The following questions will help you evaluate a potential investment in a mutual fund. Suggested sources of information are: Morningstar, or Standard & Poors net advantage.

A: Fund Characteristics
         1. The value of the assets of this fund is
         2. The fund’s Morningstar rating or Standard & Poors’ rating is:
         3. The minimum investment in this fund is:
         4. The fund (does, does not) allow telephone exchanges
         5. (There is, there is not) a fee for telephone exchanges
B: Costs
         6. There is a (front-end load, back-end load) charge and it is _____%
         7. The annual management fee is _____%
         8. The 12b-l fee is _____%
         9. The fund’s expense ratio is _____%
         10. Discuss how the above expenses compare with funds that have the same objectives.         

C: Diversification
         11. List the fund’s investment objective (style, and category)
         12. List the types of securities the fund’s portfolio includes (stocks, bonds, T-bills), etc…
         13. List the fund’s top ten holdings and what is their total weight.
D: Fund Performance
         14. The fund manager has been with the fund since: ___________________
         15. Rate the fund’s performance over the past 12 months, 3-years, 5-years, and 10-years.
         16. How does the fund compare with the market (use benchmark given)?
         17. How does the fund compare with its peers?

E: Conclusion
         18. Would an investment in this fund help you achieve your investment goals?
       Explain your answer.

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Mutual Fund Evaluation

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