Group Mutual Fund Research Project

Fin" rel="nofollow">inance 331 – Group Mutual Fund Research Project As a team, research and select a mutual fund to meet each of the followin" rel="nofollow">ing objectives. Prepare a one paragraph write-up outlin" rel="nofollow">inin" rel="nofollow">ing the research your team completed, and why your team chose this particular fund. Be sure to note the key decision makin" rel="nofollow">ing criteria you used when choosin" rel="nofollow">ing this fund, and the underlyin" rel="nofollow">ing assumptions that went in" rel="nofollow">into your analysis. Fin" rel="nofollow">inally, show the work that went in" rel="nofollow">into your calculations (for example, how you determin" rel="nofollow">ined the monthly amount to save for the home purchase). Goal 1: Home Purchase in" rel="nofollow">in 5 Years Select a fund suitable for you to save money to purchase a home in" rel="nofollow">in 5 years. You have $5,000 to save today, and in" rel="nofollow">intend to contribute to the fund monthly. How much will you need to accumulate by the end of 5 years if you wish to purchase a $300,000 home with 20% down? Usin" rel="nofollow">ing the historical 5-year return number, how much would you need to save each month to reach that goal? Goal 2: Retirement Select a fund suitable for you to save money for your retirement. You are begin" rel="nofollow">innin" rel="nofollow">ing to save today, and in" rel="nofollow">intend to contribute to the fund monthly throughout your career. Usin" rel="nofollow">ing the historical 5-year return number, how much would you need to save each month to reach a $2,000,000 goal by the time you turn 65? Would you recommend makin" rel="nofollow">ing changes to this fund as you get closer to retirement? Why or why not? Goal 3: College Savin" rel="nofollow">ings Select a fund suitable for you to save money for your newborn daughter. You have $1,000 to save today, and in" rel="nofollow">intend to contribute to the fund monthly. How much in" rel="nofollow">in total will you need to accumulate by the time your daughter turns 18 if you want to have enough to pay for her tuition (you will expect her to pay for her room, board, and books)? Usin" rel="nofollow">ing the historical 5-year return number, how much would you need to save each month to reach that goal? Would you recommend changes to this fund as your daughter ages? Why or why not? Goal 4: Emergency Fund Select a fund suitable for you to save money for your emergency cash reserve. Assume you spend $4,000/month on livin" rel="nofollow">ing expenses. How much in" rel="nofollow">in total will you need to your recommend accumulatin" rel="nofollow">ing in" rel="nofollow">in your emergency fund? What are the primary considerations for a fund designed to meet these needs? Team 5: Vacation Fund Select a fund suitable for you to save money for a dream vacation trip when you turn 30. Determin" rel="nofollow">ine where your trip will be, and the approximate cost. If you start savin" rel="nofollow">ing today, how much will you need to save each month to meet this goal? What are the primary considerations for a fund designed to meet these needs?