Below is a list of five types of mutual funds. Choose one of the five to be used as an investment vehicle for each of the following situations. Your choice should be one that a rational investor would make (i.e., what you would advise if it was your job to advise). You can only use a fund once as a choice for one of the situations.
Fund Type: Large Cap Growth
Balanced (also called Domestic Hybrid)
Moderate Allocation
Government Bond
Money Market
a) You are looking for a fund to invest in for retirement in 40 years and are willing to accept a fairly high level of risk.
b) You are given money in July to be used for fall tuition.
c) You are given money in July to be used for tuition over the next four years and want little to no risk exposure?
d) You are saving money for a one year old child’s college education starting 15 years and would prefer average to below average risk exposure?