obtain your investment goals.
Name: Sample Student Date: March 7, 2021

Mutual Fund Evaluation


Purpose: No checklist can serve as a foolproof guide for choosing a mutual fund. However, the following questions will help you
evaluate a potential investment in a specific fund. 41
Instructions: Use mutual fund Web sites and/or library materials to answer these questions about a mutual fund that you believe
could help you attain your investment goals.
Suggested Web sites: morningstar.com/Cover/Funds.aspx finance.yahoo.com/funds dfaus.com
personal.vanguard.com fidelity.com individual.troweprice.com sec.gov/investor/pubs/inwsmf.htm

Please read the directions below the sheet as some of the information requested will be downloaded from the web.

Category 1: Fund Characteristics Category 4: Fund Performance

1. What is the fund's ticker symbol? What is the fund's name? 16. How long has the fund manager been with the fund?

Ticker: VTSMX Vanguard Total Stock Mkt Idx Inv years


26.11
2. What is the fund's Morningstar rating?

Your Personal Financial Plan


4 stars/gold 17. How would you describe the fund's performance
3. What is the minimum investment? over the past 12 months?
Beginning ofnyear slow and large increase last couple of
$3,000
months.
4. Does the fund allow telephone or internet 18. How would you describe the fund's performance
exchanges? ✘ Yes No over the past five years?
5. Is there a fee for exchanges?
✘ Yes No 19. How would you describe the fund's performance
Fee: over the past 10 years?
Category 2: Costs Overall, an large increase from 10 years ago.
6. Is there a front-end load charge? If so, how much is 20. What is the current net asset value for this fund?
it?
Net Asset Value (NAV): $32.86
Yes___ No_x__ Amount: (percentage)
7. Is there a redemption fee? If so, how much is it? 21. What is the high net asset value for this fund
Yes___ No__x_ Amount: (percentage) over the last 12 months?
8. How much is the annual management fee? High: $35.46
$20 (percentage) 22. What is the low net asset value for this fund
9. Is there a 12b-1 fee? If so, how much is it? over the last 12 months?
Yes___ No__x_ Amount: (percentage) Low: $27.16
10. What is the fund's expense ratio? 23. What do the experts say about this fund?
0.04% (percentage)
This is highly rated
Category 3: Diversification
Category 5: Conclusion
11. What is the fund's objective?
benchmark index 24. Based on the above information, do you think an
12. What types of securities does the fund's portfolio investment in this fund will help you achieve your
include? investment goals?
✘ Yes No
25. Explain your answer to question 24.
13. How many different securities does the fund's
portfolio include?
A Word of Caution
14. How many different types of industries does the
fund's portfolio include? When you use a checklist, there is always a danger
of overlooking important relevant information. This
3622 checklist is not a cure-all, but it does provide some very
sound questions that you should answer before making
a mutual fund investment decision. Quite simply, it is a
15. What are the fund's five largest holdings?
Apple Inc place to start. If you need other information, you are
Microsoft Corp responsible for obtaining it and for determining how it
Amazon.com Inc affects your potential investment.
Facebook Inc A
Tesla Inc

What's Next for Your Personal Financial Plan?

* Identify additional factors that may affect your decision to invest in this fund.
* Develop a plan for monitoring an investment's value once a mutual fund(s) is purchased.

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