Mutual Fund Project Essay

The storehouse employs a peaceable counsel investment approach. It is a low cost way to gain diversified exposure to the rectitude market in the United States.The line invests in 500 of the largest companies in the United States. The companies span some(prenominal) different industries and the fund accounts for approximately 75% of the United States stock markets value. VFINX measures the investment beget of large-capitalization stocks. The most obvious risk is the volatility that comes with its full exposure to the stock market. The mutual fund portfolios composition is made up of 99. 45% stocks and . 55% cash. The expense ratio for this mutual fund is . 17%. This is the annual fee that shareholders are charged.It expresses the percentage of assets deducted each fiscal year for fund expenses, including 12b-1 fees, focal point fees, administrative fees, operating costs, and all other asset-based costs incurred by the fund. For the Year-to-Date (ytd) rankings in its category, VFINX ranked in at 24 correspond to Yahoo Finance. Over the last 10 geezerhood, the fund has performed in direct coefficient of correlation to the S& deoxyadenosine monophosphateP 500 being that it is an index fund and there is a of import of 1, meaning that whatever the S&P 500 does, the fund will do as well.VFINX is a good choice if an investor is seeking a mutual fund that offers the stability of large, established companies and the across-the-board exposure of a fund that holds both value and growth stocks. Fidelity Magellan Fund (FMAGX) has ridden the ups and downs over the years of the markets roller coaster. The fund has g unrivaled through many changes over the years and one of the most important key factors to the funds performance has been related to the way it was managed. The fund soon has assets totaling 14. billion and its portfolio consists of growth and value stocks across the capitalization spectrum from around the world and the United States.The fund keep s about 20 percent of the holdings in foreign stocks. It is one of the worlds most known actively managed funds and has finally found some stability due to its newest manager, Harry Lange. In 2008, during the financial crisis, the management chose to stay aggressive instead of investing defensively and incurred a bad loss, which lead to the changes in management. FMAGX is classified advertisement as a large growth fund and is ranked 24 in its category according to Yahoo Finance. The 3-year beta is 1. 7, which means that it bears more risk than investing directly in the S&P 500, however this also means that it could provide heftier returns. The mutual fund portfolios composition