Assignment: Financial Markets
I) Assume you are an investment advisor. Your client is unsure what are the main benefits and reasons for investing in a Mutual Fund or an
ETFs
1. Explain the main differences and similarities between each other
2. Explain what are the main advantage and disadvantage of investing in mutual funds or ETFs
3. Explain the main difference between active and passive management
II) Go to morningstar.
1. Morningstar assigns a Rating to each Mutual Fund. What are the criteria they use to assign this rating?
2. Using the information provided by Morningstar or other financial web pages (style box and ratings), choose 4 different mutual funds/ETFs (4 funds/ETFs in order to build each portfolio), prepare 3 portfolios, 1 for each of 3 different types of investors:
o Assume you are an investment advisor. Your client is unsure what are the main benefits and reasons for investing in a Mutual Fund or an
ETFs
1. Explain the main differences and similarities between each other
2. Explain what are the main advantage and disadvantage of investing in mutual funds or ETFs
3. Explain the main difference between active and passive management
III) Go to morningstar.
1. Morningstar assigns a Rating to each Mutual Fund. What are the criteria they use to assign this rating?
2. Using the information provided by Morningstar or other financial web pages (style box and ratings), choose 4 different mutual funds/ETFs (4 funds/ETFs in order to build each portfolio), prepare 3 portfolios, 1 for each of 3 different types of investors:
a. Aggressive
b. Moderate
c. Conservative
3. In half a page for each portfolio, explain:
a. The rationale behind choosing the given funds/ETFs per each portfolio
b. The criteria chosen to build each portfolio
4. Follow up the prices for all 3 portfolios for a week. Calculate the return for each portfolio at the end of the week. Explain your results.
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.