IFIC Chapter 15 Choosing a Mutual Fund correctly answered passed

IFIC Chapter 15 Choosing a Mutual Fund
correctly answered passed

You learned that one of the most important decisions for clients is the ________ decision, which
determines how much of each asset class should be held in their portfolios.

Asset allocation




Steps for selecting a mutual fund Step 1



Refer to sources of published mutual fund performance data.




Steps for selecting a mutual fund Step 2



Identify funds with appropriate investment objectives.




Steps for selecting a mutual fund Step 3



Look for funds with the best long-term performance




Steps for selecting a mutual fund Step 4

, Among the best long-term performers, look for best performance from year-to-year.




Steps for selecting a mutual fund Step 5



Among best year-to-year performers, find those with lower volatility




Steps for selecting a mutual fund Step 6



Among the funds with low volatility, find ones where the current investment manager was
responsible for the good performance.




Steps for selecting a mutual fund Step 7



Compare fund facts documents and compare prospectuses.




Steps for selecting a mutual fund Step 8



Examine fees and charges.




Steps for selecting a mutual fund Step 9