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STOCK INVESTMENTS Life Situation Financial Data Pam, 43 Josh, 45 Children ages 1

ID: 2652228 • Letter: S

Question

STOCK INVESTMENTS

Life Situation

Financial Data

Pam, 43

Josh, 45

Children ages 16, 14, and 11

Monthly income $4,900

Assets $262,700

Liabilities $84,600

Living expenses $4,450

Emergency fund $5,000


As previously noted, the Brocks have some of their investment portfolio in conservative stocks. These equities have had very slow growth while regularly paying a small dividend.

Pam and Josh have received several e-mails recently with suggestions about various biotechnology, retailing, and environmental companies. The investment advisers believe that these industries would provide an opportunity for strong long-term financial gains.

In recent years, the Brocks have made extensive use of mutual funds in their investment portfolio. However, they are concerned that their selection of the funds may not be coordinated. With over 9,200 different mutual funds available, this financial marketplace is confusing.

The Brocks start the evaluation process by connecting various types of mutual funds to their investments goals. Next, they assess the past performance and management of the funds. Finally, they talk with various financial advisers and other investors to gather additional information.

Question

Q4. What types of mutual funds might be considered by the Brocks for their investment portfolio?

Life Situation

Financial Data

Pam, 43

Josh, 45

Children ages 16, 14, and 11

Monthly income $4,900

Assets $262,700

Liabilities $84,600

Living expenses $4,450

Emergency fund $5,000


As previously noted, the Brocks have some of their investment portfolio in conservative stocks. These equities have had very slow growth while regularly paying a small dividend.

Pam and Josh have received several e-mails recently with suggestions about various biotechnology, retailing, and environmental companies. The investment advisers believe that these industries would provide an opportunity for strong long-term financial gains.

In recent years, the Brocks have made extensive use of mutual funds in their investment portfolio. However, they are concerned that their selection of the funds may not be coordinated. With over 9,200 different mutual funds available, this financial marketplace is confusing.

The Brocks start the evaluation process by connecting various types of mutual funds to their investments goals. Next, they assess the past performance and management of the funds. Finally, they talk with various financial advisers and other investors to gather additional information.

Question

Q4. What types of mutual funds might be considered by the Brocks for their investment portfolio?

Explanation / Answer

Existing portfolio held by Brocks is of conservative stocks which are low risks. Brocks is advisable to diversify funds so that returns are higher.

Types of mutual funds considered by Brocks can be