Finance Investor constraints and mutual funds Essay

Finance Investor constraints and mutual funds - Essay Example B. is not a sophisticated man who would be able to understand the intricacies of creating and monitoring a traditional portfolio of stocks and bonds. Given the investment parameters and lifestyle needs of the client, we will look for a mutual fund that is primarily invested in domestic corporate bonds. Mr. B. is unwilling to take any large losses in his portfolio, so safety of principle will important. He needs a good return to provide monthly income and supplement his social security, and is willing to erode the principle somewhat over the next twelve years of his life expectancy. Accordingly, our fund search will focus on bond funds, as there is no need to consider higher risk investments in the international or growth stock sector. Since Mr. B. has neither the risk tolerance level nor the need to grow his portfolio, we will search for a managed bond fund that has low expenses. As for tax consideration, Mr. B. is currently in a low tax bracket and is looking for his money to provide the highest dependable return. Accordingly, he does not require a sophisticated tax strategy using municipal and other tax-advantaged investments. The screening criteria are: High-yield bond, average manager tenure for the category, no-load funds only, category average fund expenses, four or five star rating from Morningstar, and a Morningstar risk level of below average (Morningstar, 1). This search returned ten funds: Buffalo High-Yield (BUFHX); Fidelity Advisor High Income (FHIAX); Fidelity Advisor High Income Instl (FHNIX); MassMutual Premier High Yield (DHLHYX); Northeast Investors (NTHEX); Regions Morgan Keegan Select Hi Inc A LW (MKHIX); Regions Morgan Keegan Select Hi Inc I (RHIIX); T. Rowe Price High-Yield (PRHYX); T. Rowe Price High-Yield Adv (PAHIX); and Wells Fargo Advantage High Income I (SHYYX)(Morningstar, 1). We have chosen Northeast Investors for Mr. B. because of its higher yield, relatively low expense ratio, and its large asset base. This fund

PORTFOLIO Essay Example | Topics and Well Written Essays - 1000 words

PORTFOLIO - Essay Example unds that I have made in my journey through this class this semester and explain the methods I used to come up with thought inducing topics but also to be able to express papers through methods in which the assignment was clear but still had a point. When I would first try to determine the topics for which I would write about, I would consider my own personal experiences and the things around me that influence my thinking. The best way to determine a topic for me was to take a subject of interest and conduct research in order to elaborate more on it. When I did some thinking, writing and research my ideas would change and I thought of ways to narrow down a topic and the way in which to portray what I was trying to say. There were several times when I had to determine whether or not the topic that I was most interested in was one that I really wanted to write about or if I could find enough research about it. To decide, I would use library services and also the Internet to find topics that had supporting research. I still wanted to maintain my own voice in these papers because they were of interest to me. When looking at some of the most difficult problems I faced while writing, the fact that I am a non-native speaker and student made it difficult. There were some issues or concepts discussed in writings that I was unfamiliar with. I found that some of my information should focus more on the United States and some of the situations found in the culture and society here. The cultural differences and importances in society made a difference in some of the things that I would write about. My grammar and basic way of thinking is a struggle when compared to American English and it was a bit of a challenge to overcome. I did my best to seek out help in order to write to the best of my ability and still organize papers so that they made sense. When researching, I took the advice of my professor, my tutor and my peers. I was often provided with information