Mutual Fund Analysis

Outline of Topics

The objective of the assignment is to critically analyze the risk adjusted performance of a mutual fund.  Your analysis should include the factors and statistics we talk about in class when covering chapters 13.  Your primary source of information and statistics is the mutual fund data sheet provided in class.

Please read the syllabus for instruction on how to format and prepare you essay.

Essentially the format of your analysis should be to evaluate the risk and return characteristics of your fund, as well as other qualifying information.  You will want to begin your analysis with a brief introduction to your fund e.g. it is a high yield bond fund that invests XX% in bonds rated less than BBB.

Risk Evaluation

Beta

What is beta and how is it used in analyzing risk?  What does beta tell us about return? What is the beta of your fund and what does it mean. Examples are always good to aid understanding.

R2

What is it and how is it used in analyzing risk.  What is the statistic for your fund and what does it mean about beta?  Examples are always good to aid understanding.

Return Evaluation

Alpha

What is it and how is it used in analyzing investment return performance.  How is it related to beta?  What does it say about the fund manager?

Manager Tenure

What is it and why do investors care? How is manager tenure related to % Rank within Morningstar Category?

% Rank within Morningstar Category

What is it and how is it used. What is it for your fund?  What does it say about the fund manager and his/her tenure.

Other Issues

Potential Capital Gains Exposure

What is it?  What does it mean? How is it related to the tax efficiency of your fund?

Expense Ratio

What is it?  What is it for your fund?  Of what is it composed?  How does it relate to investment return and why do investors care?

Turnover Ratio

What is it? How does it relate to the expense ratio, capital gains exposure, and total return?

Attachment:- Assignment.rar